LAW ON NATURAL RESOURCES REVIEWER

Blacks Law Definition of Natural

Resources
Blacks first definition in his 7
th
ed. is any material
from nature having potential economic value or
providing for the sustenance of life, such as timber,
minerals, oil, water and wildlife. The second
definition is environmental features that serve a
communitys wellbeing or recreational interests,
such as parks.
Blacks !"i#th edition, $%%&', defined natural
resources as any material in its native state which
when e#tracted has economic value. Basically it
states that for a substance or feature to be classified
as a natural resource, it must offer potential or actual
economic value, creating wealth.
Definition of Natural Resources Ot!er
We"sites
Natural resource is any naturally occurring
substance or feature of the environment !physical or
biological' that, while not created by human effort,
can be e#ploited by humans to satisfy their needs or
wants. (any of such resources are our life line such
as water, air and solar radiation, which are essential
elements for the e#istence of all the flora and fauna.
Two basic conditions for a substance or feature to be
classified as a natural resource) *irst, the resource
must e#ist naturall$ in the environment+ that is, not
synthetically produced by human beings, such as in a
laboratory or factory. "econd, the resource must be
able to be e#ploited by humans to %irectl$ satisf$ a
nee% or want&
,atural resources may either be)
a' Biotic resources which are derived from
biosphere such as the forests, marine
organism, animals, birds and their products
including mineral fuels come in this
category, or
b' -biotic which includes water, air, land and
elemental ores such as gold, silver, copper,
iron etc.
.t may also be either be renewable and non
renewable resources. - renewable resource grows
again or comes back again after we use it. *or
e#ample, sunlight, water, and trees are renewable
resources. - nonrenewable resource is a resource
that does not grow or come back, or a resource that
would take a very long time to come back. *or
e#ample, coal is a nonrenewable resource.
Re'alian Doctrine
Art (II) Sec& * of t!e +,-. Constitution
-ll lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife,
flora and fauna, and other natural resources are
owned by the "tate. /ith the e#ception of
agricultural lands, all other natural resources shall
not be alienated. The e#ploration, development, and
utili0ation of natural resources shall be under the full
control and supervision of the "tate. The "tate may
directly undertake such activities, or it may enter
into coproduction, 1oint venture, or production
sharing agreements with *ilipino citi0ens, or
corporations or associations at least si#ty per
centum of whose capital is owned by such citi0ens.
"uch agreements may be for a period not e#ceeding
twentyfive years, renewable for not more than
twentyfive years, and under such terms and
conditions as may be provided by law. .n cases of
water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water
power, beneficial use may be the measure and limit
of the grant.
The "tate shall protect the nation2s marine wealth in
its archipelagic waters, territorial sea, and e#clusive
economic 0one, and reserve its use and en1oyment
e#clusively to *ilipino citi0ens.
The 3ongress may, by law, allow smallscale
utili0ation of natural resources by *ilipino citi0ens, as
well as cooperative fish farming, with priority to
subsistence fishermen and fish workers in rivers,
lakes, bays, and lagoons.
The 4resident may enter into agreements with
foreignowned corporations involving either technical
or financial assistance for largescale e#ploration,
development, and utili0ation of minerals, petroleum,
and other mineral oils according to the general terms
and conditions provided by law, based on real
contributions to the economic growth and general
welfare of the country. .n such agreements, the "tate
shall promote the development and use of local
scientific and technical resources.
T!e Conce/t of 0ure Re'alia 1Re'alian Doctrine2
This principle means that all natural wealth
agricultural, forest or timber, and mineral lands of
the public domain and all other natural resources
belong to the "tate. Thus, even if the private person
owns the property where minerals are discovered,
his ownership for such does not give him the right to
e#tract or utili0e said minerals without permission
from the state to which such minerals belong.
The abovementioned provision provides that e#cept
for agricultural lands for public domain which alone
may be alienated, forest or timber, and mineral
lands, as well as all other natural resources must
remain with the "tate, the e#ploration, development
and utili0ation of which shall be sub1ect to its full
control and supervision albeit allowing it to enter into
coproduction, 1oint venture or productionsharing
agreements, or into agreements with foreignowned
corporations involving technical or financial
assistance for largescale e#ploration, development,
and utili0ation
Cases
+& Cru3 4s& Secretar$ of En4iron5ent an%
Natural Resource 1*6662
7acts
4etitioners .sagani 3ru0 and 3esar 5uropa
filed a case for prohibition and mandamus
as citi0en and ta#payers, assailing the
constitutionality of certain provisions of the
.ndigenous 4eoples 6ights -ct !.46-' and its
implementing 6ules on ground that they
amount to an unlawful deprivation of the
"tates ownership over lands of public
domain and minerals and other natural
resources, in violation of the 6egalian
doctrine.
o They likewise contend that
providing an allencompassing
definition of ancestral domain
and ancestral lands which might
even include private lands within
the areas violate the rights of
private land owners.
o 4etitioners likewise contend that
provisions of the .46- defining the
1urisdiction and powers of the ,3.4
violate due process of law.
o 7astly, petitioners assail the
validity of ,3.4 -dministrative
8rder ,o. $ which provides that the
administrative relationship of the
,3.4 to the 8ffice of the 4resident
!84' as lateral and autonomous
relationship for purposes of policy
coordination, thereby infringing
upon the 4residents power of
control over the e#ecutive
department.
- groups of intervenors, including "en.
*lavier, one of the authors of the .46- and
members of $$9 groups of indigenous
peoples prayed for the dismissal of the
petition.
The 3ommission of :uman 6ights likewise
asserts that .46- is an e#pression of the
principle of parens patriae and that the
"tate has the responsibility to protect the
rights of the indigenous peoples.
Decision
The votes of the 3ourt are split where 7 voted to
dismiss the petition and 7 voted to grant. -s the
votes were e;ually divided and the necessary
ma1ority was not obtained, the petition was
dismissed.
"54-6-T5 84.,.8, !<ustice 4uno'
.. T!e De4elo/5ent of t!e Re'alian Doctrine
in t!e 8!ili//ine Le'al S$ste5
-. T!e Laws of In%ies
The 6egalian =octrine or 1ura regalia is a
/estern legal concept first introduced by
the "paniards through the Laws of Indies
and the 6oyal 3edulas. -ll lands became the
e#clusive dominion of the "panish 3rown,
and the "panish >overnment took charge of
distributing the lands by issuing royal grants
and concessions to "paniards. 4rivate land
titles can only be ac;uired from the
government by purchase or other land grant
from the 3rown.
The 7aw of .ndies was followed by the
Mortgage Law of 1893 which provided for
the systematic registration of titles and
deeds. The Maura Law of 1894 was the last
"panish law promulgated in the 4hilippines,
which re;uired the registration of all
agricultural lands+ otherwise the lands shall
revert to the state.
B. Valentin 4s& 9urciano
This case answered the ;uestion of which is
the better basis for ownership of land) long
time occupation or paper title.
.n this case, plaintiffs entered into peaceful
occupation of the sub1ect land while
defendants ourchased the land in $?%9. The
3ourt ruled that from $?@& to $?%9 there
was no law in force in the 4hilippines by
which plaintiffs could obtain ownership by
prescription, without any action of the "tate,
otherwise the same shall remain the
property of the "tate. Thus, it re;uired
settlers on public lands to obtain titles
deeds from the "tate.
3. 8u"lic Lan% Acts an% t!e Torrens
S$ste5
Act No 9!", the first 4ublic 7and -ct, was
passed in pursuance with the 4hilippine Bill
of $%&9, governing the disposition of land of
public domain. .t prescribe rules for the
homesteading, selling and leasing of
portions of the public domain, and to enable
persons to perfect their titles to public
lands. .t also provided for the issuance of
patents to certain native settlers upon
public lands.
-ct ,o. %9@ was superseded by the Act
!8#4, the second 4ublic 7and -ct, passed
under the <ones 7aw. it limited the
e#ploitation of agricultural lands to *ilipinos
and -mericans and citi0ens of other
countries which gave the *ilipinos the same
privileges.
.t was amended by $ommonwealt% Act No
141which remains the present 4ublic 7and
7aw.
>rants of public land were brought under
the operation of the &orrens '(stem under
Act 49" which placed all public and private
lands in the 4hilippines under the Torrens
system, re;uiring that the government issue
an official certificate of title attesting to the
fact that the person named is the owner of
the property described.
=. T!e 8!ili//ine Constitutions
The 6egalian =octrine was enshrined in the
$%AB, $%7A and $%?7 3onstitutions which
basically states that all lands of the public
domain as well as natural resources,
whether on public or private land, belong to
the "tate. .t is this concept of state
ownership that petitioners claim is being
violated by the .46-.
... T!e In%i'enous 8eo/les Ri'!ts Act
The .46- recogni0es the e#istence of the
indigenous cultural communities or indigenous
peoples as a distinct sector. .t grants these
people the ownership and possession of their
ancestral domains and ancestral lands, and
defines the e#tent of these lands and domains.
/ithin their ancestral domains and lands the
.33sC.4s are given the right to selfgovernance
and right to preserve their culture. To carry out
the policies of the -3T, the law created the
,ational 3ommission on .ndigenous 4eoples
!,3.4'
-. In%i'enous 8eo/les
.ndigenous 3ultural 3ommunities or .ndigenous
4eoples !.33sC .4s' refer to a group of people
who have continuously lived as an organi0ed
community on communally bounded and defined
territory. These groups of peoples have actually
occupied, possessed and utili0ed their territories
under claim of ownership since time
immemorial.
Their unit of government is the barangay. .n a
baranganic society, the chiefs administered the
lands in the name of the barangay, there was no
private property in land. /hen .slam was
introduced in the country in the archipelago of
(aguindanao, the "ultanate of "ulu claimed
1urisdiction over territorial areas.
/hen "paniards settled in the 4hilippines,
"panish missionaries were ordered to establish
pue)los where church would be constructed. -ll
the new 3hristian converts were re;uired to
construct their house around the church. -ll
lands lost by the old barangays in the process of
pueblo organi0ation and all lands not assigned to
the pueblos were declared to be lands of the
3rown., and the natives were stripped of their
ancestral rights to the lands.
The -merican government classified the *ilipinos
into two) 3hristian *ilipinos and non3hristian
*ilipinos, not to religious belief, but to
geographical area, the latter referring to natives
of the 4hilippines of a low grade of civili0ation,
usually living in tribal relationship. The
-mericans pursued a policy of assimilation. They
passed Act No !*3 creating t%e )ureau of Non+
$%ristian &ri)es to determine the most
practicable means for bring about their
advancement.
The 193* $onstitution did not carry any policy
on the non3hristian *ilipinos. .t was in the 19#3
$onstitution that the "tate recogni0ed the
customs and interest of national cultural
communities in the formulation of state policies.
.n $%7D, 4resident (arcos promulgated ,- 41.
or t%e Ancestral Lands -ecree/ providing for the
issuance of land occupancy certificates to
members of the national cultural communities.
The -;uino government shifted from the policy
of integration to one of preservation. "he
created the 8ffice of (uslim -ffairs, 8ffice of
,orthern 3ultural 3ommunities and the 8ffice for
"outhern 3ultural 3ommunities all under the 84.
The 198# $onstitution e#pressly guaranteed the
rights of tribal *ilipinos to their ancestral domain
and ancestral lands.
.... T:E 8ROVISIONS O7 T:E I8RA DO NOT
CONTRAVENE T:E CONSTITUTION
-. Ancestral Do5ains an% Ancestral Lan%s
are t!e 8ri4ate 8ro/ert$ of t!e In%i'enous
8eo/les an% %o not constitute 8art of t!e
Lan% of 8u"lic Do5ain
Ancestral domains are all areas belonging to
.33sC.4s held under a claim of ownership,
occupied or possessed by .33sC.4s since time
immemorial, continuously until the present
e#cept when interrupted by war or force
ma1eure. .t comprises of lands, inland waters,
coastal areas, and natural resources therein and
includes ancestral lands, forests, pastures,
hunting grounds, burial grounds, and bodies of
water, mineral and other natural resources.
Ancestral lands are lands held by the .33sC .4s
under the same conditions as ancestral domains
e#cept that these are limited to lands, not
merely occupied and possessed but are also
utili0ed, including residential lots, rice terraces,
or paddies, private forests.
The delineation of ancestral domains and lands
is conferred on the ,3.4 who shall issue a
3ertificate of -ncestral =omain !3-=T' upon
finding that the application is meritorious, in the
name of the community. -ncestral 7ands outside
the ancestral domain, the ,3.4 issues a
3ertificate of 7and Title !3-7T'. The 3-7Ts and
3-=Ts shall be registered in the 6egister of
=eeds in the place where property is situated.
B. Carino 4s& Insular ;o4ern5ent
8n <une 9A, $%&A, (ateo 3ariEo went to the 3ourt of
7and 6egistration to petition his inscription as the
owner of a $D@ hectare land hes been possessing in
the then municipality of Baguio. (ateo only
presented possessory information and no other
documentation. The "tate opposed the petition
averring that the land is part of the F" military
reservation. The 376 ruled in favor of (ateo. The
"tate appealed. (ateo lost. (ateo averred that a
grant should be given to him by reason of
immemorial use and occupation.
The F" "3 ruled in favor of 3arino and ordered the
registration of the sub1ect lands in his name. The
court laid down the presumption of a certain title
held as far back as memory went and under a claim
of private ownership. 7and held by this title is
presumed to never have been public land. The
registration re;uirement was not to confer title, but
simply to establish it. .n a
nutshell, $ari0o enunciated the legal presumption
that ancestral lands and domains were not part of
the public domain, having maintained their character
as private lands of the indigenous peoples since time
immemorial
1%( $arino doctrine is uni2ue3
3arino is the only case that specifically recogni0es
native title. 3arino was cited by succeeding cases to
support the concept of ac;uisitive prescription under
the 4ublic 7and -ct
8ther "eparate 8pinions)
0ustice <a/unan
6egalian theory doesnt negate the native title to
lands held in private ownership since time
immemorial, adverting to the landmark case of
3-6.,8 G. 783-7 >8G56,(5,T, where the F" "3
through :olmes held) ### the land has been held by
individuals under a claim of private ownership, it will
be presumed to have been held in the same way
from before the "panish con;uest, and never to have
been public land. 5#istence of native titie to land, or
ownership of land by *ilipinos by virtue of possession
under a claim of ownership since time immemorial
and independent of any grant from the "panish
crown as an e#ception to the theory of 1ure regalia
0ustice 8uno) 3arino case firmly established a
concept of private land title that e#isted irrespective
of any royal grant from the "tate and was based on
the strong mandate e#tended to the .slands via the
4hilippine Bill of $%&9. The .46- recogni0es the
e#istence of .33sC.4s as a distinct sector in the
society. .t grants this people the ownership and
possession of their ancestral domains and ancestral
lands and defines the e#tent of these lands and
domains
9. C!a4e3 4s& 8u"lic Estates Aut!orit$
1*66*2
+

7acts
The 4hil govt !through the 3ommissioner of
4ublic :ighways' signed a contract with the
3=34 !3onstruction and =evelopment
3orporation of the 4hilippines' to reclaim
certain foreshore and offshore areas of
(anila Bay and for the construction of the
(anila3avite 3oastal 6oad.
4res. (arcos issued 4.=. $&?D creating 45-
!4ublic 5states -uthority' and transferred to
it the Hlands reclaimed in (anila Bay for the
(anila3avite 6oad and 6eclamation 4ro1ect
!(33664'.
Thereafter, 4res. -;uino issued "pecial
4atent ,o. AB$7, granting and transferring
to 45- the parcels of land so reclaimed
under the (33664. - T3T was also issued
in the name of 45- covering A reclaimed
islands known as the I*reedom .slandsI
!$B7.?D hectares' located at the southern
portion of the (anila3avite 3oastal 6oad,
4araJa;ue 3ity, which were part of these
lands ac;uired by 45-.
45- entered into a <oint Genture -greement
!<G-' with -(-6. !-(-6. 3oastal Bay and
=evelopment 3orporation', a private
corporation, to develop the *reedom
.slands.
o :owever, the <G- also re;uired the
reclamation of an additional 9B&
hectares of submerged areas
surrounding these islands to
complete the configuration in the
(aster =evelopment 4lan of the
"outhern 6eclamation 4ro1ect
(33664.
o 45- and -(-6. entered into the
<G- through negotiation without
public bidding.
8n <une ?, $%%B, then 4resident *idel G.
6amos, through then 5#ecutive "ecretary
6uben Torres, approved the <G-.
8n ,ovember 9%, $%%@, then "enate
4resident (aceda delivered a privilege
speech denouncing the <G- as the
Igrandmother of all scams.I
Thus the "enate 3ommittees investigated
on the matter and concluded !$' the
reclaimed lands 45- seeks to transfer to
-(-6. under the <G- are lands of the public
domain which the government has not
$
Two subse;uent motions for reconsideration was
filed and were denied.
classified as alienable lands and therefore
45- cannot alienate these lands+ !9' the
certificates of title covering the *reedom
.slands are thus void, and !A' the <G- itself is
illegal.
4etitioner *rank 3have0, as a ta#payer, filed
the instant 4etition for (andamus with
4rayer for .ssuance of a /rit of 4reliminary
.n1unction and T68.
(arch A&, $%%%, 45- and -(-6. signed an
-mended <oint -greement, which was
approved by 4res. 5strada.
,ote)
The Amended Joint Venture Agreement) The
sub1ect matter of the -mended <G-, as stated in its
second /hereas clause, consists of three properties,
namely)
$. IKTLhree partially reclaimed and
substantially eroded islands along 5milio
-guinaldo Boulevard in 4arana;ue and 7as
4inas, (etro (anila, with a combined titled
area of $,B7?,DD$ s;uare meters+I
9. IK-Lnother area of 9,D9$,BB% s;uare
meters contiguous to the three islands+I and
A. IK-Lt -(-6.2s option as approved by 45-,
an additional AB& hectares more or less to
regulari0e the configuration of the reclaimed
area.I
45- confirms that the -mended <G- involves Ithe
development of the *reedom .slands and further
reclamation of about 9B& hectares # # #,I plus an
option Igranted to -(-6. to subse;uently reclaim
another AB& hectares # # #.I
.n short, the -mended <G- covers a reclamation area
of 7B& hectares. Only 157.84 hectares of the
750-hectare reclamation ro!ect ha"e #een
reclaimed$ and the rest of the 5%&.15 hectares
are still su#merged areas forming art of
'anila (ay.
)ndisuta#ly$ under the Amended JVA$ A'A*)
+ill ac,uire and o+n a ma-imum of ./7.5
hectares of reclaimed land +hich +ill #e titled
in its name.
Issue
/hether the stipulations in the -mended <oint
Genture -greement or the transfer to -(-6. of
certain lands reclaimed and still to be reclaimed
violate the $%?7 3onstitution.
Decision
The "3 summari0ed the conclusions as follows)
$. The $B7.?D hectares of reclaimed lands
comprising the *reedom .slands, now
covered by certificates of title in the name
of 45-, are aliena#le lands of the u#lic
domain. 45- may lease these lands to
private corporations but may not sell or
transfer ownership of these lands to private
corporations. 45- may only sell these lands
to 4hilippine citi0ens, sub1ect to the
ownership limitations in the $%?7
3onstitution and e#isting laws.
9. The B%9.$B hectares of submerged areas
of (anila Bay remain inalienable natural
resources of the public domain until
classified as alienable or disposable lands
open to disposition and declared no longer
needed for public service. The government
can make such classification and declaration
only after 45- has reclaimed these
submerged areas. 8nly then can these lands
;ualify as agricultural lands of the public
domain, which are the only natural
resources the government can alienate. .n
their present state, the B%9.$B hectares of
submerged areas are inaliena#le and
outside the commerce of man.
A. "ince the -mended <G- seeks to transfer
to -(-6., a private corporation, ownership
of 77.AD hectares

of the *reedom .slands,
such transfer is void for being contrary to
"ection A, -rticle M.. of the $%?7
3onstitution which prohibits private
corporations from ac;uiring any kind of
alienable land of the public domain.
D. "ince the -mended <G- also seeks to
transfer to -(-6. ownership of 9%&.$B@
hectares

of still submerged areas of (anila
Bay, such transfer is void for being contrary
to "ection 9, -rticle M.. of the $%?7
3onstitution which prohibits the alienation
of natural resources other than agricultural
lands of the public domain. 45- may reclaim
these submerged areas. Thereafter, the
government can classify the reclaimed lands
as alienable or disposable, and further
declare them no longer needed for public
service. "till, the transfer of such reclaimed
alienable lands of the public domain to
-(-6. will be void in view of "ection A,
-rticle M.. of the $%?7 3onstitution which
prohibits private corporations from ac;uiring
any kind of alienable land of the public
domain.
3learly, the -mended <G- violates glaringly "ections
9 and A, -rticle M.. of the $%?7 3onstitution. Fnder
-rticle $D&%

of the 3ivil 3ode, contracts whose
Iob1ect or purpose is contrary to law,I or whose
Iob1ect is outside the commerce of men,I are
Iine#istent and void from the beginning.I The 3ourt
must perform its duty to defend and uphold the
3onstitution, and therefore declares the
-mended JVA null and "oid a# initio.
=& C!a4e3 4s& National :ousin' Aut!orit$
1*66.2
7acts
8n -ugust B, 9&&D, former "olicitor >eneral
*rancisco 3have0, filed an instant petition
raising constitutional issues on the <G-
entered by ,ational :ousing -uthority and
6.. Builders, .nc.
8n (arch $, $%??, then4resident 3ory
-;uino issued (emorandum order ,o. !(8'
$@$ approving and directing implementation
of the 3omprehensive and .ntegrated
(etropolitan (anila /aste (anagement
4lan.
o =uring this time, "mokey
(ountain, a wasteland in Tondo,
(anila, are being made residence
of many *ilipinos living in a
subhuman state.
-s presented in (8 $@$, ,:- prepared
feasibility studies to turn the dumpsite into
lowcost housing pro1ect, thus, "mokey
(ountain =evelopment and 6eclamation
4ro1ect !"(=64', came into place. 6- @%B7
!Build8perateTransfer 7aw' was passed on
<uly $%%& declaring the importance of
private sectors as contractors in
government pro1ects.
Thereafter, -;uino proclaimed (8 D$B
applying 6- @%B7 to "(=64, among others.
o The same (8 also established
5M538( and T53:38( in the
e#ecution and evaluation of the
plan, respectively, to be assisted
by the 4ublic 5states -uthority
!45-'.
,otices of public bidding to become ,:-s
venture partner for "(=64 were published
in newspapers in $%%9, from which 6..
Builders, .nc. !6B.' won the bidding process.
o Then4resident 6amos authori0ed
,:- to enter into a <oint Genture
-greement with 6B..
Fnder the <G-, the pro1ect involves the
clearing of "mokey (ountain for eventual
development into a low cost housing
comple# and industrialCcommercial site.
o 6B. is e#pected to fully finance the
development of "mokey (ountain
and reclaim D& hectares of the land
at the (anila Bay -rea.
o The latter together with the
commercial area to be built on
"mokey (ountain will be owned by
6B. as enabling components. .f the
pro1ect is revoked or terminated by
the >overnment through no fault of
6B. or by mutual agreement, the
>overnment shall compensate 6B.
for its actual e#penses incurred in
the 4ro1ect plus a reasonable rate
of return not e#ceeding that stated
in the feasibility study and in the
contract as of the date of such
revocation, cancellation, or
termination on a schedule to be
agreed upon by both parties.
To summari0e, the "(=64 shall consist of
4hase . and 4hase ...
o 4hase . of the pro1ect involves
clearing, levellingoff the dumpsite,
and construction of temporary
housing units for the current
residents on the cleared and
levelled site.
o 4hase .. involves the construction
of a fenced incineration area for
the onsite disposal of the garbage
at the dumpsite.
=ue to the recommendations done by the
=5,6 after evaluations done, the <G- was
amended and restated !now -6<G-' to
accommodate the design changes and
additional work to be done to successfully
implement the pro1ect.
o The original A,B&& units of
temporary housing were decreased
to 9,%%9. The reclaimed land as
enabling component was increased
from D& hectares to 7% hectares,
which was supported by the
issuance of 4roclamation ,o. D@B
by 4resident 6amos. The revision
also provided for the $$%hectare
land as an enabling component for
4hase .. of the pro1ect.
"ubse;uently, the 3lean -ir -ct was passed
by the legislature which made the
establishment of an incinerator illegal,
making the offsite dumpsite at "mokey
(ountain necessary.
8n -ugust $, $%%?, the pro1ect was
suspended, to be later reconstituted by
4resident 5strada in (8 ,o. AA.
8n -ugust 97, 9&&A, the ,:- and 6B.
e#ecuted a (emorandum of -greement
whereby both parties agreed to terminate
the <G- and subse;uent agreements.
o =uring this time, ,:- reported that
AD temporary housing structures
and 9$ permanent housing
structures had been turned over by
6B..
Issues
$. /hether respondents ,:- and 6B. have
been granted the power and authority to
reclaim lands of the public domain as this
power is vested e#clusively in 45- as
claimed by petitioner
9. /hether respondents ,:- and 6B. were
given the power and authority by =5,6 to
reclaim foreshore and submerged lands
A. /hether respondent 6B. can ac;uire
reclaimed foreshore and submerged lands
considered as alienable and outside the
commerce of man
D. /hether respondent 6B. can ac;uire
reclaimed lands when there was no
declaration that said lands are no longer
needed for public use
B. /hether there is a law authori0ing sale of
reclaimed lands
@. /hether the transfer of reclaimed lands to
6B. was done by public bidding
7. /hether 6B., being a private corporation, is
barred by the 3onstitution to ac;uire lands
of public domain
?. /hether respondents can be compelled to
disclose all information related to the
"(=64
%. /hether the operative fact doctrine applies
to the instant position
Decision
$. 5#ecutive 8rder B9B reads that the 45-
shall be primarily responsible for
integrating, directing, and coordinating all
reclamation pro1ects for and on behalf of the
,ational >overnment. This does not mean
that it shall be responsible for all. The
re;uisites for a valid and legal reclamation
pro1ect are approval by the 4resident !which
were provided for by (8s', favourable
recommendation of 45- !which were seen
as a part of its recommendations to the
5M538(', and undertaken either by 45- or
entity under contract of 45- or by the
,ational >overnment -gency !,:- is a
government agency whose authority to
reclaim lands under consultation with 45- is
derived under 4= 797 and 6- 797%'.
9. ,otwithstanding the need for =5,6
permission, the =5,6 is deemed to have
granted the authority to reclaim in the
"mokey (ountain 4ro1ect for the =5,6 is
one of the members of the 5M538( which
provides reviews for the pro1ect. 533s and
"pecial 4atent 8rders were given by the
=5,6 which are e#ercises of its power of
supervision over the pro1ect. *urthermore,
it was the 4resident via the abovementioned
(8s that originally authori0ed the
reclamation. .t must be noted that the
reclamation of lands of public domain is
reposed first in the 4hilippine 4resident.
A. The reclaimed lands were classified
alienable and disposable via (8 D$B issued
by 4resident -;uino and 4roclamation ,os.
A% and D@B by 4resident 6amos.
D. =espite not having an e#plicit declaration,
the lands have been deemed to be no
longer needed for public use as stated in
4roclamation ,o. A% that these are to be
disposed to ;ualified beneficiaries.
*urthermore, these lands have already been
necessarily reclassified as alienable and
disposable lands under the B8T law.
B. 7etter . of "ec. @ of 4= 7B7 clearly states
that the ,:- can ac;uire property rights
and interests and encumber or otherwise
dispose of them as it may deem
appropriate.
@. There is no doubt that respondent ,:-
conducted a public bidding of the right to
become its 1oint venture partner in the
"mokey (ountain 4ro1ect. .t was noted that
notices were published in national
newspapers. The bidding proper was done
by the Bids and -wards 3ommittee on (ay
$?, $%%9.
7. 6- @%B7 as amended by 6- 77$? e#plicitly
states that a contractor can be paid a
portion as percentage of the reclaimed
land sub1ect to the constitutional
re;uirement that only *ilipino citi0ens or
corporation with at least @&N *ilipino e;uity
can ac;uire the same. .n addition, when the
lands were transferred to the ,:-, these
were considered 4atrimonial lands of the
state, by which it has the power to sell the
same to any ;ualified person.
?. This relief must be granted. .t is the right of
the *ilipino people to information on matters
of public concerned as stated in -rticle ..,
"ec. 9?, and -rticle ..., "ec. 7 of the $%?7
3onstitution.
%. /hen the petitioner filed the case, the <G-
had already been terminated by virtue of
(8- between 6B. and ,:-. The properties
and rights in ;uestion after the passage of
around $& years from the start of the
pro1ects implementation cannot be
disturbed or ;uestioned. The petitioner,
being the "olicitor >eneral at the time
"(=64 was formulated, had ample
opportunity to ;uestion the said pro1ect, but
did not do so. The moment to challenge has
passed.
>& Re/u"lic of t!e 8!ili//ines 4s&
Celestina Na'uiat 1*66?2
7acts
3elestina ,aguiat applied for registration of
title to D parcels of land !located in Botolan,
Oambales' with 6T3 Oambales.
o "he claimed to have ac;uired it
from 7.= 3orporation, who in turn
had ac;uired it from 3alderon,
(oraga and (on1e and their
predecessorsininterest who have
been in possession for more than
A& years.
6epublic of the 4hilippines !through the
8">' filed an opposition to the application.
o They claim that neither ,aguiat nor
her predecessorsininterest have
been in possession since $9 <une
$%DB, that the muniments of title
and ta# payment receipts arent
sufficient evidence of a bona fide
ac;uisition of the lands, that
,aguiats "panish title can no
longer be availed of and finally,
that said lands are part of the
public domain and not sub1ect of
private appropriation.
6T3 rendered a decision in favour of
,aguiat and decreed the registration of said
lands in her name.
4etitioner 6epublic of the 4hils brought case
to the 3-.
3- affirmed 6T3 decision.
Issue
/hether or not the areas in ;uestion have ceased to
have the status of forest or other inalienable lands of
the public domain.
Decision
No& Na'uiat was una"le to /ro4i%e sufficient
e4i%ence t!at suc! /arcels of lan% are no
lon'er a /art of t!e /u"lic %o5ain&
4ublic forest lands or forest reserves, unless
declassified and released by positive act of the
>overnment so that they may form part of the
disposable agricultural lands of the public domain,
are not capable of private appropriation.

-s to these
assets, the rules on confirmation of imperfect title do
not apply.
*orests, in the conte#t of both the 4ublic
7and -ct

and the 3onstitution classifying lands of the
public domain into Iagricultural/ forest or tim)er/
mineral lands and national parks/4 do not necessarily
refer to a large tract of wooded land or an e#panse
covered by dense growth of trees and underbrush.
-s we stated in 5eirs of Amunategui6
- forested area classified as forest land of the public
domain does not lose such classification simply
because loggers or settlers have stripped it of its
forest cover. 4arcels of land classified as forest land
may actually be covered with grass or planted to
crops by kaingin cultivators or other farmers. I*orest
landsI do not have to be on mountains or in out of
the way places. ###. The classification is merely
descriptive of its legal nature or status and does not
have to be descriptive of what the land actually looks
like. ###
Fnder "ection 9, -rticle M.. of the
3onstitution, which embodies the 7egalian doctrine,
all lands of the public domain belong to the "tate P
the source of any asserted right to ownership of land.
-ll lands not appearing to be clearly of private
dominion presumptively belong to the "tate.
-ccordingly, public lands not shown to have been
reclassified or released as alienable agricultural land
or alienated to a private person by the "tate remain
part of the inalienable public domain.

Fnder "ection @
of the 4ublic 7and -ct, the prerogative of classifying
or reclassifying lands of the public domain, ie/ from
forest or mineral to agricultural and vice versa,
belongs to the 5#ecutive Branch of the government
and not the court. ,eedless to stress, the onus to
overturn, by incontrovertible evidence, the
presumption that the land sub1ect of an application
for registration is alienable or disposable rests with
the applicant.
.n the case at bar, the 3- only granted the
petition because it assumed that the lands in
;uestion are already alienable and disposable, which
is found by the "3 to not be in this case.
:ere) res/on%ent ne4er /resente% t!e
re@uire% certification fro5 t!e /ro/er
'o4ern5ent a'enc$ or official /rocla5ation
reclassif$in' t!e lan% a//lie% for as aliena"le
an% %is/osa"le& 9atters of lan% classification
or reclassification cannot "e assu5e%& It calls
for /roof&

