I. PD 705: Revised Forestry Code of The Philippines A. Preliminary 1. History of The Law

Report on PD 705 Revised Forestry Code & RA 8371: IPRA Group 1
Natural Resources & Environmental Laws JD-2
By:
Bautista, Guianne Joyce
Flora, Kenneth Jamaica
Garduce, Diane
Masedman, Moises
Obra, Juralyn Lilian
Padrigo, Denver
Peña, Diane Althea
Saavedra, Stephen Levi
I. PD 705: REVISED FORESTRY CODE OF THE PHILIPPINES
A. Preliminary1
1. History of the law

The Revised Forestry Code of the Philippines was issued on May 19, 1975. It repealed PD No.
389 or the Forestry Reform Code, CA No. 452 or the Pasture Land Act and all other inconsistent laws,
orders, rules and regulations or any part thereof.2
2. Purpose and functions of the law

The law places emphasis not only on the utilization of forest resources but more so on the
protection, rehabilitation and development of forest lands, in order to ensure the continuity of their
productive condition. It institutes the proper classification and delimination of the lands of the public
domaon, and the management, utilization, protection, rehabilitation and development of forestlands.
The Code adopts the following states policies:
(a) The multiple uses of forest lands shall be oriented to the development and progress
requirements of the country, the advancement of science and technology, and the public
welfare;
(b) Land classification and survey shall be systematized and hastened;
(c) The establishment of wood-processing plants shall be encouraged and rationalized; and
(d) The protection, development and rehabilitation of forest lands shall be emphasized so as to
ensure their continuity in productive condition.
3. Multiple use
The multiple use of forest lands is important because it increases and provides sufficient
resources for societal demands on forests for timber and non-timber products, as well as ecosystem
services. Rising environmental and social awareness about tropical forests are globally important
trends affecting tropical forest use. Under the right conditions, multiple use of forest lands could:
(a) diversify forest use;
(b) broaden forest productivity;
(c) provide incentives for maintaining forest cover; and
1 Agcoaili, Oswald D. The Law on Natural Resources (2012). Manila: Rex Bookstore.
2 PD 705; May 19, 1975. http://www.lawphil.net/statutes/presdecs/pd1975/pd_705_1975.html; last accessed Nov. 2, 2017.
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(d) allow a greater number of beneficiaries to receive forest benefits.
4. Land classification
Far from what most of us know, land classification is imporatant. It serves the following purposes:
(a) to measure land and its impact on ecosystem;
(b) to meet the different needs of people, whether agricultural or non agricultural;
(c) to meet the growing industrial and economic demands of the State;
(d) to monitor the environment (a detailed classification of land use is required); and
(e) to define approximate boundaries of lands.
5. Wood-processing plants
The State adopts wood-processing plant practices designed for producing high-quality chips or
biomass according to end-product requirements. At the same time, the objective is to minimize labor
and energy costs, wood losses, environmental load, and maintenance requirements.
6. Why is forestion important?

We depend on forests for our survival—from the air we breathe, to the wood we use. Aside
from providing habitat for animals and livelihood for humans, forests also offer watershed protection,
prevent soil erosion, and mitigate climate change. Forests play an important role in environmental
protection. The forests in mountain areas help prevent soil erosion, landslides, and avalanches, and
maintain the water quality of rivers draining forested catchments.
A major issue in forestation is air pollution, which is known to have had significant impact on
some forests. Air pollutants of concern include sulfur dioxide, hydrogen fluoride, heavy metals, and
ozone. Control of these pollutants ultimately benefits forests. Forests have a major role to play in the
protection of the global carbon cycle. Reforestation and afforestation could contribute to reducing
atmospheric carbon dioxide concentrations, and the use of biofuels could help to reduce demand for
fossil fuels.
A.2. Definition of terms
1. Public forest refers to the mass of lands of the public domain which has not been the subject of
the present system of classification determinining which lands are needed for forest purposes
and which are not.
2. Permanent forest or forest reserves refer to those lands of the public domain which have been
the subject of the present system of classification and determined to be needed for forest
purposes.
The following are the watersheds and forest reserves3 in the Philippines:
Name Area Established Location
23,185.00 ha
Aklan River 1990 Aklan
(57,291.4 acres)
3 Wikipedia: https://en.wikipedia.org/wiki/List_of_protected_areas_of_the_Philippines#Watershed_Forest_Reserves;
last accessed Nov. 2, 2017.
2

688.00 ha
Alabat 1987 Quezon
(1,700.1 acres)
3,630.00 ha
Alijawan-Cansuhay-Anibongan River 1992 Bohol
(8,969.9 acres)
92,450.00 ha
Allah Valley 1985 South Cotabato
(228,448.9 acres)
6,600.00 ha
Angat Watershed 1968 Bulacan
(16,309.0 acres)
430.00 ha
Aurora 1936 Aurora
(1,062.6 acres)
8,955.00 ha
Bawa 1987 Cagayan
(22,128.3 acres)
465.00 ha
Binahaan River 1991 Quezon
(1,149.0 acres)
4,803.00 ha
Calabgan 1992 Aurora
(11,868.5