-side from ta# receipts, respondent
submitted in evidence the survey map and technical
descriptions of the lands, which, needless to state,
provided no information respecting the classification
of the property. These documents are not sufficient
to overcome the presumption that the land sought to
be registered forms part of the public domain.
Therefore, the issue of whether or not
,aguiat and her predecessorininterest have been in
open, e#clusive and continuous possession of the
parcels of land in ;uestion is now of little moment.
*or, unclassified land, as here, cannot be ac;uired by
adverse occupation or possession+ occupation
thereof in the concept of owner, however long,
cannot ripen into private ownership and be
registered as title.
Sustaina"le De4elo/5ent
"ustainable =evelopment is development that meets
the needs of the present without compromising the
ability of future generations to meet their own needs
!Brundtland 6eport'. .t is a pattern of resource use
that aims to meet human needs while preserving
the environment so that these needs can be met not
only in the present, but also for generations to come.
.t contains within it two key concepts)
the concept of 2needs2, in particular the
essential needs of the world2s poor, to which
overriding priority should be given+ and
the idea of limitations imposed by the state
of technology and social organi0ation on the
environment2s ability to meet present and future
needs
The Brundtland 6eports targets were multilateralism
and interdependence of nations in the search for
a sustainable development path. The report sought
to recapture the spirit of the Fnited ,ations
3onference on the :uman 5nvironment the
"tockholm 3onference which had introduced
environmental concerns to the formal political
development sphere. 8ur $ommon 9uture placed
environmental issues firmly on the political agenda+
it aimed to discuss the environment
and development as one single issue.
The publication of 8ur $ommon 9uture and the work
of the 1orld $ommission on :n;ironment and
-e;elopment laid the groundwork for the convening
of the $%%9 5arth "ummit and the adoption
of -genda 9$, the 6io =eclaration and to the
establishment of the 3ommission on "ustainable
=evelopment.
.n addition, key contributions of 8ur $ommon
9uture to the concept of sustainable development
include the recognition that the many crises facing
the planet are interlocking crises that are elements
of a single crisis of the whole and of the vital need for
the active participation of all sectors of society in
consultation and decisions relating to sustainable
development.
"ustainable development ensures the wellbeing of
the human person by integrating social development,
economic development, and environmental
conservation and protection. .t refers to the
Iinterdependent and mutually reinforcing pillars of
sustainable development as economic development,
social development, and environmental protection.
-s the goal of sustainable development is to
permanently improve the living conditions of human
beings, social and economic developments must be
carried out in a way that is environmentally and
ecologically sound+ ensuring the continual
re1uvenation and availability of natural resources for
future generations.
Se4en Di5ensions of Sustaina"le
De4elo/5ent 7ro5 t!e 8!ili//ine A'en%a *+
*rom the 4hilippine perspective sustainable
development is a multidimensional concept,
involving no less than seven dimensions. "ustainable
development is viewed as the mutually beneficial
interaction between the legitimate interests of
business and the economy, government and the
polity, and civil society and culture.
*rom this perspective, five dimensions of sustainable
development are clearly visible. These areQthe
human being, culture, polity, economy, and ,ature.
Article II) Sec& +? of +,-. Constitution
T!e State s!all /rotect an% a%4ance t!e ri'!t
of t!e /eo/le to a "alance% an% !ealt!ful
ecolo'$ in accor% wit! t!e r!$t!5 an%
!ar5on$ of nature&
Does Sec& +? /ro4i%e for enforcea"le ri'!tsA
Bes& The provision, as worded, recogni0es an
enforceable right. :ence, appeal to it has been
recogni0ed as conferring standing on minors to
challenge logging policies of the government !8posa
vs. *actoran'. 8n this basis too, the "upreme 3ourt
upheld the empowerment of the 7aguna 7ake
=evelopment -uthority to protect the inhabitants of
the 7aguna 7ake -rea from the deleterious effects of
pollutants coming from garbage dumping and the
discharge of wastes in the area as against the local
autonomy claim of local governments in the area
!7aguna 7ake =evelopment -uthority vs. 3-'
/hile the right to a balanced and healthful ecology is
to be found under the =eclaration of 4rinciples and
"tate 4olicies and not under the Bill of 6ights, it does
not follow that it is less important than any of the
civil and political rights enumerated in the latter. -s
a matter of fact, these basic rights need not even be
written in the 3onstitution for they are assumed to
e#ist from the inception of humankind. The right to a
balanced and healthful ecology carries with it the
correlative duty to refrain from impairing the
environment.
"ection $@ is unusual among those found in -rticle ..
in that, whereas almost all the other provisions in the
-rticle are not selfe#ecuting but need implementing
legislation to make them effective, "ection $@ has
been recogni0ed by the "upreme 3ourt as self
e#ecuting like the provisions in the Bill of 6ights.
A;ENDA *+
Co55ission Cfor5all$ t!e Worl% Co55ission
on En4iron5ent an% De4elo/5ent 1WCED2D
.t was known by the name of its 3hair >ro :arlem
Brundtland !former ,orwegian 4rime (inister', and
was convened by the Fnited ,ations in $%?A. The
commission was created to address growing concern
Iabout the accelerating deterioration of the human
environment and natural resources and the
conse;uences of that deterioration
for economic and social development.I .n
establishing the commission, the F, >eneral
-ssembly recogni0ed that environmental problems
were global in nature and determined that it was in
the common interest of all nations to establish
policies for sustainable development.
A'en%a *+) an action plan of the Fnited
,ations !F,' related to sustainable development and
was an outcome of the Fnited ,ations 3onference on
5nvironment and =evelopment !F,35=' held in 6io
de <aneiro, Bra0il, in $%%9. .t is a comprehensive
blueprint of action to be taken globally, nationally
and locally by organi0ations of the F,, governments,
and ma1or groups in every area in which humans
directly affect the environment.
De4elo/5ent of A'en%a *+ The full te#t of
-genda 9$ was revealed at the Fnited ,ations
3onference on 5nvironment and =evelopment !5arth
"ummit', held in 6io de <aneiro on <une $A, $%%9,
where $7? governments voted to adopt the program.
The final te#t was the result of drafting, consultation
and negotiation, beginning in $%?% and culminating
at the twoweek conference. The number 9$ refers to
an agenda for the 9$st century. .t may also refer to
the number on the F,2s agenda at this particular
summit.
RioEF .n $%%7, the >eneral -ssembly of the F,
held a special session to appraise five years of
progress on the implementation of -genda 9$ !6io
RB'. The -ssembly recogni0ed progress as 2uneven2
and identified key trends including
increasing globali0ation, widening ine;ualities in
income and a continued deterioration of the global
environment. - new >eneral -ssembly 6esolution !"
$%C9' promised further action.
T!e 0o!annes"ur' Su55it The <ohannesburg
4lan of .mplementation, agreed at the /orld "ummit
on "ustainable =evelopment !5arth "ummit 9&&9'
affirmed F, commitment to 2full implementation2 of
-genda 9$, alongside achievement of the (illennium
=evelopment >oals and other international
agreements.
I5/le5entation The 3ommission on "ustainable
=evelopment acts as a high level forum on
sustainable development and has acted as
preparatory committee for summits and sessions on
the implementation of -genda 9$. The Fnited
,ations =ivision for "ustainable =evelopment acts as
the secretariat to the 3ommission and works 2within
the conte#t of2 -genda 9$. .mplementation by
member states remains essentially voluntary.
Structure an% Contents
There are D& chapters in the -genda 9$, divided into
four main sections.
$. Section I Social an% Econo5ic
Di5ensions which deals with combating
poverty, changing consumption patterns,
promoting health, change population and
sustainable settlement.
9. Section II Conser4ation an%
9ana'e5ent of Resources for
De4elo/5ent .ncludes atmospheric
protection, combating deforestation,
protecting fragile environments,
conservation of biological diversity
!biodiversity', and control of pollution.
Section III Stren't!enin' t!e Role of 9aGor
;rou/s H .ncludes the roles of children and
youth, women, ,>8s, local authorities,
business and workers.
Section IV 9eans of I5/le5entation H
I5/le5entation includes
science, tec!nolo'$ transfer, e%ucation,
international institutions and financial
mechanisms.
Local A'en%a *+ The implementation of -genda
9$ was intended to involve action at international,
national, regional and local levels. "ome national and
state governments have legislated or advised that
local authorities take steps to implement the plan
locally, as recommended in 3hapter 9? of the
document. "uch programmes are often known as
27ocal -genda 9$2 or 27-9$2.
A'en%a *+ for culture =uring the first /orld
4ublic (eeting on 3ulture, held in 4orto -legre in
9&&9, it came up the idea to draw up a document
guidelines for local cultural policies, a document
comparable to what the -genda 9$ meant in $%%9
for the environment. The -genda 9$ for culture is the
first document with worldwide mission that
advocates establishing the groundwork of an
undertaking by cities and local governments for
cultural development.
RE8UBLIC ACT NO& ,.*, CLI9ATE C:AN;E ACT
O7 *66,
Section *& -eclaration of ,olic( P .t is the policy of
the "tate to afford full protection and the
advancement of the right of the people to a healthful
ecology in accord with the rhythm and harmony of
nature. .n this light, the "tate has adopted the
4hilippine -genda 9$ framework which espouses
sustainable development, to fulfill human needs
while maintaining the ;uality of the natural
environment for current and future generations.
Towards this end, the "tate adopts the principle of
protecting the climate system for the benefit of
humankind, on the basis of climate 1ustice or
common but differentiated responsibilities and the
4recautionary 4rinciple to guide decisionmaking in
climate risk management. -s a party to the Fnited
,ations *ramework 3onvention on 3limate 3hange,
the "tate adopts the ultimate ob1ective of the
3onvention which is the stabili0ation of greenhouse
gas concentrations in the atmosphere at a level that
would prevent dangerous anthropogenic interference
with the climate system which should be achieved
within a time frame sufficient to allow ecosystems to
adapt naturally to climate change, to ensure that
food production is not threatened and to enable
economic development to proceed in a sustainable
manner.1awp%il -s a party to the :yogo *ramework
for -ction, the "tate likewise adopts the strategic
goals in order to build national and local resilience to
climate changerelated disasters.
6ecogni0ing the vulnerability of the 4hilippine
archipelago and its local communities, particularly
the poor, women, and children, to potential
dangerous conse;uences of climate change such as
rising seas, changing landscapes, increasing
fre;uency andCor severity of droughts, fires, floods
and storms, climaterelated illnesses and diseases,
damage to ecosystems, biodiversity loss that affect
the countrys environment, culture, and economy,
the "tate shall cooperate with the global community
in the resolution of climate change issues, including
disaster risk reduction. .t shall be the policy of the
"tate to en1oin the participation of national and local
governments, businesses, nongovernment
organi0ations, local communities and the public to
prevent and reduce the adverse impacts of climate
change and, at the same time, ma#imi0e the benefits
of climate change. .t shall also be the policy of the
"tate to incorporate a gendersensitive, prochildren
and propoor perspective in all climate change and
renewable energy efforts, plans and programs. .n
view thereof, the "tate shall strengthen, integrate,
consolidate and institutionali0e government
initiatives to achieve coordination in the
implementation of plans and programs to address
climate change in the conte#t of sustainable
development.
*urther recogni0ing that climate change and disaster
risk reduction are closely interrelated and effective
disaster risk reduction will enhance climate change
adaptive capacity, the "tate shall integrate disaster
risk reduction into climate change programs and
initiatives.
3ogni0ant of the need to ensure that national and
subnational government policies, plans, programs
and pro1ects are founded upon sound environmental
considerations and the principle of sustainable
development, it is hereby declared the policy of the
"tate to systematically integrate the concept of
climate change in various phases of policy
formulation, development plans, poverty reduction
strategies and other development tools and
techni;ues by all agencies and instrumentalities of
the government.
Section =& -efinition of &erms P *or purposes of this
-ct, the following shall have the corresponding
meanings)
!a' IA%a/tationJ refers to the ad1ustment
in natural or human systems in response to
actual or e#pected climatic stimuli or their
effects, which moderates harm or e#ploits
beneficial opportunities.
!b' IA%a/ti4e ca/acit$J refers to the
ability of ecological, social or economic
systems to ad1ust to climate change
including climate variability and e#tremes,
to moderate or offset potential damages
and to take advantage of associated
opportunities with changes in climate or to
cope with the conse;uences thereof.
!c' IAnt!ro/o'enic causesJ refer to
causes resulting from human activities or
produced by human beings.
!d' ICli5ate C!an'eJ refers to a change
in climate that can be identified by changes
in the mean andCor variability of its
properties and that persists for an e#tended
period typically decades or longer, whether
due to natural variability or as a result of
human activity.
!e' ICli5ate Varia"ilit$J refers to the
variations in the average state and in other
statistics of the climate on all temporal and
spatial scales beyond that of individual
weather events.
!f' ICli5ate RiskJ refers to the product of
climate and related ha0ards working over
the vulnerability of human and natural
ecosystems.
!g' IDisasterJ refers to a serious disruption
of the functioning of a community or a
society involving widespread human,
material, economic or environmental losses
and impacts which e#ceed the ability of the
affected community or society to cope using
its own resources.
!h' IDisaster risk re%uctionJ refers to the
concept and practice of reducing disaster
risks through systematic efforts to analy0e
and manage the causal factors of disasters,
including through reduced e#posure to
ha0ards, lessened vulnerability of people
and property, wise management of land and
the environment, and improved
preparedness for adverse events.
!i' I;en%er 5ainstrea5in'J refers to the
strategy for making womens as well as
mens concerns and e#periences an integral
dimension of the design, implementation,
monitoring, and evaluation of policies and
programs in all political, economic, and
societal spheres so that women and men
benefit e;ually and ine;uality is not
perpetuated. .t is the process of assessing
the implications for women and men of any
planned action, including legislation,
policies, or programs in all areas and at all
levels.
!1' I;lo"al War5in'J refers to the
increase in the average temperature of the
5arths nearsurface air and oceans that is
associated with the increased concentration
of greenhouse gases in the atmosphere.
!k' I;reen!ouse effectJ refers to the
process by which the absorption of infrared
radiation by the atmosphere warms the
5arth.
!l' I;reen!ouse 'ases 1;:;2J refers to
constituents of the atmosphere that
contribute to the greenhouse effect
including, but not limited to, carbon dio#ide,
methane, nitrous o#ide, hydrofluorocarbons,
perfluorocarbons and sulfur he#afluoride.
!m' I9ainstrea5in'J refers to the
integration of policies and measures that
address climate change into development
planning and sectoral decisionmaking.
!n' I9iti'ationJ in the conte#t of climate
change, refers to human intervention to
address anthropogenic emissions by
sources and removals by sinks of all >:>,
including o0one depleting substances and
their substitutes.
!o' I9iti'ation /otentialJ shall refer to
the scale of >:> reductions that could be
made, relative to emission baselines, for a
given level of carbon price !e#pressed in
cost per unit of carbon dio#ide e;uivalent
emissions avoided or reduced'.
!p' ISea le4el riseJ refers to an increase
in sea level which may be influenced by
factors like global warming through
e#pansion of sea water as the oceans warm
and melting of ice over land and local
factors such as land subsidence.
!;' IVulnera"ilit$J refers to the degree to
which a system is susceptible to, or unable
to cope with, adverse effects of climate
change, including climate variability and
e#tremes. Gulnerability is a function of the
character, magnitude, and rate of climate
change and variation to which a system is
e#posed, its sensitivity, and its adaptive
capacity.
Section >& $reation of t%e $limate $%ange
$ommission P There is hereby established a 3limate
3hange 3ommission, hereinafter referred to as the
3ommission.
The 3ommission shall be an independent and
autonomous body and shall have the same status as
that of a national government agency. .t shall be
attached to the 8ffice of the 4resident.
The 3ommission shall be the sole policymaking body
of the government which shall be tasked to
coordinate, monitor and evaluate the programs and
action plans of the government relating to climate
change pursuant to the provisions of this -ct.
The 3ommission shall be organi0ed within si#ty !@&'
days from the effectivity of this -ct.
Section F& $omposition of t%e $ommission P The
3ommission shall be composed of the 4resident of
the 6epublic of the 4hilippines who shall serve as the
3hairperson, and three !A' 3ommissioners to be
appointed by the 4resident, one of whom shall serve
as the Gice 3hairperson of the 3ommission.
The 3ommission shall have an advisory board
composed of the following)
!a' "ecretary of the =epartment of
-griculture+
!b' "ecretary of the =epartment of 5nergy+
!c' "ecretary of the =epartment of
5nvironment and ,atural 6esources+
!d' "ecretary of the =epartment of
5ducation+
!e' "ecretary of the =epartment of *oreign
-ffairs+
!f' "ecretary of the =epartment of :ealth+
!g' "ecretary of the =epartment of the
.nterior and 7ocal >overnment+
!h' "ecretary of the =epartment of ,ational
=efense, in his capacity as 3hair of the
,ational =isaster 3oordinating 3ouncil+
!i' "ecretary of the =epartment of 4ublic
/orks and :ighways+
!1' "ecretary of the =epartment of "cience
and Technology+
!k' "ecretary of the =epartment of "ocial
/elfare and =evelopment+
!l' "ecretary of the =epartment of Trade
and .ndustry+
!m' "ecretary of the =epartment of
Transportation and 3ommunications+
!n' =irector>eneral of the ,ational
5conomic and =evelopment -uthority, in his
capacity as 3hair of the 4hilippine 3ouncil
for "ustainable =evelopment+
!o' =irector>eneral of the ,ational "ecurity
3ouncil+
!p' 3hairperson of the ,ational 3ommission
on the 6ole of *ilipino /omen+
!;' 4resident of the 7eague of 4rovinces+
!r' 4resident of the 7eague of 3ities+
!s' 4resident of the 7eague of (unicipalities+
!t' 4resident of the 7iga ng mga Barangay+
!u' 6epresentative from the academe+
!v' 6epresentative from the business sector+
and
!w' 6epresentative from nongovernmental
organi0ations.
-t least one !$' of the sectoral representatives shall
come from the disaster risk reduction community.
The representatives shall be appointed by the
4resident from a list of nominees submitted by their
respective groups. They shall serve for a term of si#
!@' years without reappointment unless their
representation is withdrawn by the sector they
represent. -ppointment to any vacancy shall be only
for the une#pired term of the predecessor.
8nly the e# officio members of the advisory board
shall appoint a ;ualified representative who shall
hold a rank of no less than an Fndersecretary.
Section ?& Meetings of t%e $ommission P The
3ommission shall meet once every three !A' months,
or as often as may be deemed necessary by the
3hairperson. The 3hairperson may likewise call upon
other government agencies for the proper
implementation of this -ct.
Section .& <ualifications/ &enure/ $ompensation of
$ommissioners P The 3ommissioners must be
*ilipino citi0ens, residents of the 4hilippines, at least
thirty !A&' years of age at the time of appointment,
with at least ten !$&' years of e#perience on climate
change and of proven honesty and ntegrity. The
3ommissioners shall be e#perts in climate change by
virtue of their educational background, training and
e#perience) 4rovided, That at least one !$'
3ommissioner shall be female) 4rovided, further,
That in no case shall the 3ommissioners come from
the same sector) 4rovided, finally, That in no case
shall any of the 3ommissioners appoint
representatives to act on their behalf.
The 3ommissioners shall hold office for a period of
si# !@' years, and may be sub1ected to
reappointment) 4rovided, That no person shall serve
for more than two !9' consecutive terms) 4rovided,
further, That in case of a vacancy, the new appointee
shall fully meet the ;ualifications of a 3ommissioner
and shall hold office for the une#pired portion of the
term only) 4rovided, finally, That in no case shall a
3ommissioner be designated in a temporary or
acting capacity.
The Gice 3hairperson and the 3ommissioners shall
have the rank and privileges of a =epartment
"ecretary and Fndersecretary, respectively. They
shall be entitled to corresponding compensation and
other emoluments and shall be sub1ect to the same
dis;ualifications.
Section -& $limate $%ange 8ffice P There is hereby
created a 3limate 3hange 8ffice that shall assist the
3ommission. .t shall be headed by a Gice 3hairperson
of the 3ommission who shall act as the 5#ecutive
=irector of the 8ffice. The 3ommission shall have the
authority to determine the number of staff and
create corresponding positions necessary to facilitate
the proper implementation of this -ct, sub1ect to civil
service laws, rules and regulations. The officers and
employees of the 3ommission shall be appointed by
the 5#ecutive =irector.
Section ,& ,owers and 9unctions of t%e
$ommission P The 3ommission shall have the
following powers and functions)
!a' 5nsure the mainstreaming of climate
change, in synergy with disaster risk
reduction, into the national, sectoral and
local development plans and programs+
!b' 3oordinate and synchroni0e climate
change programs of national government
agencies+
!c' *ormulate a *ramework "trategy on
3limate 3hange to serve as the basis for a
program for climate change planning,
research and development, e#tension, and
monitoring of activities on climate change+
!d' 5#ercise policy coordination to ensure
the attainment of goals set in the framework
strategy and program on climate change+
!e' 6ecommend legislation, policies,
strategies, programs on and appropriations
for climate change adaptation and
mitigation and other related activities+
!f' 6ecommend key development
investments in climate sensitive sectors
such as water resources, agriculture,
forestry, coastal and marine resources,
health, and infrastructure to ensure the
achievement of national sustainable
development goals+
!g' 3reate an enabling environment for the
design of relevant and appropriate risk
sharing and risktransfer instruments+
!h' 3reate an enabling environment that
shall promote broader multistakeholder
participation and integrate climate change
mitigation and adaptation+
!i' *ormulate strategies on mitigating >:>
and other anthropogenic causes of climate
change+
!1' 3oordinate and establish a close
partnership with the ,ational =isaster
3oordinating 3ouncil in order to increase
efficiency and effectiveness in reducing the
peoples vulnerability to climaterelated
disasters+
!k' .n coordination with the =epartment of
*oreign -ffairs, represent the 4hilippines in
the climate change negotiations+
!l' *ormulate and update guidelines for
determining vulnerability to climate change
impacts and adaptation assessments and
facilitate the provision of technical
assistance for their implementation and
monitoring+
!m' 3oordinate with local government units
!7>Fs' and private entities to address
vulnerability to climate change impacts of
regions, provinces, cities and municipalities+
!n' *acilitate capacity building for local
adaptation planning, implementation and
monitoring of climate change initiatives in
vulnerable communities and areas+
!o' 4romote and provide technical and
financial support to local research and
development programs and pro1ects in
vulnerable communities and areas+ and
!p' 8versee the dissemination of
information on climate change, local
vulnerabilities and risks, relevant laws and
protocols and adaptation and mitigation
measures.
Section +6& ,anel of &ec%nical :=perts P The
3ommission shall constitute a national panel of
technical e#perts consisting of practitioners in
disciplines that are related to climate change,
including disaster risk reduction.
The 4anel shall provide technical advice to the
3ommission in climate science, technologies, and
best practices for risk assessment and enhancement
of adaptive capacity of vulnerable human
settlements to potential impacts of climate change.
The 3ommission shall set the ;ualifications and
compensation for the technical e#perts. .t shall
provide resources for the operations and activities of
the 4anel.
Section ++& 9ramework 'trateg( and ,rogram on
$limate $%ange P The 3ommission shall, within si#
!@' months from the effectivity of this -ct, formulate
a *ramework "trategy on 3limate 3hange. The
*ramework shall serve as the basis for a program for
climate change planning, research and development,
e#tension, and monitoring of activities to protect
vulnerable communities from the adverse effects of
climate change.
The *ramework shall be formulated based on climate
change vulnerabilities, specific adaptation needs,
and mitigation potential, and in accordance with the
international agreements.
The *ramework shall be reviewed every three !A'
years, or as may be deemed necessary.
Section +*& $omponents of t%e 9ramework 'trateg(
and ,rogram on $limate $%ange P The *ramework
shall include, but not limited to, the following
components)
!a' ,ational priorities+
!b' .mpact, vulnerability and adaptation
assessments+
!c' 4olicy formulation+
!d' 3ompliance with international
commitments+
!e' 6esearch and development+
!f' =atabase development and
management+
!g' -cademic programs, capability building
and mainstreaming+
!h' -dvocacy and information dissemination+
!i' (onitoring and evaluation+ and
!1' >ender mainstreaming.
Section +=& National $limate $%ange Action ,lan P
The 3ommission shall formulate a ,ational 3limate
3hange -ction 4lan in accordance with the
*ramework within one !$' year after the formulation
of the latter.
The ,ational 3limate 3hange -ction 4lan shall
include, but not limited to, the following components)
!a' -ssessment of the national impact of
climate change+
!b' The identification of the most vulnerable
communitiesCareas, including ecosystems to
the impacts of climate change, variability
and e#tremes+
!c' The identification of differential impacts
of climate change on men, women and
children+
!d' The assessment and management of risk
and vulnerability+
!e' The identification of >:> mitigation
potentials+ and
!f' The identification of options, prioriti0ation
of appropriate adaptation measures for 1oint
pro1ects of national and local governments.
Section +>& Local $limate $%ange Action ,lan P The
7>Fs shall be the frontline agencies in the
formulation, planning and implementation of climate
change action plans in their respective areas,
consistent with the provisions of the 7ocal
>overnment 3ode, the *ramework, and the ,ational
3limate 3hange -ction 4lan.
Barangays shall be directly involved with municipal
and city governments in prioriti0ing climate change
issues and in identifying and implementing best
practices and other solutions. (unicipal and city
governments shall consider climate change
adaptation, as one of their regular functions.
4rovincial governments shall provide technical
assistance, enforcement and information
management in support of municipal and city climate
change action plans. .nterlocal government unit
collaboration shall be ma#imi0ed in the conduct of
climate related activities.
7>Fs shall regularly update their respective action
plans to reflect changing social, economic, and
environmental conditions and emerging issues. The
7>Fs shall furnish the 3ommission with copies of
their action plans and all subse;uent amendments,
modifications and revisions thereof, within one !$'
month from their adoption. The 7>Fs shall mobili0e
and allocate necessary personnel, resources and
logistics to effectively implement their respective
action plans.
The local chief e#ecutive shall appoint the person
responsible for the formulation and implementation
of the local action plan.
.t shall be the responsibility of the national
government to e#tend technical and financial
assistance to 7>Fs for the accomplishment of their
7ocal 3limate 3hange -ction 4lans.
The 7>F is hereby e#pressly authori0ed to
appropriate and use the amount from its .nternal
6evenue -llotment necessary to implement said
local plan effectively, any provision in the 7ocal
>overnment 3ode to the contrary notwithstanding.
Section +F& 7ole of >o;ernment Agencies P To
ensure the effective implementation of the
framework strategy and program on climate change,
concerned agencies shall perform the following
functions)
!a' The =epartment of 5ducation !=ep5='
shall integrate climate change into the
primary and secondary education curricula
andCor sub1ects, such as, but not limited to,
science, biology, sibika, history, including
te#tbooks, primers and other educational
materials, basic climate change principles
and concepts+
!b' The =epartment of the .nterior and 7ocal
>overnment !=.7>' and 7ocal >overnment
-cademy shall facilitate the development
and provision of a training program for 7>Fs
in climate change. The training program
shall include socioeconomic, geophysical,
policy, and other content necessary to
address the prevailing and forecasted
conditions and risks of particular 7>Fs. .t
shall likewise focus on women and children,
especially in the rural areas, since they are
the most vulnerable+
!c' The =epartment of 5nvironment and
,atural 6esources !=5,6' shall oversee the
establishment and maintenance of a climate
change information management system
and network, including on climate change
risks, activities and investments, in
collaboration with other concerned national
government agencies, institutions and
7>Fs+
!d' The =epartment of *oreign -ffairs !=*-'
shall review international agreements
related to climate change and make the
necessary recommendation for ratification
and compliance by the government on
matters pertaining thereto+
!e' The 4hilippine .nformation -gency !4.-'
shall disseminate information on climate
change, local vulnerabilities and risk,
relevant laws and protocols and adaptation
and mitigation measures+ and
!f' >overnment financial institutions, shall,
any provision in their respective charters to
the contrary notwithstanding, provide
preferential financial packages for climate
change related pro1ects. .n consultation
with the Bangko "entral ng 4ilipinas !B"4',
they shall, within thirty !A&' days from the
effectivity of this -ct, issue and promulgate
the implementing guidelines therefor.
The 3ommission shall evaluate, recommend the
approval of loans and monitor the use of said funds
of 7>Fs.
Section +?& $oordination wit% ?arious 'ectors P .n
the development and implementation of the ,ational
3limate 3hange -ction 4lan, and the local action
plans, the 3ommission shall coordinate with the
nongovernment organi0ations !,>8s', civic
organi0ations, academe, peoples organi0ations, the
private and corporate sectors and other concerned
stakeholder groups.
Section +.& Aut%orit( to 7ecei;e -onations and@or
>rants P The 3ommission is hereby authori0ed to
accept grants, contributions, donations,
endowments, be;uests, or gifts in cash, or in kind
from local and foreign sources in support of the
development and implementation of climate change
programs and plans) 4rovided, That in case of
donations from foreign governments, acceptance
thereof shall be sub1ect to prior clearance and
approval of the 4resident of the 4hilippines upon
recommendation of the "ecretary of *oreign -ffairs)
4rovided, further, That such donations shall not be
used to fund personal services e#penditures and
other operating e#penses of the 3ommission.
The proceeds shall be used to finance)
!a' 6esearch, development, demonstration
and promotion of technologies+
!b' 3onduct of assessment of vulnerabilities
to climate change impacts, resource
inventory, and adaptation capability
building+
!c' -dvocacy, networking and
communication activities in the conduct of
information campaign+ and
!d' 3onduct of such other activities
reasonably necessary to carry out the
ob1ectives of this -ct, as may be defined by
the 3ommission.
Section +-& 9unding Allocation for $limate
$%ange P -ll relevant government agencies and
7>Fs shall allocate from their annual appropriations
ade;uate funds for the formulation, development
and implementation, including training, capacity
building and direct intervention, of their respective
climate change programs and plans. .t shall also
include public awareness campaigns on the effects of
climate change and energysaving solutions to
mitigate these effects, and initiatives, through
educational and training programs and microcredit
schemes, especially for women in rural areas. .n
subse;uent budget proposals, the concerned offices
and units shall appropriate funds for programCpro1ect
development and implementation including
continuing training and education in climate
change.1a;;p%i1
Section +,& Aoint $ongressional 8;ersig%t
$ommittee P There is hereby created a <oint
3ongressional 8versight 3ommittee to monitor the
implementation of this -ct. The 8versight 3ommittee
shall be composed of five !B' "enators and five !B'
6epresentatives to be appointed by the "enate
4resident and the "peaker of the :ouse of
6epresentatives, respectively. The 8versight
3ommittee shall be cochaired by a "enator and a
6epresentative to be designated by the "enate
4resident and the "peaker of the :ouse of
6epresentatives, respectively. .ts funding
re;uirement shall be charged against the
appropriations of 3ongress.
Section *6& Annual 7eport P The 3ommission shall
submit to the 4resident and to both :ouses of
3ongress, not later than (arch A& of every year
following the effectivity of this -ct, or upon the
re;uest of the 3ongressional 8versight 3ommittee, a
report giving a detailed account of the status of the
implementation of this -ct, a progress report on the
implementation of the ,ational 3limate 3hange
-ction 4lan and recommend legislation, where
applicable and necessary. 7>Fs shall submit annual
progress reports on the implementation of their
respective local action plan to the 3ommission within
the first ;uarter of the following year.
Section *+& Appropriations P The sum of *ifty
million pesos !4hpB&,&&&,&&&.&&' is hereby
appropriated as initial operating fund in addition to
the unutili0ed fund of the 4residential Task *orce on
3limate 3hange and the 8ffice of the 4residential
-dviser on >lobal /arming and 3limate 3hange. The
sum shall be sourced from the 4residents contingent
fund.
Thereafter, the amount necessary to effectively carry
out the provisions of this -ct shall be included in the
annual >eneral -ppropriations -ct.
Section **& Implementing 7ules and 7egulations P
/ithin ninety !%&' days after the approval of this -ct,
the 3ommission shall, upon consultation with
government agencies, 7>Fs, private sector, ,>8s
and civil society, promulgate the implementing rules
and regulations of this -ct) 4rovided, That failure to
issue rules and regulations shall not in any manner
affect the e#ecutory nature of the provisions of this
-ct.
Section *=& &ransitor( ,ro;isions P Fpon the
organi0ation of the 3ommission, the 4residential Task
*orce on 3limate 3hange created under
-dministrative 8rder ,o. $7$ and the .nter-gency
3ommittee on 3limate 3hange created by virtue of
-dministrative 8rder ,o. 99&, shall be abolished)
4rovided, That their powers and functions shall be
absorbed by the 3ommission) 4rovided, further, That
the officers and employees thereof shall continue in
a holdover capacity until such time as the new
officers and employees of the 3ommission shall have
been duly appointed pursuant to the provisions of
this -ct. -ll ;ualified regular or permanent
employees who may be transferred to the
3ommission shall not suffer any loss in seniority or
rank or decrease in emoluments. -ny employee who
cannot be absorbed by the 3ommission shall be
entitled to a separation pay under e#isting
retirement laws
E#ecuti4e Or%er No& +F Creatin' a 8!ili//ine
Council for Sustaina"le De4elo/5ent
/:565-", the $%?7 3onstitution mandates a policy
of the state, the protection and advancement of the
right of the people to a balanced and healthful
ecology in accordance with the rhythm and harmony
of nature+
/:565-", a ,ational 3onservation "trategy, as
spelled out in the 4hilippine "trategy for "ustainable
=evelopment !4""=', which was adopted in $%?%,
takes a balanced and integrated approach to
environment and development issues by
incorporating sustainable development principles
and concepts in the national priorities of
government+
/:565-", the 4hilippines already adhering too the
principle of sustainable development actively
participated in the Fnited ,ations 3onference on
5nvironment and =evelopment !F,35=' "ummit
held in 6io de <aneiro, and committed to the
principles set forth in the 6io =eclaration, the -genda
9$, the 3onventions on 3limate 3hange and
Biodiversity+
/:565-", the Fnited ,ations in F,35=, has adopted
a resolution for the creation of a "ustainable
=evelopment 3ommission that will evaluate and
monitor the compliance too the agreements and
commitments made in 6io and in the course of it2s
creation urged governments to also for similar bodies
that will ensure that the activities at the national
level are implemented and coordinated within global
efforts+
/:565-", the agreements oblige the 4hilippines to
translate the commitments to more concrete actions
and ensure that all sectors of the society shall be
involved in its cooperali0ation+
/:565-", in order to active these ends, the creation
of a national sustainable development and thus
assure its integration in the 4hilippine national
policies, plans, and programs that will involve all
sectors of the society.
SEC +& Creation an% Co5/osition of t!e
Council&
$' There is hereby created a 4hilippine 3ouncil for
"ustainable =evelopment to be headed by the
=irector>eneral of the ,ational 5conomic and
=evelopment -uthority !,5=-' as 3hairperson, and
the "ecretary of the =epartment of 5nvironment and
,atural 6esources as Gice3hairperson.
9' The 3ouncil will have as members committed
environmentalists from the following owing
departments of a position of Bureau =irector of their,
duly deputi0ed to represent their respective
"ecretaries)
=epartment of *oreign -ffairs
=epartment of "cience and Technology
=epartment of *inance
=epartment of -griculture
=epartment of 4ublic /orks and :ighways
=epartment of 5ducation, 3ulture, and "ports
=epartment of 7abor and 5mployment
=epartment of :ealth
=epartment of Trade and .ndustry
=epartment of the .nterior and 7ocal >overnments
=epartment of "ocial /elfare and =evelopments
=epartment of Budget and (anagement
=epartment of ,ational =efense
8ffice of 5nergy -ffairs
A' -s civil society counterpart, the nongovernment
community shall also have seven
!7' representative in the 3ouncil. These
representative shall be selected by the non
government community considering commitment to
environmental causes, gender balance, and sector
representation through a process designed by them.
Sec& * 8owers an% 7unctions of t!e Council& The
3ouncil shall have the following powers and function)
$S' To review and ensure the implementation on the
commitments the 4hilippines made in the light of the
F,35= 3onference+
9' To establish guidelines and mechanisms that will
e#pand, concreti0e and operationali0e the
sustainable development principles as embodied in
the 6io =eclaration, the F,35= -genda 9$, the
,ational 3onservation "trategy, and the 4hilippine
-genda 9$, and incorporate them in the preparation
of the (edium Term =evelopment 4lan both at the
national and local levels with active participation
from the nongovernment sector a and people2s
organi0ations+
A' Too provide directions in the form of policy
reforms, programs and new legislations that respond
to the continuing and emerging issues and charting
future actions related to environment and
developments+
D' To act as the coordinating mechanism in
cooperation either =*-office of the Fnited ,ations
3ommission for "ustainable =evelopment and
actively solicit assistance and cooperation towards
the reali0ation of our commitments made at the
F,35=+
B' To re;uire any and all government agencies for
assistance in to forum of personnel, facilities, and
other resources which is essential for the
performance for the duties of the 3ouncil+
@' To create subcommittees that it may deem fit in
the performance of its duties+ and
7' To perform such other acts which are necessary to
carry out its mandated functions and responsibilities.
Sec& =& T!e Secretariat& The 3ouncil shall be
assisted by the "ecretariat which shall be based at
the ,otional 5conomic and =evelopment -uthority
whose composition will be determined by the
=irector>eneral.
Sec& >& Transitor$ 8ro4isions& There shall be
immediately be convened an interim Technical
/orking >roup of seven members composed or
representatives from ,ational 5conomic and
=evelopment -uthority !,5=-', =epartment of
5nvironment and ,atural 6esources !=5,6',
=epartment of *oreign -ffairs!=*-', =epartment of
the .nterior and 7ocal >overnment !=.7>', and the
three representatives from nongovernment sector,
which shall work out the formulation of the
operational guidelines for the 3ouncil. The working
group shall be assisted by a composite secretariat
from ,5=- and =5,6, These transitory groups shall
cease its function upon the 3ouncil meeting and
adoption of the operating guidelines within si#ty !@&'
days upon signing of this 8rder.
E(ECUTIVE ORDER NO& ?* 7URT:ER
STREN;T:ENIN; T:E 8:ILI88INE COUNCIL 7OR
SUSTAINABLE DEVELO89ENT 18CSD2
/:565-", to ensure that the commitments made in
the 6io de <aneiro =eclaration are fulfilled and to
reali0e the countrys sustainable development goals,
the 43"= was established on &$ "eptember $%%9
through 5#ecutive 8rder ,o. $B+
/:565-", to strengthen 43"=, the e#pansion of its
membership as well as the establishment of local
councils for sustainable development were provided
for through the issuance of 5#ecutive 8rder ,o. A7&
!s. $%%@'+
/:565-", in order to operationali0e sustainable
development at the local level, (emorandum 8rder
,o. D7 !s. $%%%' was issued mandating local
government units !7>Fs' to formulate and
implement their sustainable integrated area
development plans or 7ocal -genda 9$ with the
assistance of concerned government agencies+
/:565-", in light of changing circumstances and,
emerging issues on sustainable development locally
and globally there is an urgent need to pursue new
interventions through a more responsive 43"=
structure+
/:565-", for the 43"= to be more effective and
responsive in ensuring the reali0ation of the
governments sustainable development goals, there
is a need to streamline and define its core functions
and membership, keeping in mind the various
agencies in government whose functions are integral
components of the overall government sustainable
development operational thrusts+
/:565-", there is a need for 43"= to focus on
strategic interventions that have significant and
catalytic impact on sustainable development+
/:565-", it is necessary to further strengthen the
43"= as the lead instrumentality responsible for
mainstreaming sustainable development in national
government and affiliated agencies, 3ongress, 7>Fs,
as well as e#isting multistakeholder governance
mechanisms.
,8/, T:565*865, ., >786.- (-3-4->-7-668T8,
4resident of the 4hilippines, by virtue of the powers
vested in me by law, do hereby order)
"ection $. *urther "trengthening the 43"=. Q The
4hilippine 3ouncil for "ustainable =evelopment,
hereinafter referred to as the 3ouncil, is hereby
further strengthened, structurally and functionally, in
accordance with the provisions of this 5#ecutive
8rder.
"ec. 9. 3omposition of the 3ouncil. Q
$. The core members from government shall be
composed of "ecretaries of the following
=epartments as permanent principal members, with
an Fndersecretary as alternate)
a. ,ational 5conomic and =evelopment -uthority+
b. =epartment of 5nvironment and ,atural
6esources+
9. 3ivil society, composed of peoples organi0ations,
nongovernment organi0ations and sectoralCma1or
groups representation shall have five !B' 3ouncil
members selected by their community, based on
their commitment to sustainable development
concerns, through a process designed by them These
may include the following groups) women, youth,
farmers, fisherfolk, indigenous people, (oro and
3ordillera people, urban poor, persons with
disabilities, academe, professionals, media, religious
groups and ,>8s.
A. 7abor and business shall have one !$'
representative each in the 3ouncil. 6epresentation
shall, likewise be decided through a process to be
designed by them.
The 3hairperson of the 3ouncil shall be the "ecretary
of "ocio5conomic 4lanning and ,5=- =irector
>eneral. The "ecretary of the =epartment of
5nvironment and ,atural 6esources !=5,6' shall be
the Gice3hairperson.
"ec. A. Terms of 8ffice and (eetings. Q The term of
office of members shall be coterminus with their
appointment or election in their respective
departments or organi0ations.
The 3ouncil shall meet ;uarterly, or as fre;uently as
may be deemed necessary. "pecial meetings may be
convened at the call of the 3hairperson or by a
ma1ority of the members of the 3ouncil. .n the
absence of the 3hairperson, the Gice3hairperson
shall preside. .n case any civil society, business or
labor sector member of the 3ouncil cannot attend
the meeting, he or she shall be represented by the
alternate to be designated through their respective
selection process for the purpose.
"ec. D. 4owers and *unctions of the 3ouncil. Q
$. To review and ensure the implementation of the
commitments made by the 4hilippines in the light of
the Fnited ,ations 3onference on 5nvironment and
=evelopment !F,35=' and its followup processes+
9. To act as the coordinating mechanism with the
Fnited ,ations 3ommission on "ustainable
=evelopment !F,3"=' and the >overning Bodies or
"ecretaries of other related multilateral conventions,
through the =epartment of *oreign -ffairs !=*-'+
A. To establish guidelines and mechanisms that will
ensure that the sustainable development principles,
as embodied in the 6io =eclaration, -genda 9$, and
the 4hilippine -genda 9$, are integrated in the
formulation of national, regional and local
development policies, plans and programs+
D. To formulate policies and recommend new actions
to appropriate bodies on sustainable development
issues focusing on the environment dimensions of
social and economic interventions and the social and
economic dimensions of environment interventions+
B. To review and monitor plans, policies, program
and legislation on sustainable development to
promote efficiency and timeliness of their e#ecution
and ensure consistency and coordination among the
7egislative and 5#ecutive branches of government,
local government units, civil society, business, labor
and other concerned entitiesCsectors, and e#isting
multistakeholder governance mechanisms+
@. To establish a networking mechanism to link the
3ouncil with local and international organi0ations
involved in sustainable development+
7. To create, reorgani0e or abolish committees of the
3ouncil, adhoc or permanent, and to define their
structure, functions and limitations+
?. To submit its annual work program with actionable
and time bounded targets and regularly report to the
4resident the status of implementation and
achievement of specific targets thereof+
%. To perform such other acts which are necessary to
carry out its mandated functions and responsibilities.
"ec. B. 4articipation of 8ther >overnment -gencies
in the 3ouncil. Q The 3ouncil can call upon other
government agencies and instrumentalities, civil
society, business and labor sector organi0ations to
participate in 3ouncil business, including its
meetings, if so warranted by conditions as may e#ist
from time to time. *or this purpose, other
government agencies shall identify a 43"= focal
officer not lower than a rank of =irector who shall
coordinate their agencys participation in 43"=
concerns.
"ec. @. "ecretariat. Q The 3ouncil shall be assisted
by a 3oordinating "ecretariat which shall be based at
the ,5=-, the composition of which shall be
determined by the =irector>eneral, and a
3ounterpart "ecretariat, the composition of which
shall be determined by the 3ivil "ociety 3ounterpart
3ouncil for "ustainable =evelopment !3"33"='.
"ec. 7. Budget. Q There shall be provided in the
>eneral -ppropriations -ct !>--' a regular line item
under the ,5=- budget to cover the operational
re;uirements of the 3ouncil sub1ect to the prescribed
budgetary guidelines. 8ther memberagencies of the
3ouncil shall also include a line item in the >--
under their respective agency budgets to cover the
cost of their activities related to 43"=.
9E9ORANDU9 ORDER NO& =,, DIRECTIN;
T:E O8ERATIONALIKATION O7 T:E 8:ILI88INE
A;ENDA *+
AND 9ONITORIN; ITS I98LE9ENTATION
W!ereas, -rticle 9, "ection $9 of the 3onstitution
mandates as a policy of the "tate the protection and
advancement of the right of the people to a balanced
and healthful ecology in accord with the rhythm and
harmony of nature+
W!ereas, the government adheres to the sustainable
development principles embodied in the 6io
=eclaration and adopted by the Fnited ,ations
3onference on 5nvironment and =evelopment in 6io
de <aneiro, Bra0il in $%%9, and to which the 4hilippines
is a signatory+
W!ereas, the 4hilippine 3ouncil for "ustainable
=evelopment !43"=', created by virtue of 5#ecutive
8rder ,o. $B !"eries of $%%9' is mandated to
coordinate the formulation of 4hilippine -genda 9$+
W!ereas, the 4hilippine -genda 9$ was formulated
after an e#tensive and intensive process of coordination,
cooperation, counterparting and consensusbuilding
among the various stakeholders of society+
W!ereas, the operationali0ation of the 4hilippine
-genda 9$ shall provide the overall direction and serve
as an enabling environment in achieving sustainable
development+
Section +. Adoption and 8perationaliBation of t%e
,%ilippine Agenda !1. The 4hilippine -genda 9$, as the
national action agenda for sustainable development, is
hereby adopted.
Section *. 8;erall Administration. The 4hilippine
3ouncil for "ustainable =evelopment shall oversee and
monitor the operationali0ation of the 4hilippine -genda
9$. .n this regard, the 3ouncil shall provide the
coordinating and monitoring mechanisms for its
implementation. *or this purpose, it shall mobili0e
coordinating bodies including the 6egional =evelopment
3ouncils !6=3s' and the local councils for sustainable
development.
Section =. $olla)orating Agencies. -ll government
agencies, departments, and instrumentalities are
directed to adopt and translate the principles and action
agenda contained in the 4hilippine -genda 9$ in their
respective workplans, programs and pro1ects and report
on their progress and impacts to the 43"=.
Section >. 7ole of t%e -epartment of Interior and Local
>o;ernment C-IL>D and t%e Local >o;ernment Enits
CL>EsD. The 7>Fs, in coordination with the local
business and civil society, shall implement the 4hilippine
-genda 9$ through the integration of sustainable
development concerns in their respective plans,
programs and pro1ects and the formulation of their
respective 7ocal -genda 9$, where appropriate.
Section F. 7ole of t%e $i;il 'ociet(/ La)or and
Business 'ectors. The 43"= shall coordinate with civil
society, labor and business sectors in operationali0ing
4hilippine -genda 9$. (a1or stakeholders from these
sectors are thereby en1oined to adopt and implement
the principles and action agenda contained in the
4hilippine -genda 9$.
Section ?. 9unding. The 43"=, in the coordination with
the =epartment of *inance !=8*', =epartment of Budget
and (anagement !=B(', and the ,ational 5conomic and
=evelopment -uthority !,5=-', shall identify funding
sources in implementing and monitoring the 4hilippine
-genda 9$.
Cases
Re/u"lic of t!e 8!ili//ines 4s& T!e Cit$ of
Da4ao
Re/u"lic 4s& Al4are3) in !is ca/acit$ as Sec& of
DENR
-lvare0 filed an application for a 3ertificate
of ,on3overage for its proposed pro1ect,
the =avao -rtica "ports =ome, with the
5nvironmental (anagement Bureau !5(B',
6egion $$. The 5(B 6egion $$ denied the
application on ground that the proposed
pro1ect was within an environmentally
critical area, and ruled that under the
5nvironmental .mpact "tatement "ystem,
the 3ity of =avao must undergo the
environmental impact assessment !5.-'
process to secure an 5nvironmental
3ompliance 3ertificate !533', before it can
proceed with the construction of its pro1ect
Believing that it was entitled to a 3ertificate
of ,on3overage, respondent filed a petition
for mandamus with the 6T3 of =avao
alleging that the proposed pro1ect was
neither an environmentally critical pro1ect
nor within an environmentally critical area,
thus it was outside the scope of the 5."
system.
The 6T3 granted the writ of mandamus and
directed 5(B to issue a 3ertificate of ,on
3overage. .t ruled that there is nothing in
the 5.- "ystem guidelines which re;uires
7>Fs to comply with the 5." law, as only
agencies and instrumentalities are
mandated to go through the 5.- process for
their proposed pro1ects which have
significant effect on the ;uality of the
environment. - local government unit, not
being an agency or instrumentality of the
,ational >overnment, is deemed e#cluded
.ssue) /hether 7>Fs are covered by the 5.- "ystemU
=ecision)
The 7ocal >overnment 3ode provides that it is the
duty of the 7>Fs to promote the peoples right to a
balanced ecology. 4ursuant to this, an 7>F, like the
3ity of =avao, cannot claim e#emption from the
coverage of 4= $B?@. -s a body politic endowed with
governmental functions, an 7>F has the duty to
ensure the ;uality of the environment, which is the
very same ob1ective of 4= $B?@.
*urther, it is a rule of statutory construction that
every part must be read with other parts, thus, the
T3 in declaring local government units as e#empt
from the coverage of the 5." law, failed to relate
"ection 9 of 4= $B?@ to the several provision of the
same law.
"ection D of 4= $B?@ clearly states that no person,
partnership or corporation shall undertake or operate
any such declared environmentally critical pro1ect or
area without first securing an 5nvironmental
3ompliance 3ertificate issued by the 4resident or his
duly authori0ed representative. Fndoubtedly
therefore, local government units are not e#cluded
from the coverage of 4= $B?@. "ec. $ stated that the
policy of the "tate is to attain an orderly balance
between socioeconomic growth and environmental
protection. The /hereas clause stresses that such is
only possible if we adopt an integrated
environmental protection program where all the
sectors of the community are involved, ie, the
government and the private sectors. The local
government units, as part of the machinery of the
government, cannot therefore be deemed as outside
the scope of the 5." system
This however presuppose that a pro1ect, for which an
5nvironmental 3ompliance 3ertificate is necessary, is
environmentally critical or within an environmentally
critical area. .n the case at bar, respondent has
sufficiently shown that the -rtica "ports =ome will
not have a significant negative environmental impact
because it is not an environmentally critical pro1ect
and it is not located in an environmentally critical
area. They submitted 3ertification from the 3ity
4lanning and =evelopment 8ffice, 4:.7G873",
35,68/est in support thereof.
The 5nvironmental .mpact "tatement "ystem, which
ensures environmental protection and regulates
certain government activities affecting the
environment, was established by 4residential =ecree
,o. $B?@. Fnder -rticle .., "ection $, of the 6ules and
6egulations .mplementing 4= $B?@, the declaration
of certain pro1ects or areas as environmentally
critical, and which shall fall within the scope of the
5nvironmental .mpact "tatement "ystem, shall be by
4residential 4roclamation.
4ursuant thereto, 4roclamation ,o. 9$D@ was
issued proclaiming the following areas and types of
pro1ects as environmentally critical and within the
scope of the 5nvironmental .mpact "tatement
"ystem established under 4= $B?@)
A& En4iron5entall$ Critical 8roGects
.. :eavy .ndustries
a. ,onferrous metal
industries
b. .ron and steel mills
c. 4etroleum and petrochemical
industries including
oil and gas
d. "melting plants
... 6esource 5#tractive .ndustries
a. (a1or mining and ;uarrying
pro1ects
b. *orestry pro1ects
$. 7ogging
9. (a1or wood processing pro1ects
A. .ntroduction of fauna !e#otic
animals' in
publicCprivate forests
D. *orest occupancy
B. 5#traction of mangrove products
@. >ra0ing
c. *ishery 4ro1ects
$. =ikes forCand fishpond development
pro1ects
.... .nfrastructure 4ro1ects
a. (a1or dams
b. (a1or power plants !fossilfueled,
nuclear fueled,
hydroelectric or geothermal'
c. (a1or reclamation pro1ects
d. (a1or roads and bridges
B& En4iron5entall$ Critical Areas
$. -ll areas declared by law as national
parks, watershed reserves, wildlife
preserves and sanctuaries+
9. -reas set aside as aesthetic
potential tourist spots+
A. -reas which constitute the habitat
for any endangered or threatened
species of indigenous 4hilippine
/ildlife !flora and fauna'+
D. -reas of uni;ue historic,
archaeological, or scientific interests+
B. -reas which are traditionally
occupied by cultural communities or
tribes+
@. -reas fre;uently visited andCor
hardhit by natural calamities !geologic
ha0ards, floods, typhoons, volcanic
activity, etc.'+
7. -reas with critical slopes+
?. -reas classified as prime
agricultural lands+
%. 6echarged areas of a;uifers+
$&. /ater bodies characteri0ed by one or any
combination of the following conditions+
a. tapped for domestic purposes
b. within the controlled andCor
protected areas declared by
appropriate authorities
c. which support wildlife and
fishery activities
$$. (angrove areas characteri0ed by one or any
combination of the following conditions)
a. with primary pristine and dense
young growth+
b. ad1oining mouth of ma1or river
systems+
c. near or ad1acent to traditional
productive fry or fishing grounds+
d. which act as natural buffers
against shore erosion, strong winds and
storm floods+
e. on which people are dependent
for their livelihood.
$9. 3oral reefs, characteri0ed by one or any
combinations of the following conditions)
a. with B&N and above
live coralline cover+
b. spawning and nursery
grounds for fish+
c. which act as natural breakwater
of coastlines.
:n;ironmentall( Non+$ritical ,roFects Q -ll other
pro1ects, undertakings and areas not declared by the
4resident as environmentally critical shall be
considered as noncritical and shall not be re;uired
to submit an environmental impact statement. The
,ational 5nvironmental 4rotection 3ouncil, thru the
(inistry of :uman "ettlements may however re;uire
noncritical pro1ects and undertakings to provide
additional environmental safeguards as it may deem
necessary.
The -rtica "ports =ome in 7angub does not
come close to any of the pro1ects or areas
enumerated above. ,either is it analogous to any of
them. .t is clear, therefore, that the said pro1ect is
not classified as environmentally critical, or within an
environmentally critical area. 3onse;uently, the
=5,6 has no choice but to issue the 3ertificate of
,on3overage. .t becomes its ministerial duty, the
performance of which can be compelled by writ of
mandamus, such as that issued by the trial court in
the case at bar.
La'una Lake De4elo/5ent Aut!orit$ 4s CA
6- D?B& was enacted creating the I7aguna 7ake
=evelopment -uthority.I This agency was supposed
to accelerate the development and balanced growth
of the 7aguna 7ake area and the surrounding
provinces, cities and towns, in the act, within the
conte#t of the national and regional plans and
policies for social and economic development.
4= ?$A amended certain sections 6- D?B& because
of the concern for the rapid e#pansion of
(etropolitan (anila, the suburbs and the lakeshore
towns of 7aguna de Bay, combined with current and
prospective uses of the lake for municipalindustrial
water supply, irrigation, fisheries, and the like.
To effectively perform the role of the -uthority under
6- D?B&, the 3hief 5#ecutive issued 58 %97 further
defined and enlarged the functions and powers of the
-uthority and named and enumerated the towns,
cities and provinces encompassed by the term
I7aguna de Bay 6egionI. -lso, pertinent to the issues
in this case are the following provisions of 58 %97
which include in particular the sharing of fees)
"ec 9) ### the -uthority shall have e#clusive
1urisdiction to issue permit for the use of all surface
water for any pro1ects or activities in or affecting the
said region including navigation, construction, and
operation of fishpens, fish enclosures, fish corrals
and the like.
"53. A. 3ollection of *ees. The -uthority is hereby
empowered to collect fees for the use of the lake
water and its tributaries for all beneficial purposes
including but not limited to fisheries, recreation,
municipal, industrial, agricultural, navigation,
irrigation, and waste disposal purpose+ 4rovided, that
the rates of the fees to be collected, and the sharing
with other government agencies and political
subdivisions, if necessary, shall be sub1ect to the
approval of the 4resident of the 4hilippines upon
recommendation of the -uthority2s Board, e#cept
fishpen fee, which will be shared in the following
manner) 9& percent of the fee shall go to the
lakeshore local governments, B percent shall go to
the 4ro1ect =evelopment *und which shall be
administered by a 3ouncil and the remaining 7B
percent shall constitute the share of 77=-. :owever,
after the implementation within the threeyear period
of the 7aguna 7ake *ishery Ooning and (anagement
4lan the sharing will be modified as follows) AB
percent of the fishpen fee goes to the lakeshore local
governments, B percent goes to the 4ro1ect
=evelopment *und and the remaining @& percent
shall be retained by 77=-+ 4rovided, however, that
the share of 77=- shall form part of its corporate
funds and shall not be remitted to the ,ational
Treasury as an e#ception to the provisions of
4residential =ecree ,o. $9AD.
Then came 6epublic -ct ,o. 7$@&. The municipalities
in the 7aguna 7ake 6egion interpreted the provisions
of this law to mean that the newly passed law gave
municipal governments the e#clusive 1urisdiction to
issue fishing privileges within their municipal waters
because 6.-. 7$@& provides)
I"ec. $D%. *ishery 6entals+ *ees and 3harges !a'
(unicipalities shall have the e#clusive authority to
grant fishery privileges in the municipal waters and
impose rental fees or charges therefor in accordance
with the provisions of this "ection.
(unicipal governments thereupon assumed the
authority to issue fishing privileges and fishpen
permits. Big fishpen operators took advantage of the
occasion to establish fishpens and fishcages to the
consternation of the -uthority. Fnregulated fishpens
and fishcages occupied almost onethird the entire
lake water surface area, increasing the occupation
drastically from 7,&&& ha in $%%& to almost 9$,&&&
ha in $%%B. The (ayor2s permit to construct fishpens
and fishcages were all undertaken in violation of the
policies adopted by the -uthority on fishpen 0oning
and the 7aguna 7ake carrying capacity. .n view of the
foregoing circumstances, the -uthority served notice
to the general public that)
$. -ll fishpens, fishcages and other a;uaculture
structures in the 7aguna de Bay 6egion, which were
not registered or to which no application for
registration andCor permit has been filed with 7aguna
7ake =evelopment -uthority as of (arch A$, $%%A
are hereby declared outrightly as illegal.
9. -ll fishpens+ fishcages and other a;uaculture
structures so declared as illegal shall be sub1ect to
demolition which shall be undertaken by the
4residential Task *orce for illegal *ishpen and .llegal
*ishing.
A. 8wners of fishpens, fishcages and other a;ua
culture structures declared as illegal shall, without
pre1udice to demolition of their structures be
criminally charged in accordance with "ection A%-
of 6epublic -ct D?B& as amended by 4.=. ?$A for
violation of the same laws. Giolations of these laws
carries a penalty of imprisonment of not e#ceeding A
years or a fine not e#ceeding *ive Thousand 4esos or
both at the discretion of the court.
-ll operators of fishpens, fishcages and other a;ua
culture structures declared as illegal in accordance
with the foregoing ,otice shall have one !$' month
on or before 97 8ctober $%%A to show cause before
the 77=- why their said fishpens, fishcages and other
a;uaculture structures should not be
demolishedCdismantled.I
8ne month, thereafter, the -uthority sent notices to
the concerned owners of the illegally constructed
fishpens, fishcages and other a;uaculture structures
advising them to dismantle their respective
structures within $& days from receipt thereof,
otherwise, demolition shall be effected.
The fishpen owners filed in1unction cases against the
77=-. The 77=- filed motions to dismiss the cases
against it on 1urisdictional grounds. The motions to
dismiss were denied. (eanwhile, T68Cwrits of
preliminary mandatory in1unction were issued
en1oining the 77=- from demolishing the fishpens
and similar structures in ;uestion. :ence, the
present petition for certiorari, prohibition and
in1unction. The 3- dismissed the 77=-s consolidated
petitions. .t ruled that !-' 77=- is not among those
;uasi1udicial agencies of government appealable
only to the 3ourt of -ppeals+ !B' the 77=- charter
does vest 77=- with ;uasi1udicial functions insofar
as fishpens are concerned+ !3' the provisions of the
77=- charter insofar as fishing privileges in 7aguna
de Bay are concerned had been repealed by the
7ocal >overnment 3ode of $%%$+ !=' in view of the
aforesaid repeal, the power to grant permits
devolved to respective local government units
concerned.
Issue /hich agency of the >overnment the 77=-
or the towns and municipalities comprising the
region should e#ercise 1urisdiction over the 7aguna
7ake and its environs insofar as the issuance of
permits for fishery privileges is concernedU
:eld) 77=-
Ratio "ection D !k' of 6- D?B&, the provisions of 4=
?$A, and "ection 9 of 58 %97, specifically provide
that the 77=- shall have e#clusive 1urisdiction to
issue permits for the use or all surface water for any
pro1ects or activities in or affecting the said region,
including navigation, construction, and operation of
fishpens, fish enclosures, fish corrals and the like. 8n
the other hand, 6- 7$@& has granted to the
municipalities the e#clusive authority to grant fishery
privileges in municipal waters. The "angguniang
Bayan may grant fishery privileges to erect fish
corrals, oyster, mussels or other a;uatic beds or
bangus fry area within a definite 0one of the
municipal waters.
The provisions of 6-7$@& do not necessarily repeal
the laws creating the 77=- and granting the latter
water rights authority over 7aguna de Bay and the
lake region.
The 7ocal >overnment 3ode of $%%$ does not
contain any e#press provision which categorically
e#pressly repeal the charter of the -uthority. .t has
to be conceded that there was no intent on the part
of the legislature to repeal 6epublic -ct ,o. D?B& and
its amendments. The repeal of laws should be made
clear and e#pressed.
.t has to be conceded that the charter of the 77=-
constitutes a special law. 6- 7$@& is a general law. .t
is basic is basic in statutory construction that the
enactment of a later legislation which is a general
law cannot be construed to have repealed a special
law. .t is a wellsettled rule in this 1urisdiction that Ia
special statute, provided for a particular case or class
of cases, is not repealed by a subse;uent statute,
general in its terms, provisions and application,
unless the intent to repeal or alter is manifest,
although the terms of the general law are broad
enough to include the cases embraced in the special
law.I /here there is a conflict between a general
law and a special statute, the special statute should
prevail since it evinces the legislative intent more
clearly that the general statute. The special law is to
be taken as an e#ception to the general law in the
absence of special circumstances forcing a contrary
conclusion. This is because implied repeals are not
favored and as much as possible, given to all
enactments of the legislature. - special law cannot
be repealed, amended or altered by a subse;uent
general law by mere implication.
3onsidering the reasons behind the establishment of
the -uthority, which are enviromental protection,
navigational safety, and sustainable development,
there is every indication that the legislative intent is
for the -uthority to proceed with its mission.
/e are on all fours with the manifestation of 77=-
that I7aguna de Bay, like any other single body of
water has its own uni;ue natural ecosystem. The %&&
km lake surface water, the ? ma1or river tributaries
and several other smaller rivers that drain into the
lake, the 9,%9& km9 basin or watershed transcending
the boundaries of 7aguna and 6i0al provinces,
constitute one integrated delicate natural ecosystem
that needs to be protected with uniform set of
policies+ if we are to be serious in our aims of
attaining sustainable development. This is an
e#haustible natural resourcea very limited one
which re;uires 1udicious management and optimal
utili0ation to ensure renewability and preserve its
ecological integrity and balance. (anaging the lake
resources would mean the implementation of a
national policy geared towards the protection,
conservation, balanced growth and sustainable
development of the region with due regard to the
intergenerational use of its resources by the
inhabitants in this part of the earth. The authors of
6epublic -ct D?B& have foreseen this need when
they passed this 77=- lawthe special law designed
to govern the management of our 7aguna de Bay
lake resources. 7aguna de Bay therefore cannot be
sub1ected to fragmented concepts of management
policies where lakeshore local government units
e#ercise e#clusive dominion over specific portions of
the lake water. The implementation of a cohesive
and integrated lake water resource management
policy, therefore, is necessary to conserve, protect
and sustainably develop 7aguna de Bay.I
The power of the 7>Fs to issue fishing privileges was
clearly granted for revenue purposes. This is evident
from the fact that "ection $D% of the ,ew 7ocal
>overnment 3ode empowering local governments to
issue fishing permits is embodied in 3hapter 9, Book
.., of 6epublic -ct ,o. 7$@& under the heading,
I"pecific 4rovisions 8n The Ta#ing -nd 8ther
6evenue 6aising 4ower of 7>Fs.
8n the other hand, the power of the -uthority to
grant permits for fishpens, fishcages and other a;ua
culture structures is for the purpose of effectively
regulating and monitoring activities in the 7aguna de
Bay region and for lake ;uality control and
management. @ .t does partake of the nature of
police power which is the most pervasive, the least
limitable and the most demanding of all "tate powers
including the power of ta#ation. -ccordingly the
charter of the -uthority which embodies a valid
e#ercise of police power should prevail over the 7ocal
>overnment 3ode of $%%$ on matters affecting
7aguna de Bay.
There should be no ;uarrel over permit fees for
fishpens, fishcages and other a;uaculture structures
in the 7aguna de Bay area. "ection A of 5#ecutive
8rder ,o. %97 provides for the proper sharing of fees
collected.
.n respect to the ;uestion as to whether the
-uthority is a ;uasi1udicial agency or not, it is our
holding that, considering the provisions of "ection D
of 6epublic -ct ,o. D?B& and "ection D of 5#ecutive
8rder ,o. %97, series of $%?A, and the ruling of this
3ourt in 7aguna 7ake =evelopment -uthority vs.
3ourt of -ppeals, there is no ;uestion that the
-uthority has e#press powers as a regulatory a
;uasi1udicial body in respect to pollution cases with
authority to issue a Icease a desist orderI and on
matters affecting the construction of illegal fishpens,
fishcages and other a;uaculture structures in
7aguna de Bay. The -uthority2s pretense, however,
that it is coe;ual to the 6egional Trial 3ourts such
that all actions against it may only be instituted
before the 3ourt of -ppeals cannot be sustained. 8n
actions necessitating the resolution of legal
;uestions affecting the powers of the -uthority as
provided for in its charter, the 6egional Trial 3ourts
have 1urisdiction.
.n view of the foregoing, this 3ourt holds that "ection
$D% of 6- 7$@&, otherwise known as the 7ocal
>overnment 3ode of $%%$, has not repealed the
provisions of the charter of the 77=-, 6epublic -ct
,o. D?B&, as amended. Thus, the -uthority has the
e#clusive 1urisdiction to issue permits for the
en1oyment of fishery privileges in 7aguna de Bay to
the e#clusion of municipalities situated therein and
the authority to e#ercise such powers as are by its
charter vested on it.
8RESIDENTIAL DECREE No& +F-?
ESTABLIS:IN; AN ENVIRON9ENTAL I98ACT
STATE9ENT SBSTE9) INCLUDIN; OT:ER
ENVIRON9ENTAL 9ANA;E9ENT RELATED
9EASURES AND 7OR OT:ER 8UR8OSES
/:565-", the pursuit of a comprehensive and
integrated environment protection program
necessitates the establishment and
institutionali0ation of a system whereby the
e#igencies of socioeconomic undertakings can be
reconciled with the re;uirements of environmental
;uality+
/:565-", the regulatory re;uirements of
environmental .mpact "tatements and -ssessments
instituted in pursuit of this national environmental
protection program have to be worked into their full
regulatory and procedural details in a manner
consistent with the goals of the program.
,8/, T:565*865, ., *56=.,-,= 5. (-638",
4resident of the 4hilippines, by virtue of the powers
vested in me by the 3onstitution do hereby order and
declare)
Section +& ,olic( .t is hereby declared the policy of
the "tate to attain and maintain a rational and
orderly balance between socioeconomic growth and
environmental protection.
Section *& :n;ironmental Impact 'tatement
'(stem There is hereby established an
5nvironmental .mpact "tatement "ystem founded
and based on the environmental impact statement
re;uired, under "ection D of 4residential =ecree ,o.
$$B$, of all agencies and instrumentalities of the
national government, including governmentowned
or controlled corporations, as well as private
corporations, firms and entities, for every proposed
pro1ect and undertaking which significantly affect the
;uality of the environment.
Section =& -etermination of Lead Agenc( The
(inister of :uman "ettlements or his designated
representative is hereby authori0ed to name the lead
agencies referred to in "ection D of 4residential
=ecree ,o. $$B$ which shall have 1urisdiction to
undertake the preparation of the necessary
environmental impact statements on declared
environmentally critical pro1ects and areas. -ll
5nvironmental .mpact "tatements shall be submitted
to the ,ational 5nvironmental 4rotection 3ouncil for
review and evaluation.
Section >& ,residential ,roclamation of
:n;ironmentall( $ritical Areas and ,roFects The
4resident of the 4hilippines may, on his own initiative
or upon recommendation of the ,ational
5nvironmental 4rotection 3ouncil, by proclamation
declare certain pro1ects, undertakings or areas in the
country as environmentally critical. ,o person,
partnership or corporation shall undertake or operate
any such declared environmentally critical pro1ect or
area without first securing an 5nvironmental
3ompliance 3ertificate issued by the 4resident or his
duly authori0ed representative. *or the proper
management of said critical pro1ect or area, the
4resident may by his proclamation reorgani0e such
government offices, agencies, institutions,
corporations or instrumentalities including the re
alignment of government personnel, and their
specific functions and responsibilities.
*or the same purpose as above, the (inistry of
:uman "ettlements shall) !a' prepare the proper land
or water use pattern for said critical pro1ect!s' or
area !s'+ !b' establish ambient environmental ;uality
standards+ !c' develop a program of environmental
enhancement or protective measures against
calamituous factors such as earth;uake, floods,
water erosion and others, and !d' perform such other
functions as may be directed by the 4resident from
time to time.
Section F& :n;ironmentall( Non+$ritical ,roFects -ll
other pro1ects, undertakings and areas not declared
by the 4resident as environmentally critical shall be
considered as noncritical and shall not be re;uired
to submit an environmental impact statement. The
,ational 5nvironmental 4rotection 3ouncil, thru the
(inistry of :uman "ettlements may however re;uire
noncritical pro1ects and undertakings to provide
additional environmental safeguards as it may deem
necessary.
Section ?& 'ecretariat The ,ational 5nvironmental
4rotection 3ouncil is hereby authori0ed to constitute
the necessary secretariat which will administer the
5nvironmental .mpact "tatement "ystem and
undertake the processing and evaluation of
environmental impact statements.
Section .& Management and 9inancial
Assistance The (inistry of :uman "ettlements is
hereby authori0ed to provide management and
financial support to government offices and
instrumentalities placed under its supervision
pursuant to this =ecree financed from its e#isting
appropriation or from budgetary augmentation as the
(inister of :uman "ettlements may deem necessary.
Section -& 7ules and 7egulations The ,ational
5nvironmental 4rotection 3ouncil shall issue the
necessary rules and regulations to implement this
=ecree. *or this purpose, the ,ational 4ollution
3ontrol 3ommission may be availed of as one of its
implementing arms, consistent with the powers and
responsibilities of the ,ational 4ollution 3ontrol
3ommission as provided in 4.=. ,o. %?D.
Section ,& ,enalt( for ?iolation -ny person,
corporation or partnership found violating "ection D
of this =ecree, or the terms and conditions in the
issuance of the 5nvironmental 3ompliance
3ertificate, or of the standards, rules and regulations
issued by the ,ational 5nvironmental 4rotection
3ouncil pursuant to this =ecree shall be punished by
the suspension or cancellation of hisCits certificate or
andCor a fine in an amount not to e#ceed *ifty
Thousand 4esos !4B&,&&&.&&' for every violation
thereof, at the discretion of the ,ational
5nvironmental 4rotection 3ouncil.
Section +6& :n;ironmental 7e;ol;ing
9und 4roceeds from the penalties prescribed in the
preceding "ection % and other penalties imposed by
the ,ational 4ollution 3ontrol 3ommission as
authori0ed in 4.=. %?D, shall be automatically
appropriated into an 5nvironment 6evolving *und
hereby created as an e#emption to 4.=. 7$$ and 4.=.
$9AD. The fund shall be used e#clusively for the
operation of the ,ational 5nvironmental 4rotection
3ouncil and the ,ational 4ollution 3ontrol
3ommission in the implementation of this =ecree.
The rules and regulations for the utili0ation of this
fund shall be formulated by the (inistry of :uman
"ettlements and submitted to the 4resident for
approval.
Section ++& 7epealing $lause The .nter-gency
-dvisory 3ouncil of the ,ational 4ollution 3ontrol
3ommission created under "ection D of 4.=. %?D is
hereby abolished and its powers and responsibilities
are forthwith delegated and transferred to the
3ontrol of the ,ational 5nvironmental 4rotection
3ouncil.
-ll other laws, decrees, e#ecutive orders, rules and
regulations inconsistent herewith are hereby
repealed, amended or modified accordingly.
=5,6 -dministrative 8rder ,o. 9&&A A&
SUB0ECT I5/le5entin' Rules an% Re'ulations
1IRR2 for t!e 8!ili//ine En4iron5ental I5/act
State5ent 1EIS2 S$ste5
3onsistent with the continuing effort of the
=epartment of 5nvironment and ,atural 6esources
!=5,6' to rationali0e and streamline the
implementation of the 4hilippine 5nvironmental
.mpact "tatement !5."' "ystem established under
4residential =ecree !4=' ,o. $B?@, 4residential
4roclamation ,o. 9$D@ defining the scope of the 5."
"ystem and pursuant to -dministrative 8rder ,o. D9
issued by tile 8ffice of the 4resident on ,ovember 9,
9&&9, the following rules and regulations are hereby
promulgated+
-6T.375 .
B-".3 487.3T, 8456-T.,> 46.,3.475", 8B<53T.G5"
-,=
=5*.,.T.8, 8* T56("
Section +& Basic 8olic$ an% O/eratin'
8rinci/les
3onsistent with the principles of sustainable
development, it is the policy of the =5,6 to
implement a systemsoriented and integrated
approach to the 7." system to ensure a rational
balance between socioeconomic development and
environmental protection for the benefit of present
and future generations.
The following are the key operating principles in the
implementation of the 4hilippine 5." "ystem)
a. The 5." "ystem is concerned primarily with
assessing the direct and indirect impacts of a pro1ect
on the biophysical and human environment and
ensuring that these impacts addressed by
appropriate environmental protection and
enhancement measures.
b. The 5." "ystem aids proponents in incorporating
environmental considerations in planning their
pro1ects as well as in determining the environment2s
impact on their pro1ect.
c. 4ro1ect proponents are responsible for determining
and disclosing all relevant information necessary for
a methodical 2 assessment of the environmental
impacts of their pro1ects+
d. The review of the 5." by 5(B shall be guided by
three general criteria) !$' that environmental
considerations are integrated into the overall pro1ect
planning, !9' that the assessment is technically
sound and proposed environmental mitigation,
measures are effective, and !A' that , social
acceptability is based on informed public
participation+
e. 5ffective regulatory review of the 5." depends
largely on timely full+ and accurate disclosure of
relevant) information by pro1ect proponents and,
other stakeholders in the 5.- process
f. The social acceptability of a pro1ect is a result of
meaningful public participation, which shall be
assessed as part of the 5nvironmental 3ompliance
3ertificate !533' application, based on concerns
related to the pro1ect2s environmental impacts+
g. The timelines prescribed by this 8rder, within
which an 5nvironmental 3ompliance 3ertificate
must be issued, or denied, apply only to processes
and actions within the 5nvironmental (anagement
Bureau2s !5(B' control and do not include actions or
activities that are the responsibility of the proponent.
Section *& O"Gecti4e
The ob1ective of this -dministrative 8rder is to
rationali0e and streamline the 5." "ystem to make it
more effective as a pro1ect planning and
management tool by)
a. (aking the "ystem more responsive to the
demands and needs of the pro1ect proponents and
the various stakeholders+
b. 3larifying the, coverage of the "ystem and
updating it to take into consideration industrial and
technological innovations and trends
c. "tandardi0ing re;uirements to ensure focus on
critical environment parameters+
d. "implifying procedures for processing 533
applications, and establishing measures to ensure
adherence to 533 conditions by pro1ect proponents,
and
e. -ssuring that critical environmental concerns are
addressed during pro1ect development and
implementation
Section =& Definition of Ter5s
*or the purpose of this 8rder, the following
definitions shall be applied+
a. 3ertificate, of ,on3overage a certification issued
by the 5(B certifying that, based on the submitted
pro1ect description, the pro1ect is not covered by the
5." "ystem and is not re;uired to secure an 533
b. 3olocated pro1ects C undertakings pro1ects, or
series of similar pro1ects or a pro1ect subdivided to
several phases andCor stages by the same
proponent, located in contiguous areas.
c 5nvironment "urrounding air, water !both ground
and surface', land, flora, fauna, humans and their
interrelations.
d. 5nvironmental 3ompliance 3ertificate !533'
document issued by the =5,6C5(B after a positive
review of an 533 application, certifying that based on
the representations of the proponent, the proposed
pro1ect or undertaking will not cause significant
negative) environmental impact. The 533 also
certifies that the proponent has complied with all the
re;uirements of the 5." "ystem and has committed
to implement its approved 5nvironmental
(anagement 4lan. The 533 contains specific
measures and conditions that the pro1ect proponent
has to undertake before and during the operation of
a pro1ect, and in some cases, during the pro1ect2s
abandonment phase to mitigate identified
environmental impacts.
e. 5nvironmentally 3ritical -rea !53-' area
delineated as environmentally sensitive such that
significant environmental impacts are e#pected if
certain types of proposed pro1ects or programs are
located, developed or, implemented in it.
f. 5nvironmentally 3ritical 4ro1ect !534' pro1ect or
program that has high potential for significant
negative environmental impact.
g. 5nvironmental >uarantee *und !5>*' fund to be
set up by a pro1ect proponent which shall be readily
accessible and disbursable for the immediate clean
up or rehabilitation of areas affected by damages in
the environment and the resulting deterioration of
environmental ;uality as a direct conse;uence of a
pro1ect2s construction, operation or abandonment. .t
shall likewise be used to compensate parties and
communities affected by the negative impacts of the
pro1ect, and to fund communitybased environment
related pro1ects including, but not limited to,
information and education and emergency
preparedness programs.
h. 5nvironmental .mpact -ssessment !5.-' process
that involves evaluating and predicting the likely
impacts of a pro1ect !including cumulative impacts'
on the environment during construction,
commissioning, operation and abandonment. .t also
includes designing appropriate preventive, mitigating
and enhancement measures addressing these
conse;uences to protect the environment and the
community2s welfare. The process is undertaken by,
among others, the pro1ect proponent andCor 5.-
3onsultant, 5(B, a 6eview 3ommittee, affected
communities and other stakeholders.
i. 5nvironmental .mpact -ssessment 3onsultant a
professional or group of professionals commissioned
by the proponent to prepare the 5."C.55 and other
related documents. .n some cases, the person or
group referred to may be the proponent2s technical
staff.
1. 5nvironmental .mpact -ssessment 6eview
3ommittee !5.-63' a body of independent technical
e#perts and professionals of known probity from
various fields organi0ed by the 5(B to evaluate the
5." and other related documents and to make
appropriate recommendations regarding the
issuance or nonissuance of an 533.
k. 5nvironmental .mpact "tatement !5."' document,
prepared and submitted by the pro1ect proponent
andCor 5.- 3onsultant that serves as an application
for an 533. .t is a comprehensive study of the
significant impacts of a pro1ect on the environment.
.t includes an 5nvironmental (anagement
4lanC4rogram that the
proponent will fund and implement to protect the
environment
l. 5nvironmental (anagement 4lanC4rogram !5(4'
section in the 5." that details the prevention,
mitigation, compensation, contingency and
monitoring measures to enhance positive impacts
and minimi0e negative impacts and risks of a
proposed pro1ect or undertaking. *or operating
pro1ects, the 5(4 can also be derived from an 5(",
m. 5nvironmental (anagement "ystems !5("'
refers to the 5(B 4544 5(" as provided for under
=-8 9&&A$D, which is a part of the overall
management system of a pro1ect or organi0ation that
includes environmental policy, organi0ational
structure, planning activities, responsibilities,
practices, procedures, processes and resources for
developing, implementing, achieving, reviewing and
maintaining an improved overall environmental
performance.
n. 5nvironmental (onitoring *und !5(*' fund that a
proponent shall set up after an 533 is issued for its
pro1ect or undertaking, to be used to support the
activities of the multipartite monitoring team. .t shall
be immediately accessible and easily disbursable.
o. 5nvironmental 4erformance capability of
proponents to mitigate environmental impacts of
pro1ects or programs.
p. 5nvironmental 4erformance 6eport and
(anagement 4lan !546(4' documentation of the
actual cumulative environmental impacts and
effectiveness of current measures for single pro1ects
that are already operating but without 5332s, i.e.,
3ategory -A. *or 3ategory BA pro1ects, a checklist
form of the 546(4 would suffice.
;. 5nvironmental 6isk -ssessment !56-'
assessment, through the use of universally accepted
and scientific methods, of risks associated with a
pro1ect. .t focuses on determining the probability of
occurrence of accidents and their magnitude !e.g.
failure, of containment or e#posure to ha0ardous
materials or situations.'
r. 5("based 5(4 environmental management plan
based on the environmental management system
!5("' standard as defined in the =-8 9&&A$D.
s. .nitial 5nvironmental 5#amination !.55' 6eport P
document similar to an 5.", but with reduced details
and depth of assessment and discussion
t. .nitial 5nvironmental 5#amination !.55' 3hecklist
6eport simplified checklist version of an .55 6eport,
prescribed by the =5,6, to be filled up by a
proponent to identify and assess a pro1ect2s
environmental impacts and the
mitigationCenhancement measures to address such
impacts.
u. (ultipartite (onitoring Team !((T' community
based multisectoral team organi0ed for the purpose
of monitoring the proponent2s compliance with 533
conditions, 5(4 and applicable laws, rules and
regulations.
v. 4rogrammatic 5nvironmental .mpact "tatement
!45."' documentation of comprehensive studies on
environmental baseline conditions of a contiguous
area. .t also includes an assessment of the carrying
capacity of the area to absorb impacts from co
located pro1ects such as those in industrial estates or
economic 0ones !eco0ones',
w. 4rogrammatic 5nvironmental 4erformance 6eport
and (anagement 4lan !4546(4' documentation of
actual cumulative environmental impacts of
collocated pro1ects with proposals for e#pansion. The
4546(4 should also describe the effectiveness of
current environmental mitigation measures and
plans for performance improvement.
#. 4ro1ect =escription !4=' document, which may
also be a chapter in an 5.", that describes the
nature, configuration, use of raw materials and
natural resources, production system, waste or
pollution generation and control and the activities of
a proposed pro1ect. .t includes a description of the
use of human resources as well as activity timelines,
during the preconstruction, construction, operation
and abandonment phases. .t is to be used for
reviewing colocated and single pro1ects under
3ategory 3, as well as for 3ategory = pro1ects.
T. 4ro1ect or Fndertaking any activity, regardless of
scale or magnitude, which may have significant
impact on the environment.
0. 4roponent any natural or 1uridical person
intending to implement a pro1ect or undertaking.
aa. 4ublic 4articipation open, transparent, gender
sensitive, and community based process aimed at
ensuring the social acceptability of a pro1ect or
undertaking, involving the broadest range of
stakeholders, commencing at the earliest possible
stage, of pro1ect design and development and
continuing until postassessment monitoring.
bb. 4rocedural 6eview phase in the 533 application
review process to check for the completeness the
re;uired documents, conducted by 5.-( =ivision at
the 5(B 3entral 8ffice or 6egional 8ffice.
cc. 4rocess .ndustry an industry whose pro1ect
operation stage involves chemical, mechanical or
other processes.
dd. "coping the stage in the 5." "ystem where
information and pro1ect impact assessment
re;uirements are established to provide the
proponent and the stakeholders the scope of work
and terms of reference for the 5.".
ee. "ecretary the "ecretary of the =5,6.
ff. "ocial -cceptability acceptability of a pro1ect by
affected communities based on timely and informed
participation in the 5.- process particularly with
regard to environmental impacts that are of concern
to them.
gg. "takeholders entities who may be directly and
significantly affected by the pro1ect or undertaking.
hh. "ubstantive 6eview the phase in the 5.-
process whereby the document submitted is
sub1ected to technical evaluation by the 5.-63.
ii. Technology all the knowledge, products,
processes, tools, methods and systems employed in
the creation of goods or providing services.
ARTICLE II
ECC A88LICATION 8ROCESSIN; AND A88ROVAL
8ROCEDURES
Section >& Sco/e of t!e EIS S$ste5
D.$ .n general, only pro1ects that pose potential
significant impact to the environment shall be
re;uired to secure 5332s. .n coordination with the
=epartment of Trade and .ndustry !=T.' and other
concerned government agencies, the 5(B is
authori0ed to
update or make appropriate revisions to the
technical guidelines for 5." "ystem implementation.
D.9 The issuance of 533 or 3,3 for a pro1ect under
the 5." "ystem does not e#empt the proponent from
securing other government permits and clearances
as re;uired by other laws.
.n determining the scope of the 5." "ystem, two
factors are considered) !i' the nature of the pro1ect
and its potential to cause significant negative
environmental impacts, and !ii' the sensitivity or
vulnerability of environmental resources in the
pro1ect area. D.A The specific criteria for, determining
pro1ects or undertakings to be covered by the 5."
"ystem are as follows)
a. 3haracteristics of the pro1ect or undertaking
V "i0e of the pro1ect
V 3umulative nature of impacts visavis) other
pro1ects
V Fse of natural resources
V >eneration of waste and environmentrelated
nuisance
V 5nvironmentrelated ha0ards and risk of
accidents
b. 7ocation of the 4ro1ect
V Gulnerability of the pro1ect area to
disturbances due to its ecological importance,
endangered or protected status
V 3onformity of the proposed pro1ect to e#isting
land use, based on approved 0oning or on
national laws and regulations
V 6elative abundance, ;uality and regenerative
capacity of natural resources in the area,
including the impact absorptive capacity of the
environment
c. ,ature of the potential impact
V >eographic e#tent of the impact and si0e of
affected population
V (agnitude and comple#ity of the impact
V 7ikelihood, duration, fre;uency, and
reversibility of the impact
The following are the categories of
pro1ectsCundertakings under the 5." system)
$ategor( -. 5nvironmentally 3ritical 4ro1ects !534s'
with significant potential to cause negative
environmental impacts
$ategor( B. 4ro1ects that are not categori0ed as
534s, but which may cause negative environmental
impacts because they are located in 5nvironmentally
3ritical -reas !53-2s'
$ategor( 3. 4ro1ects intended to directly enhance
environmental ;uality or address e#isting
environmental problems not falling under 3ategory -
or B.
$ategor( =. 4ro1ects unlikely to cause adverse
environmental impacts.
D.D 4roponents of colocated or single pro1ects that
fall under 3ategory - and B are re;uired to secure
533. *or colocated pro1ects, the proponent has the
option to secure a 4rogrammatic 533. *or eco0ones,
533 application may be programmatic based on
submission of a programmatic 5.", or locatorspecific
based on submission of pro1ect 5." by each locator.
D.B 4ro1ects under 3ategory 3 are re;uired submit
4ro1ect =escription.
D.@ 4ro1ects classified under 3ategory = may secure
a 3,3. The 5(B=5,6, however, may re;uire such,
pro1ects or undertakings to provide additional
environmental safeguards as it may deem necessary.
,
D.7 4ro1ectsCundertakings introducing new
technologies or construction techni;ue but which
may cause significant negative environmental
impacts shall be re;uired to submit a 4ro1ect
=escription /hich will be used as basis by 5(B for
screening the pro1ect and
determining its category.
Section F& Re@uire5ents for Securin'
En4iron5ental Co5/liance Certificate 1ECC2
an% Certificate of NonHCo4era'e 1CNC2
B.$ =ocumentary 6e;uirements for 4roponents 533
processing re;uirements shall focus on information
needed to assess critical
en;ironmental impacts of proFects. 4rocessing
re;uirements shall be customi0ed based on the
pro1ect categories.
The total ma#imum processing time reckons from the
acceptance of the 533C3,3 application for
substantive review up to the issuance of the decision
F&* 7or5s an% Contents of EIA Stu%$ Re/orts
an% Ot!er Docu5ents Re@uire% Un%er t!e EIS
S$ste5
The following are the different forms of 5.- study
reports and documents re;uired under the 5."
"ystem. =5,6 employees are prohibited from taking
part in the preparation of such documents.
The =5,6C5(B shall limit to a ma#imum of two !9'
official re;uests !in writing' to the pro1ect proponent
for additional information, which shall be made
within the first 7BN of the processing timeframe
shown in "ection B.$.$.
F&*&+& En4iron5ental I5/act State5ent 1EIS2&
The 5." should contain at least the following)
a. 5." 5#ecutive "ummary+
b. 4ro1ect =escription+
c. (atri# of the scoping agreement identifying critical
issues and concerns, as validated by 5(B+
d. Baseline environmental conditions focusing on the
sectors !and resources' most significantly affected by
the proposed action+
e. .mpact assessment focused on significant
environmental impacts !in relation to pro1ect
constructionCcommissioning, operation and
decommissioning', taking into account cumulative
impacts+
f. 5nvironmental 6isk -ssessment if determined by
5(B as necessary during scoping+
g. 5nvironmental (anagement 4rogramC4lan+
h. "upporting documents+ including technicalCsocio
economic data usedCgenerated+ certificate of 0oning
viability and municipal land use plan+ and proof of
consultation with stakeholders+
i. 4roposals for 5nvironmental (onitoring and
>uarantee *unds including 1ustification of amount,
when re;uired+
1. -ccountability statement of 5.- consultants and the
pro1ect proponent+ and
k. 8ther clearances and documents that may be
determined and agreed upon during scoping.
F&*&*& Initial En4iron5ental E#a5ination 1IEE2
Re/ort
.55 6eport is similar to an 5.", but with reduced
details of data and depth of assessment and
discussion. .t may be customi0ed for different types
of pro1ects under 3ategory B. The 5(B shall
coordinate with relevant government agencies and
the private sector to customi0e and update .55
3hecklists to further streamline 533 processing,
especially for small and medium enterprises.
F&*&=& 8ro'ra55atic En4iron5ental I5/act
State5ent 18EIS2
The 45." shall contain the following)
a. 5#ecutive "ummary+
b. 4ro1ect =escription+
c. "ummary matri# of scoping agreements as
validated by 5(B+
d. Kcoprofiling of air, land, water, and relevant
people aspects+
e. 5nvironmental carrying capacity analysis+
f. 5nvironmental 6isk -ssessment !if found necessary
during scoping'+
g. 5nvironmental (anagement 4lan to include
allocation scheme for discharge of pollutants+ criteria
for acceptance of locators, environmental
management guidebook for locators, and
environmental liability scheme+
h. =uties of the 5nvironmental (anagement Fnit to
be created+
i. 4roposals for 5nvironmental (onitoring W
>uarantee *unds and terms of reference for the
(ultipartite (onitoring Team, and
1. 8ther supporting documents and clearances that
may be agreed during the scoping.
F&*&>& 8ro'ra55atic En4iron5ental
8erfor5ance Re/ort an% 9ana'e5ent 8lan
18E8R982&
The 4546(4 shall contain the following)
a. 4ro1ect =escription of the colocated pro1ects+
b. =ocumentation of the actual environmental
performance based on currentCpast environmental
management measures implemented, and
c. -n 5(4 based on an environmental management
system framework and standard set by 5(B.
F&*&F& En4iron5ental 8erfor5ance Re/ort an%
9ana'e5ent 8lan
The 546(4 shall contain the following)
a. 4ro1ect =escription+
b. Baseline conditions for critical environmental
parameters+
c. =ocumentation of the environmental performance
based on the currentCpast environmental
management measures implemented+
d. =etailed comparative, description of the proposed
pro1ect e#pansion andCor process modification with
corresponding material and energy balances in the
case of process industries,
e. 5(4 based on an environmental management
system framework and standard set by 5(B.
F&*&?& 8roGect Descri/tion 18D2
The 4= shall be guided by the definition of terms and
shall contain the following) and update .55 3hecklists
to further streamline 533 processing, especially for
small and medium enterprises.
F&*&=& 8ro'ra55atic En4iron5ental I5/act
State5ent 18EIS2
The 45." shall contain the following)
a. 5#ecutive "ummary+
b. 4ro1ect =escription+
c. "ummary matri# of scoping agreements as
validated by 5(B+
d. Kcoprofiling of air, land, water, and relevant
people aspects+
e. 5nvironmental carrying capacity analysis+
f. 5nvironmental 6isk -ssessment !if found necessary
during scoping'+
g. 5nvironmental (anagement 4lan to include
allocation scheme for discharge of pollutants+ criteria
for acceptance of locators, environmental
management guidebook for locators, and
environmental liability scheme+
h. =uties of the 5nvironmental (anagement Fnit to
be created+
i. 4roposals for 5nvironmental (onitoring W
>uarantee *unds and terms of reference for the
(ultipartite (onitoring Team, and
1. 8ther supporting documents and clearances that
may be agreed during the
scoping.
F&*&>& 8ro'ra55atic En4iron5ental
8erfor5ance Re/ort an% 9ana'e5ent 8lan
18E8R982&
The 4546(4 shall contain the following)
a. 4ro1ect =escription of the colocated pro1ects+
b. =ocumentation of the actual environmental
performance based on currentCpast environmental
management measures implemented, and
c. -n 5(4 based on the environmental management
system framework and standard set by 5(B.
F&*&F& En4iron5ental 8erfor5ance Re/ort an%
9ana'e5ent 8lan 1E8R982
The 546(4 shall contain the following)
a. 4ro1ect =escription+
b. Baseline conditions for critical environmental
parameters+
c. =ocumentation of the environmental performance
based on the currentCpast environmental
management measures implemented+
d. =etailed comparative, description of the proposed
pro1ect e#pansion andCor process modification with
corresponding material and energy balances in the
case of process industries,
e. 5(4 based on an environmental management
system framework and standard set by 5(B.
F&*&?& 8roGect Descri/tion 18D2
The 4= shall be guided by the definition of terms and
shall contain the following)
a. =escription of the pro1ect+
b. 7ocation and area covered+
c. 3apitali0ation and manpower re;uirement+
d. *or process industries, a listing of raw materials to
be used, description of the process or manufacturing
technology, type and volume of products and
discharges)
e. *or 3ategory 3 pro1ects, a detailed description on
how environmental efficiency and overall
performance improvement will be attained, or how
an e#isting environmental problem will be effectively
solved or mitigated by the pro1ect, and
f. - detailed location map of the impacted site
showing relevant features !e.g. slope, topography,
human settlements'.
g. Timelines for construction and commissioning .
F&*&.& E9SH"ase% E98&
The 5("based 5(4 is an option that proponents
may undertake in lieu of the 546(4 for single
pro1ects applying for 533 under 3ategory -A and B
A.
F&= 8u"lic :earin' + Consultation
Re@uire5ents
*or pro1ects under 3ategory -$, the conduct of
public hearing as part of the 5." review is mandatory
unless otherwise determined by 5(B. *or all other
undertakings, a public hearing is not mandatory
unless specifically re;uired by 5(B.
4roponents should initiate public consultations early
in order to ensure that environmentally relevant
concerns of stakeholders are taken into consideration
in the 5.- study and the formulation of the
management plan, -ll public consultations and public
hearings conducted during the 5.- process are to be
documented. The public hearingC consultation
4rocess report shall be validated by the 5(BC5(B 6=
and shall constitute part of the records of the 5.-
process.
F&> Docu5entation Re@uire5ents for DENRH
E9B an% EIA Re4iewers
The 5(B 3entral 8ffice as well as the 5(B 6egional
8ffices shall document the proceedings of the 533
application process and shall set up and maintain
relevant information management systems. The
documentation shall, at a minimum, include the
following)
F&>&+& Re4iew 8rocess Re/ort
This is to be prepared by the 5(B 3entral or 5(B 68.
.t is to be forwarded to the =5,6 "ecretary or 6= as
reference for decisionmaking and maintained as
part of the records on the 533 application. The report
should contain at least the following)
a. "ummary of the environmental impacts of the
undertaking, along with the proposed mitigation and
enhancement measures+
b. Xey issuesCconcerns and the proponent2s response
to these+
c. =ocumentation of compliance with procedural
re;uirements+
d. -cceptability of proposed 5(4 including the
corresponding cost of mitigation, 5>* and 5(* if
re;uired+
e. Xey bases for the decision on the 533 application.
F&>&*& EIARC Re/ort
This report, to be prepared by the 5.- 6eview
3ommittee, forms part of the 5." review
documentation. The 5.-63 6eport shall be written by
the designated member of the 5.-63 and signed by
all the members within five days after the final
review meeting. .f an 5.-63 member dissents, he or
she must submit a memorandum to the 5(B =irector
through the 5.-63 3hairman his or her reasons for
dissenting.
-t a minimum the 5.-63 report should contain+
a. =etailed assessment of the proposed mitigation
and enhancement measures for the identified
environmental impacts and risks+
b. =escription of residual or unavoidable
environmental impacts despite proposed mitigation
measures+
c. =ocumentation of compliance with
technicalCsubstantive review criteria+
d. Xey issuesCconcerns and the proponent2s response
to these, including social acceptability measures+
e. -ssessment of the proposed 5(4 !including risk
reductionCmanagement plan' and amounts proposed
for the 5nvironmental >uarantee *und and the
5nvironmental (onitoring *und, and
f. 6ecommended decision regarding the 533
application as well as proposed 533 conditions.
F&>&=& Decision Docu5ent
This is an official letter regarding the decision on the
application. .t may be in the form of an
5nvironmental 3ompliance 3ertificate or a =enial
7etter. The 533 shall contain the scope and
limitations of the approved activities, as well as
conditions to ensure compliance with the
5nvironmental (anagement 4lan. The 533 shall also
specify the setting up of an 5(* and 5>*, if
applicable. ,o 533 shall be released until the
proponent has settled all liabilities, fines and other
obligations with =5,6.
- =enial 7etter on the other hand shall specify the
bases for the decision. The 533 or =enial 7etter shall
be issued directly to the pro1ect proponent or its duly
authori0ed representative, and receipt of the letter
shall be properly documented. The 533 of a pro1ect
not implemented within five years from its date of
issuance is deemed e#pired. The 4roponent shall
have to apply for a new 533 if it intends to pursue
the pro1ect. The reckoning date of pro1ect
implementation is the date of ground breaking,
based on the proponent2s work plan as submitted to
the 5(B.
Section ?& A//eal
-ny party aggrieved by the final decision on the
533 C 3,3 applications may, within $B days from
receipt of such decision, file an appeal on the
following grounds)
a. >rave abuse of discretion on the part of the
deciding authority, or
b. "erious errors in the review findings.
The =5,6 may adopt alternative conflictCdispute
resolution procedures as a means to settle
grievances between proponents and aggrieved
parties to avert unnecessary legal action. *rivolous
appeals shall not be countenanced.
The proponent or any stakeholder may file an appeal
to the following)
Deci%in' Aut!orit$ W!ere to file t!e a//eal
5(B 6egional 8ffice =irector 8ffice of the 5(B
=irector
5(B 3entral 8ffice 8ffice of the =5,6 "ecretary
=5,6 "ecretary 8ffice of the 4resident
Section .& T!e EIA 8rocess in Relation to t!e
8roGect 8lannin' C$cle
4roponents are directed under -8 D9 to conduct
simultaneously the environmental impact study and
the pro1ect planning or feasibility study. 5(B may
validate whether or not the 5." was integrated with
pro1ect planning by re;uiring relevant documentary
proofs, such as the terms of reference for the
feasibility study and copies of the feasibility study
report.
The 5(B shall study the potential application of 5.-
to policybased undertakings as a further step toward
integrating and streamlining the 5." system.
Section -& EIS S$ste5 8roce%ures
-&+ 9anual of 8roce%ures
?.$.$. The procedures to enable the processing of
533.3,3 applications within the timeframes,
specified in -8 D9 shall be prescribed in a 4rocedural
(anual to be issued by the 5(B 3entral 8ffice within
ninety !%&' days from the date of this 8rder.
?.$.9. The (anual of 4rocedures shall be updated as
the need arises to continually shorten the review and
approvalCdenial timeframes where feasible.
*ormulation of said procedures shall conform to the
following guidelines+
-&* 8rocessin' Ti5efra5e
?.9.$. .f no decision is made within the specified
timeframe, the 533C3,3 application is deemed
automatically approved and the approving authority
shall issue the 533 or 3,3 within five !B' working
days after the prescribed processing timeframe has
lapsed. :owever, the 5(B may deny issuance of 533
if the proponent fails to submit re;uired additional
information critical to deciding on the 533C3,3
application, despite written re;uest from 5(B and
despite an ade;uate period for the proponent to
comply with the said re;uirement+
?.9.9. .n cases where 533 issuance cannot be
decided due to the proponent2s inability to submit
re;uired additional information within the prescribed
period, the 5(B shall return the application to the
proponent. The pro1ect proponent may resubmit its
application, including the re;uired additional
information, within one !$' year for 3ategory -
pro1ects and si# !@' months for 3ategory B pro1ects
without having to pay processing and other fees.
8therwise, the matter shall be treated as a new
application.
?.9.A. .n cases where 5(B and the pro1ect proponent
have e#hausted all reasonable efforts to generate
the information needed for deciding on the 533C3,3
application, the responsible authority !"ecretary or
5(B =irectorC 6egional =irector', shall make a
decision based on the available information so as to
comply with the prescribed timeframe. The decision
shall nonetheless reflect a thorough assessment of
impacts taking into
consideration !i' the significance of environmental
impacts and risks+ !ii' the carrying capacity of the
environment+ !iii' e;uity issues with respect to use of
natural resources, !iv' and the proponent2s
commitment, to institute effective environmental
management measures.
-&= A5en%in' an ECC
6e;uirements for processing 533 amendments shall
depend on the nature of the re;uest but shall be
focused on the information necessary to assess the
environmental impact of such changes.
?.A.$. 6e;uests for minor changes to 533s such as
e#tension of deadlines for submission of post533
re;uirements shall be decided upon by the endorsing
authority.
?.A.9. 6e;uests for ma1or changes to 533s shall be
decided upon by the deciding authority.
?.A.A. *or 533s issued pursuant to an .55 or .55
checklist, the processing of the amendment
application shall not e#ceed thirty !A&' working days+
and for 533s issued pursuant to an 5.", the
processing shall not e#ceed si#ty !@&' working days.
4rovisions on automatic approval related to
prescribed timeframes under -8 D9 shall also apply
for the processing of applications to amend 533s.
Section ,& 9onitorin' of 8roGects wit! ECCs
4ost 533 monitoring of pro1ects shall follow these
guidelines. 8ther details on re;uirements for
monitoring of pro1ects with 533s shall be stipulated
in a procedural manual to be formulated by 5(B.
,&+ 9ulti/artite 9onitorin' Tea5
*or pro1ects under 3ategory -, a multipartite
monitoring team !((T' shall be formed immediately
after the issuance of an 533. 4roponents re;uired to
establish an ((T shall put up an 5nvironmental
(onitoring *und !5(*' not later than the initial
construction phase of the pro1ect.
The ((T shall be composed of representatives of the
proponent and of stakeholder groups, including
representatives from concerned 7>F2s, locally
accredited ,>8sC48s, the community, concerned
5(B 6egional 8ffice, relevant government agencies,
and other sectors that may be identified during the
negotiations.
The team shall be tasked to undertake monitoring of
compliance with 533 conditions as well as the 5(4.
The ((T shall submit a semiannual monitoring
report within <anuary and <uly of each year.
The 5(B shall formulate guidelines for
operationali0ing areabased or clusterbased ((T.
The Bureau may also develop guidelines for
delegating, monitoring responsibilities to other
relevant government agencies as may be deemed
necessary. *or pro1ects whose significant
environmental impacts do not persist after the
construction phase or whose impacts could be
addressed through other regulatory means or
through the mandates of other government
agencies, the operations of ((T may be terminated
immediately after construction or after a reasonable
period during implementation.
,&* SelfH5onitorin' an% T!ir% 8art$ Au%it
The proponent shall also conduct regular self
monitoring of specific parameters indicated in the
5(4 through its environmental unit. The proponent2s
environmental unit shall submit a semiannual
monitoring report within <anuary and <uly of each
year.
*or pro1ects with 533s issued based on a 4546(4,
546(4, or an 5("based 5(4, a third party audit
may be undertaken by a ;ualified environmental or
5(" auditor upon the initiative of the proponent and
in lieu of forming an ((T. The said proponent shall
submit to 5(B a copy of the audit findings and shall
be held accountable for the veracity of the report.
The 5(B may opt to validate the said report.
,&= En4iron5ental ;uarantee 7un%
-n 5nvironmental >uarantee *und !5>*' shall be
established for all colocated or single pro1ects that
have been determined by =5,6 to pose a significant
public risk or where the pro1ect re;uires
rehabilitation or restoration. -n 5>* 3ommittee shall
be formed to manage the fund. .t shall be composed
of representatives from the 5(B 3entral 8ffice, 5(B
6egional 8ffice, affected communities, concerned
7>Fs, and relevant government agencies identified
by 5(B.
-n integrated (8- on the ((T5(*5>* shall be
entered into among the 5(B 3entral 8ffice, 5(B
6egional 8ffice, the proponent, and representatives
of concerned stakeholders.
,&> A"an%on5ent
*or pro1ects that shall no longer be pursued, the
proponent should inform 5(B to relieve the former
from the re;uirement for continued compliance with
the 533 conditions. *or pro1ects that have already
commenced implementation, an
abandonmentCdecommissioning plan shall be
submitted for approval by 5(B at least si# !@'
months before the planned
abandonmentCdecommissioning. The implementation
of the plan shall be verified by 5(B.
ARTICLE Ill
STREN;T:ENIN; T:E I98LE9ENTATION O7
T:E 8:ILI88INE EIS
SBSTE9
Section +6& Coor%ination wit! ot!er
;o4ern5ent A'encies an% ot!er Or'ani3ations
The =5,65(B shall conduct regular consultations
with =T. and other pertinent government agencies,
affected industry groups and other stakeholders on
continually streamlining the processing of 533
applications and post 533 implementation to fulfill
the policy and ob1ectives of this administrative order.
The 4resident shall be apprised of the issues raised
as well as the actions taken by =5,6 to address
these issues whenever necessary.
Section ++& Infor5ation S$ste5s I5/ro4e5ent
The information system on the 5." "ystem
implementation shall be improved for the effective
dissemination of information to the public. The
information system shall include regular updating of
the status of 533 applications through a website and
through other means.
Section +*& Accre%itation S$ste5
To enhance the ;uality of the 5." submitted to the
=5,6C5(B, the 5(B shall establish an accreditation
system for individual professionals, academic and
professional organi0ations that can be tapped to train
professionals in conducting 5.- using training
modules approved by 5(B.
The 5(B shall also work with =T.B4" for an
accreditation system for environmental and 5("
auditors, consistent with provisions of =-8 9&&A$D
on the 4hilippine 5nvironmental 4artnership 4rogram.
Section +=& Creation of an :A9 Di4ision an%
Stren't!enin' of Re4iew an% 9onitorin'
Ca/a"ilit$
.n order to effectively implement the provisions of
this administrative order, the current 5.- ad hoc
division at the 5(B 3entral 8ffice and the 5(B
6egional 8ffices that are primarily incharge of
processing 533 applications and post533 monitoring
shall be converted to a fullpledged 5nvironmental
.mpact -ssessment and (anagement =ivision
!5.-(='. The =ivision shall have the following
structure and functions)
+=&+ The 5.- 5valuation "ection shall be in charge of
screening pro1ects for coverage under the 5."
"ystem, 5." "coping, and evaluation of 5."2s and
.552s submitted for 533 issuance. .t shall have three
units responsible, respectively, for screening for
coverage, 5." "coping, and evaluation of 533
applications. The 5(B may commission independent
professionals, e#perts from the academe and
representatives from relevant government agencies
as members of the 5.- 6eview 3ommittee as may be
deer A$d necessary. *urther, continual improvement
of the technical capability of the "taff of the 5.-
=ivision shall be undertaken.
+=&* The .mpact (onitoring and Galidation "ection
shall be in charge of monitoring compliance to 533
conditions and implementation of the 5nvironmental
(anagement 4rogram !5(4') The unit shall also
validate actual impacts as a basis for evaluating
environmental performance and effectiveness of the
5(4.
+=&= .n the 5(B 3entral 8ffice, there shall be a
"ystems 4lanning and (anagement "ection. .t shall
ensure that a continually improving systemsoriented
and integrated approach is followed in implementing
the 4hilippine 5." "ystem visavis national
development programs. The section shall have two
units responsible for specific systems level concerns)
!$' 4ro1ect 7evel "ystems 4lanning and (anagement
Fnit+ and !9' 4rogram and 4olicy 7evel "ystems
4lanning and (anagement Fnit. This section shall
also be responsible for technical coordination with
the 5.- =ivision in the different 5(B 6egional 8ffices.
The organi0ational structure of the 5(B 3entral
8ffice is in -nne# $.
ARTICLE +V
9ISCELLANEOUS 8ROVISIONS
Section +>& Bu%'et Allocation
*or the effective implementation of this order,
ade;uate funding should be provided under the
annual >eneral -ppropriations -ct.
4er -F D9, the new position items for the 5.- =ivision
shall be created out of the e#isting budget and
vacant position items within the government service,
which shall be reclassified accordingly.
Section +F& 7ees
-ll proponents, upon submission of the .55.5." and
application for amendment, shall pay filing fees and
other charges in accordance with prescribed
standard costs and fees set by 5(B in relation to the
implementation of the 4hilippine 5." "ystem, as
shown in -nne# 9.
The proponent shall shoulder the cost of reviewing
the 5.".
Section +?& 7ines) 8enalties An% Sanctions
The 5(B 3entral 8ffice or 6egional 8ffice =irectors
shall impose penalties upon persons or entities found
violating provisions of 4.=. $B?@, and its
.mplementing 6ules and 6egulations. =etails of the
*ines and 4enalty "tructure shall be covered by a
separate order.
The 5(B =irector or the 5(B6= may issue a 3ease
and =esist 8rder !3=8' based on violations under
the 4hilippine 5." "ystem to prevent grave or
irreparable damage to the environment. "uch 3=8
shall be effective immediately. -n appeal or any
motion seeking to lift the 3=8 shall not stay its
effectivity. :owever, the =5,6 shall act on such
appeal or motion within ten !$&' working days from
filing.
The 5(B may publish the identities of firms that are
in violation of the 5.- 7aw and its .mplementing
6ules and 6egulations despite repeated ,otices of
Giolation andCor 3ease and =esist 8rders.
Section +.& Transitor$ 8ro4isions
The =5,6 may e#tend reprieve to proponents of
pro1ects operating without 533 !3ategories -A and
BA' from penalties specified in 4= $B?@ upon
registration with the 5(B 3entral 8ffice. -n
5nvironmental 4erformance 6eport and (anagement
4lan !546(4' shall be submitted as a re;uirement for
such 533 application within si# months from the
signing of this -dministrative order.
=uring the period that that the 4rocedural (anual
and other necessary guidelines are being prepared,
e#isting guidelines which are consistent with the
provisions of this 8rder shall remain in effect.
-de;uate resources shall be provided for the
formulation of the 4rocedural (anual and for the
effective implementation of this 8rder.
Section +-& Re/ealin' Clause
This 8rder hereby supersedes =epartment
-dministrative 8rder ,o. %@A7, =epartment
-dministrative 8rder ,o. 9&&&A7, =-8 9&&&&B and
other related orders, which are inconsistent herewith.
C&A& No& +>+ AN ACT TO A9END AND CO98ILE
T:E LAWS RELATIVE TO LANDS O7 T:E 8UBLIC
DO9AIN
TITLE I
TITLE AND A88LICATION O7 T:E ACT) LANDS
TO W:IC: IT RE7ERS) AND CLASSI7ICATION)
DELI9ITATION) AND SURVEB H T:EREO7 7OR
CONCESSION
C:A8TER I
S:ORT TITLE O7 T:E ACT) LANDS TO W:IC: IT
A88LIES) AND O77ICERS C:AR;ED WIT: ITS
E(ECUTION
Sec& *& The provisions of this -ct shall apply to the
lands of the public domain+ but timber and mineral
lands shall be governed by special laws and nothing
in this -ct provided shall be understood or construed
to change or modify the administration and
disposition of the lands commonly called friar lands
and those which, being privately owned, have
reverted to or become the property of the
3ommonwealth of the 4hilippines, which
administration and disposition shall be governed by
the laws at present in force or which may hereafter
be enacted.
Sec& =& The "ecretary of -griculture and 3ommerce
shall be the e#ecutive officer charged with carrying
out the provisions of this -ct through the =irector of
7ands, who shall act under his immediate control.
Sec& >& "ub1ect to said control, the =irector of 7ands
shall have direct e#ecutive control of the survey,
classification, lease, sale or any other form of
concession or disposition and management of the
lands of the public domain, and his decisions as to
;uestions of fact shall be conclusive when approved
by the "ecretary of -griculture and 3ommerce.
Sec& F& The =irector of 7ands, with the approval of
the "ecretary of -griculture and 3ommerce shall
prepare and issue such forms, instructions, rules, and
regulations consistent with this -ct, as may be
necessary and proper to carry into effect the
provisions thereof and for the conduct of proceedings
arising under such provisions.
C:A8TER II
CLASSI7ICATION) DELI9ITATION) AND SURVEB
O7 LANDS O7 T:E 8UBLIC DO9AIN) 7OR T:E
CONCESSION T:EREO7
Sec& ?& The 4resident, upon the recommendation of
the "ecretary of -griculture and 3ommerce, shall
from time to time classify the lands of the public
domain into
!a' -lienable or disposable+
!b' Timber, and
!c' (ineral lands,
and may at any time and in a like manner transfer
such lands from one class to another, for the
purposes of their administration and disposition.
Sec& .& *or the purposes of the administration and
disposition of alienable or disposable public lands,
the 4resident, upon recommendation by the
"ecretary of -griculture and 3ommerce, shall from
time to time declare what lands are open to
disposition or concession under this -ct.
Sec& -& 8nly those lands shall be declared open to
disposition or concession which have been officially
delimited and classified and, when practicable,
surveyed, and which have not been reserved for
public or ;uasipublic uses, nor appropriated by the
>overnment, nor in any manner become private
property, nor those on which a private right
authori0ed and recogni0ed by this -ct or any other
valid law may be claimed, or which, having been
reserved or appropriated, have ceased to be so
:owever, the 4resident may, for reasons of public
interest, declare lands of the public domain open to
disposition before the same have had their
boundaries established or been surveyed, or may, for
the same reason, suspend their concession or
disposition until they are again declared open to
concession or disposition by proclamation duly
published or by -ct of the ,ational -ssembly.
Sec& ,& *or the purpose of their administration and
disposition, the lands of the public domain alienable
or open to disposition shall be classified, according to
the use or purposes to which such lands are
destined, as follows)
!a' -gricultural
!b' 6esidential commercial industrial or for similar
productive purposes
!c' 5ducational, charitable, or other similar purposes
!d' 6eservations for town sites and for public and
;uasipublic uses.
The 4resident, upon recommendation by the
"ecretary of -griculture and 3ommerce, shall from
time to time make the classifications provided for in
this section, and may, at any time and in a similar
manner, transfer lands from one class to another.
Sec& +6& The words alienation, Hdisposition, or
concession as used in this -ct, shall mean any of
the methods authori0ed by this -ct for the
ac;uisition, lease, use, or benefit of the lands of the
public domain other than timber or mineral lands.
TITLE II
A;RICULTURAL 8UBLIC LANDS
C:A8TER III
7OR9S O7 CONCESSION O7 A;RICULTURAL
LANDS
Sec& ++& 4ublic lands suitable for agricultural
purposes can be disposed of only as follows, and not
otherwise)
!$' *or homestead settlement
!9' By sale
!A' By lease
!D' By confirmation of imperfect or incomplete titles)
!a' By 1udicial legali0ation
!b' By administrative legali0ation !free patent'.
Sec& +*& -ny citi0en of the 4hilippines over the age
of eighteen years, or the head of a family, who does
not own more than twentyfour hectares of land in
the 4hilippines or has not had the benefit of any
gratuitous allotment of more than twentyfour
hectares of land since the occupation of the
4hilippines by the Fnited "tates, may enter a
homestead of not e#ceeding twentyfour hectares of
agricultural land of the public domain.
Sec& +=& Fpon the filing of an application for a
homestead, the =irector of 7ands, if he finds that the
application should be approved, shall do so and
authori0e the applicant to take possession of the land
upon the payment of five pesos, 4hilippine currency,
as entry fee. /ithin si# months from and after the
date of the approval of the application, the applicant
shall begin to work the homestead, otherwise he
shall lose his prior right to the land.
Sec& +>& ,o certificate shall be given or patent
issued for the land applied for until at least onefifth
of the land has been improved and cultivated. The
period within which the land shall be cultivated shall
not be less than one or more than five years, from
and after the date of the approval of the application.
The applicant shall, within the said period, notify the
=irector of 7ands as soon as he is ready to ac;uire
the title. .f at the date of such notice, the applicant
shall prove to the satisfaction of the =irector of
7ands, that he has resided continuously for at least
one year in the municipality in which the land is
located, or in a municipality ad1acent to the same,
and has cultivated at least onefifth of the land
continuously since the approval of the application,
and shall make affidavit that no part of said land has
been alienated or encumbered, and that he has
complied with all the re;uirements of this -ct, then,
upon the payment of five pesos, as final fee, he shall
be entitled to a patent.
Sec& +F& -t the option of the applicant, payment of
the fees re;uired in this chapter may be made to the
municipal treasurer of the locality, who, in turn, shall
forward them to the provincial treasurer. .n case of
delin;uency of the applicant, the =irector of 7ands
may, si#ty days after such delin;uency has occurred,
either cancel the application or grant an e#tension of
time not to e#ceed one hundred and twenty days for
the payment of the sum due.
Sec& +?& .f at any time before the e#piration of the
period allowed by law for the making of final proof, it
shall be proven to the satisfaction of the =irector of
7ands, after due notice to the homesteader, that the
land entered is under the law not sub1ect to home
stead entry, or that the homesteader has actually
changed his residence, or voluntarily abandoned the
land for more than si# months at any one time during
the years of residence and occupation herein
re;uired, or has otherwise failed to comply with the
re;uirements of this -ct, the =irector of 7ands may
cancel the entry.
Sec& +.& Before final proof shall be submitted by any
person claiming to have complied with the provisions
of this chapter, due notice, as prescribed by the
"ecretary of -griculture and 3ommerce shall be
given to the public of his intention to make such
proof, stating therein the name and address of the
homesteader, the description of the land, with its
boundaries and area, the names of the witness by
whom it is e#pected that the necessary facts will be
established, and the time and place at which, and
the name of the officer before whom, such proof will
be made.
Sec& +-& .n case the homesteader shall suffer from
mental alienation, or shall for any other reason be
incapacitated from e#ercising his rights personally,
the person legally representing him may offer and
submit the final proof on behalf of such incapacitated
person.
Sec& +,& ,ot more than one homestead entry shall
be allowed to any one person, and no person to
whom a homestead patent has been issued by virtue
of the provisions of this -ct regardless of the area of
his original homestead, may again ac;uire a
homestead+ 4rovided, however, That any previous
homesteader who has been issued a patent for less
than twentyfour hectares and otherwise ;ualified to
make a homestead entry, may be allowed another
homestead which, together with his previous
homestead shall not e#ceed an area of twentyfour
hectares.
Sec& *6& .f at any time after the approval of the
application and before the patent is issued, the
applicant shall prove to the satisfaction of the
=irector of 7ands that he has complied with all the
re;uirements of the law, but cannot continue with his
homestead, through no fault of his own, and there is
a bona fide purchaser for the rights and
improvements of the applicant on the land, and that
the conveyance is not made for purposes of
speculation, then the applicant, with the previous
approval of the =irector of 7ands may transfer his
rights to the land and improvements to any person
legally ;ualified to apply for a homestead, and
immediately after such transfer, the purchaser shall
file a homestead application for the land so ac;uired
and shall succeed the original homesteader in his
rights and obligations beginning with the date of the
approval of said application of the purchaser. -ny
person who has so transferred his rights may not
again apply for a new homestead. 5very transfer
made without the previous approval of the =irector
of 7ands shall be null and void and shall result in the
cancellation of the entry and the refusal of the
patent.
Sec& *+& -ny non3hristian *ilipino who has not
applied for a homestead, desiring to live upon or
occupy land on any of the reservations set aside for
the socalled non3hristian tribes may re;uest a
permit of occupation for any tract of land of the
public domain reserved for said non3hristian tribes
under this -ct, the area of which shall not e#ceed
four hectares. .t shall be an essential condition that
the applicant for the permit cultivate and improve
the land, and if such cultivation has not been begun
within si# months from and after the date on which
the permit was received, the permit shall be
cancelled. The permit shall be for a term of one year.
.f at the e#piration of this term or at any time prior
thereto, the holder of the permit shall apply for a
homestead under the provisions of this chapter,
including the portion for which a permit was granted
to him, he shall have the priority, otherwise the land
shall be again open to disposition at the e#piration of
the permit.
*or each permit the sum of one peso shall be paid.
C:A8TER IV
SALE
Sec& **& -ny citi0en of lawful age of the 4hilippines,
and any such citi0en not of lawful age who is a head
of a family, and any corporation or association of
which at least si#ty per centum of the capital stock or
of any interest in said capital stock belongs wholly to
citi0ens of the 4hilippines, and which is organi0ed
and constituted under the laws of 4hilippines, and
corporate bodies organi0ed in the 4hilippines
authori0ed under their charters to do so+ may
purchase any tract of public agricultural land
disposable under this -ct, not to e#ceed one hundred
and fortyfour hectares in the case of an individual
and one thousand and twentyfour hectares in that of
a corporation or association, by proceeding as
prescribed in this chapter) 4rovided, That
partnerships shall be entitled to purchase not to
e#ceed one hundred and fortyfour hectares for each
member thereof. But the total area so purchased
shall in no case e#ceed the one thousand and
twentyfour hectares authori0ed in this section for
associations and corporations.
Sec& *=& ,o person, corporation, association,
or partnership other than those mentioned in the last
preceding section may ac;uire or own agricultural
public land or land of any other denomination or
classification, which is at the time or was originally,
really or presumptively, of the public domain, or any
permanent improvement thereon, or any real right
on such land and improvement) 4rovided, however,
That persons, corporations, associations or
partnerships which, at the date upon which the
4hilippine 3onstitution took effect, held agricultural
public lands or land of any other denomination, that
belonged originally, really or presumptively, to the
public domain, or permanent improvements on such
lands, or a real right upon such lands and
3onstitution took improvements, having ac;uired the
same under the laws and regulations in force at the
date of such ac;uisition, shall be authori0ed to
continue holding the same as if such persons,
corporations, associations, or partnerships were
;ualified under the last preceding section+ but they
shall not encumber, convey, or alienate the same to
persons, corporations, associations, or partnerships
not included in section twentytwo of this -ct, e#cept
by reason of hereditary succession, duly legali0ed
and acknowledged by competent courts.
Sec& *>& 7ands sold under the provisions of this
chapter must be appraised in accordance with
section one hundred and si#teen of this -ct. The
=irector of 7ands shall announce the sale thereof by
publishing the proper notice once a week for si#
consecutive weeks in the 8fficial >a0ette, and in two
newspapers one published in (anila and the other
published in the municipality or in the province
where the lands are located, or in a neighboring
province, and the same notice shall be posted on the
bulletin board of the Bureau 8f 7ands in (anila, and
in the most conspicuous place in the provincial
building and the municipal building of the province
and municipality, respectively, where the land is
located, and, if practicable, on the land itself+ but if
the value of the land does not e#ceed two hundred
and forty pesos, the publication in the 8fficial
>a0ette and newspapers may be omitted. The
notices shall be published one in 5nglish and the
other in "panish or in the local dialect, and shall fi# a
date not earlier than si#ty days after the date of the
notice upon which the land will be awarded to the
highest bidder, or public bids will be called for, or
other action will be taken as provided in this chapter.
Sec& *F& 4ublic agricultural lands which are not
located within ten !$&' kilometers from the
boundaries of the city proper in chartered cities or
within five !B' kilometers from the municipal hall or
town occupants pla0a of any municipality may be
sold to actual occupants who do not own any parcel
of land or whose total land holdings do not e#ceed
five hectares and who comply with the minimum
re;uirements of 3ommonwealth -ct numbered one
hundred fortyone, as amended, and who have
resided on the land applied for at least two years
prior to the date of the application.
-ll bids must be sealed and addressed to the =irector
of 7ands and must have enclosed therewith cash or
certified check, treasury warrant, or postoffice
money order payable to the order of the =irector of
7ands for ten per centum of the amount of the bid,
which amount shall be retained in case the bid is
accepted as part payment of the purchase price)
4rovided, That no bid shall be considered the amount
of which is less than the appraised value of the land.
.n addition to e#isting publication re;uirements in
section twentyfour of 3ommonwealth -ct ,umbered
one hundred fortyone, as amended, notices and of
applications shall be posted for a period of not less
than thirty days in at least three conspicuous places
in the municipality where the parcel of land is
located, one of which shall be at the municipal
building, and other, in the barrio council building of
the barrio where the land is located.
Sec& *?& Fpon the opening of the bids, the land shall
be awarded to the highest bidder. .f there are two or
more e;ual bids which are higher than the others,
and one of such e;ual bids is that of the applicant,
his bid shall be accepted. .f, however, the bid of the
applicant is not one of such e;ual and higher bids,
the =irector of 7ands shall at once submit the land
for public bidding, and to the person making the
highest bid on such public auction the land shall be
awarded. .n any case, the applicant shall always
have the option of raising his bid to e;ual that of the
highest bidder, and in this case the land shall be
awarded to him. ,o bid received at such public
auction shall be finally accepted until the bidder shall
have deposited ten per centum of his bid, as re;uired
in "ection twentyfive of this -ct. .n case none of the
tracts of land that are offered for sale or the
purchase of which has been applied for, has an area
in e#cess of twentyfour hectares, the =irector of
7ands may delegate to the =istrict 7and 8fficer
concerned the power of receiving bids, holding the
auction, and proceeding in accordance with the
provisions of this -ct, but the =istrict 7and 8fficer
shall submit his recommendation to the =irector of
7ands, for the final decision of the latter in the case.
The =istrict 7and 8fficer shall accept and process
any application for the purchase of public lands not
e#ceeding five hectares sub1ect to the approval of
the =irector of 7ands within si#ty days after receipt
of the recommendation of said =istrict 7and 8fficer.
"ec. 97. The purchase price shall be paid as follows)
The balance of the purchase price after deducting
the amount paid at the time of submitting the bid,
may be paid in full upon the making of the award, or
in not more than ten e;ual annual installments from
the date of the award.
Sec& *-& The purchaser shall have not less than one
fifth of the land broken and cultivated within five
years after the date of the award+ and before any
patent is issued, the purchaser must show of
occupancy, cultivation, and improvement of at least
onefifth of the land applied for until the date on
which final payment is made) 4rovided, however,
That in case land purchased is to be devoted to
pasture, it shall be sufficient compliance with this
condition if the purchaser shall gra0e on the land as
many heads of his cattle as will occupy at least one
half of the entire area at the rate of one head per
hectare.
Sec& *,& -fter title has been granted, the purchaser
may not, within a period of ten years from such
cultivation or grant, convey or encumber or dispose
said lands or rights thereon to any person,
corporation or association, without pre1udice to any
right or interest of the >overnment in the land)
4rovided, That any sale and encumbrance made in
violation of the provisions of this section, shall be null
and void and shall produce the effect of annulling the
ac;uisition and reverting the property and all rights
thereto to the "tate, and all payments on the
purchase price theretofore made to the >overnment
shall be forfeited.
Sec& =6& .f at any time after the date of the award
and before the issuance of patent, it is proved to the
satisfaction of the =irector of 7ands, after due notice
to the purchaser, that the purchaser has voluntarily
abandoned the land for more than one year at any
one time, or has otherwise failed to comply with the
re;uirements of the law, then the land shall revert to
the "tate, and all prior payments made by the
purchaser and all improvements e#isting on the land
shall be forfeited.
Sec& =+& ,o person, corporation, association, or
partnership shall be permitted, after the approval of
this -ct, to ac;uire the title to or possess as owner
any lands of the public domain if such lands, added
to other lands belonging to such person, corporation,
association, or partnership shall give a total area
greater than area the ac;uisition of which by
purchase is authori0ed under this -ct. -ny e#cess in
area over this ma#imum and all right, title, interest,
claim or action held by any person, corporation,
association, or partnership resulting directly or
indirectly in such e#cess shall revert to the "tate.
This section shall, however, not be construed to
prohibit any person, corporation, association, or
partnership authori0ed by this -ct to re;uire lands of
the public domain from making loans upon real
necessary for the recovery of such loans+ but in this
case, as soon as the e#cess above referred to occurs,
such person, corporation, association, or partnership
shall dispose of such lands within five years, for the
purpose of removing the e#cess mentioned. Fpon
the land in e#cess of the limit there shall be paid, so
long as the same is not disposed of, for the first year
a surta# of fifty per centum additional to the ordinary
ta# to which such property shall be sub1ect, and for
each succeeding year fifty per centum shall be added
to the last preceding annual ta# rate, until the
property shall have been disposed of.
The person, corporation, association, or partnership
owning the land in e#cess of the limit established by
this -ct shall determine the portion of land to be
segregated.
-t the re;uest of "ecretary of -griculture and
3ommerce, the "olicitor>eneral or the officer acting
in his stead shall institute the necessary proceedings
in the proper court for the purpose of determining
the e#cess portion to be segregated, as well as the
disposal of such portion in the e#clusive interest of
the >overnment.
Sec& =*& This chapter shall be held to authori0e only
one purchase of the ma#imum amount of land
hereunder by the same person, corporation,
association, or partnership+ and no corporation,
association, or partnership, any member of which
shall have received the benefits of this chapter or of
the ne#t following chapter, either as an individual or
as a member of any other corporation, association,
or partnership, shall purchase any other lands of the
public domain under this chapter. But any purchaser
of public land, after having made the last payment
upon and cultivated at least onefifth of the land
purchased, if the same shall be less than the
ma#imum allowed by this -ct, may purchase
successively additional agricultural public land
ad1acent to or not distant from the land first
purchased, until the total area of such purchases
shall reach the ma#imum established in this chapter)
4rovided, That in making such additional purchase or
purchases, the same conditions shall be complied
with as prescribed by this -ct for the first purchase.
C:A8TER V
LEASE
Sec& ==& -ny citi0en of lawful age of the 4hilippines,
and any corporation or association of which at least
si#ty per centum of the capital stock or of any
interest in said capital stock belongs wholly to
citi0ens of the 4hilippines, and which is organi0ed
and constituted under the laws of the 4hilippines,
may lease any tract of agricultural public land
available for lease under the provisions of this -ct,
not e#ceeding a total of one thousand and twenty
four hectares. .f the land leased is adapted to and be
devoted for gra0ing purposes, an area not e#ceeding
two thousand hectares may be granted. ,o member,
stockholder, of officer, representative, attorney,
agent, employee or bondholder of any corporation or
association holding or controlling agricultural public
land shall apply, directly or indirectly, for agricultural
public land e#cept under the homestead and free
patent provisions of this -ct) 4rovided, That no lease
shall be permitted to interfere with any prior claim by
settlement or occupation, until the consent of the
occupant or settler is first had, or until such claim
shall be legally e#tinguished, and no person,
corporation, or association shall be permitted to
lease lands hereunder which are not reasonably
necessary to carry on his business in case of an
individual, or the business for which it was lawfully
created and which it may lawfully pursue in the
4hilippines, if an association or corporation.
Sec& =>& - notice of the date and place of the
auction of the right to lease the land shall be
published and announced in the same manner as
that prescribed for the publication and
announcement of the notice of sale, in section
twentyfour of this -ct.
Sec& =F& -ll bids must be sealed and addressed to
the =irector of 7ands and must have enclosed
therewith cash or a certified check, Treasury warrant,
or postoffice money order payable to the order of
the =irector of 7ands, for a sum e;uivalent to the
rental for at least, the first three months of the lease)
4rovided, That no bid shall be considered in which
the proposed annual rental is less than three per
centum of the value of the land according to the
appraisal made in conformity with section one
hundred and si#teen of this -ct.
"ec. A@. The auction of the right to lease the land
shall be conducted under the same procedure as that
prescribed for the auction sale of agricultural lands
as described in section twentysi# of this -ct)
4rovided, That no bid shall be accepted until the
bidder shall have deposited the rental for at least the
first three months of the lease.
Sec& =.& The annual rental of the land leased shall
not be less than three per centum of the value of the
land, according to the appraisal and reappraisal
made in accordance with section one hundred
si#teen of this -ct+ e#cept for lands reclaimed by the
>overnment, which shall not be less than four per
centum of the appraised and reappraised value of
the land) 4rovided, That onefourth of the annual
rental of these lands reclaimed prior to the approval
of this -ct shall accrue to the construction and
improvement portion of the 4ortworks *unds) -nd
provided, further, That the annual rental of not less
than four per centum of the appraised and
reappraised value of the lands reclaimed using the
4ortworks *und after the approval of this -ct shall all
accrue to the construction and improvement portion
of the 4ortworks *und. But if the land leased is
adapted to and be devoted for granting purposes,
the annual rental shall be not less than two per
centum ofthe appraised and reappraised value
thereof 5very contract of lease under the provisions
of this chapter shall contain a cause to the effect that
are appraisal of the land leased shall be made every
ten years from the date of the approval of the lease,
if the term of the same shall be in e#cess of ten
years. .n case the lessee is not agreeable to the
reappraisal and prefers to give up his contract of
lease, he shall notify the =irector of 7ands of his
desire within the si# months ne#t preceding the date
on which the reappraisal takes effect, and in case his
re;uest is approved, the =irector of 7ands may, if the
lessee should so desire, proceed in accordance with
section one hundred of this -ct.
Sec& =-& 7eases shall run for a period of not more
than twentyfive years, but may be renewed once for
another period of not to e#ceed twentyfive years, in
case the lessee shall have made important
improvements which, in the discretion of the
"ecretary of -griculture and 3ommerce 1ustify a
renewal. Fpon the final e#piration of the lease, all
buildings and other permanent improvements made
by the lessee, his heirs, e#ecutors, administrators,
successors, or assigns shall become the property of
the >overnment, and the land together with the said
improvements shall be disposed of in accordance
with the provisions of chapter five of this -ct.
Sec& =,& .t shall be an inherent and essential
condition of the lease that the lessee shall have not
less than onethird of the land broken and cultivated
within five years after the date of the approval of the
lease) 4rovided, however, That in case the land
leased is to be devoted to pasture, it shall be
sufficient compliance with this condition if the lessee
shall gra0e on the land as many heads of cattle as
will occupy at least onehalf of the entire area at the
rate of one head per hectare.
Sec& >6& The lessee shall not assign, encumber, or
sublet his rights without the consent of the "ecretary
of -griculture and 3ommerce, and the violation of
this condition shall avoid the contract) 4rovided, That
assignment, encumbrance, or subletting for purposes
of speculation shall not be permitted in any case)
4rovided, further, That nothing contained in this
section shall be understood or construed to permit
the assignment, encumbrance, or subletting of lands
leased under this -ct, or under any previous -ct, to
persons, corporations, or associations which under
this -ct, are not authori0ed to lease public lands.
Sec& >+& The lease of any lands under this chapter
shall not confer the right to remove or dispose of any
valuable timber e#cept as provided in the regulations
of the Bureau of *orestry for cutting timber upon
such lands. ,or shall such lease confer the right to
remove or dispose of stone, oil, coal, salts. or other
minerals, or medicinal mineral waters e#isting upon
the same. The lease as to the part of the land which
shall be mineral may be canceled by the "ecretary of
-griculture and 3ommerce, after notice to the lessee,
whenever the said part of the land is more valuable
for agricultural purposes.
The commission of waste or violation of the forestry
regulations by the lessee shall work a forfeiture of his
last payment of rent and render him liable to
immediate dispossession and suit for damage.
Sec& >*& -fter having paid rent for at least the first
two years of the lease, and having complied with the
re;uirements prescribed in section thirty nine, the
lessee of agricultural public land with an area than
the ma#imum allowed by law, may lease
successively additional agricultural public land
ad1acent to or near the land originally leased until
the total area of such leases shall reach the
ma#imum established in this chapter) 4rovided, That
in making such additional lease, the same conditions
shall be complied with as prescribed by this -ct for
the first lease.
Sec& >=& =uring the life of the lease, any lessee who
shall have complied with all the conditions thereof
and shall have the ;ualifications re;uired by section
twentytwo, shall have the option of purchasing the
land leased sub1ect to the restrictions of chapter five
of this -ct.
C:A8TER VI
7REE 8ATENTS
Sec& >>& -ny naturalborn citi0en of the 4hilippines
who is not the owner of more than twentyfour
hectares and who since <uly fourth, nineteen hundred
and twentysi# or prior thereto, has continuously
occupied and cultivated, either by himself or through
his predecessorsininterest, a tract or tracts of
agricultural public lands sub1ect to disposition, or
who shall have paid the real estate ta# thereon while
same has not been occupied by any person shall be
entitled, under the provisions of this chapter, to have
a free patent issued to him for such tract or tracts of
such land not to e#ceed twentyfour hectares.
- member of the national cultural minorities who has
continuously occupied and cultivated, either by
himself or through his predecessorsininterest, a
tract or tracts of land, whether disposable or not
since <uly D, $%BB, shall be entitled to the right
granted in the preceding paragraph of this section)
4rovided, That at the time he files his free patent
application he is not the owner of any real property
secured or disposable under this provision of the
4ublic 7and 7aw
Sec& >F& The 4resident of the 4hilippines !4rime
(inister', upon recommendation of the "ecretary of
,atural 6esources, shall from time to time fi# by
proclamation the period which applications for
4roclamation free patents may be filed in the district,
chartered city, of period province, municipality or
region specified in such proclamation, and upon the
e#piration of the period so designated, unless the
same be e#tended by the 4resident !4rime (inister'
all the land comprised within such district, chartered
city, province, municipality or region sub1ect thereto
under the provisions of this chapter may be disposed
of as agricultural public land without pre1udice to the
prior right of the occupant and cultivator to ac;uire
such land under this -ct by means other than free
patent. The time to be fi#ed in the entire -rchipelago
for the filing of applications under this 3hapter shall
not e#tend beyond =ecember A$, $%?7, e#cept in the
provinces of -gusan del ,orte, -gusan del "ur,
3otabato, "outh 3otabato, Bukidnon, 7anao del
,orte, 7anao del "ur, =avao del ,orte, =avao del
"ur, =avao 8riental, "ulu, (t. 4rovince, Benguet,
Xalinga-payao, and .fugao where the 4resident of
the 4hilippines, upon recommendation of the
"ecretary of ,atural 6esources, shall determine or fi#
the time beyond which the filing of applications
under this 3hapter shall not e#tend. The period fi#ed
for any district, chartered city, province, or
municipality shall begin to run thirty days after the
publication of the proclamation in the 8fficial >a0ette
and if available in one newspaper of general
circulation in the city, province or municipality
concerned. - certified copy of said proclamation shall
be furnished by the "ecretary of ,atural 6esources
within A& days counted from the date of the
presidential proclamation to the =irector of 7ands
and to the provincial board, the municipal board or
city council and barangay council affected, and
copies thereof shall be posted on the bulletin board
of the Bureau of 7ands at (anila and at conspicuous
places in the provincial building and at the municipal
building and barangay hall or meeting place. .t shall
moreover, be announced by government radio
whenever available, in each of the barrios of the
municipality.
Sec& >?& .f, after the filing of the application and the
investigation, the =irector of 7ands shall be satisfied
of the truth of the allegations contained the
application and that the applicant comes within the
provisions chapter, he shall cause a patent to issue
to the applicant or his legal successor for the tract so
occupied and cultivated, provided its area does not
e#ceed twentyfour hectares) 4rovided, That no
application shall be finally acted upon until notice
thereof has been published in the municipality and
barrio in which the land is located and adverse
claimants have had an opportunity to present their
claims.
C:A8TER VII
0UDICIAL CON7IR9ATION O7 I98ER7ECT OR
INCO98LETE TITLES
Sec& >.& The persons specified in the ne#t following
section are hereby granted time, not to e#tend
beyond =ecember A$, $%?7 within which to take
advantage of the benefit of this chapter) 4rovided,
That this e#tension shall apply only where the area
applied for does not e#ceed $DD hectares. 4rovided,
further, That the several periods of time designated
by the 4resident in accordance with section fortyfive
of this -ct shall apply also to the lands comprised in
the provisions of this chapter, but this section shall
not be construed as prohibiting any of said persons
from acting under this chapter at any time prior to
the period fi#ed by the 4resident.
Sec& >-& The followingdescribed citi0ens of the
4hilippines, occupying lands of the public domain or
claiming to own any such lands or an interest
therein, but whose titles have not been perfected or
completed, may apply to the 3ourt of *irst .nstance
of the province where the land is located for
confirmation of their claims and the issuance of a
certificate of title therefor, under the 7and
6egistration -ct , to wit)
!a' Those who prior to the transfer of sovereignty
from "pain to the prior Fnited "tates have applied for
the purchase, composition or other form of grant of
lands of the public domain under the laws and royal
decrees then in force and have instituted and
prosecuted the proceedings in connection therewith,
but have with or without default upon their part, or
for any other cause, not received title therefor, if
such applicants or grantees and their heirs have
occupied and cultivated said lands continuously since
the filing of their applications.
!b' Those who by themselves or through their
predecessors in interest have been in open,
continuous, e#clusive, and notorious possession and
occupation of agricultural lands of the public domain,
under a bona fide claim of ac;uisition or ownership,
for at least thirty years immediately preceding the
filing of the application for confirmation of title
e#cept when prevented by war or force ma1eure.
These shall be conclusively presumed to have
performed all the conditions essential to a
>overnment grant and shall be entitled to a
certificate of title under the provisions of this
chapter.
!c' (embers of the national cultural minorities who
by themselves or through their predecessorsin
interest have been in open, continuous, e#clusive
and notorious possession and occupation of lands of
the public domain suitable to agriculture, whether
disposable or not, under a bona fide claim of
ownership for at least A& years shall be entitled to
the rights granted in subsection !b' hereof.
Sec& >,& ,o person claiming title to lands of the
public domain not possession of the ;ualifications
specified in the last preceding section may apply for
the benefits of this chapter.
Sec& F6& -ny person or persons, or their legal
representatives or successors in right, claiming any
lands or interest in lands under the provisions of this
chapter, must in every case present an application to
the proper 3ourt of *irst .nstance, praying that the
validity of the alleged title or claim be in;uired into
and that a certificate of title be issued to them under
the provisions of the 7and 6egistration -ct.
The application shall conform as nearly as may be in
its material allegations to the re;uirements of an
application for registration under the 7and
6egistration -ct, and shall be accompanied by a plan
of the land and all documents evidencing a right on
the part of the applicant to the land claimed. The
application shall also state the citi0enship of the
applicant and shall set forth fully the nature of the
claim and when based upon proceeding initiated
under "panish laws, it shall specify as e#actly as
possible the date and form of application for
purchase composition or other form of grant, the
e#tent of the compliance with the conditions re;uired
by the "panish laws and royal decrees for the
ac;uisition of legal title, and if not fully complied
with, the reason for such noncompliance, together
with a statement of the length of time such land or
any portion thereof has been actually occupied by
the claimant or his predecessors in interest+ the use
made of the land, and the nature of the enclosure, if
any. The fees provided to be paid for the registration
of lands under the 7and 6egistration -ct shall be
collected from applicants under this chapter.
Sec& F+& -pplications for registration under this
chapter shall be heard in the 3ourt of *irst .nstance
in the same manner and shall be sub1ect to the same
procedure as established in the 7and 6egistration -ct
for other applications, e#cept that a notice of all such
applications, together with a plan of the lands
claimed, shall be immediately forwarded to the
=irector of 7ands, who may appear as a party in such
cases) 4rovided, That prior to the publication for
hearing, all of the papers in said case shall be
transmitted papers by the clerk to the "olicitor
>eneral or officer acting in his stead, in order that he
may, if he deems it advisable for the interests of the
>overnment, investigate all of the facts alleged in
the application or otherwise brought to his attention.
The "olicitor>eneral shall return such papers to the
clerk as soon as practicable within three months.
The final decree of the court shall in every case be
the basis for the original certificate of title in favor of
the person entitled to the property under the
procedure prescribed in section fortyone of the 7and
6egistration -ct.
Sec& F*& .n cadastral proceedings, instead of an
application, an answer or claim may be filed with the
same effect as in the procedure provided in the last
preceding two sections.
Sec& F=& .t shall be lawful for the =irector of 7ands,
whenever in the opinion of the 4resident the public
interests shall re;uire it, to cause to be filed in the
proper 3ourt of *irst .nstance, through the "olicitor
>eneral or the officer acting in his stead, a petition
against the holder, claimant, possessor, or occupant
of any land who shall not have voluntarily come in
under the provisions of this chapter or of the 7and
6egistration -ct, stating in substance that the title of
such holder, claimant, possessor, or occupant is open
to discussion+ or that the boundaries of any such land
which has not been brought into court as aforesaid
are open to ;uestion+ or that it is advisable that the
title to such lands be settled and ad1udicated, and
praying that the title to any such land or the
boundaries thereof or the right to occupancy thereof
be settled and ad1udicated. The 1udicial proceedings
under this section shall be in accordance with the
laws on ad1udication of title in cadastral proceedings.
Sec& F>& .f in the hearing of any application arising
under this chapter the court shall find that more than
one person or claimant has an interest in the land,
such conflicting interests shall be ad1udicated by the
court and decree awarded in favor of the person or
persons entitled to the land according to the laws,
but if none of said person is entitled to the land, or if
the person who might be entitled to the same lacks
the ;ualifications re;uired by this -ct for ac;uiring
agricultural land of the public domain, the decision
shall be in favor of the >overnment.
Sec& FF& /henever, in any proceedings under this
chapter to secure registration of an incomplete or
imperfect claim of title initiated prior to the transfer
of sovereignty from "pain to the Fnited "tates, it
shall appear that had such claims been prosecuted to
completion under the laws prevailing when
instituted, and under the conditions of the grant then
contemplated, the conveyance of such land to the
applicant would not have been gratuitous, but would
have involved payment therefor to the >overnment,
then and in that event the court shall, after
decreeing in whom title should vest, further
determine the amount to be paid as a condition for
the registration of the land. "uch 1udgment shall be
certified to the =irector of 7ands by the clerk of the
court for collection of the amount due from the
person entitled to conveyance.
Fpon payment to the =irector of 7ands of the price
specified in the 1udgment, he shall so certify to the
proper 3ourt of *irst .nstance and said court shall
forthwith order the registration of the land in favor of
the competent person entitled thereto. .f said person
shall fail to pay the amount of money re;uired by the
decree within a reasonable time fi#ed in the same,
the court shall order the proceeding to stand
dismissed and the title to the land shall then be in
the "tate free from any claim of the applicant.
Sec& F?& /henever any 1udgment of confirmation or
other decree of the court under this chapter shall
become final, the clerk of the court concerned shall
certify that fact to the =irector of 7ands, with a
certified copy of the decree of confirmation or
1udgment of the court and the plan and technical
description of the land involved in the decree or
1udgment of the court.
Sec& F.& ,o title or right to, or e;uity in, any lands of
the public domain may hereafter be ac;uired by
prescription or by adverse possession or occupancy,
or under or by virtue of any law in effect prior to
-merican occupation, e#cept as e#pressly provided
by laws enacted after said occupation of the
4hilippines by the Fnited "tates.
TITLE III
LANDS 7OR RESIDENTIAL) CO99ERCIAL OR
INDUSTRIAL 8UR8OSES AND OT:ER SI9ILAR
8UR8OSES
C:A8TER VIII
CLASSI7ICATION AND CONCESSION O7 8UBLIC
LANDS SUITABLE 7OR RESIDENCE) CO99ERCE
AND INDUSTRB
Sec& F-& -ny tract of land of the public domain
which, being neither timber nor mineral land, is
intended to be used for residential purposes or for
commercial, industrial, or other productive purposes
other than agricultural, and is open to disposition or
concession, shall be disposed of under the provisions
of this chapter and not otherwise.
Sec& F,& The lands disposable under this title shall
be classified as follows)
!a' 7ands reclaimed by the >overnment by dredging,
filing, or other means+
!b' *oreshore+
!c' (arshy lands or lands covered with water
bordering upon the shores or banks of navigable
lakes or rivers+
!d' 7ands not included in any of the foregoing
classes.
Sec& ?6& -ny tract of land comprised under this title
may be leased or sold, as the case may be, to any
person, corporation, or association authori0ed to
purchase or lease public lands for agricultural
purposes. The area of the land so leased or sold shall
be such as shall, in the 1udgment of the "ecretary of
-griculture and ,atural 6esources, be reasonably
necessary for the purposes for which such sale or
lease is re;uested, and shall in no case e#ceed one
hundred and fortyfour hectares) 4rovided, however,
That this limitation shall not apply to grants,
donations, transfers made to a province, municipality
or branch or subdivision of the >overnment for the
purposes deemed by said entities conducive to the
public interest+ but the land so granted donated, or
transferred to a province, municipality, or branch or
subdivision of the >overnment shall not be alienated,
encumbered, or otherwise disposed of in a manner
affecting its title, e#cept when authori0ed by
3ongress) 4rovided, further, That any person,
corporation, association or partnership dis;ualified
from purchasing public land for agricultural purposes
under the provisions of this -ct, may lease land
included under this title suitable for industrial or
residential purposes, but the lease granted shall
onlybe valid while such land is used for the purposes
referred to.
Sec& ?+& The lands comprised in classes !a', !b', and
!c' of section fiftynine shall be disposed of to private
parties by lease only and not otherwise, as soon as
the 4resident, upon recommendation by the
"ecretary of -griculture and 3ommerce shall declare
that the same are not necessary for the public
service and are open to disposition under this
chapter. The lands included in class !d' may be
disposed of by sale or lease under the provisions of
this -ct.
Sec& ?*& The lands reclaimed by the >overnment by
dredging, filling or otherwise shall be surveyed and
may, with the approval of the "ecretary of
-griculture and 3ommerce, be divided by the
=irector of 7ands into lots and blocks, with the
necessary streets and alleyways between them, and
said =irector shall give notice to the public by
publication in the 8fficial >a0ette or by other means,
that the lots or blocks not needed for public purposes
shall be leased for commercial or industrial or other
similar purposes.
Sec& ?=& /henever it is decided that lands covered
by this chapter are not needed for public purposes,
the =irector of 7ands shall ask the "ecretary of
-griculture and 3ommerce for authority to dispose of
the same. Fpon receipt of such authority, the
=irector of 7ands shall give notice by public
advertisement in the same manner as in the case of
leases or sales of agricultural public land, that the
>overnment will lease or sell, as the case may be,
the lots or blocks specified in the advertisement, for
the purpose stated in the notice and sub1ect to the
conditions specified in this chapter.
Sec& ?>& The leases e#ecuted under this chapter by
the "ecretary of -griculture and 3ommerce shall,
among other conditions, contain the following)
!a' The rental shall not be less than three per centum
of the appraised or reappraised value of the land plus
one per centum of the appraised or reappraised
value of the improvements, e#cept for lands
reclaimed by the >overnment which shall not be less
than four per centum of the appraised or reappraised
value of the land plus two per centum of the
appraised or reappraised value of the improvements
thereon) 4rovided, That twentyfive per centum of
the total annual rental on all lands reclaimed prior to
the approval of this -ct and one per centum of the
appraised or reappraised value of improvements
shall accrue to the construction and improvement
portion of the 4ortworks *und) -nd provided, further,
That the annual rental on lands reclaimed using the
4ortworks *und together with the fee due on account
of the improvement thereon after the effectivity of
this -ct shall all accrue to the construction and
improvement portion of the 4ortworks *und.
!b' The land rented and the improvements thereon
shall be reappraised every ten years if the term of
the lease is in e#cess of that period.
!c' The term of the lease shall be as prescribed by
section thirtyeight of this -ct.
!d' The lessee shall construct permanent
improvements appropriate for the purpose for which
the lease is granted, shall commence the
construction thereof within si# months from the date
of the award of the right to lease the land, and shall
complete the said construction within eighteen
months from said date.
!e' -t the e#piration of the lease or of any e#tension
of the same, all improvements made by the lessee,
his heirs, e#ecutors, administrators, successors, or
assigns shall become the property of the
>overnment.
!f' The regulation of all rates and fees charged to the
public+ and the annual submission to the >overnment
for approval of all tariffs of such rates and fees.
!g' The continuance of the easements of the coast
police and other easements reserved by e#isting law
or by any laws hereafter enacted.
!h' "ub1ection to all easements and other rights
ac;uired by the owners of lands bordering upon the
foreshore or marshy land.
The violation of one or any of the conditions specified
in the contract shall give rise to the rescission of said
contract. The "ecretary of -griculture and 3ommerce
may, however, sub1ect to such conditions as he may
prescribe, waive the rescission arising from a
violation of the conditions of subsection !d', or
e#tend the time within which the construction of the
improvements shall be commenced and completed.
Sec& ?F& The sale of the lands comprised in classes
!c' and !d' of section fiftynine shall, among others,
comprise the following conditions)
!a' The purchaser shall make improvements of a
permanent character appropriate for the purpose for
which the land is purchased, shall commence work
thereon within si# months from the receipt of the
order of award, and shall complete the construction
of said improvements within eighteen months from
the date of such award+ otherwise the "ecretary of
-griculture and ,atural 6esources may rescind the
contract.
!b' The purchase price shall be paid in cash or in
e;ual annual installments, not to e#ceed ten.
The contract of sale may contain other conditions not
inconsistent with the provisions of this -ct.
Sec& ??& The kind of improvements to be made by
the lessee or the purchaser, and the plans thereof,
shall be sub1ect to the approval of the "ecretary of
4ublic /orks and 3ommunications, in case they are
constructions or improvements which if by the
>overnment, would properly have to be e#ecuted
under the supervision of the Bureau of 4ublic /orks.
Sec& ?.& The lease or sale shall be made through
oral bidding+ and ad1udication shall be made to the
highest bidder. :owever, where an applicant has
made improvements on the land by virtue of a
permit issued to him by competent authority, the
sale or lease shall be made by sealed bidding as
prescribed in section twentysi# of this -ct, the
provisions of which shall be applied wherever
applicable. .f all or part of the lots remain unleased
or unsold, the =irector of 7ands shall from time to
time announce in the 8fficial >a0ette or in any other
newspapers of general circulation, the lease or sale
of those lots, if necessary
Sec& ?-& The "ecretary of -gricultural and
3ommerce may grant to ;ualified persons temporary
permission, upon payment of a reasonable charge,
for the use of any portion of the lands covered by
this chapter for any lawful private purpose, sub1ect to
revocation at any time when, in his 1udgment, the
public interest shall re;uire it.
TITLE IV
LANDS 7OR EDUCATIONAL) C:ARITABLE) AND
OT:ER SI9ILAR 8UR8OSES
C:A8TER I(
CONCESSION O7 LANDS 7OR EDUCATIONAL)
C:ARITABLE) AND OT:ER SI9ILAR 8UR8OSES
Sec& ?,& /henever any province, municipality, or
other branch or subdivision of the >overnment shall
need any portion of the land of the public domain
open to concession for educational, charitable or
other similar purposes, the 4resident, upon
recommendation by the "ecretary of -griculture and
3ommerce, may e#ecute contracts in favor of the
same. in the form of donation, sale, lease, e#change,
or any other form, under terms and conditions to be
inserted in the contract+ but land so granted shall in
no case be encumbered or alienated, e#cept when
the public service re;uires their being leased or
e#changed, with the approval of the 4resident, for
other lands belonging to private parties, or if the
,ational -ssembly disposes otherwise.
Sec& .6& -ny tract of public land of the class covered
by this title may be sold or leased for the purpose of
founding a cemetery, church, college, school,
university, or other institutions for educational,
charitable or philanthropical purposes or scientific
research, the area to be such as may actually and
reasonably be necessary to carry out such purpose,
but not to e#ceed ninetysi# hectares in any case.
The sale or lease shall be made sub1ect to the same
conditions as re;uired for the sale and lease of
agricultural public land, but the "ecretary of
-griculture and 3ommerce may waive the conditions
re;uiring cultivation. The "ecretary of -griculture
and 3ommerce, if conveyance he sees fit, may order
the sale to be made without public auction, at a price
to be fi#ed by said "ecretary, or the lease to be
granted without auction, at a rental to be fi#ed by
him. .n either case it shall be a condition that the
purchaser or lessee or their successors or assigns
shall not sell transfer, encumber or lease the land for
the purposes of speculation or use it for any purpose
other than that contemplated in the application, and
that the violation of this condition shall give rise to
the immediate rescission of the sale or lease, as the
case may be, and to the forfeiture to the >overnment
of all e#isting improvements) 4rovided, That it shall
in no case be sublet, encumbered or resold under the
conditions above set forth e#cept with the approval
of the "ecretary of -griculture and 3ommerce.
TITLE V
RESERVATIONS
C:A8TER (
TOWN SITE RESERVATIONS
Sec& .+& /henever it shall be considered to be in
the public interest to found a new town. The
"ecretary of -griculture and 3ommerce shall direct
the =irector of 7ands to have a survey made by his
Bureau of the e#terior boundaries of the site on
which such town is to be established, and upon the
completion of the survey he shall send the same to
said "ecretary, with his recommendations.
Sec& .*& The "ecretary of -griculture and
3ommerce, if he approves the recommendations of
the =irector of 7ands, shall submit the matter to the
4resident to the end that the latter may issue a
proclamation reserving the land surveyed, or such
part thereof as he may deem proper, as a town site,
and a certified copy of such proclamation shall be
sent to the =irector of 7ands and another to the
register of deeds of the province in which the
surveyed land lies.
Sec& .=& .t shall then be the duty of the =irector of
7ands, after having recorded the proclamation of the
4resident and the survey accompanying the same,
and having completed the legal proceedings
prescribed in chapter thirteen of this -ct, to direct a
subdivision in accordance with the instructions of the
"ecretary of -griculture and 3ommerce, if there shall
be such instructions, and if there shall not be any,
then in the manner which may to the =irector of
7ands seem best adapted to the convenience and
interest of the public and the residents of the future
town.
Sec& .>& The plat of the subdivision shall designate
certain lots for commercial and industrial uses and
the remainder as residence lots, and shall also
reserve and note the lots owned by private
individuals as evidenced by record titles, or
possessed or claimed by them as private property.
"uch lots, whether public or private, shall be
numbered upon a general plan or system.
The plat prepared by the =irector of 7ands shall be
submitted to the "ecretary of -griculture and
3ommerce for consideration, modification,
amendment, or approval.
Sec& .F& Fnless the necessary reservations are
made in the proclamation of the 4resident, the
=irector of 7ands, with the approval of the "ecretary
of -griculture and 3ommerce, shall reserve out of
the land by him to be subdivided lots of sufficient
si0e and convenient situation for public use, as well
as the necessary avenues, streets, alleyways, parks,
and s;uares. The avenues, streets, alleys, parks,
pla0as, and lots shall be laid out on the plat as
though the lands owned or claimed by private
persons were part of the public domain and part of
the reservation, with a view to the possible
subse;uent purchase or condemnation thereof, if
deemed necessary by the proper authorities.
Sec&.?& -t any time after the subdivision has been
made, the 4resident may, in case the public interest
re;uires it, reserve for public purposes any lot or lots
of the land so reserved and not disposed of.
Sec& ..& .f, in order to carry out the provisions of this
chapter, it shall be necessary to condemn private
lands within the limits of the new town, the 4resident
shall direct the "olicitor>eneral or officer acting in
his stead to at once begin proceedings for
condemnation, in accordance with the provisions of
e#isting law.
Sec& .-& /hen the plat of subdivision has been
finally approved by the "ecretary of -griculture and
3ommerce, the =irector of 7ands shall record the
same in the records of his office and shall forward a
certified copy of such record to the register of deeds
of the province in which the land lies, to be by such
register recorded in the records of his office
Sec& .,& -ll lots, e#cept those claimed by or
belonging to private parties and those reserved for
parks, buildings, and other public uses, shall be sold,
after due notice, at public auction to the highest
bidder, after the approval and recording of the plat of
subdivision as above provided, but no bid shall be
accepted that does not e;ual at least twothirds of
the appraised value, nor shall bids be accepted from
persons, corporations, associations, or partnerships
not authori0ed to purchase public lands for
commercial, residential or industrial purposes under
the provisions of this -ct. The provisions of sections
twentysi# and si#tyfive of this -ct shall be observed
in so far as they are applicable. 7ots for which
satisfactory bids have not been received shall be
again offered for sale, under the same conditions as
the first time, and if they then remain unsold, the
=irector of 7ands shall be authori0ed to sell them at
private sale for not less than twothirds of their
appraised value.
Sec& -6& -ll funds derived from the sale of lots shall
be covered into the 4hilippine Treasury as part of the
general funds.
Sec& -+& ,ot more than two residence lots and two
lots for commercial and industrial uses in any one
town site shall be sold to any one person,
corporation, or association without the specific
approval of the "ecretary of -griculture and
3ommerce.
Sec& -*& The -ssembly shall have the power at any
time to modify, alter, rescind, repeal, annul, and
cancel, with or without conditions, limitation,
e#ceptions, or reservations, all and any dispositions
made by the e#ecutive branch of the 4hilippine
>overnment by virtue of this chapter, and the
e#ercise of this power shall be understood as
reserved in all cases, as an inherent condition
thereof.
C:A8TER (I
RESERVATIONS 7OR 8UBLIC AND SE9IH8UBLIC
8UR8OSES
Sec& -=& Fpon the recommendation of the "ecretary
of -griculture and 3ommerce, the 4resident may
designate by proclamation any tract or tracts of land
of the public domain as reservations for the use of
the 3ommonwealth of the 4hilippines or of any of its
branches, or of the inhabitants thereof, in
accordance with regulations prescribed for this
purpose, or for ;uasipublic uses or purposes when
the public interest re;uires it, including reservations
for highways, rights of way for railroads, hydraulic
power sites, irrigation systems, communal pastures
or leguas comunales, public parks, public ;uarries,
public fishponds, workingmens village and other
improvements for the public benefit.
Sec& ->& Fpon recommendation of the "ecretary of
-griculture and 3ommerce, the 4resident, may by
proclamation, designate any tract or tracts of the
public domain for the e#clusive use of the non
3hristian *ilipinos, including in the reservation, in so
far as practicable, the lands used or possessed by
them, and granting to each member not already the
owner, by title or gratuitous patent, of four or more
hectares of land, the use and benefit only of a tract
of land not to e#ceed four hectares for each male
member over eighteen years of age or the head of a
family. -s soon as the "ecretary of the .nterior shall
certify that the ma1ority of the non3hristian
inhabitants of any given reservation have advanced
sufficiently in civili0ation, then the 4resident may
order that the lands of the public domain within such
reservation be granted under the general provisions
of this -ct to the said inhabitants, and the
subdivision and distribution of said lands as above
provided shall be taken into consideration in the final
disposition of the same. But any non3hristian
inhabitant may at any time apply for the general
benefits of this -ct provided the "ecretary of
-griculture and 3ommerce is satisfied that such
inhabitant is ;ualified to take advantage of the
provisions of the same) 4rovided, That all grants,
deeds, patents and other instruments of conveyance
of land or purporting to convey or transfer rights of
property, privileges, or easements appertaining to or
growing out of lands, granted by sultans, datus, or
other chiefs of the socalled non3hristian tribes,
without the authority of the "panish >overnment
while the 4hilippines were under the sovereignty of
"pain, or without the consent of the Fnited "tates
>overnment or of the 4hilippine >overnment since
the sovereignty over the -rchipelago was transferred
from "pain to the Fnited "tates, and all deeds and
other documents e#ecuted or issued or based upon
the deeds, patents, and documents mentioned, are
hereby declared to be illegal, void, and of no effect.
Sec& -F& Fpon recommendation by the "ecretary of
-griculture and 3ommerce, the 4resident may, by
proclamation designate any tract or tracts of land of
the public domain for the establishment of
agricultural colonies+ and although the disposition of
the lands to the colonists shall be made under the
provisions of this -ct, yet, while the >overnment
shall have the supervision and management of said
colonies, the "ecretary of -griculture and 3ommerce
may make the necessary rules and regulations for
the organi0ation and internal administration of the
same. The "ecretary of -griculture and 3ommerce
may also, under conditions to be established by the
-ssembly, turn over a colony so reserved to any
person or corporation, in order that such person or
corporation may clear, break, and prepare for
cultivation the lands of said colony and establish the
necessary irrigation system and suitable roads and
fences+ but final disposition shall be made of the land
in accordance with the provisions of this -ct, sub1ect,
however, to such conditions as the ,ational
-ssembly may establish for the reimbursement of
the e#pense incurred in putting such lands in
condition for cultivation) 4rovided, That the ,ational
-ssembly may direct that such land so prepared for
cultivation may be disposed of only by sale or lease.
C:A8TER (II
8ROVISIONS CO99ON TO RESERVATIONS
Sec& -?& - certified copy of every proclamation of
the 4resident issued under the provisions of this title
shall be forwarded to the =irector of 7ands for record
in his office, and a copy of this record shall be
forwarded to the register of deeds of the province or
city where the land lies. Fpon receipt of such
certified copy, the =irector of 7ands shall order the
immediate survey of the proposed reservation if the
land has not yet been surveyed, and as soon as the
plat has been completed, he shall proceed in
accordance with the ne#t following section.
Sec& -.& .f all the lands included in the proclamation
of the 4resident are not registered under the 7and
6egistration -ct, the "olicitor>eneral, if re;uested to
do so by the "ecretary of -griculture and 3ommerce,
shall proceed in accordance with the provision of
section fiftythree of this -ct.
Sec& --& The tract or tracts of land reserved under
the provisions of section eightythree shall be non
alienable and shall not be sub1ect to occupation,
entry, sale, lease, or other disposition until again
declared alienable under the provisions of this -ct or
by proclamation of the 4resident.
TITLE VI
;ENERAL 8ROVISIONS
C:A8TER (III
A88LICATIONS 8ROCEDURE) CONCESSION O7
LANDS) AND LE;AL RESTRICTIONS AND
ENCU9BRANCES
Sec& -,& -ll applications filed under the provisions of
this -ct shall be addressed to the =irector of 7ands.
Sec& ,6& 5very application under the provisions of
this -ct shall be made under oath and shall set forth)
!a' The full name of applicant, his age, place of birth,
citi0enship, civil status, and postoffice address. .n
case the applicant is a corporation, association or co
partnership, the application shall be accompanied
with a certified copy of its articles of incorporation,
association or copartnership together with an
affidavit of its 4resident, manager, or other
responsible officer, giving the names of the
stockholders or members, their citi0enship, and the
number of shares subscribed by each.
!b' That the applicant has all the ;ualifications
re;uired by this -ct in the case.
!c' That he has none of the dis;ualifications
mentioned herein.
!d' That the application is made in good faith, for the
actual purpose of using the land for the ob1ect
specified in the application and for no other purpose,
and that the land is suitable for the purpose to which
it is to be devoted.
!e' That the application is made for the e#clusive
benefit of the application and not, either directly or
indirectly, for the benefit of any other person or
persons, corporation, association, or partnership.
!f' -s accurate a description of the land as may be
given, stating its nature the province, municipality,
barrio, and sitio where it is located, and its limits and
boundaries, specifying those having reference to
accidents of the ground or permanent monuments, if
any.
!g' /hether all or part of the land is occupied or
cultivated or improved, and by whom, giving his
postoffice address, and whether the land has been
occupied or cultivated or improved by the applicant
or his ascendant, the name of the ascendant, the
relationship with him, the date and place of the
death of the ascendant, the date when the
possession and cultivation began, and description of
the improvements made, accompanying satisfactory
evidence of the relationship of the applicant with the
ascendant, and of the death of the latter and the
descendants left by him, in case it is alleged that he
occupied and cultivated the land first+ or whether
there are indications of its having been occupied,
cultivated, or improved entirely or partially, and if so,
in what such indications consist, whether he has
made investigations as to when and by whom such
improvements were made, and if so, how such
investigations were made and what was the result
thereof+ or whether the land is not occupied,
improved, or cultivated either entirely or partially,
and there are no indications of it having ever been
occupied, improved, or cultivated, and in this case,
what is the condition of the land.
!h' That the land applied for is neither timber nor
mineral land and does not contain guano or deposits
of salts or coal.
!i' That the applicant agrees that a strip forty meters
wide starting from the bank on each side of any river
or stream that may be found on the land applied for,
shall be demarcated and preserved as permanent
timberland to be planted e#clusively to trees of
known economic value, and that he shall not make
any clearing thereon or utili0e the same for ordinary
farming purposes even after patent shall have been
issued to him or a contract of lease shall have been
e#ecuted in his favor. @?
Sec& ,+& The statements made in the application
shall 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 omission of facts altering, changing, or modifying
the consideration of the facts set forth in such
statements, and any subse;uent modification,
alteration, or change of the material facts set forth in
the application shall ipso facto produce the
cancellation of the concession, title, or permit
granted. .t shall be the duty of the =irector of 7ands,
from time to time and whenever he may deem it
advisable, to make the necessary investigations for
the purpose of ascertaining whether the material
facts set out in the application are true, or whether
they continue to e#ist and are maintained and
preserved in good faith, and for the purposes of such
investigation, the =irector of 7ands is hereby
empowered to issue subpoenas and subpoenas
duces tecum and, if necessary, to obtain compulsory
process from the courts. .n every investigation made
in accordance with this section, the e#istence of bad
faith, fraud, concealment, or fraudulent and illegal
modification of essential facts shall be presumed if
the grantee or possessor of the land shall refuse or
fail to obey a subpoena or subpoena duces tecum
lawfully issued by the =irector of 7ands or his
authori0ed delegates or agents, or shall refuse or fail
to give direct and specific answers to pertinent
;uestions, and on the basis of such presumption, an
order of cancellation may issue without further
proceedings.
Sec& ,*& -lthough the ma#imum area of public land
that may be ac;uired is fi#ed, yet the spirit of this
-ct is that the rule which must determine the real
area to be granted is the beneficial use of the land.
The concession or disposition shall be for less than
the ma#imum area authori0ed if, at the time of the
issuance of the patent or of the concession or
disposition, it shall appear that the applicant is
utili0ing and is only able to utili0e a smaller area,
even though the application is for a greater area. *or
the purposes of this section, the =irector of 7ands is
authori0ed to determine the area that may be
granted to the applicant, and to deny or cancel or
limit any application for concession, purchase, or
lease if convinced of the lack of means of the
applicant for using the land for the purpose for which
he has re;uested it.
Sec& ,=& 7ands applied for under this -ct shall
conform to the legal subdivisions and shall be
contiguous if comprising more than one subdivision.
.f subdivisions have not been made on the date of
the application, the lands shall be rectangular in form
so far as practicable, but it shall be endeavored to
make them conform to the legal subdivision as soon
as the same has been made, provided the interests
of the applicant or grantee are protected+ and the
subdivision assigned to the applicant or grantee
shall, so far as practicable, include the land improved
or cultivated. The regulations to be issued for the
e#ecution of the provisions of this section shall take
into account the legal subdivision to be made by the
>overnment and the inadvisability of granting the
best land at a given place to only one person.
Sec& ,>& .n case the legal subdivisions have already
been made at the time of the filing of the application,
no charge shall be made for the survey+ but if the
legal subdivisions have not yet been made, the cost
of the survey shall be charged to the >overnment,
e#cept in the following cases)
!a' .n purchases under chapters five and ten of this
-ct, the cost of the survey shall be charged to the
purchaser if the same is a corporation, association,
or partnership+ in other purchases the purchases,
whoever it be, shall pay the total cost of the survey.
!b' .n leases, the cost of the survey shall be paid by
the lessee+ but at any time after the first five years
from the approval of the lease, and during 3ost of
the life of the same, the lessee shall be entitled to
the reimbursement of onehalf of the cost of the
survey, if he shows to the satisfaction of the =irector
of 7ands that he has occupied and improved a
sufficient area of the land or incurred sufficient
e#penses in connection therewith to warrant such
reimbursement.
"ection%B. .f before the delimitation and survey of a
tract of public land the 4resident shall declare the
same disposable or alienable and such land shall be
actually occupied by a person other than the
applicant, the =irector of 7ands shall inform the
occupant of his prior right to apply for the land and
shall give him one hundred and twenty days time in
which to file the application or apply for the
concession by any of the forms of disposition
authori0ed by this -ct, if such occupant is ;ualified to
ac;uire a concession under this -ct.
Sec& ,?& -s soon as any land of the public domain
has been surveyed, delimited, and classified, the
4resident may, in the order issued by him declaring it
open for disposition, designate a term within which
occupants with improvements but not entitled to free
patents may apply for the land occupied by them, if
they have the ;ualifications re;uired by this -ct.
Sec& ,.& .f in the case of the two last preceding
sections, the occupant or occupants have not made
application under any of the provisions of this -ct at
the e#piration of the time limit fi#ed, they shall lose
any prior right to the land recogni0ed by this -ct, and
the improvements on the land, if any, shall be
forfeited to the >overnment.
Sec& ,-& -ll rights in and interest to, and the
improvements and crops upon, land for which an
application has been denied or canceled or a patent
or grant refused, or a contract or concession
rescinded or annulled, shall also be forfeited to the
>overnment.
Sec& ,,& The "ecretary of -griculture and 3ommerce
may order such improvements and crops to be
appraised separately, for sale to the new applicant or
grantee, or may declare such land open only to sale
or lease.
Sec& +66& .n case the cancellation is due to
delin;uency on the part of the applicant or grantee,
the same shall be entitled to the reimbursement of
the proceeds of the sale of the improvements and
crops, after deducting the total amount of his
indebtedness to the >overnment and the e#pense
incurred by it in the sale of the improvements or
crops and in the new concession of the land.
Sec& +6+& -ll actions for the reversion to the
>overnment of lands of the public domain or
improvements thereon shall be instituted by the
"olicitor>eneral or the officer acting in his stead, in
the proper courts, in the name of the 3ommonwealth
of the 4hilippines.
Sec& +6*& -ny person, corporation, or association
may file an ob1ection under oath to any application or
concession under this -ct, grounded on any reason
sufficient under this -ct for the denial or cancellation
of the application or the denial of the patent or grant.
.f, after the applicant or grantee has been given
suitable opportunity to be duly heard, the ob1ection is
found to be well founded, the =irector of 7ands shall
deny or cancel the application or deny patent or
grant, and the person ob1ecting shall, if ;ualified, be
granted a prior right of entry for a term of si#ty days
from the date of the notice.
Sec& +6=& -ll the proofs, affidavits, and oaths of any
kind re;uired or necessary under this -ct may be
made before the 1ustice of the peace 7$ of the
municipality in which the land lies, or before the
1udge or clerk of the 3ourt of *irst .nstance of the
province in which the land lies, or before any 1ustice
of the peace or chargeable notary public of the
province in which the land lies, or before any officer
or employee of the Bureau of 7ands authori0ed by
law to administer oaths.
The fees for the taking of final evidence before any of
the officials hereinbefore mentioned shall be as
follows)
*or each affidavit, fifty centavos.
*or each deposition of the applicant or the witness,
fifty centavos.
Sec& +6>& -ny owner of uncultivated agricultural
land who knowingly permits application for the same
to be made to the >overnment and the land to be
tilled and improved by a bona fide grantee without
protesting to the Bureau of 7ands within one year
after cultivation has begun, shall lose all to the part
of the land so cultivated and improved, unless he
shall bring action in the proper court before such
action for recovery prescribes and obtains favorable
1udgment therein, in which case the court shall, upon
its decision becoming final, order the payment to the
grantee, within a reasonable period, of the indemnity
fi#ed by said court for the cultivation and
improvement.
Sec& +6F& .f at any time the applicant or grantee
shall die before the issuance of the patent or the final
grant of the land, or during the life of the lease, or
while the applicant or grantee still has obligations
pending towards the >overnment, in accordance with
this -ct, he shall be succeeded in his rights and
obligations with respect to the land applied for or
granted or leased under this -ct by his heirs in law,
who shall be entitled to have issued to them the
patent or final concession if they show that they
have complied with the re;uirements therefor, and
who shall be subrogated in all his rights and
obligations for the purposes of this -ct.
Sec& +6?& .f at any time after the approval of the
application and before the issuance of a patent or
the final concession of the land, or during the life of
the lease, or at any time when the applicant or
grantee still has obligations pending with the
>overnment, in accordance with this -ct, it appears
that the land applied for is necessary, in the public
interest, for the protection of any source of water or
for any work for the public benefit that the
>overnment wishes to undertake, the "ecretary of
-griculture and 3ommerce may order the
cancellation of the application or the non issuance of
the patent or concession or the e#clusion from the
land applied for of such portion as may be re;uired,
upon payment of the value of the improvements, if
any.
Sec& +6.& -ll patents or certificates for land granted
under this -ct shall be prepared in the Bureau of
7ands and shall be issued in the name of the
>overnment of the 6epublic of the 4hilippines under
the signature of the 4resident of the 4hilippines)
4rovided, however, That the 4resident of the
4hilippines may delegate to the "ecretary of
-griculture and ,atural 6esources 7D andCor the
Fnder secretary for ,atural 6esources 7D the power
to sign patents or certificates covering lands not
e#ceeding one hundred fortyfour hectares in area,
and to the "ecretary of -griculture and ,atural
6esources 7B the power to sign patents or
certificates covering lands e#ceeding one hundred
fortyfour hectares in area) 4rovided, further, That
=istrict 7and 8fficers in every province are hereby
empowered to sign patents or certificates covering
lands not e#ceeding five hectares in area when the
office of the =istrict 7and 8fficer is properly e;uipped
to carry out the purposes of this -ct) 4rovided, That
no applicant shall be permitted to split the area
applied for by him in e#cess of the area fi#ed in this
section among his relatives within the si#th degree of
consanguinity or affinity e#cepting the applicants
married children who are actually occupying the
land) 4rovided, finally, That copies of said patents
issued shall be furnished to the Bureau of 7ands for
record purposes. ,o patent or certificate shall be
issued by the =istrict 7and 8fficer unless the survey
of the land covered by such patent or certificate,
whether made by the Bureau of 7ands or by a private
surveyor, has been approved by the =irector of
7ands. The =irector of 7ands shall promptly act upon
all surveys submitted to him for approval and return
the same to the =istrict 7and 8fficer within ninety
days after receipt of such surveys by his office. .n
case of disapproval, the =irector of 7ands shall state
the reasons therefor. -ny person aggrieved by the
decision or action of the =istrict 7and 8fficer may,
within thirty days from receipt of the copy of the said
decision, appeal to the =irector of 7ands. "uch
patents or certificates shall be effective only for the
purposes defined in "ection one hundred and twenty
two of the land 6egistration -ct, and actual
conveyance of the land shall be effected only as
provided in said section.
-ll surveys pending approval by the =irector of 7ands
at the time this -ct takes effect shall be acted upon
by him within ninety days from the effectivity of this
-ct.
"ection$&?. ,o patent shall issue nor shall any
concession or contract be finally approved unless the
land has been surveyed and an accurate plat made
thereof by the Bureau of 7ands.
Sec& +6,& .n no case shall any land be granted under
the provisions of this -ct when this affects in1uriously
the use of any ad1acent land or of the waters, rivers,
creeks, foreshore, roads, or roadsteads, or vest the
grantee with other valuable rights that may be
detrimental to the public interest.
Sec& ++6& 4atents or certificates issued under the
provisions of this -ct shall not include nor convey the
title to any gold, silver, copper, iron, or other metals
or minerals, or other substances containing minerals,
guano, gums, precious stones, coal, or coal oil
contained in lands granted thereunder. These shall
remain to be property of the "tate.
Sec& +++. -ll persons receiving title to lands under
the provisions of this -ct shall hold such lands
sub1ect to the provisions hereof and to the same
public servitudes as e#ist upon lands owned by
private persons, including those with reference to the
littoral of the sea and the banks of navigable rivers or
rivers upon which rafting may be done.
Sec& ++*& "aid land shall further be sub1ect to a
rightofway not e#ceeding si#ty !@&' meters in width
for public highways, railroads, irrigation ditches,
a;ueducts, telegraph and telephone lines and similar
works as the >overnment or any public or ;uasi
public service or enterprise, including mining or
forest concessionaires, may reasonably re;uire for
carrying on their business, with damages for the
improvements only. 77
Sec& ++=& The beneficial use of water shall be the
basis, the measure, and the limit of all rights thereto,
and the patents herein granted shall be sub1ect to
the right of the >overnment to make such rules and
regulations for the use of water and the protection of
the water supply, and for other public purposes, as it
may deem best for the public good. /henever, by
priority of possession, rights to the use of water for
mining, agricultural, manufacturing, or other
purposes have vested and accrued, and the same
are recogni0ed and acknowledged by the local
customs, or by the laws and decisions of the courts,
the possessors and owners of such vested rights
shall be maintained and protected in the same, and
all patents granted under this -ct shall be sub1ect to
any vested and accrued rights to ditches and
reservoirs used in connection with such water rights
as may have been ac;uired in the manner above
described prior to -pril eleven, eighteen hundred and
ninetynine.
Sec& ++>& There is hereby reserved from the
operation of all patents, certificates, entries, and
grants by the >overnment authori0ed under this -ct
the right to use for the purposes of power any flow of
water in any stream running through or by the land
granted, the convertible power from which at
ordinary low water e#ceeds fifty horse power. /here
the convertible power in any stream running through
or by land granted under the authority of this -ct
thus e#ceeds fifty horsepower, and there is no means
of using such power e#cept by the occupation of a
part of the land granted under authority of this -ct,
then so much land as is reasonably necessary for the
mill site or site for the power house, and for a
suitable dam and site for massing the water, is
hereby e#cepted from such grants, not e#ceeding
four hectares, and a right of way to the nearest
public highway from the land thus e#cepted, and also
a right of way for the construction and maintenance
of such flumes, a;ueducts, wires, poles, or order
conduits as may be needed in conveying the water to
the point where its fall will yield the greatest power,
or the power from the point of conversion to the
point of use, is reserved as a servitude or easement
upon the land granted by authority of this -ct)
4rovided, however, That when the >overnment or
any concessionaire of the >overnment shall take
possession of the land under this section which a
grantee under this -ct shall have paid for, supposing
it to be sub1ect to grant under this -ct, said grantee
shall be entitled to indemnity from the >overnment
or the concessionaire, as the case may be, in the
amount, if any, paid by him to the >overnment for
the land taken from him by virtue of this section) -nd
provided, further, That with respect to the flow of
water, e#cept for converting the same into power
e#ceeding fifty horse power, said grantee shall be
entitled to the same use of the water flowing through
or along his land that other private owners en1oy
under the law, sub1ect to the governmental
regulation provided in the previous section. /ater
power privileges in which the convertible power at
ordinary low water shall e#ceed fifty horse power
shall be disposed of only upon terms established by
an -ct of the -ssembly concerning the use, lease or
ac;uisition of such water privilege.
Sec& ++F& -ll lands granted by virtue of this -ct,
including homesteads upon which final proof has not
been made or approved, shall, even though and
while the title remains in the "tate, be sub1ect to the
ordinary ta#es, which shall be paid by the grantee or
the applicant, beginning with the year ne#t following
the one in which the homestead application has been
filed, or the concession has been approved, or the
contract has been signed, as the case may be, on the
basis of the value fi#ed in such filing, approval or
signing of the application, concession or contract.
Sec& ++?& The appraisal or reappraisal of the lands
or improvements sub1ect to concession or disposition
under this -ct shall be made by the =irector of
7ands, with the approval of the "ecretary of
-griculture and 3ommerce. The =irector of 7ands
may re;uest the assistance of the provincial
treasurer of the province in which the land lies or
may appoint a committee for such purpose in the
province or in the municipality in which the land lies.
.n no case shall the appraisal or reappraisal be less
than the e#pense incurred or which may be incurred
by the >overnment in connection with the
application or concession, nor shall any reappraisal
be made with an increase of more than one hundred
per centum upon the appraisal or reappraisal ne#t
preceding.
Sec&++.& -ll sums due and payable to the
>overnment under this -ct, e#cept homestead fees,
shall draw simple interest at the rate of four per
centum per annum from and after the date in which
the debtor shall become delin;uent.
Sec& ++-& 5#cept in favor of the >overnment or any
of its branches, units, or institutions, lands ac;uired
under free patent or homestead provisions shall not
be sub1ect to encumbrance or alienation from the
date of the approval of the application and for a term
of five years from and after the date of issuance of
the patent or grant, nor shall they become liable to
the satisfaction of any debt contracted prior to the
e#piration of said period, but the improvements or
crops on the land may be mortgaged or pledged to
;ualified persons, associations, or corporations.
,o alienation, transfer, or conveyance of any
homestead after five years and before twentyfive
years after issuance of title shall be valid without the
approval of the "ecretary of -griculture and
3ommerce, which approval shall not be denied
e#cept on constitutional and legal grounds.
Sec& ++,& 5very conveyance of land ac;uired under
the free patent or homestead provisions, when
proper, shall be sub1ect to repurchase by the
applicant, his widow, or legal heirs, within a period of
five years from the date of the conveyance.
Sec& +*6. 3onveyance and encumbrance made by
persons belonging to the socalled non3hristian
*ilipinos or national cultural minorities, when
proper, shall be valid if the person making the
conveyance or encumbrance is able to read and can
understand the language in which the instrument or
conveyance or encumbrances is written.
3onveyances and encumbrances made by illiterate
non3hristian or literate non3hristians where the
instrument of conveyance or encumbrance is in a
language not understood by the said literate non
3hristians shall not be valid unless duly approved by
the 3hairman of the 3ommission on ,ational
.ntegration.
Sec& +*+& 5#cept with the consent of the grantee
and the approval of the "ecretary of ,atural
6esources, and solely for commercial, industrial,
educational, religious or charitable purposes or for a
right of way, no corporation, association, or
partnership may ac;uire or have any right, title,
interest, or property right whatsoever to any land
granted under the free patent, homestead, or
individual sale provisions of this -ct or to any
permanent improvement on such land.
The provisions of "ection $9D of this -ct to the
contrary notwithstanding, any ac;uisition of such
land, rights thereto or improvements thereon by a
corporation, association, or partnership prior to the
promulgation of this =ecree for the purposes herein
stated is deemed valid and binding+ 4rovided, That
no final decision of reversion of such land to the
"tate has been rendered by a court+ -nd 4rovided,
further, That such ac;uisition is approved by the
"ecretary of ,atural 6esources within si# !@' months
from the effectivity of this =ecree.
Sec& +**& ,o land originally ac;uired in any manner
under the provisions of this -ct, nor any permanent
improvement on such land, shall encumbered,
alienated, or transferred, e#cept to persons,
corporations, associations, or partnerships who may
ac;uire lands of the public domain under this -ct or
to corporations organi0ed in the 4hilippines
authori0ed therefor by their charters.
5#cept in cases of hereditary succession, no land or
any portion thereof originally ac;uired under the free
patent, homestead, or individual sale provisions of
this -ct, or any permanent improvement on such
land, shall be transferred or assigned to any
individual, nor shall such land or any permanent
improvement thereon be leased to such individual,
when the area of said land, added to that of his own,
shall e#ceed one hundred and fortyfour hectares.
-ny transfer, assignment, or lease made in violation
hereof, shall be null and void.
Sec& +*=& ,o land originally ac;uired in any manner
under the provisions of any previous -ct, ordinance,
royal order, royal decree, or any other provision of
law formerly in force in the 4hilippines with regard to
public lands, terrenos baldios y realengos, or lands of
any other denomination that were actually or
presumptively of the public domain, or by royal grant
or in any other form, nor any permanent
improvement on such land, shall be encumbered,
alienated, or conveyed, e#cept to persons,
corporations or associations who may ac;uire land of
the public domain under this -ct or to corporate
bodies organi0ed in the 4hilippines whose charters
authori0e them to do so) 4rovided, however, That this
prohibition shall not be applicable to the conveyance
or ac;uisition by reason of hereditary succession
duly acknowledged and legali0ed by competent
courts+ 4rovided, further, That in the event of the
ownership of the lands and improvements mentioned
in this section and in the last preceding section being
transferred by 1udicial decree to persons,
corporations or associations not legally capacitated
to ac;uire the same under the provisions of this -ct,
such persons, corporations, or associations shall be
obliged to alienate said lands or improvements to
others so capacitated within the precise period of
five years+ otherwise, such property shall revert to
the >overnment.
Sec& +*>& -ny ac;uisition, conveyance, alienation,
transfer, or other contract made or e#ecuted in
violation of any of the provisions of sections one
hundred and eighteen, one hundred and twenty, one
hundred and twentyone, one hundred and twenty
two, and one hundred and twentythree of this -ct
shall be unlawful and null and void from its e#ecution
and shall produce the effect of annulling and
cancelling the grant, title, patent, or permit originally
issued, recogni0ed or confirmed, actually or
presumptively, and cause the reversion of the
property and its improvements to the "tate.
"ec. $9B. The provisions of sections twentytwo,
twentythree, thirtythree, one hundred and twenty
two, and one hundred and twentythree of this -ct,
and any other provision or provisions restricting or
tending to restrict the right of persons, corporations,
or associations to ac;uire, hold, lease, encumber,
dispose of, or alienate land in the 4hilippines, or
permanent improvements thereon, or any interest
therein, shall not be applied in cases in which the
right to ac;uire, hold or dispose of such land,
permanent improvements thereon or interests
therein in the 4hilippines is recogni0ed by e#isting
treaties in favor of citi0ens or sub1ects of foreign
nations and corporations or associations organi0ed
and constituted by the same, which right, in so far as
it e#ists under such treaties, shall continue and
subsist in the manner and to the e#tent stipulated in
said treaties, and only while these are in force, but
not thereafter.
"ec. $9@. -ll public auctions provided for in the
foregoing chapters in the disposition of public lands
shall be held, wherever possible, in the province
where the land is located, or, in the office of the
Bureau of 7ands in (anila
RE8UBLIC ACT NO& -=.+ LT!e In%i'enous
8eo/les Ri'!ts Act
"ec. 9. -eclaration of 'tate ,olicies The "tate shall
recogni0e and promote all the rights of .ndigenous
3ultural 3ommunitiesC.ndigenous 4eoples !.33sC.4s'
hereunder enumerated within the framework of the
3onstitution)
a' The "tate shall recogni0e and promote the rights
of .33sC.4s within the framework of national unity and
development+
b'The "tate shall protect the rights of .33sC.4s to
their ancestral domains to ensure their economic,
social and cultural well being and shall recogni0e the
applicability of customary laws governing property
rights or relations in determining the ownership and
e#tent of ancestral domain+
c' The "tate shall recogni0e, respect and protect the
rights of .33sC.4s to preserve and develop their
cultures, traditions and institutions. .t shall consider
these rights in the formulation of national laws and
policies+
d' The "tate shall guarantee that members of the
.33sC.4s regardless of se#, shall e;ually en1oy the full
measure of human rights and freedoms without
distinctions or discriminations+
e' The "tate shall take measures, with the
participation of the .33sC.4s concerned, to protect
their rights and guarantee respect for their cultural
integrity, and to ensure that members of the .33sC.4s
benefit on an e;ual footing from the rights and
opportunities which national laws and regulations
grant to other members of the population and
f' The "tate recogni0es its obligations to respond to
the strong e#pression of the .33sC.4s for cultural
integrity by assuring ma#imum .33C.4 participation in
the direction of education, health, as well as other
services of .33sC.4s, in order to render such services
more responsive to the needs and desires of these
communities.
Towards these ends, the "tate shall institute and
establish the necessary mechanisms to enforce and
guarantee the reali0ation of these rights, taking into
consideration their customs, traditions, values,
beliefs, their rights to their ancestral domains.
3:-4T56 ll
=5*.,.T.8, 8* T56("
"ec. A. -efinition of &erms *or purposes of this -ct,
the following terms shall mean)
a' Ancestral -omains "ub1ect to
"ection B@ hereof, refer to all areas
generally belonging to .33sC.4s
comprising lands,inland waters,
coastal areas, and natural resources
therein, held under a claim of
ownership, occupied or possessed by
.33sC.4s, themselves or through their
ancestors, communally or individually
since time immemorial, continuously
to the present e#cept when
interrupted by war, force ma1eure or
displacement by force, deceit, stealth
or as a conse;uence of government
pro1ects or any other voluntary
dealings entered into by government
and private individuals, corporations,
and which are necessary to ensure
their economic, social and cultural
welfare. .t shall include ancestral
land, forests, pasture, residential,
agricultural, and other lands
individually owned whether alienable
and disposable or otherwise, hunting
grounds, burial grounds, worship
areas, bodies of water, mineral and
other natural resources, and lands
which may no longer be e#clusively
occupied by .33sC.4s but from which
their traditionally had access to for
their subsistence and traditional
activities, particularly the home
ranges of .33sC.4s who are still
nomadic andCor shifting cultivators+
b' Ancestral Lands "ub1ect to
"ection B@ hereof, refers to land
occupied, possessed and utili0ed by
individuals, families and clans who
are members of the .33sC.4s since
time immemorial, by themselves or
through their predecessorsin
interest, under claims of individual or
traditional group
ownership,continuously, to the
present e#cept when interrupted by
war, force ma1eure or displacement
by force, deceit, stealth, or as a
conse;uence of government pro1ects
and other voluntary dealings entered
into by government and private
individualsCcorporations, including,
but not limited to, residential lots,
rice terraces or paddies, private
forests, swidden farms and tree lots+
c' $ertificate of Ancestral -omain
&itle refers to a title formally
recogni0ing the rights of possession
and ownership of .33sC.4s over their
ancestral domains identified and
delineated in accordance with this
law+
d' $ertificate of Ancestral Lands &itle
+ refers to a title formally recogni0ing
the rights of .33sC.4s over their
ancestral lands+
e' $ommunal $laims refer to claims
on land, resources and rights
thereon, belonging to the whole
community within a defined territory
f' $ustomar( Laws refer to a body of
written andCor unwritten rules,
usages, customs and practices
traditionally and continually
recogni0ed, accepted and observed
by respective .33sC.4s+
g' 9ree and ,rior Informed $onsent
+ as used in this -ct shall mean the
consensus of all members of the
.33sC.4s to+ be determined in
accordance with their respective
customary laws and practices, free
from any e#ternal manipulation,
interference and coercion, and
obtained after fully disclosing the
intent and scope of the activity, in a
language an process understandable
to the community+
h' Indigenous $ultural
$ommunities@Indigenous ,eoples
+ refer to a group of people or
homogenous societies identified by
selfascription and ascription by
other, who have continuously lived as
organi0ed community on communally
bounded and defined territory, and
who have, under claims of ownership
since time immemorial, occupied,
possessed customs, tradition and
other distinctive cultural traits, or
who have, through resistance to
political, social and cultural inroads of
coloni0ation, nonindigenous religions
and culture, became historically
differentiated from the ma1ority of
*ilipinos. .33sC.4s shall likewise
include peoples who are regarded as
indigenous on account of their
descent from the populations which
inhabited the country, at the time of
con;uest or coloni0ation, or at the
time of inroads of nonindigenous
religions and cultures, or the
establishment of present state
boundaries, who retain some or all of
their own social, economic, cultural
and political institutions, but who
may have been displaced from their
traditional domains or who may have
resettled outside their ancestral
domains+
i' Indigenous ,olitical 'tructure + refer
to organi0ational and cultural
leadership systems, institutions,
relationships, patterns and processed
for decisionmaking and participation,
identified by .33sC.4s such as, but not
limited to, 3ouncil of 5lders, 3ouncil
of Timuays, Bodong :older, or any
other tribunal or body of similar
nature+
1' Indi;idual $laims + refer to claims
on land and rights thereon which
have been devolved to individuals,
families and clans including, but not
limited to, residential lots, rice
terraces or paddies and tree lots+
k' National $ommission on
Indigenous ,eoples CN$I,D + refers to
the office created under this -ct,
which shall be under the 8ffice of the
4resident, and which shall be the
primary government agency
responsible for the formulation and
implementation of policies, plans and
programs to recogni0e, protect and
promote the rights of .33sC.4s+
l' Nati;e &itle + refers to precon;uest
rights to lands and domains which, as
far back as memory reaches, have
been held under a claim of private
ownership by .33sC.4s, have never
been public lands and are thus
indisputably presumed to have been
held that way since before the
"panish 3on;uest+
m' Nongo;ernment 8rganiBation
+ refers to a private, nonprofit
voluntary organi0ation that has been
organi0ed primarily for the delivery of
various services to the .33sC.4s and
has an established track record for
effectiveness and acceptability in the
community where it serves+
n' ,eopleGs 8rganiBation + refers to a
private, nonprofit voluntary
organi0ation of members of an .33C.4
which is accepted as representative
of such .33sC.4s+
o' 'ustaina)le &raditional 7esource
7ig%ts + refer to the rights of .33sC.4s
to sustainably use,manage, protect
and conserve a' land, air, water, and
minerals+ b' plants, animals and
other organisms+ c' collecting, fishing
and hunting grounds+ d' sacred sites+
and e' other areas of economic,
ceremonial and aesthetic value in
accordance with their indigenous
knowledge, beliefs, systems and
practices+ and
p' &ime Immemorial refers to a period of time when
as far back as memory can go, certain .33sC.4s are
known to have occupied, possessed in the concept of
owner, and utili0ed a defined territory devolved to
them, by operation of customary law or inherited
from their ancestors, in accordance with their
customs and traditions.
3:-4T56 ...
6.>:T" T8 -,35"T6-7 =8(-.,"
"ec. D. $oncept of Ancestral Lands@-omains
-ncestral landsCdomains shall include such concepts
of territories which cover not only the physical
environment but the total environment including the
spiritual and cultural bonds to the area which the
.33sC.4s possess, occupy and use and to which they
have claims of ownership.
"ec. B. Indigenous $oncept of
8wners%ip+ .ndigenous concept of ownership
sustains the view that ancestral domains and all
resources found therein shall serve as the material
bases of their cultural integrity. The indigenous
concept of ownership generally holds that ancestral
domains are the .332sC.42s private but community
property which belongs to all generations and
therefore cannot be sold, disposed or destroyed. .t
likewise covers sustainable traditional resource
rights.
"ec. @. $omposition of Ancestral
Lands@-omains+ -ncestral lands and domains shall
consist of all areas generally belonging to .33sC.4s as
referred under "ec. A, items !a' and !b' of this -ct.
"ec. 7. 7ig%ts to Ancestral -omains+ The rights of
ownership and possession of .33sC.4s t their
ancestral domains shall be recogni0ed and protected.
"uch rights shall include)
a. 7ig%ts of 8wners%ip+ The right to claim ownership
over lands, bodies of water traditionally and actually
occupied by .33sC.4s, sacred places, traditional
hunting and fishing grounds, and all improvements
made by them at any time within the domains+
b. 7ig%t to -e;elop Lands and Natural 7esources
"ub1ect to "ection B@ hereof, right to develop, control
and use lands and territories traditionally occupied,
owned, or used+ to manage and conserve natural
resources within the territories and uphold the
responsibilities for future generations+ to benefit and
share the profits from allocation and utili0ation of the
natural resources found therein+ the right to
negotiate the terms and conditions for the
e#ploration of natural resources in the areas for the
purpose of ensuring ecological, environmental
protection and the conservation measures, pursuant
to national and customary laws+ the right to an
informed and intelligent participation in the
formulation and implementation of any pro1ect,
government or private, that will affect or impact
upon the ancestral domains and to receive 1ust and
fair compensation for any damages which they
sustain as a result of the pro1ect+ and the right to
effective measures by the government to prevent
any interfere with, alienation and encroachment
upon these rights+
c. 7ig%t to 'ta( in t%e &erritories The right to stay in
the territory and not be removed therefrom. ,o
.33sC.4s will be relocated without their free and prior
informed consent, nor through any means other than
eminent domain. /here relocation is considered
necessary as an e#ceptional measure, such
relocation shall take place only with the free and
prior informed consent of the .33sC.4s concerned and
whenever possible, they shall be guaranteed the
right to return to their ancestral domains, as soon as
the grounds for relocation cease to e#ist. /hen such
return is not possible, as determined by agreement
or through appropriate procedures, .33sC.4s shall be
provided in all possible cases with lands of ;uality
and legal status at least e;ual to that of the land
previously occupied by them, suitable to provide for
their present needs and future development. 4ersons
thus relocated shall likewise be fully compensated for
any resulting loss or in1ury+
d. 7ig%t in $ase of -isplacement .n case
displacement occurs as a result of natural
catastrophes, the "tate shall endeavor to resettle the
displaced .33sC.4s in suitable areas where they can
have temporary life support system) 4rovided, That
the displaced .33sC.4s shall have the right to return
to their abandoned lands until such time that the
normalcy and safety of such lands shall be
determined) 4rovided, further, That should their
ancestral domain cease to e#ist and normalcy and
safety of the previous settlements are not possible,
displaced .33sC.4s shall en1oy security of tenure over
lands to which they have been resettled) 4rovided,
furthermore, That basic services and livelihood shall
be provided to them to ensure that their needs are
ade;uately addressed)
e. 7ig%t to 7egulate :ntr( of Migrants 6ight to
regulate the entry of migrant settlers and
organi0ations into the domains+
f. 7ig%t to 'afe and $lean Air and 1ater *or this
purpose, the .33sC.4s shall have access to integrated
systems for the management of their inland waters
and air space+
g. 7ig%t to $laim ,arts of 7eser;ations The right to
claim parts of the ancestral domains which have
been reserved for various purposes, e#cept those
reserved and intended for common and public
welfare and service+ and
h. 7ig%t to 7esol;e $onflict 6ight to resolve land
conflicts in accordance with customary laws of the
area where the land is located, and only in default
thereof shall the complaints be submitted to
amicable settlement and to the 3ourts of <ustice
whenever necessary.
"ec. ?. 7ig%ts to Ancestral Lands The right of
ownership and possession of the .33sC.4s, to their
ancestral lands shall be recogni0ed and protected.
a. 7ig%t to transfer land@propert( "uch right shall
include the right to transfer land or property rights
toCamong members of the same .33sC.4s, sub1ect to
customary laws and traditions of the community
concerned.
b. 7ig%t to 7edemption .n cases where it is shown
that the transfer of landCproperty rights by virtue of
any agreement or devise, to a nonmember of the
concerned .33sC.4s is tainted by the vitiated consent
of the .33sC.4s,or is transferred for an unconscionable
consideration or price, the transferor .33C.4 shall
have the right to redeem the same within a period
not e#ceeding fifteen !$B' years from the date of
transfer.
"ec. %. 7esponsi)ilities of I$$s@I,s to t%eir Ancestral
-omains .33sC.4s occupying a duly certified
ancestral domain shall have the following
responsibilities)
a. (aintain 5cological Balance To preserve, restore,
and maintain a balanced ecology in the ancestral
domain by protecting the flora and fauna, watershed
areas, and other reserves+
b. 6estore =enuded -reas To actively initiate,
undertake and participate in the reforestation of
denuded areas and other development programs and
pro1ects sub1ect to 1ust and reasonable remuneration+
and
c. 8bserve 7aws To observe and comply with the
provisions of this -ct and the rules and regulations
for its effective implementation.
"ec. $&. Enaut%oriBed and Enlawful Intrusion
Fnauthori0ed and unlawful intrusion upon, or use of
any portion of the ancestral domain, or any violation
of the rights herein before enumerated, shall be
punishable under this law. *urthermore, the
>overnment shall take measures to prevent non
.33sC.4s from taking advantage of the .33sC.4s
customs or lack of understanding of laws to secure
ownership, possession of land belonging to said
.33sC.4s.
"ec. $$. 7ecognition of Ancestral -omain 7ig%ts
The rights of .33sC.4s to their ancestral domains by
virtue of ,ative Title shall be recogni0ed and
respected. *ormal recognition, when solicited by
.33sC.4s concerned, shall be embodied in a
3ertificate of -ncestral =omain Title !3-=T', which
shall recogni0e the title of the concerned .33sC.4s
over the territories identified and delineated.
"ec. $9. 8ption to 'ecure $ertificate of &itle under
$ommonwealt% Act 141/ as amended/ or t%e Land
7egistration Act 49" .ndividual members of cultural
communities, with respect to individuallyowned
ancestral lands who, by themselves or through their
predecessorsin interest, have been in continuous
possession and occupation of the same in the
concept of owner since the immemorial or for a
period of not less than thirty !A&' years immediately
preceding the approval of this -ct and uncontested
by the members of the same .33sC.4s shall have the
option to secure title to their ancestral lands under
the provisions of 3ommonwealth -ct $D$, as
amended, or the 7and 6egistration -ct D%@.
*or this purpose, said individuallyowned ancestral
lands, which are agricultural in character and
actually used for agricultural, residential, pasture,
and tree farming purposes, including those with a
slope of eighteen percent !$?N' or more, are hereby
classified as alienable and disposable agricultural
lands.
The option granted under this "ection shall be
e#ercised within twenty !9&' years from the approval
of this -ct.
3:-4T56 .G
6.>:T T8 "57*>8G56,-,35 -,= 5(48/56(5,T
"ec. $A. 'elf+>o;ernance. The "tate recogni0es the
inherent right of .33sC.4s to selfgovernance and self
determination and respects the integrity of their
values, practices and institutions. 3onse;uently, the
"tate shall guarantee the right of .33sC.4s to freely
pursue their economic, social and cultural
development.
"ec. $D. 'upport for Autonomous 7egions The "tate
shall continue to strengthen and support the
autonomous regions created under the 3onstitution
as they may re;uire or need. The "tate shall likewise
encourage other .33sC.4s not included or outside
(uslim (indanao and the 3ordillera to use the form
and content of their ways of life as may be
compatible with the fundamental rights defined in
the 3onstitution of the 6epublic of the 4hilippines
and other internationally recogni0ed human rights.
"ec. $B. Austice '(stem/ $onflict 7esolution
Institutions and ,eace Building ,rocesses The
.33sC.4s shall have the right to use their own
commonly accepted 1ustice systems, conflict
resolution institutions, peace building processes or
mechanisms and other customary laws and practices
within their respective communities and as may be
compatible with the national legal system and with
internationally recogni0ed human rights.
"ec. $@. 7ig%t to ,articipate in -ecision +Making
.33sC.4s have the right to participate fully, if they so
choose, at all levels of decisionmaking in matters
which may affect their rights, lives and destinies
through procedures determined by them as well as
to maintain and develop their own indigenous
political structures. 3onse;uently, the "tate shall
ensure that the .33sC.4s shall be given mandatory
representation in policymaking bodies and other
local legislative councils.
"ec. $7. 7ig%t to -etermine and -ecide ,riorities for
-e;elopment The .33sC.4s shall have the right to
determine and decide their own priorities for
development affecting their lives, beliefs,
institutions, spiritual wellbeing, and the lands they
own, occupy or use. They shall participate in the
formulation,implementation and evaluation of
policies, plans and programs for national, regional
and local development which may directly affect
them.
"ec. $?. &ri)al Baranga(s The .33sC.4s living in
contiguous areas or communities where they form
the predominant population but which are located in
municipalities, provinces or cities where they do not
constitute the ma1ority of the population, may form
or constitute a separate barangay in accordance with
the 7ocal >overnment 3ode on the creation of tribal
barangays.
"ec. $%. 7ole of ,eoples 8rganiBations The "tate
shall recogni0e and respect the role of independent
.33sC.4s organi0ations to enable the .33sC.4s to
pursue and protect their legitimate and collective
interests and aspirations through peaceful and lawful
means.
"ec. 9&. Means for -e;elopment @:mpowerment of
I$$s@I,s The >overnment shall establish the means
for the full developmentCempowerment of the
.33sC.4s own institutions and initiatives and, where
necessary, provide the resources needed therefor.
3:-4T56 G
"83.-7 <F"T.35 -,= :F(-, 6.>:T"
"ec. 9$. :2ual ,rotection and Non+discrimination of
I$$s@I,s 3onsistent with the e;ual protection clause
of the 3onstitution of the 6epublic of the 4hilippines,
the 3harter of the Fnited ,ations, the Fniversal
=eclaration of :uman 6ights including the
3onvention on the 5limination of =iscrimination
-gainst /omen and .nternational :uman 6ights 7aw,
the "tate shall, with due recognition of their distinct
characteristics and identity, accord to the members
of the .33sC.4s the rights, protections and privileges
en1oyed by the rest of the citi0enry. .t shall e#tend to
them the same employment rights, opportunities,
basic services, educational and other rights and
privileges available to every member of the society.
-ccordingly, the "tate shall likewise ensure that the
employment of any form of force of coersion against
.33sC.4s shall be dealt with by law.
The "tate shall ensure that the fundamental human
rights and freedoms as enshrined in the 3onstitution
and relevant international instruments are
guaranteed also to indigenous women. Towards this
end, no provision in this -ct shall be interpreted so
as to result in the diminution of rights and privileges
already recogni0ed and accorded to women under
e#isting laws of general application.
"ec. 99. 7ig%ts during Armed $onflict .33sC.4s have
the right to special protection and security in periods
of armed conflict. The "tate shall observe
international standards, in particular, the *ourth
>eneva 3onvention of $%D%, for the protection of
civilian populations in circumstances of emergency
and armed conflict, and shall not recruit members of
the .33sC.4s against their will into armed forces, and
in particular, for the use against other .33sC.4s+ not
recruit children of .33sC.4s into the armed forces
under any circumstance+ nor force indigenous
individuals to abandon their lands, territories and
means of subsistence, or relocate them in special
centers for military purposes under any
discriminatory condition.
"ec. 9A. 9reedom from -iscrimination and 7ig%t to
:2ual 8pportunit( and &reatment .t shall be the
right of the .33sC.4s to be free from any form of
discrimination, with respect to recruitment and
conditions of employment, such that they may en1oy
e;ual opportunities as other occupationallyrelated
benefits, informed of their rights under e#isting labor
legislation and of means available to them for
redress, not sub1ect to any coercive recruitment
systems, including bonded labor and other forms of
debt servitude+ and e;ual treatment in employment
for men and women, including the protection from
se#ual harassment.
Towards this end, the "tate shall within the
framework of national laws and regulations, and in
cooperation with the .33sC.4s concerned, adopt
special measures to ensure the effective protection
with regard to the recruitment and conditions of
employment of persons belonging to these
communities, to the e#tent that they are not
effectively protected by the laws applicable to
workers in general.
.33sC.4s shall have the right to association and
freedom for all trade union activities and the right to
conclude collective bargaining agreements with
employers2 conditions. They shall likewise have the
right not to be sub1ect to working conditions
ha0ardous to their health, particularly through
e#posure to pesticides and other to#ic substances.
"ec. 9D. Enlawful Acts ,ertaining to :mplo(ment .t
shall be unlawful for any person)
a. To discriminate against any .33C.4 with respect to
the terms and conditions of employment on account
of their descent. 5;ual remuneration shall be paid to
.33C.4 and non.33C.4 for work of e;ual value+ and
b. To deny any .33C.4 employee any right or benefit
herein provided for or to discharge them for the
purpose of preventing them from en1oying any of the
rights or benefits provided under this -ct.
"ec. 9B. Basic 'er;ices The .33C.4 have the right to
special measures for the immediate, effective and
continuing improvement of their economic and social
conditions, including in the areas of employment,
vocational training and retraining, housing,
sanitation, health and social security. 4articular
attention shall be paid to the rights and special
needs of indigenous women, elderly, youth, children
and differentlyabled persons. -ccordingly, the "tate
shall guarantee the right of .33sC.4s to government 2s
basic services which shall include, but not limited to
water and electrical facilities, education, health and
infrastructure.
"ec. 9@. 1omen .33C.4 women shall en1oy e;ual
rights and opportunities with men, as regards the
social, economic, political and cultural spheres of life.
The participation of indigenous women in the
decisionmaking process in all levels, as well as in
the development of society, shall be given due
respect and recognition.
The "tate shall provide full access to education,
maternal and child care, health and nutrition, and
housing services to indigenous women. Gocational,
technical, professional and other forms of training
shall be provided to enable these women to fully
participate in all aspects of social life. -s far as
possible, the "tate shall ensure that indigenous
women have access to all services in their own
languages.
"ec. 97. $%ildren and Hout% The "tate shall
recogni0e the vital role of the children and youth of
.33sC.4s in nationbuilding and shall promote and
protect their physical, moral, spiritual, moral,
spiritual, intellectual and social wellbeing. Towards
this end, the "tate shall support all government
programs intended for the development and rearing
of the children and youth of .33sC.4s for civic
efficiency and establish such mechanisms as may be
necessary for the protection of the rights of the
indigenous children and youth.
"ec. 9?. Integrated '(stem of :ducation The "tate
shall, through the ,3.4, provide a complete,
ade;uate and integrated system of education,
relevant to the needs of the children and Toung
people of .33sC.4s.
3:-4T56 G.
3F7TF6-7 .,T5>6.TT
"ec. 9%. ,rotection of Indigenous $ulture/ traditions
and institutions The state shall respect, recogni0e
and protect the right of the .33sC.4s to preserve and
protect their culture, traditions and institutions. .t
shall consider these rights in the formulation of
national plans and policies.
"ec. A&. :ducational '(stems The "tate shall
provide e;ual access to various cultural opportunities
to the .33sC.4s through the educational system,
public or cultural entities, scholarships, grants and
other incentives without pre1udice to their right to
establish and control their educational systems and
institutions by providing education in their own
language, in a manner appropriate to their cultural
methods of teaching and learning. .ndigenous
childrenCyouth shall have the right to all levels and
forms of education of the "tate.
"ec. A$. 7ecognition of $ultural -i;ersit(+ The "tate
shall endeavor to have the dignity and diversity of
the cultures, traditions, histories and aspirations of
the .33sC.4s appropriately reflected in all forms of
education, public information and cultural
educational e#change. 3onse;uently, the "tate shall
take effective measures, in consultation with .33sC.4s
concerned, to eliminate pre1udice and discrimination
and to promote tolerance, understanding and good
relations among .33sC.4s and all segments of society.
*urthermore, the >overnment shall take effective
measures to ensure that "tateowned media duly
reflect indigenous cultural diversity. The "tate shall
likewise ensure the participation of appropriate
indigenous leaders in schools, communities and
international cooperative undertakings like festivals,
conferences, seminars and workshops to promote
and enhance their distinctive heritage and values.
"ec. A9. $ommunit( Intellectual 7ig%ts+ .33sC.4s
have the right to practice and revitali0e their own
cultural traditions and customs. The "tate shall
preserve, protect and develop the past, present and
future manifestations of their cultures as well as the
right to the restitution of cultural, intellectual,
religious, and spiritual property taken without their
free and prior informed consent or in violation of
their laws, traditions and customs.
"ec. AA. 7ig%ts to 7eligious/ $ultural 'ites and
$eremonies .33sC.4s shall have the right to
manifest, practice, develop teach their spiritual and
religious traditions, customs and ceremonies+ the
right to maintain, protect and have access to their
religious and cultural sites+ the right to use and
control of ceremonial ob1ect+ and the right to the
repatriation of human remains. -ccordingly, the
"tate shall take effective measures, in cooperation
with the burial sites, be preserved, respected and
protected. To achieve this purpose, it shall be
unlawful to)
a. 5#plore, e#cavate or make diggings on
archeological sites of the .33sC.4s for the purpose of
obtaining materials of cultural values without the
free and prior informed consent of the community
concerned+ and
b. =eface, remove or otherwise destroy artifacts
which are of great importance to the .33sC.4s for the
preservation of their cultural heritage.
"ec. AD. 7ig%t to Indigenous Inowledge '(stems and
,ractices and to -e;elop own 'ciences and
&ec%nologies .33sC.4s are entitled to the recognition
of the full ownership and control and protection of
their cultural and intellectual rights. They shall have
the right to special measures to control, develop and
protect their sciences, technologies and cultural
manifestations, including human and other genetic
resources, seeds, including derivatives of these
resources, traditional medicines and health practices,
vital medicinal plants, animals and minerals,
indigenous knowledge systems and practices,
knowledge of the properties of fauna and flora, oral
traditions, literature, designs, and visual and
performing arts.
"ec. AB. Access to Biological and >enetic 7esources
-ccess to biological and genetic resources and to
indigenous knowledge related to the conservation,
utili0ation and enhancement of these resources, shall
be allowed within ancestral lands and domains of the
.33sC.4s only with a free and prior informed consent
of such communities, obtained in accordance with
customary laws of the concerned community.
"ec. A@. 'ustaina)le Agro+&ec%nical -e;elopment
The "tate shall recogni0e the right of .33sC.4s to a
sustainable agrotechnological development and
shall formulate and implement programs of action for
its effective implementation. The "tate shall likewise
promote the biogenetic and resource management
systems among the .33sC.4s and shall encourage
cooperation among government agencies to ensure
the successful sustainable development of .33sC.4s.
"ec. A7. 9unds for Arc%eological and 5istorical 'ites
+ The .33sC.4s shall have the right to receive from the
national government all funds especially earmarked
or allocated for the management and preservation of
their archeological and historical sites and artifacts
with the financial and technical support of the
national government agencies.
3:-4T56 G..
,-T.8,-7 38((."".8, 8, .,=.>5,8F" 458475"
!,3.4'
"ec. A?. National $ommission on Indigenous $ultural
$ommunities @Indigenous ,eoples CN$$,D to carry
out the policies herein set forth, there shall be
created the ,ational 3ommission on .33sC.4s !,3.4',
which shall be the primary government agency
responsible for the formulation and implementation
of policies, plans and programs to promote and
protect the rights and wellbeing of the .33sC.4s and
the recognition of their ancestral domains as well as
their rights thereto.
"ec. A%. Mandate The ,3.4 shall protect and
promote the interest and wellbeing of the .33sC.4s
with due regard to their beliefs, customs, traditions
and institutions.
"ec. D&. $omposition The ,3.4 shall be an
independent agency under the 8ffice of the 4resident
and shall be composed of seven !7' 3ommissioners
belonging to .33sC.4s, one !$' of whom shall be the
3hairperson. The 3ommissioners shall be appointed
by the 4resident of the 4hilippines from a list of
recommendees submitted by authentic .33sC.4s)
4rovided, That the seven !7' 3ommissioners shall be
appointed specifically from each of the following
ethnographic areas) 6egion . and the 3ordilleras+
6egion ..+ the rest of 7u0on+ .sland >roups including
(indoro, 4alawan, 6omblon, 4anay and the rest of
the Gisayas+ ,orthern and /estern (indanao+
"outhern and 5astern (indanao+ and 3entral
(indanao) 4rovided, That at least two !9' of the
seven !7' 3ommissioners shall be women.
"ec. D$. <ualifications/ &enure/ $ompensation The
3hairperson and the si# !@' 3ommissioners must be
natural born *ilipino citi0ens, bonafide members of
.33sC.4s as certified by hisCher tribe, e#perienced in
ethnic affairs and who have worked for at least ten
!$&' years with an .33C.4 community andCor any
government agency involved in .33C.4, at least AB
years of age at the time of appointment, and must
be of proven honesty and integrity) 4rovided, That at
least two !9' of the seven !7' 3ommissioners shall be
the members of the 4hilippine Bar) 4rovided, further,
That the members of the ,3.4 shall hold office for a
period of three !A' years, and may be sub1ect to re
appointment for another term) 4rovided,
furthermore, That no person shall serve for more
than two !9' terms. -ppointment to any vacancy
shall only be for the une#pired term of the
predecessor and in no case shall a member be
appointed or designated in a temporary or acting
capacity) 4rovided, finally, That the 3hairperson and
the 3ommissioners shall be entitled to compensation
in accordance with the "alary "tandardi0ation 7aw.
"ec. D9. 7emo;al from 8ffice -ny member of the
,3.4 may be removed from office by the 4resident,
on his own initiative or upon recommendation by any
indigenous community, before the e#piration of his
term for cause and after complying with due process
re;uirement of law.
"ec. DA. Appointment of $ommissioners The
4resident shall appoint the seven !7' 3ommissioners
of the ,3.4 within ninety !%&' days from the
effectivity of this -ct.
"ec. DD. ,owers and 9unctions To accomplish its
mandate, the ,3.4 shall have the following powers,
1urisdiction and function)
a' To serve as the primary government agency
through which .33sC.4s can seek government
assistance and as the medium, thorough which such
assistance may be e#tended+
b' To review and assess the conditions of .33sC.4s
including e#isting laws and policies pertinent thereto
and to propose relevant laws and policies to address
their role in national development+
c' To formulate and implement policies, plans,
programs and pro1ects for the economic, social and
cultural development of the .33sC.4s and to monitor
the implementation thereof+
d' To re;uest and engage the services and support of
e#perts from other agencies of government or
employ private e#perts and consultants as may be
re;uired in the pursuit of its ob1ectives+
e' To issue certificate of ancestral landCdomain title+
f' "ub1ect to e#isting laws, to enter into contracts,
agreements, or arrangement, with government or
private agencies or entities as may be necessary to
attain the ob1ectives of this -ct, and sub1ect to the
approval of the 4resident, to obtain loans from
government lending institutions and other lending
institutions to finance its programs+
g' To negotiate for funds and to accept grants,
donations, gifts andCor properties in whatever form
and from whatever source, local and international,
sub1ect to the approval of the 4resident of the
4hilippines, for the benefit of .33sC.4s and administer
the same in accordance with the terms thereof+ or in
the absence of any condition, in such manner
consistent with the interest of .33sC.4s as well as
e#isting laws+
h' To coordinate development programs and pro1ects
for the advancement of the .33sC.4s and to oversee
the proper implementation thereof+
i' To convene periodic conventions or assemblies of
.4s to review, assess as well as propose policies or
plans+
1' To advise the 4resident of the 4hilippines on all
matters relating to the .33sC.4s and to submit within
si#ty !@&' days after the close of each calendar year,
a report of its operations and achievements+
k' To submit to 3ongress appropriate legislative
proposals intended to carry out the policies under
this -ct+
l' To prepare and submit the appropriate budget to
the 8ffice of the 4resident+
m' To issue appropriate certification as a pre
condition to the grant of permit, lease, grant, or any
other similar authority for the disposition, utili0ation,
management and appropriation by any private
individual, corporate entity or any government
agency, corporation or subdivision thereof on any
part or portion of the ancestral domain taking into
consideration the consensus approval of the .33sC.4s
concerned+
n' To decide all appeals from the decisions and acts
of all the various offices within the 3ommission)
o' To promulgate the necessary rules and regulations
for the implementation of this -ct+
p' To e#ercise such other powers and functions as
may be directed by the 4resident of the 6epublic of
the 4hilippines+ and
;' To represent the 4hilippine .33sC.4s in all
international conferences and conventions dealing
with indigenous peoples and other related concerns.
"ec. DB. Accessi)ilit( and &ransparenc( "ub1ect to
such limitations as may be provided by law or by
rules and regulations promulgated pursuant thereto,
all official records, documents and papers pertaining
to official acts, transactions or decisions, as well as
research data used as basis for policy development
of the 3ommission shall be made accessible to the
public.
"ec.D@. 8fficers wit%in t%e N$I,. The ,3.4 shall have
the following offices which shall be responsible for
the implementation of the policies herein after
provided)
a. Ancestral -omains 8ffice The -ncestral =omain
8ffice shall be responsible for the identification,
delineation and recognition of ancestral
landCdomains. .t shall also be responsible for the
management of ancestral landsCdomains in
accordance with the master plans as well as the
implementation of the ancestral domain rights of the
.33sC.4s as provided in 3hapter ... of this -ct. .t shall
also issue, upon the free and prior informed consent
of the .33sC.4s concerned, certification prior to the
grant of any license, lease or permit for the
e#ploitation of natural resources affecting the
interests of .33sC.4s in protecting the territorial
integrity of all ancestral domains. .t shall likewise
perform such other functions as the 3ommission may
deem appropriate and necessary+
b. 8ffice on ,olic(/ ,lanning and 7esearc% + The
8ffice on 4olicy, 4lanning and 6esearch shall be
responsible for the formulation of appropriate
policies and programs for .33sC.4s such as, but not
limited to, the development of a *iveTear (aster
4lan for the .33sC.4s. "uch plan shall undergo a
process such that every five years, the 3ommission
shall endeavor to assess the plan and make
ramifications in accordance with the changing
situations. The 8ffice shall also undertake the
documentation of customary law and shall establish
and maintain a 6esearch 3enter that would serve as
a depository of ethnographic information for
monitoring, evaluation and policy formulation. .t shall
assist the legislative branch of the national
government in the formulation of appropriate
legislation benefiting .33sC.4s.
c. 8ffice of :ducation/ $ulture and 5ealt% The 8ffice
on 3ulture, 5ducation and :ealth shall be responsible
for the effective implementation of the education,
cultural and related rights as provided in this -ct. .t
shall assist, promote and support community
schools, both formal and nonformal, for the benefit
of the local indigenous community, especially in
areas where e#isting educational facilities are not
accessible to members of the indigenous group. .t
shall administer all scholarship programs and other
educational rights intended for .33C.4 beneficiaries in
coordination with the =epartment of 5ducation,
3ulture and "ports and the 3ommission on :igher
5ducation. .t shall undertake, within the limits of
available appropriation, a special program which
includes language and vocational training, public
health and family assistance program and related
sub1ects.
.t shall also identify .33sC.4s with potential training in
the health profession and encourage and assist them
to enroll in schools of medicine, nursing, physical
therapy and other allied courses pertaining to the
health profession.
Towards this end, the ,3.4 shall deploy a
representative in each of the said offices who shall
personally perform the foregoing task and who shall
receive complaints from the .33sC.4s and compel
action from appropriate agency. .t shall also monitor
the activities of the ,ational (useum and other
similar government agencies generally intended to
manage and preserve historical and archeological
artifacts of the .33s C.4s and shall be responsible for
the implementation of such other functions as the
,3.4 may deem appropriate and necessary+
d. 8ffice on 'ocio+:conomic 'er;ices and 'pecial
$oncerns The 8ffice on "ocio5conomic "ervices
and "pecial 3oncerns shall serve as the 8ffice
through which the ,3.4 shall coordinate with
pertinent government agencies specially charged
with the implementation of various basic socio
economic services, policies, plans and programs
affecting the .33sC.4s to ensure that the same are
properly and directly en1oyed by them. .t shall also
be responsible for such other functions as the ,3.4
may deem appropriate and necessary+
e. 8ffice of :mpowerment and 5uman 7ig%ts The
8ffice of 5mpowerment and :uman 6ights shall
ensure that indigenous socio political, cultural and
economic rights are respected and recogni0ed. .t
shall ensure that capacity building mechanisms are
instituted and .33sC.4s are afforded every
opportunity, if they so choose, to participate in all
level decisionmaking. .t shall likewise ensure that
the basic human rights, and such other rights as the
,3.4 may determine, sub1ect to e#isting laws, rules
and regulations are protected and promoted+
f. Administrati;e 8ffice + The -dministrative 8ffice
shall provide the ,3.4 with economical, efficient and
effective services pertaining to personnel, finance,
records, e;uipment, security, supplies, and related
services. .t shall also administer the -ncestral
=omains *und+ and
g. Legal Affairs 8ffice There shall be a 7egal -ffairs
8ffice which shall advice the ,3.4 on all legal
matters concerning .33sC.4s and which shall be
responsible for providing .33sC.4s with legal
assistance in litigation involving community interest.
.t shall conduct preliminary investigation on the basis
of complaints filed by the .33sC.4s against a natural
or 1uridical person believed to have violated .33sC.4s
rights. 8n the basis of its findings, it shall initiate the
filing of appropriate legal or administrative action to
the ,3.4.
"ec. D7. 8t%er 8ffices The ,3.4 shall have the
power to create additional offices as it may deem
necessary sub1ect to e#isting rules and regulations.
"ec. D?. 7egional and 9ield 8ffices 5#isting regional
and field offices shall remain to function under the
strengthened organi0ational structure of the ,3.4.
8ther field office shall be created wherever
appropriate and the staffing pattern thereof shall be
determined by the ,3.4) 4rovided, That in provinces
where there are .33sC.4s but without field offices, the
,3.4 shall establish field offices in said provinces.
"ec. D%. 8ffice of t%e :=ecuti;e -irector+ The ,3.4
shall create the 8ffice of the 5#ecutive =irector
which shall serve as its secretariat. The office shall
be headed by an 5#ecutive =irector who shall be
appointed by the 4resident of the 6epublic of the
4hilippines upon the recommendation of the ,3.4 on
a permanent basis. The staffing pattern of the office
shall be determined by the ,3.4 sub1ect to e#isting
rules and regulations.
"ec. B&. $onsultati;e Bod(+ - body consisting of the
traditional leaders, elders and representatives from
the women and youth sectors of the different
.33sC.4s shall be constituted by the ,3.4 from the
time to time to advise it on matters relating to the
problems, aspirations and interests of the .33sC.4s.
3:-4T56 G...
=57.,5-T.8, -,= 6538>,.T.8, 8* -,35"T6-7
=8(-.,"
"ec. B$. -elineation and 7ecognition of Ancestral
-omains "elfdelineation shall be guiding principle
in the identification and delineation of ancestral
domains. -s such, the .33sC.4s concerned shall have
a decisive role in all the activities pertinent thereto.
The "worn "tatement of the 5lders as to the "cope of
the territories and agreementsCpacts made with
neighboring .33sC.4s, if any, will be essential to the
determination of these traditional territories. The
>overnment shall take the necessary steps to
identify lands which the .33sC.4s concerned
traditionally occupy and guarantee effective
protection of their rights of ownership and possession
thereto. (easures shall be taken in appropriate cases
to safeguard the rights of the .33sC.4s concerned to
land which may no longer be e#clusively occupied by
them, but to which they have traditionally had access
for their subsistence and traditional activities,
particularly of .33sC.4s who are still nomadic andCor
shifting cultivators.
"ec. B9. -elineation ,rocess The identification and
delineation of ancestral domains shall be done in
accordance with the following procedures)
a. Ancestral -omains -elineated ,rior to t%is Act
The provisions hereunder shall not apply to ancestral
domainsClands already delineated according to =5,6
-dministrative 8rder ,o. 9, series of $%%A, nor to
ancestral lands and domains delineated under any
other communityCancestral domain program prior to
the enactment of his law. .33sC.4s enactment of this
law shall have the right to apply for the issuance of a
3ertificate of -ncestral =omain Title !3-=T' over the
area without going through the process outlined
hereunder+
b. ,etition for -elineation The process of
delineating a specific perimeter may be initiated by
the ,3.4 with the consent of the .33C.4 concerned, or
through a 4etition for =elineation filed with the ,3.4,
by a ma1ority of the members of the .33sC.4s+
c. -elineation ,aper The official delineation of
ancestral domain boundaries including census of all
community members therein, shall be immediately
undertaken by the -ncestral =omains 8ffice upon
filing of the application by the .33sC.4s concerned.
=elineation will be done in coordination with the
community concerned and shall at all times include
genuine involvement and participation by the
members of the communities concerned+
d. ,roof re2uired 4roof of -ncestral =omain 3laims
shall include the testimony of elders or community
under oath, and other documents directly or
indirectly attesting to the possession or occupation of
the area since time immemorial by such .33sC.4s in
the concept of owners which shall be any one !$' of
the following authentic documents)

$. /ritten accounts of the .33sC.4s customs and
traditions+
9. /ritten accounts of the .33sC.4s political structure
and institution+
A. 4ictures showing long term occupation such as
those of old improvements, burial grounds, sacred
places and old villages+
D. :istorical accounts, including pacts and
agreements concerning boundaries entered into by
the .33sC.4s concerned with other .33sC.4s+
B. "urvey plans and sketch maps+
@. -nthropological data+
7. >enealogical surveys+
?. 4ictures and descriptive histories of traditional
communal forests and hunting grounds+
%. 4ictures and descriptive histories of traditional
landmarks such as mountains, rivers, creeks, ridges,
hills, terraces and the like+ and
$&. /riteups of names and places derived from the
native dialect of the community.
e. ,reparation of Maps 8n the basis of such
investigation and the findings of fact based thereon,
the -ncestral =omains 8ffice of the ,3.4 shall
prepare a perimeter map, complete with technical
descriptions, and a description of the natural
features and landmarks embraced therein+
f. 7eport of In;estigation and 8t%er -ocuments -
complete copy of the preliminary census and a report
of investigation, shall be prepared by the -ncestral
=omains 8ffice of the ,3.4+
g. Notice and ,u)lication - copy of each document,
including a translation in the native language of the
.33sC.4s concerned shall be posted in a prominent
place therein for at least fifteen !$B' days. - copy of
the document shall also be posted at the local,
provincial and regional offices of the ,3.4, and shall
be published in a newspaper of general circulation
once a week for two !9' consecutive weeks to allow
other claimants to file opposition thereto within
fifteen !$B' days from the date of such publication)
4rovided, That in areas where no such newspaper
e#ists, broadcasting in a radio station will be a valid
substitute) 4rovided, further, That mere posting shall
be deemed sufficient if both newspaper and radio
station are not available+
h. :ndorsement to N$I, + /ithin fifteen !$B' days
from publication, and of the inspection process, the
-ncestral =omains 8ffice shall prepare a report to
the ,3.4 endorsing a favorable action upon a claim
that is deemed to have sufficient proof. :owever, if
the proof is deemed insufficient, the -ncestral
=omains 8ffice shall re;uire the submission of
additional evidence) 4rovided, That the -ncestral
=omains 8ffice shall re1ect any claim that is deemed
patently false or fraudulent after inspection and
verification) 4rovided, further, That in case of
re1ection, the -ncestral =omains 8ffice shall give the
applicant due notice, copy furnished all concerned,
containing the grounds for denial. The denial shall be
appealable to the ,3.4) 4rovided, furthermore, That
in cases where there are conflicting claims, the
-ncestral =omains 8ffice shall cause the contending
parties to meet and assist them in coming up with a
preliminary resolution of the conflict, without
pre1udice to its full ad1udication according to the
selection below.
i. &urno;er of Areas 1it%in Ancestral -omains
Managed )( 8t%er >o;ernment Agencies The
3hairperson of the ,3.4 shall certify that the area
covered is an ancestral domain. The secretaries of
the =epartment of -grarian 6eform, =epartment of
5nvironment and ,atural 6esources, =epartment of
the .nterior and 7ocal >overnment, and =epartment
of <ustice, the 3ommissioner of the ,ational
=evelopment 3orporation, and any other
government agency claiming 1urisdiction over the
area shall be notified thereof. "uch notification shall
terminate any legal basis for the 1urisdiction
previously claimed+
1. Issuance of $A-& .33sC.4s whose ancestral
domains have been officially delineated and
determined by the ,3.4 shall be issued a 3-=T in the
name of the community concerned, containing a list
of all those identified in the census+ and
k. 7egistration of $A-&s The ,3.4 shall register
issued certificates of ancestral domain titles and
certificates of ancestral lands titles before the
6egister of =eeds in the place where the property is
situated.
"ec. BA. Identification/ -elineation and $ertification
of Ancestral Lands+
a. The allocation of lands within any ancestral
domain to individual or indigenous corporate !family
or clan' claimants shall be left to the .33sC.4s
concerned to decide in accordance with customs and
traditions+
b. .ndividual and indigenous corporate claimants of
ancestral lands which are not within ancestral
domains, may have their claims officially established
by filing applications for the identification and
delineation of their claims with the -ncestral
=omains 8ffice. -n individual or recogni0ed head of a
family or clan may file such application in his behalf
or in behalf of his family or clan, respectively+
c. 4roofs of such claims shall accompany the
application form which shall include the testimony
under oath of elders of the community and other
documents directly or indirectly attesting to the
possession or occupation of the areas since time
immemorial by the individual or corporate claimants
in the concept of owners which shall be any of the
authentic documents enumerated under "ec. B9 !d'
of this act, including ta# declarations and proofs of
payment of ta#es+
d. The -ncestral =omains 8ffice may re;uire from
each ancestral claimant the submission of such other
documents, "worn "tatements and the like, which in
its opinion, may shed light on the veracity of the
contents of the applicationCclaim+
e. Fpon receipt of the applications for delineation
and recognition of ancestral land claims, the
-ncestral =omains 8ffice shall cause the publication
of the application and a copy of each document
submitted including a translation in the native
language of the .33sC.4s concerned in a prominent
place therein for at least fifteen !$B' days. - copy of
the document shall also be posted at the local,
provincial, and regional offices of the ,3.4 and shall
be published in a newspaper of general circulation
once a week for two !9' consecutive weeks to allow
other claimants to file opposition thereto within
fifteen !$B' days from the date of such publication)
4rovided, That in areas where no such newspaper
e#ists, broadcasting in a radio station will be a valid
substitute) 4rovided, further, That mere posting shall
be deemed sufficient if both newspapers and radio
station are not available
f. *ifteen !$B' days after such publication, the
-ncestral =omains 8ffice shall investigate and
inspect each application, and if found to be
meritorious, shall cause a parcellary survey of the
area being claimed. The -ncestral =omains office
shall re1ect any claim that is deemed patently false
or fraudulent after inspection and verification. .n
case of re1ection, the -ncestral =omains office shall
give the applicant due notice, copy furnished all
concerned, containing the grounds for denial. The
denial shall be appealable to the ,3.4. .n case of
conflicting claims among individual or indigenous
corporate claimants, the -ncestral domains 8ffice
shall cause the contending parties to meet and assist
them in coming up with a preliminary resolution of
the conflict, without pre1udice to its full ad1udication
according to "ec. @9 of this -ct. .n all proceedings for
the identification or delineation of the ancestral
domains as herein provided, the =irector of 7ands
shall represent the interest of the 6epublic of the
4hilippines+ and
g. The -ncestral =omains 8ffice shall prepare and
submit a report on each and every application
surveyed and delineated to the ,3.4, which shall, in
turn, evaluate or corporate !family or clan' claimant
over ancestral lands.
"ec. BD. 9raudulent $laims The -ncestral =omains
8ffice may, upon written re;uest from the .33sC.4s,
review e#isting claims which have been fraudulently
ac;uired by any person or community. -ny claim
found to be fraudulently ac;uired by, and issued to,
any person or community may be cancelled by the
,3.4 after due notice and hearing of all parties
concerned.
"ec. BB. $ommunal 7ig%ts "ub1ect to "ection B@
hereof, areas within the ancestral domains, whether
delineated or not, shall be presumed to be
communally held) 4rovide, That communal rights
under this -ct shall not be construed as coownership
as provided in 6epublic -ct. ,o. A?@, otherwise
known as the ,ew 3ivil 3ode.
"ec. B@. :=isting ,ropert( 7ig%ts 7egimes. 4roperty
rights within the ancestral domains already e#isting
andCor vested upon effectivity of this -ct, shall be
recogni0ed and respected.
"ec. B7. Natural 7esources wit%in Ancestral
-omains+ The .33sC.4s shall have the priority rights
in the harvesting, e#traction, development or
e#ploitation of any natural resources within the
ancestral domains. - nonmember of the .33sC.4s
concerned may be allowed to take part in the
development and utili0ation of the natural resources
for a period of not e#ceeding twentyfive !9B' years
renewable for not more than twentyfive !9B' years)
4rovided, That a formal and written agreement is
entered into with the .33sC.4s concerned or that the
community, pursuant to its own decision making
process, has agreed to allow such operation)
4rovided, finally, That the all e#tractions shall be
used to facilitate the development and improvement
of the ancestral domains.
"ec. B?. :n;ironmental $onsideration -ncestral
domains or portion thereof, which are found
necessary for critical watersheds, mangroves wildlife
sanctuaries, wilderness, protected areas, forest
cover, or reforestation as determined by the
appropriate agencies with the full participation of the
.33sC.4s concerned shall be maintained, managed
and developed for such purposes. The .33sC.4s
concerned shall be given the responsibility to
maintain, develop, protect and conserve such areas
with the full and effective assistance of the
government agencies. "hould the .33sC.4s decide to
transfer the responsibility over the areas, said
decision must be made in writing. The consent of the
.33sC.4s should be arrived at in accordance with its
customary laws without pre1udice to the basic
re;uirement of the e#isting laws on free and prior
informed consent) 4rovided, That the transfer shall
be temporary and will ultimately revert to the
.33sC.4s in accordance with a program for technology
transfer) 4rovided, further, That no .33sC.4s shall be
displaced or relocated for the purpose enumerated
under this section without the written consent of the
specific persons authori0ed to give consent.
"ec. B%. $ertification ,recondition. all department
and other governmental agencies shall henceforth be
strictly en1oined from issuing, renewing, or granting
any concession, license or lease, or entering into any
productionsharing agreement, without prior
certification from the ,3.4 that the area affected
does not overlap with any ancestral domain. "uch
certificate shall only be issued after a fieldbased
investigation is conducted by the -ncestral =omain
8ffice of the area concerned) 4rovided, That no
certificate shall be issued by the ,3.4 without the
free and prior informed and written consent of the
.33sC.4s concerned) 4rovided, further, That no
department, government agency or government
owned or controlled corporation may issue new
concession, license, lease, or production sharing
agreement while there is pending application 3-=T)
4rovided, finally, That the .33sC.4s shall have the
right to stop or suspend, in accordance with this -ct,
any pro1ect that has not satisfied the re;uirement of
this consultation process.
"ec.@&. :=emption from &a=es. -ll lands certified to
be ancestral domains shall be e#empt from real
property ta#es, specially levies, and other forms of
e#action e#cept such portion of the ancestral
domains as are actually used for largescale
agriculture, commercial forest plantation and
residential purposes and upon titling by other by
private person) 4rovided, that all e#actions shall be
used to facilitate the development and improvement
of the ancestral domains.
"ec. @$. &emporar( 7e2uisition ,owers 4rior to the
establishment of an institutional surveying capacity
whereby it can effectively fulfill its mandate, but in
no case beyond three !A' years after its creation, the
,3.4 is hereby authori0ed to re;uest the =epartment
of 5nvironment and ,atural 6esources !=5,6'
survey teams as well as other e;ually capable
private survey teams, through a (emorandum of
-greement !(8-', to delineate ancestral domain
perimeters. The =5,6 "ecretary shall accommodate
any such re;uest within one !$' month of its
issuance) 4rovided, That the (emorandum of
-greement shall stipulate, among others, a provision
for technology transfer to the ,3.4.
"ec. @9. 7esolution of $onflicts .n cases of
conflicting interest, where there are adverse claims
within the ancestral domains as delineated in the
survey plan, and which cannot be resolved, the ,3.4
shall hear and decide, after notice to the proper
parties, the disputes arising from the delineation of
such ancestral domains) 4rovided, That if the dispute
is between andCor among .33sC.4s regarding the
traditional boundaries of their respective ancestral
domains, customary process shall be followed. The
,3.4 shall promulgate the necessary rules and
regulations to carry out its ad1udicatory functions)
4rovided, further, That in any decision, order, award
or ruling of the ,3.4 on any ancestral domain dispute
or on any matter pertaining to the application,
implementation, enforcement and interpretation of
this -ct may be brought for 4etition for 6eview to the
3ourt of -ppeals within fifteen !$B' days from receipt
of a copy thereof.
"ec. @A. Applica)le Laws 3ustomary laws, traditions
and practices of the .33sC.4s of the land where the
conflict arises shall be applied first with respect to
property rights, claims and ownerships, hereditary
succession and settlement of land disputes. -ny
doubt or ambiguity in the application of laws shall be
resolved in favor of the .33sC.4s.
"ec. @D. 7emedial Measures 5#propriation may be
resorted to in the resolution of conflicts of interest
following the principle of the Icommon goodI. The
,3.4 shall take appropriate legal action for the
cancellation of officially documented titles which
were ac;uired illegally) 4rovided, That such
procedure shall ensure that the rights of possessors
in good faith shall be respected) 4rovided, further,
That the action for cancellation shall be initiated
within two !9' years from the effectivity of this -ct)
4rovided, finally, That the action for reconveyance
shall be a period of ten !$&' years in accordance with
e#isting laws.
3:-4T56 .M
<F6."=.3T.8, -,= 46835=F65" *86 5,*8635(5,T
8* 6.>:T"

"ec. @B. ,rimar( of $ustomar( Laws and ,ractices
/hen disputes involve .33sC.4s, customary laws and
practices shall be used to resolve the dispute.
"ec. @@. Aurisdiction of t%e N$I, The ,3.4, through
its regional offices, shall have 1urisdiction over all
claims and disputes involving rights of .33sC.4s+
4rovided, however, That no such dispute shall be
brought to the ,3.4 unless the parties have
e#hausted all remedies provided under their
customary laws. *or this purpose, a certification shall
be issued by the 3ouncil of 5ldersC7eaders who
participated in the attempt to settle the dispute that
the same has not been resolved, which certification
shall be a condition precedent to the filing of a
petition with the ,3.4.
"ec. @7. Appeals to t%e $ourt of Appeals =ecisions
of the ,3.4 shall be appealable to the 3ourt of
-ppeals by way of a petition for review.
"ec. @?. :=ecution of -ecisions/ Awards/
8rders+ Fpon e#piration of the period here provided
and no appeal is perfected by any of the contending
parties, the :earing 8fficer of the ,3.4, on its own
initiative or upon motion by the prevailing party,
shall issue a writ of e#ecution re;uiring the sheriff or
the proper officer to e#ecute final decisions, orders
or awards of the 6egional :earing 8fficer of the
,3.4.
"ec. @%. <uasi+Audicial ,owers of t%e N$I,+ The ,3.4
shall have the power and authority)
a. To promulgate rules and regulations governing the
hearing and disposition of cases filed before it as well
as those pertaining to its internal functions and such
rules and regulations as may be necessary to carry
out the purposes of this -ct+
b. To administer oaths, summon the parties to a
controversy, issue subpoenas re;uiring the
attendance and testimony of witnesses or the
production of such books, papers, contracts, records,
agreements and other document of similar nature as
may be material to a 1ust determination of the matter
under investigation or hearing conducted in
pursuance of this -ct+
c. To hold any person in contempt, directly or
indirectly, and impose appropriate penalties therefor+
and
d. To en1oin any or all acts involving or arising from
any case pending therefore it which, if not restrained
forthwith, may cause grave or irreparable damage to
any of the parties to the case or seriously affect
social or economic activity.
"ec. 7&. ,o restraining 8rder or 4reliminary
.n1unction ,o inferior court of the 4hilippines shall
have the 1urisdiction to issue any restraining order or
writ of preliminary in1unction against the ,3.4 or any
of its duly authori0ed or designated offices in any
case, dispute or controversy to, or interpretation of
this -ct and other pertinent laws relating to .33sC.4s
and ancestral domains.
3:-4T56 .M
-,35"T6-7 =8(-.," *F,=

"ec. 7$. Ancestral -omains 9und+ There is hereby
created a special fund, to be known as the -ncestral
=omains *und, an initial amount of the 8ne :undred
thirty million pesos!4$A&,&&&,&&&' to cover
compensation for e#propriated lands, delineation and
development of ancestral domains. -n amount of
*ifty million pesos !4B&,&&&,&&&' shall be sourced
from the gross income of the 4hilippine 3harity
"weepstakes 8ffice !43"8' from its lotto operation,
Ten millions pesos !4$&,&&&,&&&' from the gross
receipts of the travel ta# of the preceding year, the
fund of the "ocial 6eform 3ouncil intended for survey
and delineation of ancestral landsCdomains, and such
other source as the government may be deem
appropriate. Thereafter such amount shall be
included in the annual >eneral -ppropriations -ct.
*oreign as well as local funds which are made
available for the .33sC.4s through the government of
the 4hilippines shall be coursed through the ,3.4.
The ,3.4 may also solicit and receive donations,
endowments shall be e#empted from income or gift
ta#es and all other ta#es, charges or fees imposed by
the government or any political subdivision or
instrumentality thereof.

3:-4T56 M.
45,-7T.5"
"ec. 79. ,unis%a)le Acts and Applica)le
,enalties+ -ny person who commits violation of any
of the provisions of this -ct, such as, but not limited
to, authori0ed andCor unlawful intrusion upon any
ancestral lands or domains as stated in "ec. $&,
3hapter ..., or shall commit any of the prohibited acts
mentioned in "ections 9$ and 9D, 3hapter G, "ection
AA, 3hapter G. hereof, shall be punished in
accordance with the customary laws of the .33sC.4s
concerned) 4rovided, That no such penalty shall be
cruel, degrading or inhuman punishment) 4rovided,
further, That neither shall the death penalty or
e#cessive fines be imposed. This provision shall be
without pre1udice to the right of any .33sC.4s to avail
of the protection of e#isting laws. .n which case, any
person who violates any provision of this -ct shall,
upon conviction, be punished by imprisonment of not
less than nine !%' months but not more than twelve
!$9' years or a fine not less than 8ne hundred
thousand pesos !4$&&,&&&' nor more than *ive
hundred thousand pesos !4B&&,&&&' or both such
fine and imprisonment upon the discretion of the
court. .n addition, he shall be obliged to pay to the
.33sC.4s concerned whatever damage may have
been suffered by the latter as a conse;uence of the
unlawful act.
"ec. 7A. ,ersons 'u)Fect to ,unis%ment .f the
offender is a 1uridical person, all officers such as, but
not limited to, its president, manager, or head of
office responsible for their unlawful act shall be
criminally liable therefor, in addition to the
cancellation of certificates of their registration andCor
license) 4rovided, That if the offender is a public
official, the penalty shall include perpetual
dis;ualification to hold public office.
3:-4T56 M..
(56>56 8* T:5 8**.35 *86 ,86T:56, 3F7TF6-7
38((F,.T.5" !8,33' -,= T:5 8**.35 *86
"8FT:56, 3F7TF6-7 38((F,.T.5" !8"33'
"ec. 7D. Merger of 8N$$@8'$$ The 8ffice for
,orthern 3ultural 3ommunities !8,33' and the
8ffice of "outhern 3ultural 3ommunities !8"33',
created under 5#ecutive 8rder ,os. $99B and $993
respectively, are hereby merged as organic offices of
the ,3.4 and shall continue to function under a
revitali0ed and strengthened structures to achieve
the ob1ectives of the ,3.4) 4rovided, That the
positions of 6egional =irectors and below, are hereby
phasedout upon the effectivity of this -ct) 4rovided,
further, That officials and employees of the phased
out offices who may be ;ualified may apply for
reappointment with the ,3.4 and may be given prior
rights in the filing up of the newly created positions
of ,3.4, sub1ect to the ;ualifications set by the
4lacement 3ommittee) 4rovided, furthermore, That in
the case where an indigenous person and a non
indigenous person with similar ;ualifications apply
for the same position, priority shall be given to the
former. 8fficers and employees who are to be
phasedout as a result of the merger of their offices
shall be entitled to gratuity a rate e;uivalent to one
and a half !$ $C9' months salary for every year of
continuous and satisfactory service rendered or the
e;uivalent nearest fraction thereof favorable to them
on the basis of the highest salary received. .f they
are already entitled to retirement benefits or the
gratuity herein provided. 8fficers and employees
who may be reinstated shall refund such retirement
benefits or gratuity received) 4rovided, finally That
absorbed personnel must still meet the ;ualifications
and standards set by the 3ivil "ervice and the
4lacement 3ommittee herein created.
"ec. 7B. &ransition ,eriod The 8,33C8"33 shall
have a period of si# !@' months from the effectivity of
this -ct within which to wind up its affairs and to
conduct audit of its finances.
"ec. 7@. &ransfer of Assets@,roperties -ll real and
personal properties which are vested in, or belonging
to, the merged offices as aforestated shall be
transferred to the ,3.4 without further need of
conveyance, transfer or assignment and shall be held
for the same purpose as they were held by the
former offices) 4rovided, That all contracts, records
and documents shall be transferred to the ,3.4. -ll
agreements and contracts entered into by the
merged offices shall remain in full force and effect
unless otherwise terminated, modified or amended
by the ,3.4.
"ec. 77. ,lacement $ommittee "ub1ect to rules on
government reorgani0ation, a 4lacement 3ommittee
shall be created by the ,3.4, in coordination with the
3ivil "ervice 3ommission, which shall assist in the
1udicious selection and placement of personnel in
order that the best ;ualified and most deserving
persons shall be appointed in the reorgani0ed
agency. The placement 3ommittee shall be
composed of seven !7' commissioners and an
.33sC.4s representative from each of the first and
second level employees association in the 8ffices for
,orthern and "outhern 3ultural 3ommunities
!8,33C8"33', nongovernment organi0ations !,>8s'
who have served the community for at least five !B'
years and peoples organi0ations !48s' with at least
five !B' years of e#istence. They shall be guided by
the criteria of retention and appointment to be
prepared by the consultative body and by the
pertinent provisions of the civil service law.
Art I) Sec *+) ** of t!e Constitution
"ection 9$. The "tate shall promote comprehensive
rural development and agrarian reform.
"ection 99. The "tate recogni0es and promotes the
rights of indigenous cultural communities within the
framework of national unity and development.
Art (II) Secs& *) =) >) F) . an% - of t!e
Constitution
ARTICLE (II NATIONAL ECONO9B AND
8ATRI9ONB
"ection 9. -ll lands of the public domain, waters,
minerals, coal, petroleum, and other mineral oils, all
forces of potential energy, fisheries, forests or
timber, wildlife, flora and fauna, and other natural
resources are owned by the "tate. /ith the
e#ception of agricultural lands, all other natural
resources shall not be alienated. The e#ploration,
development, and utili0ation of natural resources
shall be under the full control and supervision of the
"tate. The "tate may directly undertake such
activities, or it may enter into coproduction, 1oint
venture, or productionsharing agreements with
*ilipino citi0ens, or corporations or associations at
least si#ty per centum of whose capital is owned by
such citi0ens. "uch agreements may be for a period
not e#ceeding twentyfive years, renewable for not
more than twentyfive years, and under such terms
and conditions as may be provided by law. .n cases
of water rights for irrigation, water supply fisheries,
or industrial uses other than the development of
water power, beneficial use may be the measure and
limit of the grant.
The "tate shall protect the nation2s marine wealth in
its archipelagic waters, territorial sea, and e#clusive
economic 0one, and reserve its use and en1oyment
e#clusively to *ilipino citi0ens.
The 3ongress may, by law, allow smallscale
utili0ation of natural resources by *ilipino citi0ens, as
well as cooperative fish farming, with priority to
subsistence fishermen and fish workers in rivers,
lakes, bays, and lagoons.
The 4resident may enter into agreements with
foreignowned corporations involving either technical
or financial assistance for largescale e#ploration,
development, and utili0ation of minerals, petroleum,
and other mineral oils according to the general terms
and conditions provided by law, based on real
contributions to the economic growth and general
welfare of the country. .n such agreements, the "tate
shall promote the development and use of local
scientific and technical resources.
The 4resident shall notify the 3ongress of every
contract entered into in accordance with this
provision, within thirty days from its e#ecution.
"ection A. 7ands of the public domain are classified
into agricultural, forest or timber, mineral lands and
national parks. -gricultural lands of the public
domain may be further classified by law according to
the uses to which they may be devoted. -lienable
lands of the public domain shall be limited to
agricultural lands. 4rivate corporations or
associations may not hold such alienable lands of the
public domain e#cept by lease, for a period not
e#ceeding twentyfive years, renewable for not more
than twentyfive years, and not to e#ceed one
thousand hectares in area. 3iti0ens of the 4hilippines
may lease not more than five hundred hectares, or
ac;uire not more than twelve hectares thereof, by
purchase, homestead, or grant.
Taking into account the re;uirements of
conservation, ecology, and development, and sub1ect
to the re;uirements of agrarian reform, the 3ongress
shall determine, by law, the si0e of lands of the
public domain which may be ac;uired, developed,
held, or leased and the conditions therefor.
"ection D. The 3ongress shall, as soon as possible,
determine, by law, the specific limits of forest lands
and national parks, marking clearly their boundaries
on the ground. Thereafter, such forest lands and
national parks shall be conserved and may not be
increased nor diminished, e#cept by law. The
3ongress shall provide for such period as it may
determine, measures to prohibit logging in
endangered forests and watershed areas.
"ection B. The "tate, sub1ect to the provisions of this
3onstitution and national development policies and
programs, shall protect the rights of indigenous
cultural communities to their ancestral lands to
ensure their economic, social, and cultural well
being.
The 3ongress may provide for the applicability of
customary laws governing property rights or
relations in determining the ownership and e#tent of
ancestral domain.
"ection 7. "ave in cases of hereditary succession, no
private lands shall be transferred or conveyed e#cept
to individuals, corporations, or associations ;ualified
to ac;uire or hold lands of the public domain.
"ection ?. ,otwithstanding the provisions of "ection
7 of this -rticle, a naturalborn citi0en of the
4hilippines who has lost his 4hilippine citi0enship
may be a transferee of private lands, sub1ect to
limitations provided by law.
Re/u"lic Act No& .,>* 8!ili//ine 9inin' Act of
+,,F
"ec. 9 =eclaration of 4olicy. -ll mineral resources in
public and private lands within the territory and
e#clusive economic 0one of the 6epublic of the
4hilippines are owned by the "tate. .t shall be the
responsibility of the "tate to promote their rational
e#ploration, development, utili0ation and
conservation through the combined efforts of
government and the private sector in order to
enhance national growth in a way that effectively
safeguards the environment and protect the rights of
affected communities.

"ec. A =efinition of Terms. -s used in and for
purposes of this -ct, the following terms, whether in
singular or plural, shall mean)

!a' I-ncestral landsI refers to all lands, e#clusively
and actually possessed, occupied, or utili0ed by
indigenous cultural communities by themselves or
through their ancestors in accordance with their
customs and traditions since time immemorial, and
as may be defined and delineated by law.

!b' IBlockI or Imeridional blockI means an area
bounded by onehalf !$C9' minute of latitude and
onehalf !$C9' minute of longitude, containing
appro#imately eightyone hectares !?$ has.'.

!c' IBureauI means the (ines and >eosciences
Bureau under the =epartment of 5nvironment and
,atural 6esources.

!d' I3arrying capacityI refers to the capacity of
natural and human environments to accommodate
and absorb change without e#periencing conditions
of instability and attendant degradation.

!e' I3ontiguous 0oneI refers to water, sea bottom
and substratum measured twentyfour nautical miles
!9D n.m.' seaward from base line of the 4hilippine
archipelago.

!f' I3ontract areaI means land or body of water
delineated for purposes of e#ploration, development,
or utili0ation of the minerals found therein.

!g' I3ontractorI means a ;ualified person acting
alone or in consortium who is a party to a mineral
agreement or to a financial or technical assistance
agreement.

!h' I3oproduction agreement !3-'I means an
agreement entered into between the >overnment
and one or more contractors in accordance with
"ection 9@!b' hereof.

!i' I=epartmentI means the =epartment of
5nvironment and ,atural 6esources.

!1' I=evelopmentI means the work undertaken to
e#plore and prepare an ore body or a mineral deposit
for mining, including the construction of necessary
infrastructure and related facilities.

!k' I=irectorI means the =irector of the (ines and
>eosciences Bureau.

!l' I5cological profile or ecoprofileI refers to
geographicbased instruments for planners and
decisionmakers which presents an evaluation of the
environmental ;uality and carrying capacity of an
area.

!m' I5nvironmental 3ompliance 3ertificate !533'I
refers to the document issued by the government
agency concerned certifying that the pro1ect under
consideration will not bring about an unacceptable
environmental impact and that the proponent has
complied with the re;uirements of the environmental
impact statement system.

!n' I5nvironmental .mpact "tatement !5."'I is the
document which aims to identify, predict, interpret,
and communicate information regarding changes in
environmental ;uality associated with a proposed
pro1ect and which e#amines the range of alternatives
for the ob1ectives of the proposal and their impact on
the environment.

!o' I5#clusive economic 0oneI means the water, sea
bottom and subsurface measured from the baseline
of the 4hilippine archipelago up to two hundred
nautical miles !9&& n.m.' offshore.

!p' I5#isting miningC;uarrying rightI means a valid
and subsisting mining claim or permit or ;uarry
permit or any mining lease contract or agreement
covering a minerali0ed area grantedCissued under
pertinent mining laws.

!;' I5#plorationI means the searching or prospecting
for mineral resources by geological, geochemical or
geophysical surveys, remote sensing, test pitting,
trenching, drilling, shaft sinking, tunneling or any
other means for the purpose of determining the
e#istence, e#tent, ;uantity and ;uality thereof and
the feasibility of mining them for profit.

!r' I*inancial or technical assistance agreementI
means a contract involving financial or technical
assistance for largescale e#ploration, development,
and utili0ation of mineral resources.

!s' I*orce ma1eureI means acts or circumstances
beyond the reasonable control of contractor
including, but not limited to, war, rebellion,
insurrection, riots, civil disturbance, blockade,
sabotage, embargo, strike, lockout, any dispute with
surface owners and other labor disputes, epidemic,
earth;uake, storm, flood or other adverse weather
conditions, e#plosion, fire, adverse action by
government or by any instrumentality or subdivision
thereof, act of >od or any public enemy and any
cause that herein describe over which the affected
party has no reasonable control.

!t' I*oreignowned corporationI means any
corporation, partnership, association, or cooperative
duly registered in accordance with law in which less
than fifty per centum !B&N' of the capital is owned
by *ilipino citi0ens.

!u' I>overnmentI means the government of the
6epublic of the 4hilippines.

!v' I>ross outputI means the actual market value of
minerals or mineral products from its mining area as
defined in the ,ational .nternal 6evenue 3ode.

!w' I.ndigenous cultural communityI means a group
or tribe of indigenous *ilipinos who have continuously
lived as communities on communallybounded and
defined land since time immemorial and have
succeeded in preserving, maintaining, and sharing
common bonds of languages, customs, traditions,
and other distinctive cultural traits, and as may be
defined and delineated by law.

!#' I<oint Genture -greement !<G-'I means an
agreement entered into between the >overnment
and one or more contractors in accordance with
"ection 9@!c' hereof.

!y' I(ineral processingI means the milling,
benefaction or upgrading of ores or minerals and
rocks or by similar means to convert the same into
marketable products.

!0' I(ine wastes and tailingsI shall mean soil and
rock materials from surface or underground mining
and milling operations with no economic value to the
generator of the same.

!aa' I(ineralsI refers to all naturally occurring
inorganic substance in solid, gas, li;uid, or any
intermediate state e#cluding energy materials such
as coal, petroleum, natural gas, radioactive
materials, and geothermal energy.

!ab' I(ineral agreementI means a contract between
the government and a contractor, involving mineral
productionsharing agreement, coproduction
agreement, or 1ointventure agreement.

!ac' I(ineral landI means any area where mineral
resources are found.

!ad' I(ineral resourceI means any concentration of
mineralsCrocks with potential economic value.

!ae' I(ining areaI means a portion of the contract
area identified by the contractor for purposes of
development, mining, utili0ation, and sites for
support facilities or in the immediate vicinity of the
mining operations.

!af' I(ining operationI means mining activities
involving e#ploration, feasibility, development,
utili0ation, and processing.

!ag' I,ongovernmental 8rgani0ation !,>8'I includes
nonstock, nonprofit organi0ations involved in
activities dealing with resource and environmental
conservation, management and protection.

!ah' I,et assetsI refers to the property, plant and
e;uipment as reflected in the audited financial
statement of the contractor net of depreciation, as
computed for ta# purposes, e#cluding appraisal
increase and construction in progress.

!ai' I8ffshoreI means the water, sea bottom, and
subsurface from the shore or coastline reckoned
from the mean low tide level up to the two hundred
nautical miles !9&& n.m.' e#clusive economic 0one
including the archipelagic sea and contiguous 0one.

!a1' I8nshoreI means the landward side from the
mean tide elevation, including submerged lands in
lakes, rivers and creeks.

!ak' I8reI means a naturally occurring substance or
material from which a mineral or element can be
mined andCor processed for profit.

!al' I4ermitteeI means the holder of an e#ploration
permit.

!am' I4ollution control and infrastructure devicesI
refers to infrastructure, machinery, e;uipment andCor
improvements used for impounding, treating or
neutrali0ing, precipitating, filtering, conveying and
cleansing mine industrial waste and tailings as well
as eliminating or reducing ha0ardous effects of solid
particles, chemicals, li;uids or other harmful by
products and gases emitted from any facility utili0ed
in mining operations for their disposal.

!an' I4residentI means the 4resident of the 6epublic
of the 4hilippines.

!ao' I4rivate landI refers to any land belonging to
any private person which includes alienable and
disposable land being claimed by a holder, claimant,
or occupant who has already ac;uired a vested right
thereto under the law, although the corresponding
certificate or evidence of title or patent has not been
actually issued.

!ap' I4ublic landI refers to lands of the public domain
which have been classified as agricultural lands and
sub1ect to management and disposition or
concession under e#isting laws.

!a;' IYualified personI means any citi0en of the
4hilippines with capacity to contract, or a
corporation, partnership, association, or cooperative
organi0ed or authori0ed for the purpose of engaging
in mining, with technical and financial capability to
undertake mineral resources development and duly
registered in accordance with law at least si#ty per
cent !@&N' of the capital of which is owned by
citi0ens of the 4hilippines) 4rovided, That a legally
organi0ed foreignowned corporation shall be
deemed a ;ualified person for purposes of granting
an e#ploration permit, financial or technical
assistance agreement or mineral processing permit.

!ar' IYuarryingI means the process of e#tracting,
removing and disposing ;uarry resources found on or
underneath the surface of private or public land.

!as' IYuarry permitI means a document granted to a
;ualified person for the e#traction and utili0ation of
;uarry resources on public or private lands.

!at' IYuarry resourcesI refers to any common rock or
other mineral substances as the =irector of (ines
and >eosciences Bureau may declare to be ;uarry
resources such as, but not limited to, andesite,
basalt, conglomerate, coral sand, diatomaceous
earth, diorite, decorative stones, gabbro, granite,
limestone, marble, marl, red burning clays for
potteries and bricks, rhyolite, rock phosphate,
sandstone, serpentine, shale, tuff, volcanic cinders,
and volcanic glass) 4rovided, That such ;uarry
resources do not contain metals or metallic
constituents andCor other valuable minerals in
economically workable ;uantities) 4rovided, further,
That nonmetallic minerals such as kaolin, feldspar,
bull;uart0, ;uart0 or silica, sand and pebbles,
bentonite, talc, asbestos, barite, gypsum, bau#ite,
magnesite, dolomite, mica, precious and semi
precious stones, and other nonmetallic minerals that
may later be discovered and which the =irector
declares the same to be of economically workable
;uantities, shall not be classified under the category
of ;uarry resources.

!au' I6egion directorI means the regional director of
any mines regional office under the =epartment of
5nvironment and ,atural 6esources.

!av' I6egional officeI means any of the mines
regional offices of the =epartment of 5nvironment
and ,atural 6esources.

!aw' I"ecretaryI means the "ecretary of the
=epartment of 5nvironment and ,atural 6esources.

!a#' I"pecial allowanceI refers to payment to the
claimowners or surface rightowners particularly
during the transition period from 4residential =ecree
,o. D@A and 5#ecutive 8rder ,o. 97%, series of $%?7.

!ay' I"tateI means the 6epublic of the 4hilippines.

!a0' IFtili0ationI means the e#traction or disposition
of minerals.

C:A8TER II
;OVERN9ENT 9ANA;E9ENT

"ec. D 8wnership of (ineral 6esources. (ineral
resources are owned by the "tate and the
e#ploration, development, utili0ation, and processing
thereof shall be under its full control and supervision.
The "tate may directly undertake such activities or it
may enter into mineral agreements with contractors.

The "tate shall recogni0e and protect the rights of
the indigenous cultural communities to their
ancestral lands as provided for by the 3onstitution.
"ec. B (ineral 6eservations. /hen the national
interest so re;uires, such as when there is a need to
preserve strategic raw materials for industries critical
to national development, or certain minerals for
scientific, cultural or ecological value, the 4resident
may establish mineral reservations upon the
recommendation of the =irector through the
"ecretary. (ining operations in e#isting mineral
reservations and such other reservations as may
thereafter be established, shall be undertaken by the
=epartment or through a contractor) 4rovided, That a
small scale mining agreement for a ma#imum
aggregate area of twentyfive percent !9BN' of such
mineral reservation, sub1ect to valid e#isting mining
;uarrying rights as provided under "ection $$9
3hapter MM hereof. -ll submerged lands within the
contiguous 0one and in the e#clusive economic 0one
of the 4hilippines are hereby declared to be mineral
reservations.

- ten per centum !$&N' share of all royalties and
revenues to be derived by the government from the
development and utili0ation of the mineral resources
within mineral reservations as provided under this
-ct shall accrue to the (ines and >eosciences
Bureau to be allotted for special pro1ects and other
administrative e#penses related to the e#ploration
and development of other mineral reservations
mentioned in "ection @ hereof.

"ec. @ 8ther 6eservations. (ining operations in
reserved lands other than mineral reservations may
be undertaken by the =epartment, sub1ect to
limitations as herein provided. .n the event that the
=epartment cannot undertake such activities, they
may be undertaken by a ;ualified person in
accordance with the rules and regulations
promulgated by the "ecretary. The right to develop
and utili0e the minerals found therein shall be
awarded by the 4resident under such terms and
conditions as recommended by the =irector and
approved by the "ecretary. 4rovided, That the party
who undertook the e#ploration of said reservation
shall be given priority. The mineral land so awarded
shall be automatically e#cluded from the reservation
during the term of the agreement) 4rovided, further,
That the right of the lessee of a valid mining contract
e#isting within the reservation at the time of its
establishment shall not be pre1udiced or impaired.

"ec. 7 4eriodic 6eview of 5#isting (ineral
6eservations. The "ecretary shall periodically review
e#isting mineral reservations for the purpose of
determining whether their continued e#istence is
consistent with the national interest, and upon the
recommendation, the 4resident may, by
proclamation, alter or modify the boundaries thereof
or revert the same to the public domain without
pre1udice to prior e#isting rights.

"ec. ? -uthority of the =epartment. The =epartment
shall be the primary government agency responsible
for the conservation, management, development,
and proper use of the "tate2s mineral resources
including those in reservations, watershed areas, and
lands of the public domain. The "ecretary shall have
the authority to enter into mineral agreements on
behalf of the >overnment upon the recommendation
of the =irector, promulgate such rules and
regulations as may be necessary to implement the
intent and provisions of this -ct.

"ec. % -uthority of the Bureau. The Bureau shall have
direct charge in the administration and disposition of
mineral lands and mineral resources and shall
undertake geological, mining, metallurgical,
chemical, and other researches as well as geological
and mineral e#ploration surveys. The =irector shall
recommend to the "ecretary the granting of mineral
agreements to duly ;ualified persons and shall
monitor the compliance by the contractor of the
terms and conditions of the mineral agreements. The
Bureau may confiscate surety, performance and
guaranty bonds posted through an order to be
promulgated by the =irector. The =irector may
deputi0e, when necessary, any member or unit of the
4hilippine ,ational 4olice, barangay, duly registered
nongovernmental organi0ation !,>8' or any ;ualified
person to police all mining activities.

"ec. $& 6egional 8ffices. There shall be as many
regional offices in the country as may be established
by the "ecretary, upon the recommendation of the
=irector.

"ec. $$ 4rocessing of -pplications. The system of
processing applications for mining rights shall be
prescribed in the rules and regulations of this -ct.

"ec. $9 "urvey, 3harting and =elineation of (ining
-reas. - sketch plan or map of the contract or mining
area prepared by a deputi0ed geodetic engineer
suitable for publication purposes shall be re;uired
during the filing of a mineral agreement or financial
or technical assistance agreement application.
Thereafter, the contract or mining area shall be
surveyed and monumented by a deputi0ed geodetic
engineer or bureau geodetic engineer and the survey
plan shall be approved by the =irector before the
approval of the mining feasibility.

"ec. $A (eridional Blocks. *or purposes of the
delineation of the contract of mining areas under this
-ct, the 4hilippine territory and its e#clusive
economic 0one shall be divided into meridional
blocks of onehalf !$C9' minute of latitude and one
half !$C9' minute of longitude.

"ec. $D 6ecording "ystem. There shall be established
a national and regional filing and recording system. -
mineral resource database system shall be set up in
the Bureau which shall include, among others, a
mineral rights management system. The Bureau shall
publish at least annually, a mineral rights
management system. The Bureau shall publish at
least annually, a mineral ga0ette of nationwide
circulation containing among others, a current list of
mineral rights, their location in the map, mining rules
and regulations, other official acts affecting mining,
and other information relevant to mineral resources
development. - system and publication fund shall be
included in the regular budget of the Bureau.

C:A8TER III
SCO8E O7 A88LICATION

"ec. $B "cope of -pplication. This -ct shall govern
the e#ploration, development, utili0ation and
processing of all mineral resources.

"ec. $@ 8pening of -ncestral 7ands for (ining
8perations. ,o ancestral land shall be opened for
mining operations without the prior consent of the
indigenous cultural community concerned.

"ec. $7 6oyalty 4ayments for .ndigenous 3ultural
3ommunities. .n the event of an agreement with an
indigenous cultural community pursuant to the
preceding section, the royalty payment, upon
utili0ation of the minerals shall be agreed upon by
the parties. The said royalty shall form part of a trust
fund for the socioeconomic wellbeing of the
indigenous cultural community.

"ec. $? -reas 8pen to (ining 8perations. "ub1ect to
any e#isting rights or reservations and prior
agreements of all parties, all mineral resources in
public or private lands, including timber or
forestlands as defined in e#isting laws shall be open
to mineral agreements or financial or technical
assistance agreement applications. -ny conflict that
may arise under this provision shall be heard and
resolved by the panel of arbitrators.

"ec. $% -reas 3losed to (ining -pplications. (ineral
agreement or financial or technical assistance
agreement applications shall not be allowed)

!a' .n military and other government reservations,
e#cept upon prior written clearance by the
government agency concerned+

!b' ,ear or under public or private buildings,
cemeteries, archeological and historic sites, bridges,
highways, waterways, railroads, reservoirs, dams or
other infrastructure pro1ects, public or private works
including plantations or valuable crops, e#cept upon
written consent of the government agency or private
entity concerned+

!c' .n areas covered by valid and e#isting mining
rights+

!d' .n areas e#pressedly prohibited by law+

!e' .n areas covered by smallscale miners as defined
by law unless with prior consent of the smallscale
miners, in which case a royalty payment upon the
utili0ation of minerals shall be agreed upon by the
parties, said royalty forming a trust fund for the
socioeconomic development of the community
concerned+ and

!f' 8ld growth or virgin forests, proclaimed
watershed forest reserves, wilderness areas,
mangrove forests, mossy forests, national parks,
provincialCmunicipal forests, parks, greenbelts, game
refuge and bird sanctuaries as defined by law in
areas e#pressly prohibited under the ,ational
.ntegrated 4rotected areas "ystem !,.4-"' under
6epublic -ct ,o. 7B?@, =epartment -dministrative
8rder ,o. 9B, series of $%%9 and other laws.

C:A8TER IV
E(8LORATION 8ER9IT

"ec. 9& 5#ploration 4ermit. -n e#ploration permit
grants the right to conduct e#ploration for all
minerals in specified areas. The Bureau shall have
the authority to grant an e#ploration permit to a
;ualified person.

"ec. 9$ Terms and 3onditions of the 5#ploration
4ermit. -n e#ploration permit shall be for a period of
two !9' years, sub1ect to annual review and
relin;uishment or renewal upon the recommendation
of the =irector.

"ec. 99 (a#imum -reas for 5#ploration 4ermit. The
ma#imum area that a ;ualified person may hold at
any one time shall be)

!a' 8nshore, in any one province

!$' *or individuals, twenty !9&' blocks+ and

!9' !9' *or partnerships, corporations, cooperatives,
or associations, two hundred !9&&' blocks.

!b' 8nshore, in the entire 4hilippines

!$' *or individuals, forty !D&' blocks+ and

!9' *or partnerships, corporations, cooperatives, or
associations, four hundred !D&&' blocks.

!c' 8nshore, beyond five hundred meters !B&&m'
from the mean low tide level

!$' *or individuals, one hundred !$&&' blocks+ and

!9' *or partnerships, corporations, cooperatives, or
associations, one thousand !$,&&&' blocks.

"ec. 9A 6ights and 8bligations of the 4ermittee. -n
e#ploration permit shall grant to the permittee, his
heirs or successorsininterest, the right to enter,
occupy and e#plore the area) 4rovided, That if
private or other parties are affected, the permittee
shall first discuss with the said parties the e#tent,
necessity, and manner of his entry, occupation and
e#ploration and in case of disagreement, a panel of
arbitrators shall resolve the conflict or disagreement.

The permittee shall undertake an e#ploration work
on the area specified by its permit based on an
approved work program.

-ny e#penditure in e#cess of the yearly budget of
the approved work program may be carried forward
and credited to the succeeding years covering the
duration of the permit. The "ecretary, through the
=irector, shall promulgate rules and regulations
governing the terms and conditions of the permit.

The permittee may apply for a mineral production
sharing agreement, 1oint venture agreement, co
production agreement or financial or technical
assistance agreement over the permit area, which
application shall be granted if the permittee meets
the necessary ;ualifications and the terms and
conditions of any such agreement) 4rovided, That the
e#ploration period covered by the e#ploration permit
shall be included as part of the e#ploration period of
the mineral agreement or financial or technical
assistance agreement.

"ec. 9D =eclaration of (ining 4ro1ect *easibility. -
holder of an e#ploration permit who determines the
commercial viability of a pro1ect covering a mining
area may, within the term of the permit, file with the
Bureau a declaration of mining pro1ect feasibility
accompanied by a work program for development.
The approval of the mining pro1ect feasibility and
compliance with other re;uirements provided in this
-ct shall entitle the holder to an e#clusive right to a
mineral production sharing agreement or other
mineral agreements or financial or technical
assistance agreement.

"ec. 9B Transfer or -ssignment. -n e#ploration
permit may be transferred or assigned to a ;ualified
person sub1ect to the approval of the "ecretary upon
the recommendation of the =irector.

C:A8TER V
9INERAL A;REE9ENTS

"ec. 9@ (odes of (ineral -greement. *or purposes of
mining operations, a mineral agreement may take
the following forms as herein defined)

!a' (ineral production sharing agreement is an
agreement where the >overnment grants to the
contractor the e#clusive right to conduct mining
operations within a contract area and shares in the
gross output. The contractor shall provide the
financing, technology, management and personnel
necessary for the implementation of this agreement.

!b' 3oproduction agreement is an agreement
between the >overnment and the contractor wherein
the >overnment shall provide inputs to the mining
operations other than the mineral resource.

!c' <oint venture agreement is an agreement where
a 1ointventure company is organi0ed by the
>overnment and the contractor with both parties
having e;uity shares. -side from earnings in e;uity,
the >overnment shall be entitled to a share in the
gross output.

- mineral agreement shall grant to the contractor the
e#clusive right to conduct mining operations and to
e#tract all mineral resources found in the contract
area. .n addition, the contractor may be allowed to
convert his agreement into any of the modes of
mineral agreements or financial or technical
assistance agreement covering the remaining period
of the original agreement sub1ect to the approval of
the "ecretary.

"ec. 97 5ligibility. - ;ualified person may enter into
any of the three !A' modes of mineral agreement
with the government for the e#ploration,
development and utili0ation of mineral resources)
4rovided, That in case the applicant has been in the
mining industry for any length of time, he should
possess a satisfactory environmental track record as
determined by the (ines and >eosciences Bureau
and in consultation with the 5nvironment
(anagement Bureau of the =epartment.

"ec. 9? (a#imum -reas for (ineral -greement. The
ma#imum area that a ;ualified person may hold at
any time under a mineral agreement shall be)

!a' 8nshore, in any one province

!$' *or individuals, ten !$&' blocks+ and

!9' *or partnerships, cooperatives, associations, or
corporations, one hundred !$&&' blocks.

!b' 8nshore, in the entire 4hilippines

!$' *or individuals, twenty !9&' blocks+ and

!9' *or partnerships, cooperatives, associations, or
corporations, two hundred !9&&' blocks.

!c' 8ffshore, in the entire 4hilippines

!$' *or individuals, fifty !B&' blocks+

!9' *or partnerships, cooperatives, associations, or
corporations, five hundred !B&&' blocks+ and

!A' *or the e#clusive economic 0one, a larger area to
be determined by the "ecretary.

The ma#imum areas mentioned above that a
contractor may hold under a mineral agreement shall
not include miningC;uarry areas under operating
agreements between the contractor and a
claimownerClesseeCpermitteeClicensee entered into
under 4residential =ecree ,o. D@A.

"ec. 9% *iling and -pproval of (ineral -greements.
-ll proposed mineral agreements shall be filed in the
region where the areas of interest are located,
e#cept in mineral reservations which shall be filed
with the Bureau.

The filing of a proposal for a mineral agreement shall
give the proponent the prior right to areas covered
by the same. The proposed mineral agreement will
be approved by the "ecretary and copies thereof
shall be submitted to the 4resident. Thereafter, the
4resident shall provide a list to 3ongress of every
approved mineral agreement within thirty !A&' days
from its approval by the "ecretary.

"ec. A& -ssignmentCTransfer. -ny assignment or
transfer of rights and obligations under any mineral
agreement e#cept a financial or technical assistance
agreement shall be sub1ect to the prior approval of
the "ecretary. "uch assignment or transfer shall be
deemed automatically approved if not acted upon by
the "ecretary within thirty !A&' working days from
official receipt thereof, unless patently
unconstitutional or illegal.

"ec. A$ /ithdrawal from (ineral -greements. The
contractor may, by giving due notice at any time
during the terms of the agreement, apply for the
cancellation of the mineral agreement due to causes
which, in the opinion of the contractor, make
continued mining operations no longer feasible or
viable. The "ecretary shall consider the notice and
issue its decision within a period of thirty !A&' days)
4rovided, That the contractor has met all its financial,
fiscal and legal obligations.

"ec. A9 Terms. (ineral agreements shall have a term
not e#ceeding twentyfive !9B' years to start from
the date of e#ecution thereof, and renewable for
another term not e#ceeding twentyfive !9B' years
under the same terms and conditions thereof,
without pre1udice to charges mutually agreed upon
by the parties. -fter the renewal period, the
operation of the mine may be undertaken by the
>overnment or through a contractor. The contract for
the operation of a mine shall be awarded to the
highest bidder in a public bidding after due
publication of the notice thereof) 4rovided, That the
contractor shall have the right to e;ual the highest
bid upon reimbursement of all reasonable e#penses
of the highest bidder.

C:A8TER VI
7INANCIAL OR TEC:NICAL ASSISTANCE
A;REE9ENT

"ec. AA 5ligibility. -ny ;ualified person with technical
and financial capability to undertake largescale
e#ploration, development, and utili0ation of mineral
resources in the 4hilippines may enter into a financial
or technical assistance agreement directly with the
>overnment through the =epartment.

"ec. AD (a#imum 3ontract -rea. The ma#imum
contract area that may be granted per ;ualified
person, sub1ect to relin;uishment shall be)

!a' $,&&& meridional blocks onshore+
!b' D,&&& meridional blocks offshore+ or
!c' 3ombinations of !a' and !b' provided that it shall
not e#ceed the ma#imum limits for onshore and
offshore areas.

"ec. AB Terms and 3onditions. The following terms,
conditions, and warranties shall be incorporated in
the financial or technical assistance agreement, to
wit)

!a' - firm commitment in the form of a sworn
statement, of an amount corresponding to the
e#penditure obligation that will be invested in the
contract area) 4rovided, That such amount shall be
sub1ect to changes as may be provided for in the
rules and regulations of this act+

!b' - financial guarantee bond shall be posted in
favor of the >overnment in an amount e;uivalent to
the e#penditure obligation of the applicant for any
year.

!c' "ubmission of proof of technical competence,
such as, but not limited to, its track record in mineral
resource e#ploration, development, and utili0ation+
details of technology to be employed in the proposed
operation+ and details of technical personnel to
undertake the operations+

!d' 6epresentations and warranties that the applicant
has all the ;ualifications and none of the
dis;ualifications for entering into the agreement+

!e' 6epresentations and warranties that the
contractor has or has access to all the financing,
managerial and technical e#pertise and, if
circumstances demand, the technology re;uired to
promptly and effectively carry out the ob1ectives of
the agreement with the understanding to timely
deploy these resources under its supervision
pursuant to the periodic work programs and related
budgets, when proper, providing an e#ploration
period up to two !9' years, e#tendible for another
two !9' years but sub1ect to annual review by the
"ecretary in accordance with the implementing rules
and regulations of this -ct, and further, sub1ect to
the relin;uishment obligations+

!f' 6epresentations and warranties that, e#cept for
payments for dispositions for its e;uity, foreign
investments in local enterprises which are ;ualified
for repartriation, and local supplier2s credits and such
other generally accepted and permissible financial
schemes for raising funds for valid business
purposes, the contractor shall not raise any form of
financing from domestic sources of funds, whether in
4hilippine or foreign currency, for conducting its
mining operations for and in the contract area+

!g' The mining operations shall be conducted in
accordance with the provisions of this -ct and its
implementing rules and regulations+

!h' /ork programs and minimum e#penditures
commitments+

!i' 4referential use of local goods and services to the
ma#imum e#tent practicable+

!1' - stipulation that the contractors are obligated to
give preference to *ilipinos in all types of mining
employment for which they are ;ualified and that
technology shall be transferred to the same+

!k' 6e;uiring the prominent to effectively use
appropriate antipollution technology and facilities to
protect the environment and to restore or
rehabilitate mined out areas and other areas affected
by mine tailings and other forms of pollution or
destruction+

!l' The contractors shall furnish the >overnment
records of geologic, accounting, and other relevant
data for its mining operations, and that book of
accounts and records shall be open for inspection by
the government+

!m' 6e;uiring the proponent to dispose of the
minerals and by products produced under a financial
or technical assistance agreement at the highest
price and more advantageous terms and conditions
as provided for under the rules and regulations of
this -ct+

!n' 4rovide for consultation and arbitration with
respect to the interpretation and implementation of
the terms and conditions of the agreements+ and

!o' "uch other terms and conditions consistent with
the 3onstitution and with this -ct as the "ecretary
may deem to be for the best interest of the "tate and
the welfare of the *ilipino people.

"ec. A@ ,egotiations. - financial or technical
assistance agreement shall be negotiated by the
=epartment and e#ecuted and approved by the
4resident. The 4resident shall notify 3ongress of all
*inancial or technical assistance agreements within
thirty !A&' days from e#ecution and approval thereof.

"ec. A7 *iling and 5valuation of *inancial or Technical
-ssistance -greement 4roposals. -ll financial or
technical assistance agreement proposals shall be
filed with the Bureau after payment of the re;uired
processing fees. .f the proposal is found to be
sufficient and meritorious in form and substance
after evaluation, it shall be recorded with the
appropriate government agency to give the
proponent the prior right to the area covered by such
proposal) 4rovided, That e#isting mineral
agreements, financial or technical assistance
agreements and other mining rights are not impaired
or pre1udiced thereby. The "ecretary shall
recommend its approval to the 4resident.

"ec. A? Terms of *inancial or Technical -ssistance
-greement. - financial or technical assistance
agreement shall have a term not e#ceeding twenty
five !9B' years to start from the e#ecution thereof,
renewable for not more than twentyfive !9B' years
under such terms and conditions as may be provided
by law.

"ec. A% 8ption to 3onvert into a (ineral -greement.
The contractor has the option to convert the financial
or technical assistance agreement to a mineral
agreement at any time during the term of the
agreement, if the economic viability of the contract
area is found to be inade;uate to 1ustify largescale
mining operations, after proper notice to the
"ecretary as provided for under the implementing
rules and regulations) 4rovided, That the mineral
agreement shall only be for the remaining period of
the original agreement.

.n the case of a foreign contractor, it shall reduce its
e;uity to forty percent !D&N' in the corporation,
partnership, association, or cooperative. Fpon
compliance with this re;uirement by the contractor,
the "ecretary shall approve the conversion and
e#ecute the mineral productionsharing agreement.

"ec. D& -ssignmentCTransfer. - financial or technical
assistance agreement may be assigned or
transferred, in whole or in part, to a ;ualified person
sub1ect to the prior approval of the 4resident)
4rovided, That the 4resident shall notify 3ongress of
every financial or technical assistance agreement
assigned or converted in accordance with this
provision within thirty !A&' days from the date of the
approval thereof.

"ec. D$ /ithdrawal from *inancial or Technical
-ssistance -greement. The contractor shall manifest
in writing to the "ecretary his intention to withdraw
from the agreement, if in his 1udgement the mining
pro1ect is no longer economically feasible, even after
he has e#erted reasonable diligence to remedy the
cause or the situation. The "ecretary may accept the
withdrawal) 4rovided, That the contractor has
complied or satisfied all his financial, fiscal or legal
obligations.

C:A8TER VII
S9ALLHSCALE 9ININ;

"ec. D9 "mallscale (ining. "mallscale mining shall
continue to be governed by 6epublic -ct ,o. 7&7@
and other pertinent laws.

C:A8TER VIII
MUARRB RESOURCES

"ec. DA Yuarry 4ermit. -ny ;ualified person may
apply to the provincialCcity mining regulatory board
for a ;uarry permit on privatelyowned lands andCor
public lands for building and construction materials
such as marble, basalt, andesite, conglomerate, tuff,
adobe, granite, gabbro, serpentine, inset filing
materials, clay for ceramic tiles and building bricks,
pumice, perlite and other similar materials that are
e#tracted by ;uarrying from the ground. The
provincial governor shall grant the permit after the
applicant has complied with all the re;uirements as
prescribed by the rules and regulations.

The ma#imum area which a ;ualified person may
hold at any one time shall be five hectares !B has.')
4rovided, That in largescale ;uarry operations
involving cement raw materials, marble, granite,
sand and gravel and construction agreements, a
;ualified person and the government may enter into
a mineral agreement as defined herein.

- ;uarry permit shall have a term of five !B' years,
renewable for like periods but not to e#ceed a total
term of twentyfive !9B' years, ,o ;uarry permit shall
be issued or granted on any area covered by a
mineral agreement, or financial or technical
assistance agreement.

"ec. DD Yuarry *ee and Ta#es. - permittee shall,
during the term of his permit, pay a ;uarry fee as
provided for under the implementing rules and
regulations. The permittee shall also pay the e#cise
ta# as provided by pertinent laws.

"ec. DB 3ancellation of Yuarry 4ermit. - ;uarry
permit may be cancelled by the provincial governor
for violations of the provisions of this -ct or its
implementing rules and regulations or the terms and
conditions of said permit) 4rovided, That before the
cancellation of such permit, the holder thereof shall
be given the opportunity to be heard in an
investigation conducted for the purpose.

"ec. D@ 3ommercial "and and >ravel 4ermit. -ny
;ualified person may be granted a permit by the
provincial governor to e#tract and remove sand and
gravel or other loose or unconsolidated materials
which are used in their natural state, without
undergoing processing from an area of not more
than five hectares !B has.' and in such ;uantities as
may be specified in the permit.

"ec. D7 .ndustrial "and and >ravel 4ermit. -ny
;ualified person may be granted an industrial sand
and gravel permit by the Bureau for the e#traction of
sand and gravel and other loose or unconsolidated
materials that necessitate the use of mechanical
processing covering an area of more than five
hectares !B has.' at any one time. The permit shall
have a term of five !B' years, renewable for a like
period but not to e#ceed a total term of twentyfive
!9B' years.

"ec. D? 5#clusive "and and >ravel 4ermit. -ny
;ualified person may be granted an e#clusive sand
and gravel permit by the provincial governor to
;uarry and utili0e sand and gravel or other loose or
unconsolidated materials from public lands for his
own use, provided that there will be no commercial
disposition thereof.

- mineral agreement or a financial technical
assistance agreement contractor shall, however,
have the right to e#tract and remove sand and gravel
and other loose unconsolidated materials without
need of a permit within the area covered by the
mining agreement for the e#clusive use in the mining
operations) 4rovided, That monthly reports of the
;uantity of materials e#tracted therefrom shall be
submitted to the mines regional office concerned)
4rovided, further, That said right shall be
coterminous with the e#piration of the agreement.

:olders of e#isting mining leases shall likewise have
the same rights as that of a contractor) 4rovided,
That said right shall be coterminous with the e#piry
dates of the lease.

"ec. D% >overnment >ratuitous 4ermit. -ny
government entity or instrumentality may be granted
a gratuitous permit by the provincial governor to
e#tract sand and gravel, ;uarry or loose
unconsolidated materials needed in the construction
of building andCor infrastructure for public use or
other purposes over an area of not more than two
hectares !9 has.' for a period coterminous with said
construction.

"ec. B& 4rivate >ratuitous 4ermit. -ny owner of land
may be granted a private gratuitous permit by the
provincial governor.

"ec. B$ >uano 4ermit. -ny ;ualified person may be
granted a guano permit by the provincial governor to
e#tract and utili0e loose unconsolidated guano and
other organic fertili0er materials in any portion of a
municipality where he has established domicile. The
permit shall be for specific caves andCor for confined
sites with locations verified by the =epartment2s field
officer in accordance with e#isting rules and
regulations.

"ec. B9 >emstone >athering 4ermit. -ny ;ualified
person may be granted a none#clusive gemstone
gathering permit by the provincial governor to gather
loose stones useful as gemstones in rivers and other
locations.

C:A8TER I(
TRANS8ORT) SALE AND 8ROCESSIN; O7
9INERALS

"ec. BA 8re Transport 4ermit. - permit specifying the
origin and ;uantity of nonprocessed mineral ores or
minerals shall be re;uired for their transport.
Transport permits shall be issued by the mines
regional director who has 1urisdiction over the area
where the ores were e#tracted. .n the case of mineral
ores or minerals being transported from the small
scale mining areas to the custom mills or processing
plants, the 4rovincial (ining 6egulatory Board
!4(6B' concerned shall formulate their own policies
to govern such transport of ores produced by small
scale miners. The absence of a permit shall be
considered as prima facie evidence of illegal mining
and shall be sufficient cause for the >overnment to
confiscate the ores or minerals being transported,
the tools and e;uipment utili0ed, and the vehicle
containing the same. 8re samples not e#ceeding two
metric tons !9 m.t.' to be used e#clusively for assay
or pilot test purposes shall be e#empted from such
re;uirement.

"ec. BD (ineral Trading 6egistration. ,o person shall
engage in the trading of mineral products, either
locally or internationally, unless registered with the
=epartment of Trade and .ndustry and accredited by
the =epartment, with a copy of said registration
submitted to the Bureau.

"ec. BB (inerals 4rocessing 4ermit. ,o person shall
engage in the processing of minerals without first
securing a minerals processing permit from the
"ecretary. (inerals processing permit shall be for a
period of five !B' years renewable for like periods but
not to e#ceed a total term of twentyfive !9B' years.
.n the case of mineral ores or minerals produced by
the smallscale miners, the processing thereof as
well as the licensing of their custom mills, or
processing plants shall continue to be governed by
the provisions of 6epublic -ct ,o. 7&7@.

"ec. B@ 5ligibility of *oreignownedCcontrolled
3orporation. - foreignownedCcontrolled corporation
may be granted a mineral processing permit.

C:A8TER (
DEVELO89ENT O7 9ININ; CO99UNITIES)
SCIENCE AND 9ININ; TEC:NOLO;B

"ec. B7 5#penditure for 3ommunity =evelopment
and "cience and (ining Technology. - contractor
shall assist in the development of its mining
community, the promotion of the general welfare of
its inhabitants, and the development of science and
mining technology.

"ec. B? 3redited -ctivities. -ctivities that may be
credited as e#penditures for development of mining
communities, and science and mining technology are
the following)

!a' -ny activity or e#penditure intended to enhance
the development of the mining and neighboring
communities of a mining operation other than those
re;uired or provided for under e#isting laws, or
collective bargaining agreements, and the like) and

!b' -ny activity or e#penditure directed towards the
development of geosciences and mining technology
such as, but not limited to, institutional and
manpower development, and basic and applied
researches. -ppropriate supervision and control
mechanisms shall be prescribed in the implementing
rules and regulations of this -ct.

"ec. B% Training and =evelopment. - contractor shall
maintain an effective program of manpower training
and development throughout the term of the mineral
agreement and shall encourage and train *ilipinos to
participate in all aspects of the mining operations,
including the management thereof. *or highly
technical and speciali0ed mining operations, the
contractor may, sub1ect to the necessary
government clearances, employ ;ualified foreigners.

"ec. @& Fse of .ndigenous >oods, "ervices and
Technologies. - contractor shall give preference to
the use of local goods, services and scientific and
technical resources in the mining operations, where
the same are of e;uivalent ;uality, and are available
on e;uivalent terms as their imported counterparts.

"ec. @$ =onationsCTurn 8ver of *acilities. 4rior to
cessation of mining operations occasioned by
abandonment or withdrawal of operations, on public
lands by the contractor, the latter shall have a period
of one !$' year therefrom within which to remove his
improvements+ otherwise, all the social infrastructure
and facilities shall be turned over or donated ta#free
to the proper government authorities, national or
local, to ensure that said infrastructure and facilities
are continuously maintained and utili0ed by the host
and neighboring communities.

"ec. @9 5mployment of *ilipinos. - contractor shall
give preference to *ilipino citi0ens in all types of
mining employment within the country insofar as
such citi0ens are ;ualified to perform the
corresponding work with reasonable efficiency and
without ha0ard to the safety of the operations. The
contractor, however, shall not be hindered from
hiring employees of his own selection, sub1ect to the
provision of 3ommonwealth -ct ,o. @$A, as
amended, for technical and speciali0ed work which in
his 1udgement and with the approval of the =irector,
re;uired highlyspeciali0ed training or long
e#perience in e#ploration, development or utili0ation
of mineral resources) 4rovided, That in no case shall
each employment e#ceed five !B' years or the
payback period as represented in original pro1ect
study, whichever is longer) 4rovided, further, That
each foreigner employed as mine manager, vice
president for operations or in an e;uivalent
managerial position in charge of mining, milling,
;uarrying or drilling operation shall)

!a' 4resent evidence of his ;ualification and work
e#perience+ or

!b' "hall pass the appropriate government licensure
e#amination+ or

!c' .n special cases, may be permitted to work by the
=irector for a period not e#ceeding one !$' year)
4rovided, however, That if reciprocal privileges are
e#tended to *ilipino nationals in the country of
domicile, the =irector may grant waivers or
e#emptions.

C:A8TER (I
SA7ETB AND ENVIRON9ENTAL 8ROTECTION

"ec. @A (ines "afety and 5nvironmental 4rotection.
-ll contractors and permittees shall strictly comply
with all the mines safety rules and regulations as
may be promulgated by the "ecretary concerning the
safe and sanitary upkeep of the mining operations
and achieve wastefree and efficient mine
development. 4ersonnel of the =epartment involved
in the implementation of mines safety, health and
environmental rules and regulations shall be covered
under 6epublic -ct ,o. 7A&B.

"ec. @D (ine 7abor. ,o person under si#teen !$@'
years of age shall be employed in any phase of
mining operations and no person under eighteen !$?'
years of age shall be employed underground in a
mine.

"ec. @B (ine "upervision. -ll mining and ;uarrying
operations that employ more than fifty !B&' workers
shall have at least one !$' licensed mining engineer
with at least five !B' years of e#perience in mining
operations, and one !$' registered foreman.

"ec. @@ (ine .nspection. The regional director shall
have e#clusive 1urisdiction over the safety inspection
of all installations, surface or underground, in mining
operations at reasonable hours of the day or night
and as much as possible in a manner that will not
impede or obstruct work in progress of a contractor
or permittee.

"ec. @7 4ower to .ssue 8rders. The mines regional
director shall, in consultation with the 5nvironmental
(anagement Bureau, forthwith or within such time
as specified in his order, re;uire the contractor to
remedy any practice connected with mining or
;uarrying operations, which is not in accordance with
safety and antipollution laws and regulations, which
is not in accordance with safety and antipollution
laws and regulations. .n case of imminent danger to
life or property, the mines regional director may
summarily suspend the mining or ;uarrying
operations until the danger is removed, or
appropriate measures are taken by the contractor or
permittee.

"ec. @? 6eport of -ccidents. .n case of any incident
or accident, causing or creating the danger of loss of
life or serious physical in1uries, the person in charge
of operations shall immediately report the same to
the regional office where the operations are situated.
*ailure to report the same without 1ustifiable reason
shall be a cause for the imposition of administrative
sanctions prescribed in the rules and regulations
implementing this -ct.

"ec. @% 5nvironmental 4rotection. 5very contractor
shall undertake an environmental protection and
enhancement program covering the period of the
mineral agreement or permit. "uch environmental
program shall be incorporated in the work program
which the contractor or permittee shall submit as an
accompanying document to the application for a
mineral agreement or permit. The work program
shall include not only plans relative to mining
operations but also to rehabilitation, regeneration,
revegetation and reforestation of minerali0ed areas,
slope stabili0ation of minedout and tailings covered
areas, a;uaculture, watershed development and
water conservation+ and socioeconomic
development.

"ec. 7& 5nvironmental .mpact -ssessment !5.-'.
5#cept during the e#ploration period of a mineral
agreement or financial or technical assistance
agreement or an e#ploration permit, an
environmental clearance certificate shall be re;uired
based on an environmental impact assessment and
procedures under the 4hilippine 5nvironmental
.mpact -ssessment "ystem including "ections 9@
and 97 of the 7ocal >overnment 3ode of $%%$ which
re;uire national government agencies to maintain
ecological balance, and prior consultation with the
local government units, nongovernmental and
people2s organi0ations and other concerned sectors
of the community) 4rovided, That a completed
ecological profile of the proposed mining area shall
also constitute part of the environmental impact
assessment. 4eople2s organi0ations and non
governmental organi0ations shall be allowed and
encourage to participate in ensuring that
contractorsCpermittees shall observe all the
re;uirements of environmental protection.

"ec. 7$ 6ehabilitation. 3ontractors and permittees
shall technically and biologically rehabilitate the
e#cavated minedout, tailings covered and disturbed
areas to the condition of environmental safety, as
may be provided in the implementing rules and
regulations of this -ct. - mine rehabilitation fund
shall be created, based on the contractor2s approved
work program, and shall be deposited as a trust fund
in a government depository bank and used for
physical and social rehabilitation of areas and
communities affected by mining activities and for
research on the social, technical and preventive
aspects of rehabilitation. *ailure to fulfill the above
obligation shall mean immediate suspension or
closure of the mining activities of the
contractorCpermittee concerned.

C:A8TER (II
AU(ILIARB 9ININ; RI;:TS

"ec. 79 Timber 6ights. -ny provision of law to the
contrary notwithstanding, a contractor may be
ranged a right to cut trees or timber within his
mining area as may be necessary for his mining
operations sub1ect to forestry laws, rules and
regulations) 4rovided, That if the land covered by the
mining area is already covered by e#isting timber
concessions, the volume of timber needed and the
manner of cutting and removal thereof shall be
determined by the mines regional director, upon
consultation with the contractor, the timber
concessionaireCpermittee and the *orest
(anagement Bureau of the =epartment) 4rovided,
further, That in case of disagreement between the
contractor and the timber concessionaire, the matter
shall be submitted to the "ecretary whose decision
shall be final. The contractor shall perform
reforestation work within his mining area in
accordance with forestry laws, rules and regulations.

"ec. 7A /ater 6ights. - contractor shall have water
rights for mining operations upon approval of
application with the appropriate government agency
in accordance with e#isting water laws, rules and
regulations promulgated thereunder) 4rovided, That
water rights already granted or vested through long
use, recogni0ed and acknowledged by local customs,
laws, and decisions of courts shall not thereby be
impaired) 4rovided further, That the >overnment
reserves the right to regulate water rights and the
reasonable and e;uitable distribution of water supply
so as to prevent the monopoly of the use thereof.

"ec. 7D 6ight to 4ossess 5#plosives. - contractorC
e#ploration permittee shall have the right to possess
and use e#plosives within his contractCpermit area as
may be necessary for his mining operations upon
approval of an application with the appropriate
government agency in accordance with e#isting laws,
rules and regulations promulgated thereunder)
4rovided, That the >overnment reserves the right to
regulate and control the e#plosive accessories to
ensure safe mining operations.

"ec. 7B 5asement 6ights. /hen mining areas are so
situated that for purposes of more convenient mining
operations it is necessary to build, construct or install
on the mining areas or lands owned, occupied or
leased by other persons, such infrastructure as
roads, railroads, mills, waste dump sites, tailings
ponds, warehouses, staging or storage areas and
port facilities, tramways, runways, airports, electric
transmission, telephone or telegraph lines, dams and
their normal flood and catchment areas, sites for
water wells, ditches, canals, new river beds,
pipelines, flumes, cuts, shafts, tunnels, or mills, the
contractor, upon payment of 1ust compensation, shall
be entitled to enter and occupy said mining areas or
lands.

"ec. 7@ 5ntry into 4rivate 7ands and 3oncession
-reas. "ub1ect to prior notification, holders of mining
rights shall not be prevented from entry into private
lands and concession areas by surface owners,
occupants, or concessionaires when conducting
mining operations therein) 4rovided, That any
damage done to the property of the surface owner,
occupant, or concessionaire as a conse;uence of
such operations shall be properly compensated as
may be provided for in the implementing rules and
regulations) 4rovided, further, That to guarantee
such compensation, the person authori0ed to
conduct mining operation shall, prior thereto, post a
bond with the regional director based on the type of
properties, the prevailing prices in and around the
area where the mining operations are to be
conducted, with surety or sureties satisfactory to the
regional director.

C:A8TER (III
SETTLE9ENT O7 CON7LICTS

"ec. 77 4anel of -rbitrators. There shall be a panel of
arbitraters in the regional office of the =epartment
composed of three !A' members, two !9' of whom
must be members of the 4hilippine Bar in good
standing and one licensed mining engineer or a
professional in a related field, and duly designated by
the "ecretary as recommended by the (ines and
>eosciences Bureau =irector. Those designated as
members of the panel shall serve as such in addition
to their work in the =epartment without receiving
any additional compensation. -s much as
practicable, said members shall come from the
different bureaus of the =epartment in the region.
The presiding officer shall be on a yearly basis. The
members of the panel shall perform their duties and
obligations in hearing and deciding cases until their
designation is withdrawn or revoked by the
"ecretary. /ithin thirty !A&' working days, after the
submission of the case by the parties for decision,
the panel shall have e#clusive and original
1urisdiction to hear and decide on the following)

!a' =isputes involving rights to mining areas+

!b' =isputes involving mineral agreements or
permits+

!c' =isputes involving surface owners, occupants and
claimholdersCconcessionaires+ and

!d' =isputes pending before the Bureau and the
=epartment at the date of the effectivity of this -ct.

"ec. 7? -ppellate <urisdiction. The decision or order
of the panel of arbitrators may be appealed by the
party not satisfied thereto to the mines -d1udication
Board within fifteen !$B' days from receipt thereof
which must decide the case within thirty !A&' days
from submission thereof for decision.

"ec. 7% (ines -d1udication Board. The (ines
-d1udication Board shall be composed of three !A'
members. The "ecretary shall be the chairman with
the =irector of the (ines and >eosciences Bureau
and the Fndersecretary for 8perations of the
=epartment as member thereof. The Board shall
have the following powers and functions)

!a' To promulgate rules and regulations governing
the hearing and disposition of cases before it, as well
as those pertaining to its internal functions, and such
rules and regulations as may be necessary to carry
out its functions+

!b' To administer oaths, summon the parties to a
controversy, issue subpoenas re;uiring the
attendance and testimony of witnesses or the
production of such books, paper, contracts, records,
statement of accounts, agreements, and other
documents as may be material to a 1ust
determination of the matter under investigation, and
to testify in any investigation or hearing conducted in
pursuance of this -ct+

!c' To conduct hearings on all matters within its
1urisdiction, proceed to hear and determine the
disputes in the absence of any party thereto who has
been summoned or served with notice to appear,
conduct its proceedings or any part thereof in public
or in private, ad1ourn its hearings at any time and
place, refer technical matters or accounts to an
e#pert and to accept his report as evidence after
hearing of the parties upon due notice, direct parties
to be 1oined in or e#cluded from the proceedings,
correct, amend, or waive any error, defect or
irregularity, whether in substance or in form, give all
such directions at it may deem necessary or
e#pedient in the determination of the dispute before
it and dismiss the mining dispute as part thereof,
where it is trivial or where further proceedings by the
Board are not necessary or desirable+

!$' to hold any person in contempt, directly or
indirectly, and impose appropriate penalties therefor+
and

!9' To en1oin any or all acts involving or arising from
any case pending before it which, if not restrained
forthwith, may cause grave or irreparable damage to
any of the parties to the case or seriously affect
social and economic stability.

.n any proceeding before the Board, the rules of
evidence prevailing in courts of law or e;uity shall
not be controlling and it is the spirit and intention of
this -ct that shall govern. The Board shall use every
and all reasonable means to ascertain the facts in
each case speedily and ob1ectively and without
regard to technicalities of law or procedure, all in the
interest of due process. .n any proceeding before the
Board, the parties may be represented by legal
counsel. the findings of fact of the Board shall be
conclusive and binding on the parties and its decision
or order shall be final and e#ecutory.

- petition for review by certiorari and ;uestion of law
may be filed by the aggrieved party with the
"upreme 3ourt within thirty !A&' days from receipt of
the order or decision of the Board.

C:A8TER (IV
;OVERN9ENT S:ARE

"ec. ?& >overnment "hare in (ineral 4roduction
"haring -greement. The total government share in a
mineral production sharing agreement shall be the
e#cise ta# on mineral products as provided in
6epublic -ct ,o. 779%, amending "ection $B$!a' of
the ,ational .nternal 6evenue 3ode, as amended.

"ec. ?$ >overnment "hare in 8ther (ineral
-greements. The share of the >overnment in co
production and 1ointventure agreements shall be
negotiated by the >overnment and the contractor
taking into consideration the) !a' capital investment
of the pro1ect, !b' risks involved, !c' contribution of
the pro1ect to the economy, and !d' other factors that
will provide for a fair and e;uitable sharing between
the >overnment and the contractor. The >overnment
shall also be entitled to compensations for its other
contributions which shall be agreed upon by the
parties, and shall consist, among other things, the
contractor2s income ta#, e#cise ta#, special
allowance, withholding ta# due from the contractor2s
foreign stockholders arising from dividend or interest
payments to the said foreign stockholders, in case of
a foreign national, and all such other ta#es, duties
and fees as provided for under e#isting laws.

The >overnment share in financial or technical
assistance agreement shall consist of, among other
things, the contractor2s corporate income ta#, e#cise
ta#, special allowance, withholding ta# due from the
contractor2s foreign stockholders arising from
dividend or interest payments to the said foreign
stockholder in case of a foreign national and all such
other ta#es, duties and fees as provided for under
e#isting laws.

The collection of government share in financial or
technical assistance agreement shall commence
after the financial or technical assistance agreement
contractor has fully recovered its preoperating
e#penses, e#ploration, and development
e#penditures, inclusive.

"ec. ?9 -llocation of >overnment "hare. The
>overnment share as referred to in the preceding
sections shall be shared and allocated in accordance
with "ections 9%& and 9%9 of 6epublic -ct ,o. 7$@&
otherwise known as the 7ocal >overnment 3ode of
$%%$. .n case the development and utili0ation of
mineral resources is undertaken by a government
owned or controlled corporation, the sharing and
allocation shall be in accordance with "ections 9%$
and 9%9 of the said 3ode.

C:A8TER (V
TA(ES AND 7EES

"ec. ?A .ncome Ta#es. -fter the lapse of the income
ta# holiday as provided for in the 8mnibus
.nvestments 3ode, the contractor shall be liable to
pay income ta# as provided in the ,ational .nternal
6evenue 3ode, as amended.

"ec. ?D 5#cise Ta# on (ineral 4roducts. The
contractor shall be liable to pay the e#cise ta# on
mineral products as provided for under "ection $B$
of the ,ational .nternal 6evenue 3ode) 4rovided,
however, That with respect to a mineral production
sharing agreement, the e#cise ta# on mineral
products shall be the government share under said
agreement.

"ec. ?B (ine /astes and Tailings *ees. - semi
annual fee to be known as mine wastes and tailings
fee is hereby imposed on all operating mining
companies in accordance with the implementing
rules and regulations. The mine wastes and tailings
fee shall accrue to a reserve fund to be used
e#clusively for payment for damages to)

!a' 7ives and personal safety+
!b' 7ands, agricultural crops and forest products,
marine life and a;uatic resources, cultural resources+
and
!c' .nfrastructure and the revegetation and
rehabilitation of silted farm lands and other areas
devoted to agriculture and fishing caused by mining
pollution.

This is in addition to the suspension or closure of the
activities of the contractor at any time and the penal
sanctions imposed upon the same.

The "ecretary is authori0ed to increase mine wastes
and tailings fees, when public interest so re;uires,
upon the recommendation of the =irector.

"ec. ?@ 8ccupation *ees. There shall be collected
from any holder of a mineral agreement, financial or
technical assistance agreement or e#ploration permit
on public or private lands, an annual occupation fee
in accordance with the following schedule+

!a' *or e#ploration permit *ive pesos !4B.&&' per
hectare or fraction thereof per annum+

!b' *or mineral agreements and financial or technical
assistance agreements *ifty pesos !4B&.&&' per
hectare or fraction thereof per annum+ and

!c' *or mineral reservation 8ne hundred pesos
!4$&&.&&' per hectare or fraction thereof per annum.

The "ecretary is authori0ed to increase the
occupation fees provided herein when the public
interest so re;uires, upon recommendation of the
Bureau =irector.

"ec. ?7 (anner of payment of *ees. The fees shall be
paid on the date the mining agreement is registered
with the appropriate office and on the same date
every year thereafter. .t shall be paid to the treasurer
of the municipality or city where the onshore mining
areas are located, or to the =irector in case of
offshore mining areas. *or this purpose, the
appropriate officer shall submit to the treasurer of
the municipality or city where the onshore mining
area is located, a complete list of all onshore mining
rights registered with his office, indicating therein the
names of the holders, area in hectares, location, and
date registered. .f the fee is not paid on the date
specified, it shall be increased by twentyfive per
centum !9BN'.

"ec. ?? -llocation of 8ccupation *ees. Thirty per
centum !A&N' of all occupational fees collected from
holders of mining rights in onshore mining areas shall
accrue to the province and seventy per centum
!7&N' to the municipality in which the onshore
mining areas are located. .n a chartered city, the full
amount shall accrue to the city concerned.

"ec. ?% *iling *ees and 8ther 3harges. The "ecretary
is authori0ed to charge reasonable filing fees and
other charges as he may prescribe in accordance
with the implementing rules and regulations.

C:A8TER (VI
INCENTIVES

"ec. %& .ncentives. The contractors in mineral
agreements, and financial or technical assistance
agreements shall be entitled to the applicable fiscal
and nonfiscal incentives as provided for under
5#ecutive 8rder ,o. 99@, otherwise known as the
8mnibus .nvestments 3ode of $%?7) 4rovided, That
holders of e#ploration permits may register with the
Board of .nvestments and be entitled to the fiscal
incentives granted under the said 3ode for the
duration of the permits or e#tensions thereof)
4rovided, further, That mining activities shall always
be included in the investment priorities plan.

"ec. %$ .ncentives for 4ollution 3ontrol =evices.
4ollution control devices ac;uired, constructed or
installed by contractors shall not be considered as
improvements on the land or building where they are
placed, and shall not be sub1ect to real property and
other ta#es or assessments) 4rovided, however, That
payment of mine wastes and tailings fees is not
e#empted.

"ec. %9 .ncome Ta#3arry *orward of 7osses. - net
operating loss without the benefit of incentives
incurred in any of the first ten !$&' years of
operations may be carried over as a deduction from
ta#able income for the ne#t five !B' years
immediately following the year of such loss. The
entire amount of the loss shall be carried over to the
first of the five !B' ta#able years following the loss,
and any portion of such loss which e#ceeds the
ta#able income of such first year shall be deducted in
like manner from the ta#able income of the ne#t
remaining four !D' years.

"ec. %A .ncome Ta#-ccelerated =epreciation. *i#ed
assets may be depreciated as follows)

!a' To the e#tent of not more than twice as fast as
the normal rate of depreciation or depreciated at
normal rate of depreciation if the e#pected life is ten
!$&' years or less+ or

!b' =epreciated over any number of years between
five !B' years and the e#pected life if the latter is
more than ten !$&' years, and the depreciation
thereon allowed as deduction from ta#able income)
4rovided, That the contractor notifies the Bureau of
.nternal 6evenue at the beginning of the depreciation
period which depreciation rate allowed by this
section will be used.

.n computing for ta#able income, unless otherwise
provided in this -ct, the contractor may, at his
option, deduct e#ploration and development
e#penditures accumulated at cost as of the date of
the prospecting or e#ploration and development
e#penditures paid or incurred during the ta#able
year) 4rovided, That the total amount deductible for
e#ploration and development e#penditures shall not
e#ceed twentyfive per centum !9BN' of the net
income from mining operations. The actual
e#ploration and development e#penditures minus the
twentyfive per centum !9BN' net income from
mining shall be carried forward to the succeeding
years until fully deducted.

,et income from mining operation is defined as gross
income from operations less allowable deductions
which are necessary or related to mining operations.
-llowable deductions shall include mining, milling
and marketing e#penses, depreciation or properties
directly used in the mining operations. This
paragraph shall not apply to e#penditures for the
ac;uisition or improvement of property of a
character which is sub1ect to the allowances for
depreciation.

"ec. %D .nvestment >uarantees. The contractor shall
be entitled to the basic rights and guarantees
provided in
the 3onstitution and such other rights recogni0ed by
the government as enumerated hereunder.

!a' 6epatriation of investments. The right to
repatriate the entire proceeds of the li;uidation of
the foreign investment in the currency in which the
investment was originally made and at the e#change
rate prevailing at the time of repatriation.

!b' 6emittance of earnings. The right to remit
earnings from the investment in the currency in
which the foreign investment was originally made at
the e#change rate prevailing at the time of
remittance.

!c' *oreign loans and contracts. The right to remit at
the e#change rate prevailing at the time of
remittance such sums as may be necessary to meet
the payments of interest and principal on foreign
loans and foreign obligations arising from financial or
technical assistance contracts.

!d' *reedom from e#propriation. The right to be free
from e#propriation by the government of the
property represented by investments or loans, or of
the property of the enterprise e#cept for public use
or in the interest of national welfare or defense and
upon payment of 1ust compensation. .n such cases,
foreign investors or enterprises shall have the right
to remit sums received as compensation for the
e#propriated property in the currency in which the
investment was originally made and at the e#change
rate prevailing at the time of remittance.

!e' 6e;uisition of investment. The right to be free
from re;uisition of the property represented by the
investment or of the property of the enterprises
e#cept in case of war or national emergency and only
for the duration thereof. <ust compensation shall be
determined and paid either at the time or
immediately after cessation of the state of war or
national emergency. 4ayments received as
compensation for the re;uisitioned property may be
remitted in the currency in which the investments
were originally made and at the e#change rate
prevailing at the time of remittance.

!f' 3onfidentiality. -ny confidential information
supplied by the contractor pursuant to this -ct and
its implementing rules and regulations shall be
treated as such by the department and the
>overnment, and during the term of the pro1ect to
which it relates.

C:A8TER (VII
;ROUND 7OR CANCELLATION) REVOCATION)
AND TER9INATION

"ec. %B 7ate or ,onfiling of 6e;uirements. *ailure of
the permittee or contractor to comply with any of the
re;uirements provided in this -ct or in its
implementing rules and regulations, without a valid
reason, shall be sufficient ground from the
suspension of any permit or agreement provided
under this -ct.

"ec. %@ Giolation of the Terms and 3onditions of
4ermits or -greements. Giolations of the terms and
conditions of the permits or agreements shall be a
sufficient ground for cancellation of the same.

"ec. %7 ,onpayment of ta#es and *ees. *ailure to
pay the ta#es and fees due the >overnment for two
!9' consecutive years shall cause the cancellation of
the e#ploration permit, mineral agreement, financial
or technical assistance agreement and other
agreements and the reopening of the area sub1ect
thereof to new applicants.

"ec. %? "uspension or 3ancellation of Ta# .ncentives
and 3redits. *ailure to abide by the terms and
conditions of ta# incentives and credits shall cause
the suspension or cancellation of said incentives and
credits.

"ec. %% *alsehood or 8mission of *acts in the
"tatement. -ll statements made in the e#ploration
permit, mining agreement and financial or technical
assistance shall be considered as conditions and
essential parts thereof and any falsehood in said
statements or omission of facts therein which may
alter, change or affect substantially the facts set
forth in said statements may cause the revocation
and termination of the e#ploration permit, mining
agreement and financial or technical assistance
agreement.

C:A8TER (VIII
OR;ANIKATIONAL AND INSTITUTIONAL
ARRAN;E9ENT

"ec. $&& *rom "taff Bureau to 7ine Bureau. The
(ines and >eosciences Bureau is hereby
transformed into a line bureau consistent with
"ection % of this -ct) 4rovided, That under the (ines
and >eosciences Bureau shall be the necessary
mines regional, district and other pertinent offices
the number and specific functions of which shall be
provided in the implementing rules and regulations
of this -ct.

C:A8TER (I(
8ENAL 8ROVISIONS

"ec. $&$ *alse "tatements. -ny person who
knowingly presents any false application, declaration,
or evidence to the >overnment or publishes or
causes to be published any prospectus or other
information containing any false statement relating
to mines, mining operations or mineral agreements,
financial or technical assistance agreements and
permits shall, upon conviction, be penali0ed by a fine
of not e#ceeding Ten Thousand 4esos !4$&,&&&.&&'.

"ec. $&9 .llegal 5#ploration. -ny person undertaking
e#ploration work without the necessary e#ploration
permit shall, upon conviction, be penali0ed by a fine
of not e#ceeding *ifty thousand pesos !4B&,&&&.&&'.

"ec. $&A Theft of (inerals. -ny person e#tracting
minerals and disposing the same without a mining
agreement, lease, permit, license, or steals minerals
or ores or the products thereof from mines or mills or
processing plants shall, upon conviction, be
imprisoned from si# !@' months to si# !@' years or
pay a fine from Ten thousand pesos !4$&,&&&.&&' to
Twenty thousand pesos !49&,&&&.&&', or both, at the
discretion of the appropriate court. .n addition, he
shall be liable to pay damages and compensation for
the minerals removed, e#tracted, and disposed of. .n
the case of associations, partnerships, or
corporations, the president and each of the directors
thereof shall be responsible for the acts committed
by such association, corporation, or partnership.

"ec. $&D =estruction of (ining "tructures. -ny
person who willfully destroys or damages structures
in or on the mining area or on the mill sites shall,
upon conviction, be imprisoned for a period not to
e#ceed five !B' years and shall, in addition, pay
compensation for the damages which may have been
caused thereby.

"ec. $&B (ines -rson. -ny person who willfully sets
fire to any mineral stockpile, mine or workings,
fittings or a mine, shall be guilty of arson and shall
be punished, upon conviction, by the appropriate
court in accordance with the provisions of the
6evised 4enal 3ode and shall, in addition, pay
compensation for the damages caused thereby.

"ec. $&@ /illful =amage to a (ine. -ny person who
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
machine, appliance, apparatus+ rope, chain, tackle,
or any other things used in a mine, shall be
punished, upon conviction, by the appropriate court,
by imprisonment not e#ceeding a period of five !B'
years and shall, in addition, pay compensation for
the damages caused thereby.

"ec. $&7 .llegal 8bstruction to 4ermittees or
3ontractors. -ny person who, without 1ustifiable
cause, prevents or obstructs the holder of any
permit, agreement or lease from undertaking his
mining operations shall be punished, upon conviction
by the appropriate court, by a fine not e#ceeding
*ive thousand pesos !4B,&&&.&&' or imprisonment not
e#ceeding one !$' year, or both, at the discretion of
the court.

"ec. $&? Giolation of the Terms and 3onditions of the
5nvironmental 3ompliance 3ertificate. -ny person
who willfully violates or grossly neglects to abide by
the terms and conditions of the environmental
compliance certificate issued to said person and
which causes environmental damage through
pollution shall suffer the penalty of imprisonment of
si# !@' months to si# !@' years or a fine of *ifty
thousand pesos !4B&,&&&.&&' to Two :undered
Thousand 4esos !49&&,&&&.&&', or both at the
discretion of the court.

"ec. $&% .llegal 8bstruction to >overnment 8fficials.
-ny person who illegally prevents or obstructs the
"ecretary, the =irector or any of their
representatives in the performance of their duties
under the provisions of this -ct and of the
regulations promulgated hereunder shall be
punished, upon conviction, by the appropriate court,
by a fine not e#ceeding *ive thousand pesos
!4B,&&&.&&' or by imprisonment not e#ceeding one
!$' year, or both, at the discretion of the court.

"ec. $$& 8ther Giolations. -ny other violation of this
-ct and its implementing rules and regulations shall
constitute an offense punishable with a fine not
e#ceeding five thousand pesos !4B,&&&.&&'.

"ec. $$$ *ines. The "ecretary is authori0ed to charge
fines for late or nonsubmission of reports in
accordance with the implementing rules and
regulations of this -ct
RE8UBLIC ACT NO& .6.? 0eole1s 2mall-scale
'ining Act
"ec. 9. =eclaration of 4olicy. Q .t is hereby declared
of the "tate to promote, develop, protect and
rationali0e viable smallscale mining activities in
order to generate more employment opportunities
and provide an e;uitable sharing of the nation2s
wealth and natural resources, giving due regard to
e#isting rights as herein provided.
"ec. A. =efinitions. Q *or purposes of this -ct, the
following terms shall be defined as follows)
!a' I(inerali0ed areasI refer to areas with naturally
occurring mineral deposits of gold, silver, chromite,
kaolin, silica, marble, gravel, clay and like mineral
resources+
!b' I"mallscale miningI refers to mining activities
which rely heavily on manual labor using simple
implement and methods and do not use e#plosives
or heavy mining e;uipment+
!c' I"mallscale minersI refer to *ilipino citi0ens who,
individually or in the company of other *ilipino
citi0ens, voluntarily form a cooperative duly licensed
by the =epartment of 5nvironment and ,atural
6esources to engage, under the terms and conditions
of a contract, in the e#traction or removal of minerals
or orebearing materials from the ground+
!d' I"mallscale mining contractI refers to co
production, 1oint venture or mineral production
sharing agreement between the "tate and a small
scale mining contractor for the smallscale utili0ation
of a plot of mineral land+
!e' I"mallscale mining contractorI refers to an
individual or a cooperative of smallscale miners,
registered with the "ecurities and 5#change
3ommission or other appropriate government
agency, which has entered into an agreement with
the "tate for the smallscale utili0ation of a plot of
mineral land within a people2s smallscale mining
area+
!f' I-ctive mining areaI refers to areas under actual
e#ploration, development, e#ploitation or commercial
production as determined by the "ecretary after the
necessary field investigation or verification including
contiguous and geologically related areas belonging
to the same claimowner andCor under contract with
an operator, but in no case to e#ceed the ma#imum
area allowed by law+
!g' I5#isting mining rightI refers to perfected and
subsisting claim, lease, license or permit covering a
minerali0ed area prior to its declaration as a people2s
smallscale mining area+
!h' I3laimownerI refers to a holder of an e#isting
mining right+
!i' I4rocessorI refers to a person issued a license to
engage in the treatment of minerals or orebearing
materials such as by gravity concentration, leaching
benefication, cyanidation, cutting, si0ing, polishing
and other similar activities+
!1' I7icenseI refers to the privilege granted to a
person to legitimately pursue his occupation as a
smallscale miner or processor under this -ct+
!k' I(ining planI refers to a twoyear program of
activities and methodologies employed in the
e#traction and production of minerals or orebearing
materials, including the financial plan and other
resources in support thereof+
!l' I=irectorI refers to the regional e#ecutive director
of the =epartment of 5nvironment and ,atural
6esources+ and
!m' I"ecretaryI refers to the "ecretary of the
=epartment of 5nvironment and ,atural 6esources.
"ec. D. 4eople2s "mallscale (ining 4rogram. Q *or
the purpose of carrying out the declared policy
provided in "ection 9 hereof, there is hereby
established a 4eople2s "mallscale (ining 4rogram to
be implemented by the "ecretary of the =epartment
of 5nvironment and ,atural 6esources, hereinafter
called the =epartment, in coordination with other
concerned government agencies, designed to
achieve an orderly, systematic and rational scheme
for the smallscale development and utili0ation of
mineral resources in certain mineral areas in order to
address the social, economic, technical, and
environmental connected with smallscale mining
activities.
The 4eople2s "mallscale (ining 4rogram shall
include the following features)
!a' The identification, segregation and reservation of
certain mineral lands as people2s smallscale mining
areas+
!b' The recognition of prior e#isting rights and
productivity+
!c' The encouragement of the formation of
cooperatives+
!d' The e#tension of technical and financial
assistance, and other social services+
!e' The e#tension of assistance in processing and
marketing+
!f' The generation of ancillary livelihood activities+
!g' The regulation of the smallscale mining industry
with the view to encourage growth and productivity+
and
!h' The efficient collection of government revenue.
"ec. B. =eclaration of 4eople2s "mallscale (ining
-reas. Q The Board is hereby authori0ed to declare
and set aside people2s smallscale mining areas in
sites onshore suitable for smallscale mining, sub1ect
to review by the "ecretary, immediately giving
priority to areas already occupied and actively mined
by smallscale miners before -ugust $, $%?7)
4rovided, That such areas are not considered as
active mining areas) 4rovided, further, That the
minerals found therein are technically and
commercially suitable for smallscale mining
activities) 4rovided, finally, That the areas are not
covered by e#isting forest rights or reservations and
have not been declared as tourist or marine
reserved, parks and wildlife reservations, unless their
status as such is withdrawn by competent authority.
"ec. @. *uture 4eople2s "mallscale (ining -reas. Q
The following lands, when suitable for smallscale
mining, may be declared by the Board as people2s
small scale mining areas)
!a' 4ublic lands not sub1ect to any e#isting right+ ;i
!b' 4ublic lands covered by e#isting mining rights
which are not active mining areas+ and
!c' 4rivate lands, sub1ect to certain rights and
conditions, e#cept those with substantial
improvements or in bona fide and regular use as a
yard, stockyard, garden, plant nursery, plantation,
cemetery or burial site, or land situated within one
hundred meters !$&& m.' from such cemetery or
burial site, water reservoir or a separate parcel of
land with an area of ten thousand s;uare meters
!$&,&&& s;. m.' or less.
"ec. 7. -ncestral 7ands. Q ,o ancestral land may be
declared as a people2s smallscale mining area
without the prior consent of the cultural communities
concerned) 4rovided, That, if ancestral lands are
declared as people2s smallscale mining areas, the
members of the cultural communities therein shall be
given priority in the awarding of smallscale mining
contracts.
"ec. ?. 6egistration of "mallscale (iners. Q -ll
persons undertaking smallscale mining activities
shall register as miners with the Board and may
organi0e themselves into cooperatives in order to
;ualify for the awarding of a people2s smallscale
mining contract.
"ec. %. -ward of 4eople2s "mallscale (ining
3ontracts. Q - people2s smallscale mining contract
may be awarded by the Board to smallscale miners
who have voluntarily organi0ed and have duly
registered with the appropriate government agency
as an individual miner or cooperative+ 4rovided, That
only one !$' people2s smallscale mining contract
may be awarded at any one time to a smallscale
mining operations within one !$' year from the date
of award) 4rovided, further, That priority shall be
given or city where the smallscale mining area is
located.
-pplications for a contract shall be sub1ect to a
reasonable fee to be paid to the =epartment of
5nvironment and ,atural 6esources regional office
having 1urisdiction over the area.
"ec. $&. 5#tent of 3ontract -rea. Q The Board shall
determine the reasonable si0e and shape of the
contract area following the meridional block system
established under 4residential =ecree ,o. D@A, as
amended, otherwise known as the (ineral 6esources
=evelopment =ecree of $%7D, but in no case shall
the area e#ceed twenty hectares !9& has.' per
contractor and the depth or length of the tunnel or
adit not e#ceeding that recommended by the
director taking into account the following
circumstances)
!a' "i0e of membership and capitali0ation of the
cooperative+
!b' "i0e of minerali0ed area+
!c' Yuantity of mineral deposits+
!d' "afety of miners+
!e' 5nvironmental impact and other considerations+
and
!f' 8ther related circumstances.
"ec. $$. 5asement 6ights. Q Fpon the declaration of
a people2s smallscale mining area, the director, in
consultation with the operator, claimowner,
landowner or lessor of an affected area, shall
determine the right of the small scale miners to
e#isting facilities such as mining and logging roads,
private roads, port and communication facilities,
processing plants which are necessary for the
effective implementation of the 4eople2s "mallscale
(ining 4rogram, sub1ect to payment of reasonable
fees to the operator, claimowner, landowner or
lessor.
"ec. $9. 6ights Fnder a 4eople2s "mallscale (ining
3ontract. Q - people2s smallscale mining contract
entitles the smallscale mining contractor to the right
to mine, e#tract and dispose of mineral ores for
commercial purposes. .n no case shall a smallscale
mining contract be subcontracted, assigned or
otherwise transferred.
"ec. $A. Terms and 3onditions of the 3ontract. Q -
contract shall have a term of two !9' years,
renewable sub1ect to verification by the Board for like
periods as long as the contractor complies with the
provisions set forth in this -ct, and confers upon the
contractor the right to mine within the contract area)
4rovided, That the holder of a smallscale mining
contract shall have the following duties and
obligations)
!a' Fndertake mining activities only in accordance
with a mining plan duly approved by the Board+
!b' -bide by the (ines and >eosciences Bureau and
the smallscale (ining "afety 6ules and 6egulations+
!c' 3omply with his obligations to the holder of an
e#isting mining right+
!d' 4ay all ta#es, royalties or government production
share as are now or may hereafter be provided by
law+
!e' 3omply with pertinent rules and regulations on
environmental protection and conservation,
particularly those on treecutting mineralprocessing
and pollution control+
!f' *ile under oath at the end of each month a
detailed production and financial report to the Board+
and
!g' -ssume responsibility for the safety of persons
working in the mines.
"ec. $D. 6ights of 3laimowners. Q .n case a site
declared and set aside as a people2sscale mining
area is covered by an e#isting mining right, the
claimowner and the smallscale miners therein are
encouraged to enter into a voluntary and acceptable
contractual agreement with respect to the small
scale utili0ation of the mineral values from the area
under claim. .n case of disagreement, the
claimowner shall be entitled to the following rights
and privileges)
!a' 5#emption from the performance of annual work
obligations and payment of occupation fees, rental,
and real property ta#es+
!b' "ub1ect to the approval of the Board, free access
to the contract area to conduct metallurgical tests,
e#plorations and other activities, provided such
activities do not unduly interfere with the operations
of the smallscale miners+ and
!c' 6oyalty e;uivalent to one and one half percent !$
$C9N' of the gross value of the metallic mineral
output or one percent !$N' of the gross value of the
nonmetallic mineral output to be paid to the
claimowner) 4rovided, That such rights and privileges
shall be available only if he is not delin;uent and
other performance of his annual work obligations and
other re;uirements for the last two !9' years prior to
the effectivity of this -ct.
"ec. $B. 6ights of 4rivate 7andowners. Q The private
landowner or lawful possessor shall be notified of any
plan or petition to declare his land as a people2s
smallscale mining area. "aid landowner may oppose
such plan or petition in an appropriate proceeding
and hearing conducted before the Board.
.f a private land is declared as a people2s smallscale
mining area, the owner and the smallscale mining
contractors are encouraged to enter into a voluntary
and acceptable contractual agreement for the small
scale utili0ation of the mineral values from the
private land) 4rovided, That the owner shall in all
cases be entitled to the payment of actual damages
which he may suffer as a result of such declaration)
4rovided, further, That royalties paid to the owner
shall in no case e#ceed one percent !$N' of the gross
value of the minerals recovered as royalty.
"ec. $@. 8wnership of (ill Tailings. Q The small
scale mining contractor shall be the owner of all mill
tailings produced from the contract area. :e may sell
the tailings or have them processed in any custom
mill in the area) 4rovided, That, if the smallscale
mining contractor decide to sell its mill tailings, the
claimowner shall have a preemptive right to
purchase said mill tailings at the prevailing market
price.
"ec. $7. "ale of >old. Q -ll gold produced by small
scale miners in any mineral area shall be sold to the
3entral Bank, or its duly authori0ed representatives,
which shall buy it at prices competitive with those
prevailing in the world market regardless of volume
or weight.
The 3entral Bank shall establish as many buying
stations in goldrush areas to fully service the
re;uirements of the smallscale minerals thereat.
"ec. $?. 3ustom (ills. Q The establishment and
operation of safe and efficient customs mills to
process minerals or orebearing materials shall be
limited to mineral processing 0ones duly designated
by the local government unit concerned upon
recommendation of the Board.
.n mining areas where the private sector is unable to
establish custom mills, the >overnment shall
construct such custom mills upon the
recommendation of the Board based on the viability
of the pro1ect.
The Board shall issue licenses for the operation of
custom mills and other processing plants sub1ect to
pollution control and safety standards.
The =epartment shall establish assay laboratories to
crosscheck the integrity of custom mills and to
render metallurgical and laboratory services to
mines.
3ustom mills shall be constituted as withholding
agents for the royalties, production share or other
ta#es due the >overnment.
"ec. $%. >overnment "hare and -llotment. Q The
revenue to be derived by the >overnment from the
operation of the mining program herein established
shall be sub1ect to the sharing provided in the 7ocal
>overnment 3ode.
"ec. 9&. 4eople2s "mallscale (ining 4rotection
*und. Q There is hereby created a 4eople2s "mall
scale (ining 4rotection *und which shall be fifteen
percent !$BN' of the national government2s share
due the >overnment which shall be used primarily
for information dissemination and training of small
scale miners on safety, health and environmental
protection, and the establishment of mine rescue and
recovery teams including the procurement of rescue
e;uipment necessary in cases of emergencies such
as landslides, tunnel collapse, or the like.
The fund shall also be made available to address the
needs of the smallscale miners brought about by
accidents andCor fortuitous events.
"ec. 9$. 6escission of 3ontracts and -dministrative
*ines. Q The noncompliance with the terms and
conditions of the contract or violation of the rules
and regulations issued by the "ecretary pursuant to
this -ct, as well as the abandonment of the mining
site by the contractor, shall constitute a ground for
the cancellation of the contracts and the e1ectment
from the people2s smallscale mining area of the
contractor. .n addition, the "ecretary may impose
fines against the violator in an amount of not less
than Twenty thousand pesos !49&,&&&.&&' and not
more than 8ne hundred thousand pesos
!4$&&,&&&.&&'. ,onpayment of the fine imposed shall
render the smallscale mining contractor ineligible for
other smallscale mining contracts.
"ec. 99. 6eversion of 4eople2s "mallscale (ining
-reas. Q The "ecretary, upon recommendation of
the director, shall withdraw the status of the people2s
smallscale mining area when it can no longer
feasibly operated on a smallscale mining basis or
when the safety, health and environmental
conditions warrant that the same shall revert to the
"tate for proper disposition.
"ec. 9A. -ctual 8ccupation by "mallscale (iners. Q
"mallscale miners who have been in actual
operation of mineral lands on or before -ugust $,
$%?7 as determined by the Board shall not be
dispossessed, e1ected or removed from said areas)
4rovided, That they comply with the provisions of
this -ct.
"ec. 9D. 4rovincialC3ity (ining 6egulatory Board. Q
There is hereby created under the direct supervision
and control of the "ecretary a provincialCcity mining
regulatory board, herein called the Board, which shall
be the implementing agency of the =epartment, and
shall e#ercise the following powers and functions,
sub1ect to review by the "ecretary)
!a' =eclare and segregate e#isting goldrush areas
for smallscale mining+
!b' 6eserve future gold and other mining areas for
smallscale mining+
!c' -ward contracts to smallscale miners+
!d' *ormulate and implement rules and regulations
related to smallscale mining+
!e' "ettle disputes, conflicts or litigations over
conflicting claims within a people2s smallscale
mining area, an area that is declared a smallmining+
and
!f' 4erform such other functions as may be necessary
to achieve the goals and ob1ectives of this -ct.
"ec. 9B. 3omposition of the 4rovincialC3ity (ining
6egulatory Board. Q The Board shall be composed of
the =epartment of 5nvironment and ,atural
6esources representative as 3hairman+ and the
representative of the governor or city mayor, as the
representative of the governor or city mayor, as the
case may be, one !$' small scale mining
representative, one !$' bigscale mining
representative, and the representative from a
nongovernment organi0ation who shall come from an
environmental group, as members.
The representatives from the private sector shall be
nominated by their respective organi0ations and
appointed by the =epartment regional director. The
=epartment shall provide the staff support to the
Board.
"ec. 9@. -dministrative "upervision over the
4eople2s "mallscale (ining 4rogram. Q The
"ecretary through his representative shall e#ercise
direct supervision and control over the program and
activities of the smallscale miners within the
people2s smallscale mining area.
The "ecretary shall within ninety !%&' days from the
effectivity of this -ct promulgate rules and
regulations to effectively implement the provisions of
the same. 4riority shall be given to such rules and
regulations that will ensure the least disruption in the
operations of the smallscale miners.
"ec. 97. 4enal "anctions. Q Giolations of the
provisions of this -ct or of the rules and regulations
issued pursuant hereto shall be penali0ed with
imprisonment of not less than si# !@' months nor
more than si# !@' years and shall include the
confiscation and sei0ure of e;uipment, tools and
instruments.
Cases
La Bu'al Blaan Tri"al Association Inc&) et al& V&
Victor O& Ra5os) Secretar$ De/art5ent of
En4iron5ent an% Natural ResourcesN :oracio
Ra5os) Director) 9ines an% ;eosciences
Bureau 19;BHDENR2N
&%e constitutional pro;ision allowing t%e ,resident to
enter into 9&AAs is an e=ception to t%e rule t%at
participation in t%e nations natural resources is
reser;ed e=clusi;el( to 9ilipinos ,ro;ision must )e
construed strictl( against t%eir enFo(ment )( non+
9ilipinos
6- 7%D9 !The 4hilippine (ining -ct' took effect on
-pril %, $%%B. Before the effectivity of 6- 7%D9, or on
(arch A&, $%%B, the 4resident signed a *inancial and
Technical -ssistance -greement !*T--' with /(34,
a corporation organi0ed under 4hilippine laws,
covering close to $&&, &&& hectares of land in "outh
3otabato, "ultan Xudarat, =avao del "ur and ,orth
3otabato. 8n -ugust $B, $%%B, the 5nvironment
"ecretary Gictor 6amos issued =5,6 -dministrative
8rder %B9A, which was later repealed by =5,6
-dministrative 8rder %@D&, adopted on =ecember
9&, $%%@.
4etitioners prayed that 6- 7%D9, its implementing
rules, and the *T-- between the government and
/(34 be declared unconstitutional on ground that
they allow fully foreign owned corporations like
/(34 to e#ploit, e#plore and develop 4hilippine
mineral resources in contravention of -rticle M..
"ection 9 paragraphs 9 and D of the 3harter.
.n <anuary 9&&$, ((3 P a publicly listed -ustralian
mining and e#ploration company P sold its whole
stake in /(34 to "agittarius (ines, @&N of which is
owned by *ilipinos while D&N of which is owned by
.ndophil 6esources, an -ustralian company. =5,6
approved the transfer and registration of the *T-- in
"agittarius name but 7epanto 3onsolidated assailed
the same. The latter case is still pending before the
3ourt of -ppeals.
58 97%, issued by former 4resident -;uino on <uly
9B, $%?7, authori0es the =5,6 to accept, consider
and evaluate proposals from foreign owned
corporations or foreign investors for contracts or
agreements involving either technical or financial
assistance for large scale e#ploration, development
and utili0ation of minerals which upon appropriate
recommendation of the !=5,6' "ecretary, the
president may e#ecute with foreign proponent.
/(34 likewise contended that the annulment of the
*T-- would violate a treaty between the 4hilippines
and -ustralia which provides for the protection of
-ustralian investments.
.""F5")
$. /hether or not the 4hilippine (ining -ct is
unconstitutional for allowing fully foreign
owned corporations to e#ploit 4hilippine
mineral resources
9. /hether or not the *T-- between the
government and /(34 is a service
contract that permits fully foreign owned
companies to e#ploit 4hilippine mineral
resources
A. /hether the 3ourt has a role in the e#ercise
of the power of control over the 5=F of our
natural resources
:57=)
$' 6- 7%D9 or the 4hilippine (ining -ct of $%%B
is unconstitutional for permitting fully foreign
owned corporations to e#ploit 4hilippine natural
resources.
-rticle M.. "ection 9 of the $%?7 3onstitution retained
the 6egalian doctrine which states that -ll lands of
the public domain, waters, minerals, coal, petroleum,
and other minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna, and other
natural resources are owned by the "tate. The same
section also states that, e#ploration and
development and utili0ation of natural resources
shall be under the full control and supervision of the
"tate.
3onspicuously absent in "ection 9 is the provision in
the $%AB and $%7A 3onstitutions authori0ing the
"tate to grant licenses, concessions, or leases for the
e#ploration, e#ploitation, development or utili0ation
of natural resources. T such omission, the utili0ation
of inalienable lands of public domain through license,
concession or lease is no longer allowed under the
$%?7 3onstitution.
Fnder the concession system, the concessionaire
makes a direct e;uity investment for the purpose of
e#ploiting a particular natural resource within a given
area. The concession amounts to complete control by
the concessionaire over the countrys natural
resource, for it is given e#clusive and plenary rights
to e#ploit a particular resource at the point of
e#traction.
The $%?7 3onstitution, moreover, has deleted the
phrase management or other forms of assistance
in the $%7A 3harter. The present 3onstitution now
allows only technical and financial
assistance. The management or operation of mining
activities by foreign contractors, the primary feature
of service contracts was precisely the evil the
drafters of the $%?7 3onstitution sought to avoid.
The constitutional provision allowing the 4resident to
enter into *T--s is an e#ception to the rule that
participation in the nations natural resources is
reserved e#clusively to *ilipinos. -ccordingly such
provision must be construed strictly against their
en1oyment by non*ilipinos. Therefore 6- 7%D9 is
invalid insofar as said act authori0es service
contracts. -lthough the statute employs the phrase
financial and technical agreements in accordance
with the $%?7 3onstitution, its pertinent provisions
actually treat these
agreements as service contracts that grant beneficial
ownership to foreign contractors contrary to the
fundamental law.
The underlying assumption in the provisions of the
law is that the foreign contractor manages the
mineral resources 1ust like the foreign contractor in a
service contract. By allowing foreign contractors to
manage or operate all the aspects of the mining
operation, 6- 7%D9 has in effect conveyed beneficial
ownership over the nations mineral resources to
these contractors, leaving the "tate with nothing but
bare title thereto.
The same provisions, whether by design or
inadvertence, permit a circumvention of the
constitutionally ordained @&D&N capitali0ation
re;uirement for corporations or associations
engaged in the e#ploitation, development and
utili0ation of 4hilippine natural resources.
/hen parts of a statute are so mutually dependent
and connected as conditions, considerations,
inducements or compensations for each other as to
warrant a belief that the legislature intended them as
a whole, then if some parts are unconstitutional, all
provisions that are thus dependent, conditional or
connected must fall with them.
Fnder -rticle M.. "ection 9 of the $%?7 3harter,
foreign owned corporations are limited only to
merely technical or financial assistance to the "tate
for large scale e#ploration, development and
utili0ation of minerals, petroleum and other mineral
oils.
9' The *T-- between /(34 and the 4hilippine
government is likewise unconstitutional since
the agreement itself is a service contract.
"ection $.A of the *T-- grants /(34, a fully foreign
owned corporation, the e#clusive right to e#plore,
e#ploit, utili0e and dispose of all minerals and by
products that may be produced from the contract
area. "ection $.9 of the same agreement provides
that /(34 shall provide all financing, technology,
management, and personnel necessary for the
(ining 8perations.
These contractual stipulations and related provisions
in the *T-- taken together, grant /(34 beneficial
ownership over natural resources that properly
belong to the "tate and are intended for the benefit
of its citi0ens. These stipulations are abhorrent to the
$%?7 3onstitution. They are precisely the vices that
the fundamental law seeks to avoid, the evils that it
aims to suppress. 3onse;uently, the contract from
which they spring must be struck down.
A' The 3hief 5#ecutive is the official
constitutionally mandated to enter into
agreements with foreign owned corporations.
8n the other hand, 3ongress may review the
action of the 4resident once it is notified of
every contract entered into in accordance with
this KconstitutionalL provision within thirty days
from its e#ecution. .n contrast to this e#press
mandate of the 4resident and 3ongress in the
e#ploration, development and utili0ation !5=F'
of natural resources, -rticle M.. of the
3onstitution is silent on the role of the 1udiciary.
:owever, should the 4resident andCor 3ongress
gravely abuse their discretion in this regard, the
courts may in a proper case e#ercise their
residual duty under -rticle G.... 3learly then, the
1udiciary should not inordinately interfere in the
e#ercise of this presidential power of control
over the 5=F of our natural resources.
Fnder the doctrine of separation of powers and due
respect for coe;ual and coordinate branches of
government, the 3ourt must restrain itself from
intruding into policy matters and must allow the
4resident and 3ongress ma#imum discretion in using
the resources of our country and in securing the
assistance of foreign groups to eradicate the grinding
poverty of our people and answer their cry for viable
employment opportunities in the country. The
1udiciary is loath to interfere with the due e#ercise by
coe;ual branches of government of their official
functions. -s aptly spelled out seven decades ago
by <ustice >eorge (alcolm, <ust as the "upreme
3ourt, as the guardian of constitutional rights, should
not sanction usurpations by any other department of
government, so should it as strictly confine its own
sphere of influence to the powers e#pressly or by
implication conferred on it by the 8rganic -ct. 7et
the development of the mining industry be the
responsibility of the political branches of
government. -nd let not the 3ourt interfere
inordinately and unnecessarily. The 3onstitution of
the 4hilippines is the supreme law of the land. .t is
the repository of all the aspirations and hopes of all
the people.
The 3onstitution should be read in broad, lifegiving
strokes. .t should not be used to strangulate
economic growth or to serve narrow, parochial
interests. 6ather, it should be construed to grant the
4resident and 3ongress sufficient discretion and
reasonable leeway to enable them to attract foreign
investments and e#pertise, as well as to secure for
our people and our posterity the blessings of
prosperity and peace. The 3ourt fully sympathi0e
with the plight of 7a Bugal Blaan and other tribal
groups, and commend their efforts to uplift their
communities. :owever, the 3ourt cannot 1ustify the
invalidation of an otherwise constitutional statute
along with its implementing rules, or the nullification
of an otherwise legal and binding *T-- contract. The
3ourt believes that it is not unconstitutional to allow
a wide degree of discretion to the 3hief 5#ecutive,
given the nature and comple#ity of such agreements,
the humongous amounts of capital and financing
re;uired for largescale mining operations, the
complicated technology needed, and the intricacies
of international trade, coupled with the "tates need
to maintain fle#ibility in its dealings, in order to
preserve and enhance our countrys competitiveness
in world markets. 8n the basis of this control
standard, the 3ourt upholds the constitutionality of
the 4hilippine (ining 7aw, its .mplementing 6ules
and 6egulations insofar as they relate to financial
and technical agreements as well as the sub1ect
*inancial and Technical -ssistance -greement
"eparate 8pinion of <ustice 4anganiban
The *T-- is now to be implemented by a *ilipino
corporation, therefore the 3ourt can no longer
declare it unconstitutional. The 3- case is a dispute
between two *ilipino corporations !"agittarius and
7epanto' both claiming the right to purchase the
foreign shares in /(34. 6egardless of which side
eventually prevails, the *T-- would still be in the
hands of a ;ualified *ilipino firm. The present
3onstitution, moreover, does not limit foreign
participation in the e#ploration, development and
utili0ation of minerals, petroleum and mineral oils to
financial or technical assistance. The drafters choice
of words and e#cerpts from deliberations of the
3onstitutional 3ommission reveal that the present
3harter did not limit to financial or technical
assistance the participation of foreign corporations in
the largescale e#ploration, development, and
utili0ation of minerals, petroleum and mineral oils.
The drafters use of the phrase agreements ###
involving ### technical or financial assistance P in
-rticle M.. "ection 9 of the $%?7 3harter does not
absolutely show intent to e#clude other modes of
assistance. 6ather the phrase signifies the
possibility of the inclusion of other activities,
provided they bear some reasonable relationship to
and compatibility with financial or technical
assistance. .f the drafters intended to strictly
confine foreign corporations to financial or technical
assistance only, they would have employed
restrictive or stringent language.
5#cerpts from then deliberations of the 3onstitutional
3ommission likewise show that its members
discussed technical or financial assistance
agreements in the same breath as service
contracts and used the terms interchangeably. The
members of the 3oncom actually had in mind the
(arcosera service contracts that they were more
familiar with !but which they duly modified and
restricted so as to prevent present abuses', when
they were crafting and polishing the provisions
dealing with financial andCor
technical assistance agreements.
The 3oncom discussions in their entirely had to do
with service contracts that might be given to foreign
owned corporations as e#ceptions to the general
principle of *ilipino control of the economy

A8E( 9ININ; CO&) INC& 4s& SOUT:EAST
9INDANAO ;OLD 9ININ; COR8

4roclamation ,o. A@% was issued to establish the
-gusan=avao"urigao *orest 6eserve.3amilo Banad
and his group, who claimed to have first discovered
traces of gold in (ount =iwata, filed a=eclaration of
7ocation for si# mining claims in the
area. -pe# (ining 3orporation entered intooperating
agreements with Banad and his group.(arcopper
(ining 3orporation filed mining claims for areas
ad1acent to the area covered by the =87 of Banad
and his group. ((3 abandoned the claims and
instead applied for a prospecting permit with
theBureau of *orest =evelopment. B*= issued a
4rospecting 4ermit to ((3 covering an area within
theforest reserve under 4roclamation ,o. A@%. The
permit embraced the areas claimed by -pe# and the
other individual mining claimants. ((3 filed before
the B(> a 4etition for the 3ancellation of the
(ining3laims of -pe# and "mall "cale (ining
4ermits.
((3 alleged that the areas covered by its 54 $AA
and the mining claims of -pe# were within an
established and e#isting forest reservation.
-pe# filed a motion to dismiss ((3Zs petition
alleging that its mining claims are not within any
established or proclaimed forest reserve, and as
such, the ac;uisition of mining rights thereto must be
undertaken via registration of =87 with the B(> and
not through the filing of application for permit
to prospect with the B*=. :owever, "upreme 3ourt
rendered a =ecision against -pe# holding that the
disputed area is a forest reserve+ hence, the proper
procedure in ac;uiring mining rights therein is by
initially applying for a permit to prospect with the
B*= and not through a registration of =87 with the
B(>. =5,6 issued =epartment -dministrative 8rder
,o. @@ declaring areas covered by the -gusan
=avao"urigao *orest 6eserve as nonforest lands
and open to smallscale mining purposes.
- portion of thecontested area open to small scale
miners, several mining entities filed applications for
(ineral 4roduction "haring -greement. (onkayo
.ntegrated "mall "cale (iners -ssociation !(.""(-'
filed an (4"- application which was denied by the
B(> on the grounds that the area applied for is
within the area covered by ((3 54 $AAand that the
(.""(- was not ;ualified to apply for an (4"-.((3
assigned 54 $AA to "outheast (indanao >old (ining
3orporation. B(> accepted and registered "5(s
(4"- application and the =eed of -ssignment over
54 $AA e#ecuted in its favor by ((3."5(Zs
application was designated (4"- -pplication ,o. $9?
!(4"-- $9?'.The 4- rendered a resolution that 54
$AA was valid and subsisting. .t also declared that
the B(> =irector, under "ection %% of the
3onsolidated (ines -dministrative 8rder
implementing 4residential =ecree ,o. D@A, was
authori0ed to issue e#ploration permits and to renew
the same without limit. The validity of 5# loration
4ermit ,o. $AA was reiterated and all the adverse
claims against (4"-- ,o.$9? are =."(.""5=.
Fndaunted by the 4- ruling, the adverse claimants
appealed to the (ines -d1udication Board. .n
a=ecision, the (-B considered erroneous the
dismissal by the 4- of the adverse claims filed
against((3 and "5( over a mere technicality of
failure to submit a sketch plan. .t argued that the
rules of procedure are not meant to defeat
substantial 1ustice as the former are merely
secondary in importance to the latter. =ealing with
the ;uestion on 54 $AAZs validity, the (-B opined
that said issue was not crucial and was irrelevant in
ad1udicating the appealed case because 54 $AA has
long e#pired due to its nonrenewal and that the
holder of the same, ((3, was no longer a claimant
of the -gusan=avao"urigao *orest 6eserve having
relin;uished its right to "5(. -fter it brushed aside
the issue of the validity of 54$AA for being irrelevant,
the (-B proceeded to treat "5(Zs (4"- application
over the disputed area asan entirely new and distinct
application. .t approved the (4"- application,
e#cluding the area segregated by =-8 ,o. @@, which
declared 79% hectares within the =iwalwal area as
nonforest lands open for smallscale mining.
=issatisfied, the Gillaflor group and Balite appealed
the decision to this 3ourt. "5(, aggrieved by the
e#clusion of 79% hectares from its (4"- application,
likewise appealed. -pe# filed a (otion for 7eave to
-dmit 4etition for .ntervention predicated on its right
to stake its claim over the =iwalwal gold rush which
was granted by the 3ourt. These cases, however,
were remanded to the 3ourt of -ppeals for
proper disposition pursuant to 6ule DA of the $%%7
6ules of 3ivil 4rocedure. The 3ourt of -ppeals
consolidated the remanded cases as 3->.6. "4 ,o.
@$9$B and ,o. @$9$@.The 3ourt of -ppeals affirmed
in toto the decision of the 4- and declared null and
void the (-B decision. :ence, the instant 4etitions
for 6eview on 3ertiorari under 6ule DB of the 6ules of
3ourt filed by -pe#, Balite and (-B. =uring the
pendency of these 4etitions, 4resident >loria
(acapagal-rroyo issued 4roclamation ,o. 9%7.This
proclamation e#cluded an area of ?,$&& hectares
located in (onkayo, 3ompostela Galley,
and proclaimed the same as mineral reservation and
as environmentally critical area. "ubse;uently,
=5,6 -dministrative 8rder ,o. 9&&9$? was issued
declaring an emergency situation in the =iwalwal
gold rush area and ordering the stoppage of all
mining operations therein. Thereafter, 5#ecutive
8rder ,o. 9$7was issued by the 4resident creating
the ,ational Task *orce =iwalwal which is tasked to
address the situation in the =iwalwal >old 6ush -rea.
)ssue

/hether the subse;uent acts of the e#ecutive
department such as the issuance of 4roclamation ,o.
9%7,and =-8 ,o. 9&&9$? can outweigh -pe# and
Balites claims over the =iwalwal >old 6ush -rea.
3eld

Fpon the effectivity of the $%?7 3onstitution, the
"tate assumed a more dynamic role in the
e#ploration,development and utili0ation of the
natural resources of the country. /ith this policy, the
"tate may pursuefull control and supervision of the
e#ploration, development and utili0ation of the
countryZs naturalmineral resources. The options
open to the "tate are through direct undertaking or
by entering into co production, 1oint venture, or
productionsharing agreements, or by entering into
agreement with foreignowned corporations for large
scale e#ploration, development and utili0ation.
6ecogni0ing the importance of the countrys natural
resources, not only for national economic
development, but also for its security and national
defense, "ection B of 6epublic -ct ,o. 7%D9
empowers the 4resident, when the national interest
so re;uires, to establish mineral reservations where
mining operations shall be undertaken directly by the
"tate or through a contractor
Lone$ 4s& 8eo/le of t!e 8!ili//ines
4etitioners are officers of (arcopper (ining 3orp.,
engaged in mining in the province of (arindu;ue.
(arcopper had been storing tailings from its
operation in a pit in (t. Taipan, at the base of which
ran a drainage leading to Boac and (akalupnit rivers.
3onse;uently, (arcopper had discharged millions of
tons of tailings into the rivers.
.n -ugust $%%@, the =8< charged petitioners with
violation of the /ater 3ode of the 4hilippines, the
,ational 4ollution 3ontrol =ecree, 4hilippine (ining
-ct and 643 for 6eckless .mprudence 6esulting in
=amage to 4roperty. 4etitioners moved to ;uash the
information on grounds that these were duplicitous
as =8< charged more than one offense for a single
act and that the .nformations contain allegations
which constitute legal e#cuse or 1ustification.
The (T3 ruled that as far as the A laws are
concerned, only the .nformation for violation of
4hilippine (ining -ct should be maintained. Thus, the
.nformations for violation of -nti4ollution 7aw and
the /ater 3ode should be dismissed because the
elements constituting the aforesaid violations are
absorbed by the same elements which constitute
violation of the 4hilippine (ining -ct. The 6T3
reversed the said decision and ruled that there can
be no absorption by one offense of the three other
offenses, as the acts penali0ed by these laws are
separate and distinct from each other. This was
affirmed by the 3-.
4etitioners contend that they should be charged with
only one offense P 6eckless .mprudence 6esulting in
=amage to 4roperty Q because all the charges filed
against them are based on a single act or incident of
polluting the Boac and (akalupnit rivers thru
dumping of mine tailingsI and that the charge for
violation of -rticle A@B of the 643 IabsorbsI the other
charges since the element of Ilack of necessary or
ade;uate protection, negligence, recklessness and
imprudenceI is common among them.
Rulin'
3ourt had ruled that a single act or incident might
offend against two or more entirely distinct and
unrelated provisions of law thus 1ustifying the
prosecution of the accused for more than one
offense. The only limit to this rule is the
3onstitutional prohibition that no person shall be
twice put in 1eopardy of punishment for the same
offense.
:owever, for the limited purpose of controverting
petitioners claim that they should be charged with
one offense only, the "3 ;uote with approval 6T3s
comparative analysis of 4= $&@7, 4= %?D, 6- 7%D9,
and -rticle A@B of the 643 showing that in each of
these laws on which petitioners were charged, there
is one essential element not re2uired of t%e ot%ers,
thus)
.n 4.=. $&@7 !4hilippines /ater 3ode', the additional
element to be established is the dumping of mine
tailings into the (akulapnit 6iver and the entire Boac
6iver "ystem without prior permit from the
authorities concerned. &%e gra;amen of t%e offense
%ere is t%e a)sence of t%e proper permit to dump
said mine tailings &%is element is not indispensa)le
in t%e prosecution for ;iolation of ,- 984 CAnti+
,ollution LawD/ J7AK #94! C,%ilippine Mining ActD and
Art 3"* of t%e 7e;ised ,enal $ode 8ne can be
validly prosecuted for violating the /ater 3ode even
in the absence of actual pollution, or even if it has
complied with the terms of its 5nvironmental
3ompliance 3ertificate, or further, even if it did take
the necessary precautions to prevent damage to
property.
In ,- 984 CAnti+,ollution LawD/ t%e additional fact
t%at must )e pro;ed is t%e e=istence of actual
pollution &%e gra;amen is t%e pollution itself. .n the
absence of any pollution, the accused must be
e#onerated under this law although there was
unauthori0ed dumping of mine tailings or lack of
precaution on its part to prevent damage to
property.
In 7A #94! C,%ilippine Mining ActD/ t%e additional
fact t%at must )e esta)lis%ed is t%e willful ;iolation
and gross neglect on t%e part of t%e accused to
a)ide )( t%e terms and conditions of t%e
:n;ironmental $ompliance $ertificate, particularly
that the (arcopper should ensure the containment of
runoff and silt materials from reaching the (ogpog
and Boac 6ivers. .f there was no violation or neglect,
and that the accused satisfactorily proved KsicL that
(arcopper had done everything to ensure
containment of the runoff and silt materials, they
will not be liable. .t does not follow, however, that
they cannot be prosecuted under the /ater 3ode,
-nti4ollution 7aw and the 6evised 4enal 3ode
because violation of the 5nvironmental 3ompliance
3ertificate is not an essential element of these laws.
8n the other hand, t%e additional element t%at must
)e esta)lis%ed in Art 3"* of t%e 7e;ised ,enal $ode
is t%e lack of necessar( or ade2uate precaution/
negligence/ recklessness and imprudence on t%e part
of t%e accused to pre;ent damage to propert( &%is
element is not re2uired under t%e pre;ious laws.
Fn;uestionably, it is different from dumping of mine
tailings without permit, or causing pollution to the
Boac river system, much more from violation or
neglect to abide by the terms of the 5nvironmental
3ompliance 3ertificate. (oreover, the offenses
punished by special law are malKaL prohibita in
contrast with those punished by the 6evised 4enal
3ode which are mala in se.
9%
3onse;uently, the filing of the multiple charges
against petitioners, although based on the same
incident, is consistent with settled doctrine.
8n petitioners claim that the charge for violation of
-rticle A@B of the 643 absorbs the charges for
violation of 4= $&@7, 4= %?D, and 6- 7%D9, suffice it
to say that a mala in se felony !such as 6eckless
.mprudence 6esulting in =amage to 4roperty' cannot
absorb mala prohibita crimes !such as those violating
4= $&@7, 4= %?D, and 6- 7%D9'. /hat makes the
former a felony is criminal intent !dolo' or negligence
!culpa'+ what makes the latter crimes are the special
laws enacting them.
4etitioners reiterate their contention in the 3ourt of
-ppeals that their prosecution contravenes this
3ourts ruling in 4eople v. 6elova. .n particular,
petitioners cite the 3ourts statement in 6elova that
the law seeks to prevent harassment of the accused
by Imultiple prosecutions for offenses which though
different from one another are nonetheless each
constituted by a common set or overlapping sets of
technical elements.I
This contention is also without merit. 6elova is no
authority for petitioners claim against multiple
prosecutions based on a single act not only because
the ;uestion of double 1eopardy is not at issue here,
but also because, as the 3ourt of -ppeals held,
petitioners are being prosecuted for an act or
incident punished by four national statutes and not
by an ordinance and a national statute. .n short,
petitioners, if ever, fall under the first sentence of
"ection 9$, -rticle ... which prohibits multiple
prosecution for the same offense, and not, as in
6elova, for offenses arising from the same incident.
8D No& .6F Re4ise% 7orestr$ Co%e of t!e
8!ili//ines
/:565-", proper classification, management and
utili0ation of the lands of the public domain to
ma#imi0e their productivity to meet the demands of
our increasing population is urgently needed+
/:565-", to achieve the above purpose, it is
necessary to reassess the multiple uses of forest
lands and resources before allowing any utili0ation
thereof to optimi0e the benefits that can be derived
therefrom+
/:565-", it is also imperative to place emphasis not
only on the utili0ation thereof but more so on the
protection, rehabilitation and development of forest
lands, in order to ensure the continuity of their
productive condition+
/:565-", the present laws and regulations
governing forest lands are not responsive enough to
support reoriented government programs, pro1ects
and efforts on the proper classification and
delimitation of the lands of the public domain, and
the management, utili0ation, protection,
rehabilitation, and development of forest lands+
Section *& ,olicies The "tate hereby adopts the
following policies)
!a' The multiple uses of forest lands shall be oriented
to the development and progress re;uirements of
the country, the advancement of science and
technology, and the public welfare+
!b' 7and classification and survey shall be
systemati0ed and hastened+
!c' The establishment of woodprocessing plants
shall be encouraged and rationali0ed+ and
!d' The protection, development and rehabilitation of
forest lands shall be emphasi0ed so as to ensure
their continuity in productive condition.
Section =& -efinitions
!a' 4ublic forest is the mass of lands of the public
domain which has not been the sub1ect of the
present system of classification for the determination
of which lands are needed for forest purposes and
which are not.
!b' 4ermanent forest or forest reserves refer to those
lands of the public domain which have been the
sub1ect of the present system of classification and
determined to be needed for forest purposes.
!c' -lienable and disposable lands refer to those
lands of the public domain which have been the
sub1ect of the present system of classification and
declared as not needed for forest purposes.
!d' *orest lands include the public forest, the
permanent forest or forest reserves, and forest
reservations.
!e' >ra0ing land refers to that portion of the public
domain which has been set aside, in view of the
suitability of its topography and vegetation, for the
raising of livestock.
!f' (ineral lands refer to those lands of the public
domain which have been classified as such by the
"ecretary of ,atural 6esources in accordance with
prescribed and approved criteria, guidelines and
procedure.
!g' *orest reservations refer to forest lands which
have been reserved by the 4resident of the
4hilippines for any specific purpose or purposes.
!h' ,ational park refers to a forest land reservation
essentially of primitive or wilderness character which
has been withdrawn from settlement or occupancy
and set aside as such e#clusively to preserve the
scenery, the natural and historic ob1ects and the wild
animals or plants therein, and to provide en1oyment
of these features in such a manner as will leave them
unimpaired for future generations.
!i' >ame refuge or bird sanctuary refers to a forest
land designated for the protection of game animals,
birds and fish and closed to hunting and fishing in
order that the e#cess population may flow and
restock surrounding areas.
!1' (arine parks refers to any offshore area inhabited
by rare and uni;ue species of marine flora and fauna.
!k' "eashore park refers to any public shore area
delimited for outdoor recreation, sports fishing, water
skiing and related healthful activities.
!l' /atershed reservation is a forest land reservation
established to protect or improve the conditions of
the water yield thereof or reduce sedimentation.
!m' /atershed is a land area drained by a stream or
fi#ed body of water and its tributaries having a
common outlet for surface runoff.
!n' 3ritical watershed is a drainage area of a river
system supporting e#isting and proposed hydro
electric power and irrigation works needing
immediate rehabilitation as it is being sub1ected to a
fast denudation causing accelerated erosion and
destructive floods. .t is closed from logging until it is
fully rehabilitated.
!o' (angrove is a term applied to the type of forest
occurring on tidal flat along the sea coast, e#tending
along streams where the water is brackish.
!p' Xaingin is a portion of the forest land, whether
occupied or not, which is sub1ected to shifting andCor
permanent slashandburn cultivation having little or
no provision to prevent soil erosion.
!;' *orest product means timber, pulpwood,
firewood, bark, tree top, resin, gum, wood, oil, honey,
beeswa#, nipa, rattan, or other forest growth such as
grass, shrub, and flowering plant, the associated
water, fish, game, scenic, historical, recreational and
geologic resources in forest lands.
!r' =ipterocarp forest is a forest dominated by trees
of the dipterocarp species, such as red lauan, tengile,
tiaong, white lauan, almon, bagtikan and mayapis of
the 4hilippine mahogany group, apitong and the
yakals.
!s' 4ine forest is a forest composed of the Benguet
4ine in the (ountain 4rovinces or the (indoro pine in
(indoro and Oambales provinces.
!t' .ndustrial tree plantation is any tract of forest land
purposely and e#tensively planted to timber crops
primarily to supply the raw material re;uirements of
e#isting or proposed processing plants and related
industries.
!u' Tree farm refers to any tract of forest land
purposely and e#tensively planted to trees of
economic value for their fruits, flowers, leaves, barks,
or e#tractives, but not for the wood thereof.
!v' (ultipleuse is the harmoni0ed utili0ation of the
numerous beneficial uses of the land, soil, water,
wildlife, recreation value, grass and timber of forest
lands.
!w' "elective logging means the systematic removal
of the mature, overmature and defective trees in
such manner as to leave ade;uate number and
volume of healthy residual trees of the desired
species necessary to assure a future crop of timber,
and forest cover for the protection and conservation
of soil and water.
!#' "eed tree system is partial clearcutting with seed
trees left to regenerate the area.
!y' :ealthy residual is a sound or slightly in1ured tree
of the commercial species left after logging.
!0' "ustainedyield management implies continuous
or periodic production of forest products in a working
unit with the aid of achieving at the earliest
practicable time an appro#imate balance between
growth and harvest or use. This is generally applied
to the commercial timber resources and is also
applicable to the water, grass, wildlife, and other
renewable resources of the forest.
!aa' 4rocessing plant is any mechanical setup,
machine or combination of machine used for the
processing of logs and other forest raw materials into
lumber, veneer, plywood, wallboard, blockboard,
paper board, pulp, paper or other finished wood
products.
!bb' 7ease is a privilege granted by the "tate to a
person to occupy and possess, in consideration of a
specified rental, any forest land of the public domain
in order to undertake any authori0ed activity therein.
!cc' 7icense is a privilege granted by the "tate to a
person to utili0e forest resources as in any forest
land, without any right of occupation and possession
over the same, to the e#clusion of others, or
establish and operate a woodprocessing plant, or
conduct any activity involving the utili0ation of any
forest resources.
!dd' 7icense agreement is a privilege granted by the
"tate to a person to utili0e forest resources within
any forest land with the right of possession and
occupation thereof to the e#clusion of others, e#cept
the government, but with the corresponding
obligation to develop, protect and rehabilitate the
same in accordance with the terms and conditions
set forth in said agreement.
!ee' 4ermit is a shortterm privilege or authority
granted by the "tate to a person to utili0e any limited
forest resources or undertake a limited activity with
any forest land without any right of occupation and
possession therein.
!ff' -nnual allowable cut is the volume of materials,
whether of wood or other forest products, that is
authori0ed to be cut regularly from the forest.
!gg' 3utting cycle is the number of years between
ma1or harvests in the same working unit andCor
region, within a rotation.
!hh' 5cosystem means the ecological community
considered together with nonliving factors and its
environment as a unit.
!ii' "ilviculture is the establishment, development
reproduction and care of forest trees.
!11' 6ationali0ation is the organi0ation of a business or
industry using scientific business management
principles and simplified procedures to obtain greater
efficiency of operation.
!kk' *orest officer means any official or employee of
the Bureau who, by the nature of his appointment or
the function of the position to which he is appointed,
is delegated by law or by competent authority to
e#ecute, implement or enforce the provisions of this
3ode, other related laws, as well as their
implementing regulations.
!ll' 4rimitive tribe is a group of endemic tribe living
primitively as a distinct portion of a people from a
common ancestor.
!mm' 4rivate right means or refers to titled rights of
ownership under e#isting laws, and in the case of
primitive tribes, to rights of possession e#isting at
the time a license is granted under this 3ode, which
possession may include places of abode and worship,
burial grounds, and old clearings, but e#cludes
production forest inclusive of loggedover areas,
commercial forests and established plantations of
forest trees and trees of economic value.
!nn' 4erson includes natural as well as 1uridical
person.
C:A8TER I
OR;ANIKATION AND 0URISDICTION O7 T:E
BUREAU
Section >& $reation of/ and merger of all forestr(
agencies into/ t%e Bureau of 9orest -e;elopment *or
the purpose of implementing the provisions of this
3ode, the Bureau of *orestry, the 6eforestation
-dministration, the "outhern 3ebu 6eforestation
=evelopment 4ro1ect, and the 4arks and /ildlife
8ffice, including applicable appropriations, records,
e;uipment, property and such personnel as may be
necessary, are hereby merged into a single agency
to be known as the Bureau of *orest =evelopment,
hereinafter referred to as the Bureau.
Section F& Aurisdiction of Bureau The Bureau shall
have 1urisdiction and authority over all forest land,
gra0ing lands, and all forest reservations including
watershed reservations presently administered by
other government agencies or instrumentalities.
.t shall be responsible for the protection,
development, management, regeneration, and
reforestation of forest lands+ the regulation and
supervision of the operation of licensees, lessees and
permittees for the taking or use of forest products
therefrom or the occupancy or use thereof+ the
implementation of multiple use and sustained yield
management in forest lands+ the protection,
development and preservation of national parks,
marine parks, game refuges and wildlife+ the
implementation of measures and programs to
prevent kaingin and managed occupancy of forest
and gra0ing lands+ in collaboration with other
bureaus, the effective, efficient and economic
classification of lands of the public domain+ and the
enforcement of forestry, reforestation, parks, game
and wildlife laws, rules, and regulations.
The Bureau shall regulate the establishment and
operation of sawmills, veneer and plywood mills and
other wood processing plants and conduct studies of
domestic and world markets of forest products.
Section ?& -irector and Assistant -irector and t%eir
2ualifications The Bureau shall be headed by a
=irector, who shall be assisted by one or more
-ssistant =irectors. The =irector and -ssistant
=irectors shall be appointed by the 4resident.
,o person shall be appointed =irector or -ssistant
=irector of the Bureau unless he is a natural born
citi0en of the 4hilippines, at least A& years of age, a
holder of at least a Bachelor2s =egree in *orestry or
its e;uivalent, and a registered forester.
Section .& 'uper;ision and $ontrol The Bureau shall
be directly under the control and supervision of the
"ecretary of the =epartment of ,atural 6esources,
hereinafter referred to as the =epartment :ead.
Section -& 7e;iew -ll actions and decisions of the
=irector are sub1ect to review, motu propio or upon
appeal of any person aggrieved thereby, by the
=epartment :ead whose decision shall be final and
e#ecutory after the lapse of thirty !A&' days from
receipt by the aggrieved party of said decision,
unless appealed to the 4resident in accordance with
the 5#ecutive 8rder ,o. $%, series of $%@@. The
=ecision of the =epartment :ead may not be
reviewed by the courts e#cept through a special civil
action for certiorari or prohibition.
Section ,& 7ules and 7egulations The =epartment
:ead, upon the recommendation of the =irector of
*orest =evelopment, shall promulgate the rules and
regulations necessary to implement effectively the
provisions of this 3ode.
Section +6& $reation of 9unctional -i;isions/ and
7egional and -istrict 8ffices -ll positions in the
merged agencies are considered vacant. 4resent
occupants may be appointed in accordance with a
staffing pattern or plan of organi0ation to be
prepared by the =irector and approved by the
=epartment :ead. -ny appointee who fails to report
for duty in accordance with the approved plan within
thirty !A&' days upon receipt of notification shall be
deemed to have declined the appointment, in which
case the position may be filed by any other ;ualified
applicant.
*or the efficient and effective implementation of the
program of the Bureau, the following divisions and
sections are hereby created, to wit)
The =epartment :ead may, upon recommendation of
the =irector, reorgani0e or create such other
divisions, sections of units as may be deemed
necessary and to appoint the personnel there)
4rovided, That an employee appointed or designated
as officerincharge of a newly created division,
section or unit, or to an e#isting vacant position with
a higher salary, shall receive, from the date of such
appointment or designation until he is replaced or
reverted to his original position, the salary
corresponding to the position temporarily held by
him.
There shall be created at least eleven regional
offices. .n each region, there shall be as many forest
districts as may be necessary, in accordance with the
e#tent of forest area, established work loads, need
for forest protection, fire prevention and other
factors, the provisions of any law to the contrary
notwithstanding) 4rovided, That the boundaries of
such districts shall follow, whenever possible, natural
boundaries of watersheds under the riverbasin
concept of management.
Section ++& Manpower -e;elopment The Bureau
shall establish and operate an inservice training
center for the purpose of upgrading and training its
personnel and new employees.
The Bureau shall also set aside ade;uate funds to
enable personnel to obtain special education and
training in local or foreign colleges or institutions.
Section +*& ,erformance :;aluation The Bureau
shall devise a system, to be approved by the
=epartment :ead, to evaluate the performance of its
employees. The system shall measure
accomplishment in ;uantity and ;uality of
performance as related to the funded program of
work assigned to each organi0ational unit. There
shall be included a system of periodic inspection of
district offices by the regional offices and the
regional and district offices by the 3entral 8ffice in
both functional fields and in the overall assessment
of how each administrative unit has implemented the
laws, regulations, policies, programs, and practices
relevant to such unit. The evaluation system shall
provide the information necessary for annual
progress reports and determination of employee
training civil service awards and transfer or
disciplinary action.
C:A8TER II
CLASSI7ICATION AND SURVEB
Section +=& '(stem of Land $lassification The
=epartment :ead shall study, devise, determine and
prescribe the criteria, guidelines and methods for the
proper and accurate classification and survey of all
lands of the public domain into agricultural, industrial
or commercial, residential, resettlement, mineral,
timber or forest, and gra0ing lands, and into such
other classes as now or may hereafter be provided
by law, rules and regulations.
.n the meantime, the =epartment :ead shall simplify
through interbureau action the present system of
determining which of the unclassified lands of the
public domain are needed for forest purposes and
declare them as permanent forest to form part of the
forest reserves. :e shall decree those classified and
determined not to be needed for forest purposes as
alienable and disposable lands, the administrative
1urisdiction and management of which shall be
transferred to the Bureau of 7ands) 4rovided, That
mangrove and other swamps not needed for shore
protection and suitable for fishpond purposes shall
be released to, and be placed under the
administrative 1urisdiction and management of, the
Bureau of *isheries and -;uatic 6esources. Those
still to be classified under the 4resent system shall
continue to remain as part of the public forest.
Section +>& :=isting ,asture Leases and ,ermits in
9orest Lands *orest lands which have been the
sub1ect of pasture leases and permits shall remain
classified as forest lands until classified as gra0ing
lands under the criteria, guidelines and methods of
classification to be prescribed by the =epartment
:ead) 4rovided, That the administration,
management and disposition of gra0ing lands shall
remain under the Bureau.
Section +F& &opograp%( ,o land of the public
domain eighteen per cent !$?N' in slope or over
shall be classified as alienable and disposable, nor
any forest land fifty per cent !B&N' in slope or over,
as gra0ing land.
7ands eighteen per cent !$?N' in slope or over which
have already been declared as alienable and
disposable shall be reverted to the classification of
forest lands by the =epartment :ead, to form part of
the forest reserves, unless they are already covered
by e#isting titles or approved public land application,
or actually occupied openly, continuously, adversely
and publicly for a period of not less than thirty !A&'
years as of the effectivity of this 3ode, where the
occupant is ;ualified for a free patent under the
4ublic 7and -ct) 4rovided, That said lands, which are
not yet part of a wellestablished communities, shall
be kept in a vegetative condition sufficient to prevent
erosion and adverse effects on the lowlands and
streams) 4rovided, further, That when public interest
so re;uires, steps shall be taken to e#propriate,
cancel defective titles, re1ect public land application,
or e1ect occupants thereof.
Section +?& Areas needed for forest purposes The
following lands, even if they are below eighteen per
cent !$?N' in slope, are needed for forest purposes,
and may not, therefore, be classified as alienable and
disposable land, to wit)
$. -reas less than 9B& hectares which are
far from, or are not contiguous with, any
certified alienable and disposable land+
9. .solated patches of forest of at least five
!B' hectares with rocky terrain, or which
protect a spring for communal use+
A. -reas which have already been
reforested+
D. -reas within forest concessions which are
timbered or have good residual stocking to
support an e#isting, or approved to be
established, wood processing plant+
B. 6idge tops and plateaus regardless of
si0e found within, or surrounded wholly or
partly by, forest lands where headwaters
emanate+
@. -ppropriately located roadrightsorway+
7. Twentymeter strips of land along the
edge of the normal high waterline of rivers
and streams with channels of at least five
!B' meters wide+
?. "trips of mangrove or swamplands at
least twenty !9&' meters wide, along
shorelines facing oceans, lakes, and other
bodies of water, and strips of land at least
twenty !9&' meters wide facing lakes+
%. -reas needed for other purposes, such as
national parks, national historical sites,
game refuges and wildlife sanctuaries,
forest station sites, and others of public
interest+ and
$&. -reas previously proclaimed by the
4resident as forest reserves, national parks,
game refuge, bird sanctuaries, national
shrines, national historic sites)
4rovided, That in case an area falling under any of
the foregoing categories shall have been titled in
favor of any person, steps shall be taken, if public
interest so re;uires, to have said title cancelled or
amended, or the titled area e#propriated.
Section +.& :sta)lis%ment of )oundaries of forest
lands -ll boundaries between permanent forests and
alienable and disposable lands shall be clearly
marked and maintained on the ground, with
infrastructure or roads, or concrete monuments at
intervals of not more than five hundred !B&&' meters
in accordance with established procedures and
standards, or any other visible and practicable signs
to insure protection of the forest.
Section +-& 7eser;ations in forest lands and off+
s%ore areas The 4resident of the 4hilippines may
establish within any lands of the public domain,
forest reserve and forest reservation for the national
park system, for preservation as critical watersheds,
or for any other purpose, and modify boundaries of
e#isting ones. The =epartment :ead may reserve
and establish any portion of the public forest or
forest reserve as site or e#perimental forest for use
of the *orest 6esearch .nstitute.
/hen public interest so re;uires, any offshore area
needed for the preservation and protection of its
educational, scientific, historical, ecological and
recreational values including the marine life found
therein, shall be established as marine parks.
C:A8TER III
UTILIKATION AND 9ANA;E9ENT
Section +,& Multiple use The numerous beneficial
uses of the timber, land, soil, water, wildlife,
recreation value and grass of forest lands shall be
evaluated and weighted before allowing the
utili0ation, e#ploitation, occupation or possession
thereof, or the conduct of any activity therein.
8nly the utili0ation, e#ploitation, occupation or
possession of any forest land, or any activity therein,
involving one or more or its resources, which will
produce the optimum benefits to the development
and progress of the country and the public welfare,
without impairment or with the least in1ury to its
other resources, shall be allowed.
-ll forest reservations may be open to uses not
inconsistent with the principal ob1ectives of the
reservation) 4rovided, That critical watersheds and
national parks shall not be sub1ect to logging
operations.
Section *6& License agreement/ license/ lease or
permit ,o person may utili0e, e#ploit, occupy,
possess or conduct any activity within any forest
land, or establish and operate any woodprocessing
plant, unless he has been authori0ed to do so under
a license agreement, lease, license, or permit.
Section *+& 'ustained (ield -ll measures shall be
taken to achieve an appro#imate balance between
growth and harvest or use of forest products in forest
lands.
-. T.(B56
Section **& 'il;icultural and %ar;esting s(stems .n
any logging operations in production forests within
forest lands, the proper silvicultural and harvesting
systems that will promote optimum sustained yield
shall be practised.
!a' *or dipterocarp forest, selective logging
shall be practised.
!b' *or pine forest, the seed tree system
with planting when necessary shall be
practised.
!c' *or other types of forest, the silvicultural
and harvesting system that will be found
suitable by research shall be applied.
(eanwhile, a system based on observation
and practices abroad may be adopted
initially.
-ny practised system are sub1ect to modification or
changes based on research findings.
Section *=& &im)er in;entor( The Bureau shall
conduct a program of progressive inventories of the
harvestable timber and young trees in all forest
lands, whether covered by any license agreement,
license, lease or permit, or not, until a one hundred
per cent !$&&N' timber inventory thereon has been
achieved.
Section *>& 7e2uired in;entor( prior to tim)er
utiliBation in forest lands ,o harvest of timber in any
forest land shall be allowed unless it has been the
sub1ect of at least a five per cent !BN' timber
inventory, or any statistically sound timber estimate,
made not earlier than five !B' years prior to the
issuance of a license agreement or license allowing
such utili0ation.
Section *F& $utting c(cle The Bureau shall apply
scientific cutting cycle and rotation in all forest lands,
giving particular consideration to the age, volume
and kind of healthy residual trees which may be left
undisturbed and undamaged for future harvest and
forest cover indipterocarp area, and seed trees and
reproduction in pine area.
Section *?& Annual allowa)le cut The annual
allowable cut of any particular forest land shall be
determined on the basis of the established rotation
and cutting cycle thereof, and the volume and kind of
harvestable timber and healthy residuals, seed trees
and reproduction found therein.
Section *.& -uration of license agreement or
license to %ar;est tim)er in forest lands The duration
of the privilege to harvest timber in any particular
forest land under a license agreement or license shall
be fi#ed and determined in accordance with the
annual allowable cut therein, the established cutting
cycle thereof, the yield capacity of harvestable
timber, and the capacity of healthy residuals for a
second growth.
The privilege shall automatically terminate, even
before the e#piration of the license agreement of
license, the moment the harvestable timber have
been utili0ed without leaving any loggedover area
capable of commercial utili0ation.
The ma#imum period of any privilege to harvest
timber is twentyfive !9B' years, renewable for a
period, not e#ceeding twentyfive !9B' years,
necessary to utili0e all the remaining commercial
;uantity or harvestable timber either from the
unlogged or loggedover area.
.t shall be a condition for the continued privilege to
harvest timber under any license or license
agreement that the licensee shall reforest all the
areas which shall be determined by the Bureau.
Section *-& 'iBe of forest concessions *orest lands
shall not be held in perpetuity.
The si0e of the forest lands which may be the sub1ect
of timber utili0ation shall be limited to that which a
person may effectively utili0e and develop for a
period of fifty !B&' years, considering the cutting
cycle, the past performance of the applicant and his
capacity not only to utili0e but, more importantly, to
protect and manage the whole area, and the
re;uirements of processing plants e#isting or to be
installed in the region.
*orest concessions which had been the sub1ect of
consolidations shall be reviewed and reevaluated for
the effective implementation of protection,
reforestation and management thereof under the
multiple use and sustained yield concepts, and for
the processing locally of the timber resources
therefrom.
B. /88=46835"".,>
Section *,& Incenti;es to t%e wood industr( The
=epartment :ead, in collaboration with other
government agencies and the wood industry
associations and other private entities in the country,
shall evolve incentives for the establishment of an
integrated wood industry in designated wood
industry centers andCor economic area.
The 4resident of the 4hilippines, upon the
recommendations of the ,ational 5conomic
=evelopment -uthority and the =epartment :ead,
may establish wood industry importe#port centers in
selected locations) 4rovided, That logs imported for
such centers shall be sub1ect to such precaution as
may be imposed by the Bureau, in collaboration with
proper government agencies, to prevent the
introduction of pests, insects andCor diseases
detrimental to the forests.
Section =6& 7ationaliBation of t%e wood
industr( /hile establishment of woodprocessing
plants shall be encouraged, their locations and
operations shall be regulated in order to rationali0e
the industry. ,o new processing plant shall be
established unless ade;uate raw material is available
on a sustainedyield basis in the area where the raw
materials will come from.
The =epartment :ead may cancel, suspend, or
phaseout all uneconomical woodprocessing plants
which are not responsive to the rationali0ation
program of the government.
Section =+& 1ood wastes/ weed trees and
residues Timber licensees shall be encouraged and
assisted to gather and save the wood wastes and
weed trees in their concessions, and those with
processing plants, the wood residues thereof, for
utili0ation and conversion into wood byproducts and
derivatives.
Section =*& Log production and processing Fnless
otherwise decreed by the 4resident, upon
recommendation of the ,ational 5conomic
=evelopment -uthority, the entire production of logs
by all licensees shall, beginning <anuary $, $%7@, be
processed locally.
- licensee who has no processing plant may, sub1ect
to the approval of the =irector, enter into a contract
with a wood processor for the processing of his logs.
/ood processors shall accept for processing only
logs cut by, or purchased from, licensees of good
standing at the time of the cutting of logs.
3. 65*865"T-T.8,
Section ==& 9orest lands to )e reforested The
following shall be reforested and covered with
suitable and sufficient trees, to wit)
!a' Bare or grasscovered tracts of forest lands with
at least fifty per cent !B&N' slope+
!b' Bare or grasscovered tracts of forest lands with
less than fifty per cent !B&N' slope, but with soil so
highly erodible as to make grass cover inade;uate
for soil erosion control+
!c' Brushlands or tracts of forest lands generally
covered with brush, which need to be developed to
increase their productivity+
!d' 8pen tracts of forest lands with slopes or
gradients generally e#ceeding fifty per cent !B&N',
interspersed with patches of forest each of which is
less than two hundred fifty !9B&' hectares in area+
!e' =enuded or inade;uatelytimbered areas
proclaimed by the 4resident as forest reserves and
reservations as critical watersheds, national parks,
game refuge, bird sanctuaries, national shrines,
national historic sites+
!f' .nade;uatelystocked forest lands within forest
concessions+
!g' 4ortions of areas covered by pasture leases or
permits having a slope of at least fifty per cent
!B&N'+ and
!h' 6iver banks, easements, road rightsofways,
deltas, swamps, former river beds, and beaches.
Section =>& Industrial &ree ,lantations and &ree
9arms - lease for a period of twentyfive !9B' years,
renewable for another period not e#ceeding twenty
five !9B' years, for the establishment of an industrial
tree plantation or a tree farm may be granted by the
=epartment :ead upon recommendation of the
=irector to any person ;ualified to develop and
e#ploit natural resources, over timber or forest lands
of the public domain categori0ed in "ection AA
hereof, with a minimum area of 8ne Thousand
!$,&&&' hectares for industrial tree plantation and
8ne :undred !$&&' hectares for tree farm+ 4rovided,
That the si0e of the area that may be granted under
each category shall in each case depend upon the
capacity of the lessee to develop or convert the area
into productive condition within the term of the
lease+ 4rovided, further, That no lease shall be
granted within critical watersheds.
"cattered areas of less than 8ne :undred !$&&'
hectares each may be leased for the establishment
of tree farms to different ;ualified persons upon a
showing that if developed as an integrated unit these
areas can be economically e#ploited) 4rovided, That
it shall be a condition of the lease that such persons
organi0e themselves into a cooperative to ensure the
orderly management thereof.
The lease may be granted under such terms and
conditions as the =epartment :ead may prescribe,
taking into account, among others, the raw material
needs of forestbased industries and the
maintenance of a wholesome ecological balance.
6eforestation pro1ects of the >overnment, or portions
thereof which, upon field evaluation, are found to be
more suitable for, or can be better developed as,
industrial tree plantations or tree farms in terms of
benefits to the >overnment and the general
surrounding area, may be the sub1ect of the lease
under this section.
Section =F& ,riorit( 8ver any suitable area covered
by a timber license agreement, or a pasture lease
agreement or permit, the priority to establish
industrial forest plantation or tree farm shall be given
to the holder thereof.
The priority herein granted must, however, be
availed of within a reasonable period to be
determined by the =epartment :ead, otherwise, the
area shall be declared open to any ;ualified person
and conse;uently segregated from the holder2s area.
Section =?& Incenti;es To encourage ;ualified
persons to engage in industrial tree plantation andCor
tree farming, the following incentives are granted)
!a' 4ayment of a nominal filing fee of fifty centavos
!4&.B&' per hectare+
!b' ,o rental shall be collected during the first five
!B' years from the date of the lease+ from the si#th
year to the tenth year, the annual rental shall be fifty
centavos !4&.B&' per hectare+ and thereafter, the
annual rental shall be one peso !4$.&&' per hectare)
4rovided, That lessees of areas long denuded as
certified by the =irector and approved by the
=epartment :ead, shall be e#empted from the
payment of rental for the full term of the lease which
shall not e#ceed twentyfive !9B' years+ for the first
five !B' years following the renewal of the lease, the
annual rental shall be fifty centavos !4&.B&' per
hectare+ and thereafter, the annual rental shall be
one peso !4$.&&' per hectare.
!c' The lessee shall pay forest charges on the timber
and other forest products grown and cut or gathered
in an industrial tree plantation or tree farm
e;uivalent to si# percent !@N' current market value
thereof+
!d' "ale at cost of seedlings and free technical advice
and assistance to persons who will develop their
privatelyowned lands into industrial tree plantation
or tree farm+
!e' 5#emption from the payment of the percentage
ta# levied in Title G of the ,ational .nternal 6evenue
3ode when the timber and forest products are sold,
bartered or e#changed by the lessee whether in their
original state or not+
!f' The Board of .nvestments shall, notwithstanding
its nationality re;uirement on pro1ects involving
natural resources, classify industrial tree plantations
and tree farms as pioneer areas of investment under
its annual priority plan, to be governed by the rules
and regulations of said Board. - lessee of an
industrial tree plantation or tree farm may either
apply to the Board of .nvestments for the ta# and
other benefits thereunder, or avail of the following
benefits)
$. -mounts e#pended by a lessee in the
development and operation of an industrial tree
plantation or tree farm prior to the time when the
production state is reached, may, at the option of
said lessee, be regarded as ordinary and necessary
business e#penses or as capital e#penditures+ and
9. =eduction from an investor2s ta#able income for
the year, of an annual investment allowance
e;uivalent to thirtythree and onethird per cent !AA
$CAN' of his actual investment during the year in an
enterprise engaged in industrial tree plantation or
tree farm) 4rovided, That such investment shall not
be withdrawn for a period of at least ten !$&' years
from the date of investment) 4rovided, further, That
should the investment be withdrawn within such
period, a ta# e;uivalent to double the amount of the
total income ta# rebate resulting from the
investment allowance shall be payable as a lump
sum in addition to the income ta# due from the
ta#payer for the year the investment was withdrawn.
!g' 5#cept when public interest demands the
alteration or modification, the boundaries of an area
covered by an industrial tree plantation or tree farm
lease, once established on the ground, shall not be
altered or modified+ and
!h' - lessee shall not be sub1ect to any obligation
prescribed in, or arising out of, the provisions of the
,ational .nternal 6evenue 3ode on withholding of ta#
at source upon interests paid on borrowings incurred
for development and operation of the industrial tree
plantation or tree farm.
The =epartment :ead may provide other incentives
in addition to those hereinabove granted to promote
industrial tree plantation and tree farms in special
areas such as, but not limited to, those where there
are no roads or where roads are inade;uate, or areas
with rough topography and remote areas far from
processing plants.
-ll amounts collected under this section shall accrue
to a special deposit of the Bureau to be used for
reforestation of critical watersheds or degraded
areas and other development activities, over and
above the general appropriation of the said Bureau.
=. *865"T 468T53T.8,
Section =.& ,rotection of all resources -ll measures
shall be taken to protect the forest resources from
destruction, impairment and depletion.
Section =-& $ontrol of concession area .n order to
achieve the effective protection of the forest lands
and the resources thereof from illegal entry, unlawful
occupation, kaingin, fire, insect infestation, theft, and
other forms of forest destruction, the utili0ation of
timber therein shall not be allowed e#cept through
license agreements under which the holders thereof
shall have the e#clusive privilege to cut all the
allowable harvestable timber in their respective
concessions, and the additional right of occupation,
possession, and control over the same, to the
e#clusive of all others, e#cept the government, but
with the corresponding obligation to adopt all the
protection and conservation measures to ensure the
continuity of the productive condition of said areas,
conformably with multiple use and sustained yield
management.
.f the holder of a license agreement over a forest
area e#pressly or impliedly waives the privilege to
utili0e any softwood, hardwood or mangrove species
therein, a license may be issued to another person
for the harvest thereof without any right of
possession or occupation over the areas where they
are found, but he shall, likewise, adopt protection
and conservation measures consistent with those
adopted by the license agreement holder in the said
areas.
Section =,& 7egulation of tim)er utiliBation in all
ot%er classes of lands and of wood+processing
plants The utili0ation of timber in alienable and
disposable lands, private lands, civil reservations,
and all lands containing standing or felled timber,
including those under the 1urisdiction of other
government agencies, and the establishment and
operation of sawmills and other woodprocessing
plants, shall be regulated in order to prevent them
from being used as shelters for e#cessive and
unauthori0ed harvests in forest lands, and shall not
therefore be allowed e#cept through a license
agreement, license, lease or permit.
Section >6& &im)er in;entor( in ot%er lands
containing standing or felled tim)er The Bureau
shall conduct a one hundred per cent !$&&N' timber
inventory in alienable and disposable lands and civil
reservations immediately upon classification or
reservation thereof.
,o harvest of standing or felled timber in alienable
and disposable lands, private lands, civil reservation,
and all other lands, including those under the
1urisdiction of other government agencies, shall be
allowed unless a one hundred per cent !$&&N'
timber inventory has been conducted thereon.
Section >+& 'worn tim)er in;entor( reports -ll
reports on timber inventories of forest lands,
alienable and disposable lands, private lands, civil
reservations, and all lands containing standing or
felled timber must be subscribed and sworn to by all
the forest officers who conducted the same.
Section >*& ,articipation in t%e de;elopment of
aliena)le and disposa)le lands and ci;il
reser;ations The privilege to harvest timber in
alienable and disposable lands and civil reservations
shall be given to those who can best help in the
delineation and development of such areas in
accordance with the management plan of the
appropriate government e#ercising 1urisdiction over
the same.
The e#tent of participation shall be based on the
amount of timber which may be harvested
therefrom.
Section >=& 'wamplands and mangro;e
forests "trips of mangrove forest bordering
numerous islands which protect the shoreline, the
shoreline roads, and even coastal communities from
the destructive force of the sea during high winds
and typhoons, shall be maintained and shall not be
alienated. "uch strips must be kept from artificial
obstruction so that flood water will flow unimpeded
to the sea to avoid flooding or inundation of
cultivated areas in the upstream.
-ll mangrove swamps set aside for coastprotection
purposes shall not be sub1ect to clearcutting
operation.
(angrove and other swamps released to the Bureau
of *isheries and -;uatic 6esources for fishpond
purposes which are not utili0ed, or which have been
abandoned for five !B' years from the date of such
release shall revert to the category of forest land.
Section >>& ?isitorial power The =epartment :ead
may, by himself or thru the =irector or any ;ualified
person duly designated by the =epartment :ead,
investigate, inspect and e#amine records, books and
other documents relating to the operation of any
holder of a license agreement, license, lease, or
permit, and its subsidiary or affiliated companies, to
determine compliance with the terms and conditions
thereof, this 3ode and pertinent laws, policies, rules
and regulations.
Section >F& Aut%orit( of forest officers /hen in the
performance of their official duties, forest officers, or
other government officials or employees duly
authori0ed by the =epartment :ead or =irector, shall
have free entry into areas covered by a license
agreement, license, lease or permit.
*orest officers are authori0ed to administer oath and
take acknowledgment in official matters connected
with the functions of their office, and to take
testimony in official investigations conducted under
the authority of this 3ode and the implementing
rules and regulations.
Section >?& 'caling stations .n collaboration with
appropriate government agencies, the Bureau shall
establish control or scaling stations at suitably
located outlets of timber and other forest products to
insure that they were legally cut or harvested.
Section >.& Mining operations (ining operations in
forest lands shall be regulated and conducted with
due regard to protection, development and utili0ation
of other surface resources.
7ocation, prospecting, e#ploration, utili0ation or
e#ploitation of mineral resources in forest
reservations shall be governed by (ining laws, rules
and regulations. ,o location, prospecting,
e#ploration, utili0ation, or e#ploitation of mineral
resources inside forest concessions shall be allowed
unless proper notice has been served upon the
licensees thereof and the prior approval of the
=irector, secured.
(ine tailings and other pollutants affecting the health
and safety of the people, water, fish, vegetation,
animal life and other surface resources, shall be
filtered in silt traps or other filtration devices and
only clean e#hausts and li;uids shall be released
therefrom.
"urfacemined areas shall be restored to as near its
former natural configuration or as approved by the
=irector prior to its abandonment by the mining
concern.
Section >-& Mineral 7eser;ations (ineral
reservations which are not the sub1ect of mining
operations or where operations have been
suspended for more than five !B' years shall be
placed under forest management by the Bureau.
(ineral reservations where mining operations have
been terminated due to the e#haustion of its
minerals shall revert to the category of forest land,
unless otherwise reserved for other purposes.
Section >,& 7oads and ot%er infrastructure 6oads
and other infrastructure in forest lands shall be
constructed with the least impairment to the
resource values thereof.
>overnment agencies undertaking the construction
of roads, bridges, communications, and other
infrastructure and installations inside forest lands,
shall coordinate with the Bureau, especially if it will
involve the utili0ation or destruction of timber andCor
other forest resources, or watershed disturbance
therein, in order to adopt measures to avoid or
reduce damage or in1ury to the forest resource
values.
They shall likewise e#tend assistance in the planning
and establishment of roads, wharves, piers, port
facilities, and other infrastructure in locations
designated as woodprocessing centers or for the
convenience of woodbased industries.
.n order to coincide and conform to government
plans, programs, standards, and specifications,
holders of license agreements, licenses, leases and
permits shall not undertake road or infrastructure
construction or installation in forest lands without the
prior approval of the =irector, or in alienable and
disposable lands, civil reservations and other
government lands, without the approval of the
government agencies having administrative
1urisdiction over the same.
-ll roads and infrastructure constructed by holders of
license agreements, licenses, leases and permits
belong to the "tate and the use and administration
thereof shall be transferred to the government
immediately upon the e#piration or termination
thereof. 4rior thereto the Bureau may authori0e the
public use thereof, if it will not be detrimental to
forest conservation measures.
/here roads are utili0ed by more than one
commercial forest user, the Bureau shall prescribe
the terms and conditions of 1oint use including the
e;uitable sharing of construction andCor maintenance
costs, and of the use of these roads by other parties
and the collection of such fees as may be deemed
necessary.
Section F6& Logging roads There shall be
indiscriminate construction of logging roads.
"uch roads shall be strategically located and their
widths regulated so as to minimi0e clearcutting,
unnecessary damage or in1ury to healthy residuals,
and erosion. Their construction must not only serve
the transportation need of the logger but, most
importantly, the re;uirement to save as many
healthy residuals as possible during cutting and
hauling operations.
Section F+& Management of occupanc( in forest
lands *orest occupancy shall henceforth be
managed. The Bureau shall study, determine and
define which lands may be the sub1ect of occupancy
and prescribed therein, an agroforestry
development program.
8ccupants shall undertake measures to prevent and
protect forest resources.
-ny occupancy in forest land which will result in
sedimentation, erosion, reduction in water yield and
impairment of other resources to the detriment of
community and public interest shall not be allowed.
.n areas above B&N in slope, occupation shall be
conditioned upon the planting of desirable trees
thereon andCor adoption of other conservation
measures.
Section F*& $ensus of kaingineros/ s2uatters/
cultural minorities and ot%er occupants and residents
in forest lands :enceforth, no person shall enter into
forest lands and cultivate the same without lease or
permit.
- complete census of kaingineros, s;uatters, cultural
minorities and other occupants and residents in
forest lands with or without authority or permits from
the government, showing the e#tent of their
respective occupation and resulting damage, or
impairment of forest resources, shall be conducted.
The Bureau may call upon other agencies of the
government and holders of license agreement,
license, lease and permits over forest lands to
participate in the census.
Section F=& $riminal ,rosecution Xaingineros,
s;uatters, cultural minorities and other occupants
who entered into forest lands before the effectivity of
this 3ode, without permits or authority, shall not be
prosecuted) 4rovided, That they do not increase their
clearings) 4rovided, further, That they undertake,
within two !9' months from the notice thereof, the
activities which will be imposed upon them by the
Bureau in accordance with a management plan
calculated to conserve and protect forest resources.
5. "453.-7 F"5"
Section F>& ,asture in forest lands ,o forest land
B&N in slope or over may be utili0ed for pasture
purposes.
*orest lands which are being utili0ed for pasture shall
be maintained with sufficient grass cover to protect
soil, water and other forest resources.
.f grass cover is insufficient, the same shall be
supplemented with trees or such vegetative cover as
may be deemed necessary.
The si0e of forest lands that may be allowed for
pasture and other special uses shall be determined
by rules and regulations, any provision of law to the
contrary notwithstanding.
Section FF& 1ildlife /ildlife may be destroyed,
killed, consumed, eaten or otherwise disposed of,
without the necessity of permit, for the protection of
life, health, safety and property, and the convenience
of the people.
:owever, the =irector may regulate the killing and
destruction of wildlife in forest lands in order to
maintain an ecological balance of flora and fauna.
Section F?& 7ecreation The Bureau shall, in the
preparation of multipleuse management plans,
identify and provide for the protection of scenic
areas in all forest lands which are potentially
valuable for recreation and tourism, and plan for the
development and protection of such areas to attract
visitors thereto and meet increasing demands
therefor.
The construction and operation of necessary facilities
to accommodate outdoor recreation shall be done by
the Bureau with the use of funds derived from rentals
and fees for the operation and use of recreational
facilities by private persons or operators, in addition
to whatever funds may be appropriated for such
purposes.
Section F.& 8t%er special uses of forest
lands *orest lands may be leased for a period not
e#ceeding twentyfive !9B' years, renewable upon
the e#piration thereof for a similar period, or held
under permit, for the establishment of sawmills,
lumber yards, timber depots, logging camps, rights
ofway, or for the construction of sanatoria, bathing
establishments, camps, salt works, or other
beneficial purposes which do not in any way impair
the forest resources therein.
*. YF-7.*.3-T.8,"
Section F-& -iffusion of )enefits The privilege to
utili0e, e#ploit, occupy, or possess forest lands, or to
conduct any activity therein, or to establish and
operate woodprocessing plants, shall be diffused to
as many ;ualified and deserving applicants as
possible.
Section F,& $itiBens%ip .n the evaluation of
applications of corporations, increased *ilipino e;uity
and participation beyond the @&N constitutional
limitation shall be encouraged. -ll other factors being
e;ual, the applicant with more *ilipino e;uity and
participation shall be preferred.
Section ?6& 9inancial and tec%nical capa)ilit( ,o
license agreement, license, lease or permit over
forest lands shall be issued to an applicant unless he
proves satisfactorily that he has the financial
resources and technical capability not only to
minimi0e utili0ation, but also to practice forest
protection, conservation and development measures
to insure the perpetuation of said forest in productive
condition.
Section ?+& &ransfers Fnless authori0ed by the
=epartment :ead, no licensee, lessee, or permittee
may transfer, e#change, sell or convey his license
agreement, license, lease or permit, or any of his
rights or interests therein, or any of his assets used
in connection therewith.
The licensee, lessee, or permittee shall be allowed to
transfer or convey his license agreement, license,
lease or permit only if he has not violated any
forestry law, rule or regulation+ has been faithfully
complying with the terms and conditions of the
license agreement, license, lease or permit+ the
transferee has all the ;ualifications and none of the
dis;ualifications to hold a license agreement, license,
lease or permit+ there is no evidence that such
transfer or conveyance is being made for purposes of
speculation+ and the transferee shall assume all the
obligations of the transferor.
The transferor shall forever be barred from ac;uiring
another license agreement, license, lease or permit.
Section ?*& 'er;ice contracts The =epartment
:ead, may in the national interest, allow forest
products licensees, lessees, or permittees to enter
into service contracts for financial, technical,
management, or other forms of assistance, in
consideration of a fee, with any foreign person or
entity for the e#ploration, development, e#ploitation
or utili0ation of the forest resources, covered by their
license agreements, licenses, leases or permits.
5#isting valid and binding service contracts for
financial, technical, management or other forms of
assistance are hereby recogni0ed as such.
Section ?=& :2uit( s%aring 5very corporation
holding a license agreement, license, lease or permit
to utili0e, e#ploit, occupy or possess any forest land,
or conduct any activity therein, or establish and
operate a woodprocessing plant, shall within one !$'
year after the effectivity of this 3ode, formulate and
submit to the =epartment :ead for approval a plan
for the sale of at least twenty percent !9&N' of its
subscribed capital stock in favor of its employees and
laborers.
The plan shall be so implemented that the sale of the
shares of stock shall be effected by the corporation
not later than the si#th year of its operation, or the
first year of the effectivity of this 3ode, if the
corporation has been in operation for more than B
years prior to such effectivity.
,o corporation shall be issued any license
agreement, license, lease or permit after the
effectivity of this 3ode, unless it submits such a plan
and the same is approved for implementation within
the si#th year of its operation.
The =epartment :ead shall promulgate the
necessary rules and regulations to carry out the
provisions of this section, particularly on the
determination of the manner of payment, factors
affecting the selling price, establishment of priorities
in the purchase of the shares of stock, and the
capability of the deserving employees and laborers.
The industries concerned shall e#tend all assistance
in the promulgation of policies on the matter, such as
the submission of all data and information relative to
their operation, personnel management, and asset
evaluation.
>. 65>F7-T86T *55"
Section ?>& $%arges/ fees and )onds The
=epartment :ead, upon recommendation of the
=irector, shall fi# the amount of charges, rental,
bonds and fees for the different kinds of utili0ation,
e#ploitation, occupation, possession, or activity
inside forest lands, the filing and processing of
applications therefor, the issuance and renewal of
license agreements, licenses, leases and permits,
and for other services+ 4rovided, That all fees and
charges presently being collected under e#isting laws
and regulations shall continue to be imposed and
collected until otherwise provided+ 4rovided, further,
That timber taken and removed from private lands
for commercial purposes shall be e#empt from the
payment of forest charges.
Section ?F& Aut%orit( of -epartment 5ead to
impose ot%er fees .n addition to the fees and
charges imposed under e#isting laws, rules and
regulations, the =epartment :ead is hereby
authori0ed, upon recommendation of the =irector
and in consultation with representatives of the
industries affected, to impose other fees for forest
protection, management, reforestation, and
development, the proceeds of which shall accrue into
a special deposit of the Bureau as its revolving fund
for the aforementioned purposes.
Section ??& $ollection and -is)ursement The
collection of the charges and fees abovementioned
shall be the responsibility of the =irector or his
authori0ed representative. The =irector shall remit
his monthly collection of fees and charges mentioned
in "ection @D to the Treasurer of the 4hilippines
within the first ten !$&' days of the succeeding
month+ 4rovided, That the proceeds of the collection
of the fees imposed under "ection @B and the special
deposit heretofore re;uired of licensees shall be
constituted into a revolving fund for such purposes
and be deposited in the 4hilippine ,ational Bank, as
a special deposit of the Bureau. The Budget
3ommissioner and the ,ational Treasurer shall effect
the ;uarterly releases out of the collection accruing
to the general fund upon re;uest of the =irector on
the basis of a consolidated annual budget of a work
program approved by the =epartment :ead and the
4resident.
.n the case of the special deposit revolving fund,
withdrawals therefrom shall be effected by the
=epartment :ead on the basis of a consolidated
annual budget prepared by the =irector of a work
program for the specific purposes mentioned in
"ection @B.
Section ?.& Basis of Assessment Tree
measurement shall be the basis for assessing
government charges and other fees on timber cut
and removed from forest lands, alienable or
disposable lands, and the civil reservations+ 4rovided,
That until such time as the mechanics of tree
measurement shall have been developed and
promulgated in rules and regulations, the present
scaling method provided for in the ,ational .nternal
6evenue 3ode shall be used.
The =irector may, with the approval of the
=epartment :ead, prescribe a new method of
assessment of forest products and collection of
charges thereon based upon the result of production
cost and market studies undertaken by the Bureau+
4rovided, That such charges shall not be lower than
those now imposed.
C:A8TER IV
CRI9INAL O77ENSES AND 8ENALTIES
Section ?-& $utting/ gat%ering and@or collecting
tim)er or ot%er products wit%out license -ny person
who shall cut, gather, collect, or remove timber or
other forest products from any forest land, or timber
from alienable and disposable public lands, or from
private lands, without any authority under a license
agreement, lease, license or permit, shall be guilty of
;ualified theft as defined and punished under -rticles
A&% and A$& of the 6evised 4enal 3ode+ 4rovided,
That in the case of partnership, association or
corporation, the officers who ordered the cutting,
gathering or collecting shall be liable, and if such
officers are aliens, they shall, in addition to the
penalty, be deported without further proceedings on
the part of the 3ommission on .mmigration and
=eportation.
The 3ourt shall further order the confiscation in favor
of the government of the timber or forest products to
cut, gathered, collected or removed, and the
machinery, e;uipment, implements and tools used
therein, and the forfeiture of his improvements in the
area.
The same penalty plus cancellation of his license
agreement, lease, license or permit and perpetual
dis;ualification from ac;uiring any such privilege
shall be imposed upon any licensee, lessee, or
permittee who cuts timber from the licensed or
leased area of another, without pre1udice to
whatever civil action the latter may bring against the
offender.
Section ?,& Enlawful occupation or destruction of
forest lands -ny person who enters and occupies or
possesses, or makes kaingin for his own private use
or for others any forest land without authority under
a license agreement, lease, license or permit, or in
any manner destroys such forest land or part thereof,
or causes any damage to the timber stand and other
products and forest growths found therein, or who
assists, aids or abets any other person to do so, or
sets a fire, or negligently permits a fire to be set in
any forest land shall, upon conviction, be fined in an
amount of not less than five hundred pesos
!4B&&.&&' nor more than twenty thousand pesos
!49&,&&&.&&' and imprisoned for not less than si# !@'
months nor more than two !9' years for each such
offense, and be liable to the payment of ten !$&'
times the rental fees and other charges which would
have been accrued had the occupation and use of
the land been authori0ed under a license agreement,
lease, license or permit) 4rovided, That in the case of
an offender found guilty of making kaingin, the
penalty shall be imprisoned for not less than two !9'
nor more than !D' years and a fine e;ual to eight !?'
times the regular forest charges due on the forest
products destroyed, without pre1udice to the
payment of the full cost of restoration of the
occupied area as determined by the Bureau.
The 3ourt shall further order the eviction of the
offender from the land and the forfeiture to the
>overnment of all improvements made and all
vehicles, domestic animals and e;uipment of any
kind used in the commission of the offense. .f not
suitable for use by the Bureau, said vehicles shall be
sold at public auction, the proceeds of which shall
accrue to the =evelopment *und of the Bureau.
.n case the offender is a government official or
employee, he shall, in addition to the above
penalties, be deemed automatically dismissed from
office and permanently dis;ualified from holding any
elective or appointive position.
Section .6& ,asturing Li;estock .mprisonment for
not less than si# !@' months nor more than two !9'
years and a fine e;ual to ten !$&' times the regular
rentals due, in addition to the confiscation of such
livestock and all improvement introduced in the area
in favor of the government, shall be imposed upon
any person, who shall, without authority under a
lease or permit, gra0e or cause to gra0e livestock in
forest lands, gra0ing lands and alienable and
disposable lands which have not as yet been
disposed of in accordance with the 4ublic 7and -ct+
4rovided, That in case the offender is a corporation,
partnership or association, the officers and directors
thereof shall be liable.
Section .+& Illegal occupation of national parks
s(stem and recreation areas and ;andalism
t%erein -ny person who shall, without permit,
occupy for any length of time any portion of the
national parks system or shall, in any manner, cut,
destroy, damage or remove timber or any species of
vegetation or forest cover and other natural
resources found therein, or shall mutilate, deface or
destroy ob1ects of natural beauty or of scenic value
within areas in the national parks system, shall be
fined not less than two hundred !49&&.&&' pesos or
more than five hundred !4B&&.&&' pesos e#clusive of
the value of the thing damaged+ 4rovided, That if the
area re;uires rehabilitation or restoration as
determined by the =irector, the offender shall also
be re;uired to restore or compensate for the
restoration of the damage+ 4rovided, *urther, That
any person who, without proper permit shall hunt,
capture or kill any kind of bird, fish or wild animal life
within any area in the national parks system shall be
sub1ect to the same penalty+ 4rovided, *inally, That
the 3ourt shall order eviction of the offender from
the land and the forfeiture in favor of the
>overnment of all timber or any species of
vegetation and other natural resources collected or
removed, and any construction or improvement
made thereon by the offender. .f the offender is an
association or corporation, the president or manager
shall be directly responsible and liable for the act of
his employees or laborers.
.n the event that an official of a city or municipal
government is primarily responsible for detecting
and convicting the violator of the provisions of this
"ection, fifty per centum !B&N' of the fine collected
shall accrue to such municipality or city for the
development of local parks.
Section .*& -estruction of wildlife resources -ny
person violating the provisions of "ection BB of this
3ode, or the regulations promulgated thereunder,
shall be fined not less than one hundred !4$&&.&&'
pesos for each such violation and in addition shall be
denied a permit for a period of three !A' years from
the date of the violation.
Section .=& 'ur;e( )( unaut%oriBed
person .mprisonment for not less than two !9' nor
more than four !D' years, in addition to the
confiscation of the implements used in the violation
of this section including the cancellation of the
license, if any, shall be imposed upon any person
who shall, without permit to survey from the
=irector, enter any forest lands, whether covered by
a license agreement, lease, license, or permit, or not,
and conduct or undertake a survey for whatever
purpose.
Section .>& Misclassification and sur;e( )(
go;ernment official or emplo(ee -ny public officer
or employee who knowingly surveys, classifies, or
recommends the release of forest lands as alienable
and disposable lands contrary to the criteria and
standards established in this 3ode, or the rules and
regulations promulgated hereunder, shall, after an
appropriate administrative proceeding, be dismissed
from the service with pre1udice to reemployment,
and upon conviction by a court of competent
1urisdiction, suffer an imprisonment of not less than
one !$' year and a fine of not less than one
thousand, !4$,&&&.&&' pesos. The survey,
classification or release of forest lands shall be null
and void.
Section .F& &a= declaration on real
propert( .mprisonment for a period of not less than
two !9' nor more than four !D' years and perpetual
dis;ualification from holding an elective or
appointive office, shall be imposed upon any public
officer or employee who shall issue a ta# declaration
on real property without a certification from the
=irector of *orest =evelopment and the =irector of
7ands or their duly designated representatives that
the area declared for ta#ation is alienable and
disposable lands, unless the property is titled or has
been occupied and possessed by members of the
national cultural minorities prior to <uly D, $%BB.
Section .?& $oercion and influence -ny person who
coerces, influences, abets or persuades the public
officer or employee referred to in the two preceding
sections to commit any of the acts mentioned therein
shall suffer imprisonment of not less than one !$'
year and pay a fine of five hundred !4B&&.&&' pesos
for every hectare or a fraction thereof so improperly
surveyed, classified or released.
Section ..& Enlawful possession of implements and
de;ices used )( forest officers .mprisonment for a
period of not less than !9' nor more than four !D'
years and a fine of not less than one thousand pesos
!4$,&&&.&&', nor more than ten thousand
!4$&,&&&.&&' pesos in addition to the confiscation of
such implements and devices, and the automatic
cancellation of the license agreement, lease, license
or permit, if the offender is a holder thereof, shall be
imposed upon any person who shall, without
authority from the =irector or his authori0ed
representative, make, manufacture, or has in his
possession any government marking, hatchet or
other marking implement, or any marker, poster, or
other devices officially used by officers of the Bureau
for the marking or identification of timber or other
products, or any duplicate, counterfeit, or imitation
thereof, or make or apply a government mark on
timber or any other forest products by means of any
authentic or counterfeit device, or alter, deface, or
remove government marks or signs, from trees, logs,
stumps, firewoods or other forest products, or
destroy, deface, remove or disfigure any such mark,
sign, poster or warning notices set by the Bureau to
designate the boundaries of cutting areas, municipal
or city forest or pasture, classified timber land, forest
reserve, and areas under the national park system or
to make any false mark or imitation of any mark or
sign herein indicated+ 4rovided, That if the offender
is a corporation, partnership or association, the
officers and directors thereof shall be liable.
Section .-& ,a(ment/ collection and remittance of
forest c%arges -ny person who fails to pay the
amount due and payable under the provisions of this
3ode, the ,ational .nternal 6evenue 3ode, or the
rules and regulations promulgated thereunder, shall
be liable to the payment of a surcharge of twenty
five per centum !9BN' of the amount due and
payable.
-ny person who fails or refuses to remit to the proper
authorities said forest charges collectible pursuant to
the provisions of this 3ode or the ,ational .nternal
6evenue 3ode, or who delays, obstructs or prevents
the same, or who orders, causes or effects the
transfer or diversion of the funds for purposes other
than those specified in this 3ode, for each such
offense shall, upon conviction, be punished by a fine
of not e#ceeding one hundred thousand pesos
!4$&&,&&&.&&' andCor imprisonment for a period of
not e#ceeding si# !@' years in the discretion of the
3ourt. .f the offender is a government official or
employee, he shall, in addition, be dismissed from
the service with pre1udice to reinstatement and with
dis;ualification from holding any elective or
appointive office.
.f the offender is a corporation, partnership or
association, the officers and directors thereof shall
be liable.
Section .,& 'ale of wood products ,o person shall
sell or offer for sale any log, lumber, plywood or
other manufactured wood products in the
international or domestic market unless he complies
with grading rules and established or to be
established by the >overnment.
*ailure to adhere to the established grading rules
and standards, or any act of falsification of the
volume of logs, lumber, or other forest products shall
be a sufficient cause for the suspension of the
e#port, sawmill, or other license or permit
authori0ing the manufacture or sale of such products
for a period of not less than two !9' years.
- duly accredited representative of the Bureau shall
certify to the compliance by the licensees with
grading rules.
5very dealer in lumber and other building material
covered by this 3ode shall issue an invoice for each
sale of such material and such invoice shall state
that the kind, standard and si0e of material sold to
each purchaser in e#actly the same as described in
the invoice. -ny violation of this "ection shall be
sufficient ground for the suspension of the dealer2s
license for a period of not less than two !9' years
and, in addition thereto, the dealer shall be punished
for each such offense by a fine of not less than two
hundred pesos !49&&.&&' or the total value of the
invoice, whichever is greater.
Section -6& ArrestL Institution of criminal actions -
forest officer or employee of the Bureau shall arrest
even without warrant any person who has committed
or is committing in his presence any of the offenses
defined in this 3hapter. :e shall also sei0e and
confiscate, in favor of the >overnment, the tools and
e;uipment used in committing the offense, and the
forest products cut, gathered or taken by the
offender in the process of committing the offense.
The arresting forest officer or employee shall
thereafter deliver within si# !@' hours from the time
of arrest and sei0ure, the offender and the
confiscated forest products, tools and e;uipment to,
and file the proper complaint with, the appropriate
official designated by law to conduct preliminary
investigations and file informations in court.
.f the arrest and sei0ure are made in the forests, far
from the authorities designated by law to conduct
preliminary investigations, the delivery to, and filing
of the complaint with, the latter shall be done within
a reasonable time sufficient for ordinary travel from
the place of arrest to the place of delivery. The
sei0ed products, materials and e;uipment shall be
immediately disposed of in accordance with forestry
administrative orders promulgated by the
=epartment :ead.
The =epartment :ead may deputi0e any member or
unit of the 4hilippine 3onstabulary, police agency,
barangay or barrio official, or any ;ualified person to
protect the forest and e#ercise the power or
authority provided for in the preceding paragraph.
6eports and complaints regarding the commission of
any of the offenses defined in this 3hapter, not
committed in the presence of any forest officer or
employee, or any of the deputi0ed officers or
officials, shall immediately be investigated by the
forest officer assigned in the area where the offense
was allegedly committed, who shall thereupon
receive the evidence supporting the report or
complaint.
.f there is prima facie evidence to support the
complaint or report, the investigating forest officer
shall file the necessary complaint with the
appropriate official authori0ed by law to conduct a
preliminary investigation of criminal cases and file an
information in 3ourt.
8D No& +..F A9ENDIN; SECTION EI;:TB O7
8RESIDENTIAL DECREE NU9BERED SEVEN
:UNDRED 7IVE) AS A9ENDED) OT:ERWISE
<NOWN AS T:E LREVISED 7ORESTRB CODE
O7 T:E 8:ILI88INES&L
15:7:A', it is of common knowledge that only few
criminal cases are being filed against violators of the
forestry laws, rules and regulations because of the
apparent lack of manpower in the prosecuting arm of
the Bureau of *orestry =evelopment which
predicament could not be feasibly augmented due to
the present economic situation of the country+
15:7:A', it is of common knowledge that only few
criminal cases are being filed against violators of the
forestry laws, rules and regulations because of the
apparent lack of manpower in the prosecuting arm of
the Bureau of *orestry =evelopment which
predicament could not be feasibly augmented due to
the present economic situation of the country+
15:7:A', "ection ?& of the I6evised *orestry 3ode
of the 4hilippinesI, or any other law, rule and
regulation does not authori0e members of the
4hilippine 3onstabularyC.ntegrated ,ational 4olice to
file complaints against forest law violators e#cept
when they are lawfully deputi0ed by the (inister of
-griculture and ,atural 6esources pursuant to the
said 3ode+
N81/ &5:7:987:, ., *56=.,-,= 5. (-638",
4resident of the 4hilippines, by virtue of the powers
vested in me by the 3onstitution, do hereby degree
that)
"53T.8, $. "ection ?& of 4residential =ecree ,o. 7&B
is amended to read as follows)
I"ec. ?&. Arrest6 institution of criminal actions +
- forest officers or employee of the Bureau or any
personnel of the 4hilippines 3onstabularyC .ntegrated
,ational 4olice shall arrest even without warrant any
person who has committed or committing in his
presence any of the offenses defined in this 3hapter.
:e shall also sei0e and confiscate, in favor of the
>overnment, the tools and e;uipment used in
committing the offense, and the forest products cut,
gathered or taken by the offender in the process
committing the offense. The arresting forest officer
or employee shall thereafter deliver within si# !@'
hours from the time of arrest and sei0ure, the
offender and the confiscated forest product, tools
and e;uipment and file the proper complaint with,
the appropriate official designated by law to conduct
preliminary investigation and file information in
3ourt.
.f the arrest and sei0ure are made in the forest, far
from the authorities designated by the law to
conduct preliminary investigations, the delivery to,
and filing of the complaint with, the latter shall be
done within a reasonable time sufficient to the place
of delivery. The sei0ed products, materials and
e;uipment shall be immediately disposed of in
accordance with forestry administrative orders
promulgated by the =epartment :ead.
The =epartment :ead may deputi0ed any agency,
Bering or barrio official, or any ;ualified person to
protect the forest and e#ercise the power or
authority provided for in the preceding paragraph.
6eports and complaints regarding the commission of
any of the offenses defined in this 3hapter, not
committed in the presence of any forest officer or
employee, or any personnel of the 4hilippine
3onstabularyC.ntegrated ,ational 4olice or any of the
deputi0ed officers of officials, shall immediately be
investigated by the forest officer assigned in the area
or any personnel of the 4hilippine
3onstabularyC.ntegrated ,ational 4olice where the
offense was allegedly committed, who shall
thereupon receive the evidence supporting the
report or complaint. .f there is a prima facie evidence
to support the complaint or report the investigating
forest officer andC or members of the 4hilippine
3onstabularyC.ntegrated ,ational 4olice shall file the
necessary complaint with the appropriate official
authori0ed by law to conduct a preliminary
investigation of criminal case and file an information
in 3ourt.I
E#ecuti4e Or%er No& =+-) 8RO9OTIN;
SUSTAINABLE 7OREST 9ANA;E9ENT IN T:E
8:ILI88INES
W:EREAS) the 3onstitution provides for the
protection and advancement of the right of the
people to a balanced and healthy environment in
accord with the rhythm and harmony of nature, to
protect the *ilipino people from disaster like floods or
landslide, and from threats to environmental and
economic security like wood and water shortage,
biodiversity loss, air pollution and drought. 7ikewise,
it provides for the full, efficient and rightsbased use
of natural resources to abate poverty, promote
industriali0ation and full employment, affirm the
diverse cultures of the *ilipino, and ensure their
availability to present and future generations+
W:EREAS) "ustainable *orest (anagement !"*(' is
provided in the >lobal 4lan of implementation of the
/orld "ummit on "ustainable =evelopment adopted
in <ohannesburg, as an international strategy for
developing and managing forests+
W:EREAS) important socioeconomic and
environmental changes and policy reforms that
directly affect the forestry sector have taken place
since the issuance in $%7B of 4residential =ecree ,o.
7&B, otherwise known as the 6evised *orestry 3ode
of 4hilippines, and unless and until otherwise
directed by 3ongress, there is a need to provide
guidance to national agencies and instrumentalities
on how to best harmoni0e these policy reforms and
make the forestry sector responsive to e#ternal
changes, and attain "*( in the 4hilippines+
W:EREAS) logging or any commercial e#ploitation
of forestry resources in old growth forests,
proclaimed watersheds and other areas covered by
the ,ational .ntegrated 4rotected -reas "ystem
!,.4-"' is prohibited to ensure the perpetual
e#istence of all native plants and animals+
W:EREAS) a watershedbased integrated
ecosystem management approach is deemed
appropriate for "*( due to the interrelationships and
interactions between and among the various
ecosystems of a watershed such as the uplands and
coastal areas)
NOW) T:ERE7ORE) I ;LORIA 9ACA8A;AL
ARROBO) 4resident of the 6epublic of the
4hilippines, by virtue of the powers vested in me by
the 3onstitution, do hereby order)
SECTION +& 4eclaration of 0olicy. .t shall be the
4olicy of the >overnment to pursue the sustainable
management of forests and forestlands in
watersheds. /atersheds shall be deemed as
ecosystem management units and shall be managed
in a holistic, scientific, rightsbased, technology
based and communitybased manner and observing
the principles of multiuse, decentrali0ation and
devolution, and active participation of local
government units !7>Fs', synergism of economic,
ecological, social and cultural ob1ectives, and the
rational utili0ation of all resources found therein. .t
shall likewise be the policy of the >overnment to
promote sound, effective and efficient, globally
competitive and e;uitable forestry practices in both
public and private domains.
SECTION *& 5uiding 0rinciles. The pursuit of
these policies shall be guided by the following
principles)
*&+&Delineation) Classification an% De5arcation
of State 7orestlan%s
$. "tate forestlands shall be identified,
classified and delineatedCdemarcated on the
ground and shall constitute the permanent
forest estate unless otherwise stipulated by
3ongress+ the same shall be categori0ed
and managed either as primarily for
production or as primarily for protection
purposes, and in both cases, placed under a
formal management scheme.
9. 3onversions of forestlands into nonforestry
uses shall be allowed only through an act of
3ongress and upon the recommendation of
concerned government agencies.
*&*& :olistic) Sustaina"le an% Inte'rate%
De4elo/5ent of 7orestr$ Resources
$. The development and management of the
4hilippines forests and forestlands including
the coastal forests shall be for the highest
and widest public benefit and shall be based
on the inherent productive capacity and
sustainable use of these resource for the
present and future generation of *ilipinos.
9. The priority development, protection and
management activity of any management
unit shall be the rehabilitation of open
andCor denuded, degraded, fragile
forestlands+ and slope stabili0ation and
protection to address occurrence of floods,
landslides and similar ecological disasters.
A. The establishment of tree parks, regreening
and roadside planting of forest species in
open and appropriate spaces shall be
prioriti0ed to mitigate worsening urban air
;uality and global warming.
*&=& Co55unit$HBase% 7orest Conser4ation an%
De4elo/5ent
$. 3ommunityBased *orest (anagement
!3B*(' shall be the primary strategy in all
forest conservation and development and
related activities, including 1oint ventures,
production sharing and coproduction+ it
shall be encouraged in all private sector
forestry enterprises and ventures.
9. 3B*( shall be a collaborative undertaking of
the national government and the 7>Fs,
local peoples, community organi0ations,
civil society organi0ations !3"8s', and
private business entities.
A. 7ocal cultures, values, traditions, religious
beliefs and the rights of indigenous peoples
to their ancestral lands and domains as
promoted andCor defined by e#isting
legislation shall be recogni0ed and
respected in all forestry undertakings of the
"tate and the private sector.
*&>& Incenti4es for En!ancin' 8ri4ate
In4est5ents) Econo5ic Contri"ution an% ;lo"al
Co5/etiti4eness of 7orestHBase% In%ustries
$. The government shall provide a favorable
and stable policy and investment
environmentfriendly forest based
industries, ensure their sustainable raw
material supply and encourage valueadded
processing incountry to boost rural
employment and the economy.
9. *ilipino entrepreneurship in forestry shall be
encouraged and supported.
A. - package of incentives and services that
are responsive to the development of
forests in private and public forestlands
shall be adopted to encourage the
development of private forests, including
the deregulation of privatelydeveloped
forests and privatelyplanted trees and
enhancement of capacities of stakeholders
to engage in private forest development and
related activities.
D. The development of highvalue tree crops
and nontimber forest crops in public
forestlands, private lands and in home
forest gardens shall be promoted and
encouraged to enhance economic and
ecological benefits and attain self
sufficiency in the countrys wood
re;uirements.
B. .ncentives shall be provided to encourage
comanagement of forest resources
involving national and other government
agencies !,>-sC8>-s', 7>Fs, 3"8s, and the
private sector.
*&F 8ro/er Valuation an% 8ricin' of 7orestr$
Resources an% 7inancin' S79
$. (echanism for proper valuation and fair and
comprehensive pricing of forest products
and services, including water for domestic,
industrial, irrigation and power generation,
biodiversity and ecotourism, shall be
developed and promoted.
9. 7ocal, regional and national plowback
mechanisms of utili0ing proceeds from the
use of watersheds, forests and forestlands
for ecological and environmental services
such as, but not limited to power
generation, supplying domestic and
irrigation water, and ecotourism, shall be
developed and promoted to finance forest
protection, rehabilitation, and development.
A. -ppropriate and doable mechanisms for
adopting the principles of environment and
natural resources accounting !5,6-' and
watershed ecosystems as minimum spatial
units of accounts shall be developed and
institutionali0ed.
D. .nnovative financial systems and
approaches, such as securiti0ation, bonds
and collaborative investments, shall be
encouraged to support sustainable forest
management and enterprises and the
conservation of forestbased biodiversity in
the 4hilippines.
B. >overnment investments in and outsourced
financing for forest development such as the
application of clean development
mechanism !3=(' shall be prioriti0ed in
favor of forestlands that serve a significantly
large population such as critical watersheds
andCor which serve to reduce poverty and
ine;uitable access to forests such as those
under 3B*( andCor comanagement by
,>-sC8>-s, 7>Fs, industries, 3"8s, and
local communities.
*&?& Institutional Su//ort for S79
$. The principles and practices of good
governance such as transparency,
accountability and participatory decision
making, in transactions, decisions and
actions affecting forestry, in all levels, and
the policy of streamlining, decentrali0ation,
devolution and deregulation shall be
adopted, promoted and institutionali0ed in
the >overnment service.
9. 4artnerships and collaboration between and
among the =5,6, ,>-sC8>-s, 7>Fs,
professional forestry organi0ations, local
communities, civic groups, 3"8s,
basic sectors, academic and other research
and development institutions and other
stakeholders shall be promoted.
A. *orestry administrative systems and
institutions, including research and
development, shall be upgraded and
moderni0ed.
D. -cademic programs and scientific research
shall be harnessed to generate information,
technologies and policies that will
strengthen national
capacities for "*( under the frameworks of
watershed ecosystem management !/5('
and 3B*(.
B. :uman resources development programs
for all stakeholders shall be rationali0ed and
upgraded in support of "*(+ forestry
e#tension services by ,>-sC8>-s and 7>F
shall be upgraded and intensified and
undertaken with 3"8s, to support 3B*(,
pirvate forestry, forestry comanagement
enterprises, and the development of forest
based biodiversity.
@. *orest land use plans shall be incorporated
by 7>Fs in their comprehensive land use
plans. ,ational >overnment agencies shall
assist 7>Fs in this endeavor.
7. ,etworks and linkages involved with local
and international institutions, 3"8s, 7>Fs,
and industries involved in the promotion
and practice of "*( shall be
strengthened.
EO No & *?= ADO8TIN; CO99UNITBHBASED
7OREST 9ANA;E9ENT AS T:E NATIONAL
STRATE;B TO ENSURE T:E SUSTAINABLE
DEVELO89ENT O7 T:E COUNTRBOS
7ORESTLANDS RESOURCES AND 8ROVIDIN;
9EC:ANIS9S 7OR ITS I98LE9ENTATION
/:565-", -rticle .., "ection $@ of the $%?7
3onstitution provides for the protection and
advancement of the right of the *ilipino people, both
men and women, to a healthful and balanced
ecology+
/:565-", -rticle .., "ection $& provides for the
promotion of social 1ustice to all citi0ens in all phases
of national development+
/:565-", -rticle M.G, "ection $7 mandates the
"tate to recogni0e and respect the rights of the
indigenous peoples to their ancestral domains and
consider their customs, traditions and beliefs in the
formulation of laws and policies+
/:565-", 5#ecutive 8rder ,o. $%9, series of $%?7,
mandates the =epartment of 5nvironment and
,atural 6esources !=5,6' as the primary
government agency responsible for the sustainable
management and development of the country2s
natural resources+
/:565-", the 4hilippines 9&&& and the
government2s "ocial 6eform -genda support people
empowerment and the full, meaningful and
indispensable participation of communities as
immediate stakeholders of the forestland resources
in the protection and management of the forest
ecosystem+
/:565-", the 9Byear (aster 4lan for *orestry
=evelopment also recogni0es the indispensable role
of local communities in forest protection,
rehabilitation, development and management, and
targets the protection, rehabilitation, management,
and utili0ation of at least D million hectares of
forestlands, through the communitybased forest
management strategy+
/:565-", entrusting the responsibility for forest
rehabilitation, protection, and conservation to the
community of stakeholders and affording them
e;uitable access to the forest and coastal resources
are viable forestland management strategies as
borne by the e#perience of the =5,6 and various
supporting agencies+
,8/, T:565*865, . *.=57 G. 6-(8", 4resident of
the 4hilippines, by virtue of the powers vested in me
by law, do hereby order that)
"ec. $. 3ommunitybased forest management
!herein referred to as 3B*(' shall be the national
strategy to achieve sustainable forestry and social
1ustice.
"ec. 9. The =5,6, through its 3ommunity and
4rovincial 5nvironment and ,atural 6esource 8ffices,
in coordination with the local government units and
the =epartment of .nterior and 7ocal >overnment
!=.7>' shall, at all times, take into account the needs
and aspirations of local communities whose
livelihood depends on the forestlands.
"ec. A. 4articipating organi0ed communities may be
granted access to the forestland resources under
long term tenurial agreements, provided they
employ environmentfriendly, ecologically
sustainable, and laborintensive harvesting methods.
"uch harvesting methods shall be mentioned under a
sitespecific management plan of each recipient
community and duly approved by the =5,6.
"ec. D. The indigenous peoples may participate in the
implementation of 3B*( activities in recognition of
their rights to their ancestral domains and land rights
and claims.
"ec. B. - 3B*( "teering 3ommittee shall be created
immediately and headed by the =5,6 with members
from the =epartments of -griculture, Trade and
.ndustry, -grarian 6eform, *inance, "cience and
Technology, 7abor and 5mployment, .nterior and
7ocal >overnment, Budget and (anagement,
,ational =efense and <ustice+ ,ational 5conomic
=evelopment and -uthority+ 4hilippine 3ommission
on 3ountrywide =evelopment under the 8ffice of the
4resident, 3ommittee on *lagship 4rograms and
4ro1ects of the 8ffice of the 4resident+ 4residential
(anagement "taff under the 8ffice of the 4resident+
3ooperative =evelopment -uthority, and 8ffices of
,orthern and "outhern 3ultural 3ommunities. The
3ommittee may invite representatives from the
4hilippine 3hamber of 3ommerce, 4hilippine /ood
4roducts -ssociation, ,>8 coalition groups, and
other public and private organi0ations to become
members of the "teering 3ommittee. The 3ommittee
shall formulate and develop policy guidelines that
will create incentives and conditions necessary to
effectively carry out communitybased forest
management strategy. -ccordingly, members of the
3B*( "teering 3ommittee should, at least, be
represented by concerned -ssistant "ecretaries or
heads of bureaus and agencies.
"ec. @. The =5,6 shall work with local governments,
people2s organi0ations !48s', nongovernment
organi0ations !,>8s', religious groups, business and
industry, and other concerned organi0ations to
ensure that communities are empowered to initiate
and achieve the ob1ectives of this 8rder.
"ec. 7. .n its budget preparation, the =5,6 shall allot
ade;uate funds to effectively accomplish 3B*(
targets and shall seek supplementary funding from
local and foreign supporting agencies and
organi0ations. =5,6 shall ensure the inclusion of
budgetary allocation for 3B*( in the annual >eneral
-ppropriations -ct, pending the passage of the
revised *orestry 3ode.
"ec. ?. The =5,6 shall establish a 3ommunitybased
*orest (anagement "pecial -ccount !3B*("-' to
support the implementation of the strategy and
provide financial and professional incentive system
for deserving communities and government
personnel.
"ec. %. The =5,6 may source local and international
grants and donations for the establishment of the
3B*( "pecial -ccount. 8ther sources of fund may
later be determined by the 3B*( "teering
3ommittee sub1ect to e#isting government
regulations.
"ec. $&. The =5,6 shall support and set up 1ointly
with relevant colleges and universities, private and
public organi0ations, arrangements for a community
forestry training program for members of
participating units, such as people2s organi0ations,
nongovernment organi0ations, local government
units, and other government personnel.
"ec. $$. /ithin si# months after the signing of this
8rder, the =5,6, in consultation with government
financial institutions, such as the =evelopment Bank
of the 4hilippines !=B4', the 7and Bank of the
4hilippines !7B4', >"." and the """, shall effect the
creation of favorable financing mechanisms for
access by communities and organi0ations in the
pursuit of the 3B*( strategy and its substrategies
such as community training and empowerment,
enterprise development, agroforestry development,
tree plantations, and other nonforestbased
alternative livelihood systems.
"ec. $9. The =5,6 "ecretary shall issue new rules,
regulations, procedures, and guidelines necessary to
implement this 8rder and repeal or modify e#isting
ones consistent with the policies set forth by the
3B*( "teering 3ommittee.
"ec. $A. The =5,6 "ecretary shall, within si# months
from the signing of this 8rder, submit to the 8ffice of
the 4resident, a ,ational 3omprehensive 3ommunity
*orestry -ction 4lan, which embodies the
=epartment2s short, medium and longterm plans.
The action plan shall be discussed and approved by
the 3B*( "teering 3ommittee prior to its submission
to the 4resident.
"ec. $D. -ll previous e#ecutive and administrative
issuances which are inconsistent herewith are
repealed or amended accordingly.
Re/u"lic Act No& ,+.F C!ain Saw Act of *66*
Section *& -eclaration ,olic( P .t is the policy of the
"tate consistent with the 3onstitution, to conserve,
develop and protect the forest resources under
sustainable management. Toward this end, the "tate
shall pursue an aggressive forest protection program
geared towards eliminating illegal logging and other
forms of forest destruction which are being facilitated
with the use of chain saws. The "tate shall therefore
regulate the ownership, possession, sale, transfer,
importation andCor use of chain saws to prevent
them from being used in illegal logging or
unauthori0ed clearing of forests.
Section =. -efinition of &erms -s used in this -ct,
the term)
!a' I3hain sawI shall refer to any portable
power saw or similar cutting implement,
rendered operative by an electric or internal
combustion engine or similar means, that
may be used for, but is not limited to, the
felling of trees or the cutting of timber+
!b' I3hain saw dealerI shall refer to a
person, natural or 1uridical, engaged in the
manufacture, importation, distribution,
purchase andCor sale of chain saws+
!c' I=epartmentI shall refer to the
=epartment of 5nvironment and ,atural
6esources+ and
!d' I"ecretaryI shall refer to the "ecretary
of the =epartment of 5nvironment and
,atural 6esources.
Section >& ,ersons Aut%oriBed to Manufacturer/ 'ell
and Import $%ain 'aws 3hain saws shall only be
sold andCor imported by manufacturers, dealers
andCor private owners who are duly authori0ed by the
=epartment.
Section F& ,ersons Aut%oriBed to ,ossess and Ese a
$%ain 'aw The =epartment is hereby authori0ed to
issue permits to possess andCor use a chain saw for
the felling landCor cutting of trees, timber and other
forest or agroforest products to any applicant who)
!a' has a subsisting timber license
agreement, production sharing agreement,
or similar agreements, or a private land
timber permit+
!b' is an orchard and fruit tree farmer+
!c' is an industrial tree farmer+
!d' is a licensed wood processor and the
chain saw shall be used for the cutting of
timber that has been legally sold to said
applicant+ or
!e' shall use the chain saw for a legal
purpose.
-gencies of the government that use chain saws in
some aspects of their functions must likewise secure
the necessary permit from the =epartment before
operating the same.
Section ?& 7egistration of $%ain 'aws /ithin a
period of three !A' months from the effectivity
hereof, all persons who own or are otherwise in
possession of chain saws must register the same
with the =epartment, through any of its 3ommunity
5nvironment and ,atural 6esources 8ffice, which
shall issue the corresponding registration certificate
or permit if it finds such persons to be ;ualified
hereunder.
5very permit to possess andCor use a chain saw for
legitimate purpose shall be valid for two !9' years
upon issuance) ,ro;ided, That permits to possess
and use chainsaw issued to noncommercial orchard
and fruit tree farmers shall be valid for a period of
five !B' years upon issuance. *or this purpose, the
=epartment shall be allowed to collect reasonable
registration fees for the effective implementation of
this -ct.
Section .& ,enal ,ro;isions
!a' 'elling/ ,urc%asing/ 7e+selling/
&ransferring/ -istri)uting or ,ossessing a
$%ain 'aw 1it%out a ,roper ,ermit. -ny
person who sells, purchases, transfer the
ownership, distributes or otherwise disposes
or possesses a chain saw without first
securing the necessary permit from the
=epartment shall be punished with
imprisonment of four !D' years, two !9'
months and one !$' day to si# !@' years or a
fine of not less than *ifteen thousand pesos
!4$B,&&&.&&' but not more Thirty thousand
pesos !A&,&&&.&&' or both at the discretion
of the court, and the chain sawCs
confiscated in favor of the government.
!9' Enlawful Importation or Manufacturing
of $%ain 'aw + -ny person who imports or
manufactures a chain saw without obtaining
prior authori0ation from the =epartment
shall be punished by imprisonment of not
less than one !$' month nor more than si#
!@' months and a fine of not less than 8ne
thousand pesos !4$,&&&.&&' for more than
*our thousand pesos !4D,&&&.&&'.
!A' &ampering of :ngine 'erial Num)er.
-ny person who is found to have defaced or
tampered with the original registered
engine serial number of any chain saw unit
shall be punished by imprisonment of not
less than one !$' month nor more than si#
!@' months and a fine of not less than 8ne
thousand pesos !4$,&&&.&&' nor more than
*our thousand pesos !4D,&&&.&&'.
!D' Actual Enlawful Ese of $%ain 'aw -ny
person who is found to be in possession of a
chain saw and uses the same to cut trees
and timber in forest land or elsewhere
e#cept as authori0ed by the =epartment
shall be penali0ed with imprisonment of si#
!@' years and one !$' day to eight !?' years
or a fine of not less that Thirty thousand
pesos !4A&,&&&.&&' but not more than *ifty
thousand pesos !4B&,&&&.&&' or both at the
discretion of the court without pre1udice to
being prosecuted for a separate offense that
may have been simultaneously committed.
The chain saw unlawfully used shall be
likewise confiscated in favor of the
government.
.f the violation under this "ection is committed by or
through the command or order of another person,
partnership or corporation, the penalties herein
provided shall likewise be imposed on such other
person, or the responsible officer!s' in such
partnership or corporation.
.f the offender is a public official or employee, in
addition to the above penalties, he shall be removed
from office and perpetually dis;ualified from holding
any public office.
The chain saws confiscated under this "ection shall
be sold at public auction to ;ualified buyers and the
proceeds thereof shall go to the =epartment.
Section -& 7eward -ny person who voluntarily
gives information leading to the recovery or
confiscation of an unregistered chain saw and the
conviction of persons charged thereof shall be
entitled to a reward e;uivalent to twenty person
!9&N' of the value of the chain saw unit!s'. The
=epartment is authori0ed to include in its budget the
amount necessary to carry out the purpose of this
"ection.
Section ,. Aut%orit( of t%e 'ecretar( To
effectively implement the provisions of this -ct, the
"ecretary shall issue the implementing rules and
regulations within ninety !%&' days upon approval of
this -ct. :e shall likewise organi0e an office within
the =epartment to ensure that re;uirements
imposed by this -ct may be complied with by
;ualified persons, within the shortest possible time,
at the least possible e#pense.
.n the 4rovince of 4alawan, the provisions of this -ct
shall be implemented by the 4alawan 3ouncil for
"ustainable =evelopment pursuant to 6epublic -ct
,o. 7@$$ or the "trategic 5nvironmental 4lan for
4alawan.
Section +6& 7e;ocation of 7egistration and ,ermit.
The "ecretary may revoke any 3ertificate of
6egistration or permit previously issued to a person
found violating the provisions of this -ct, or the rules
and regulations issued pursuant thereto.
Section ++& Aoint $ongressional 8;ersig%t
$ommittee. To monitor and oversee the
implementation of this -ct, including the approval of
the rules and regulations issued pursuant hereto,
there is hereby created a <oint 3ongressional
8versight 3ommittee to be composed of the
3hairpersons of the "enate 3ommittee on
5nvironment and ,atural 6esources and the :ouse
3ommittee on ,atural 6esources as 3hairperson and
3o3hairperson, five !B' members of each of the
"enate and the :ouse of 6epresentatives who shall
be designated by the "enate 4resident and the
"peaker of the :ouse of 6epresentatives as
members) ,ro;ided/ That the two !9' of the five !B'
senators and two !9' of the five !B' :ouse members
shall be nominated by the respective (inority
7eaders of the "enate and the :ouse of
6epresentatives.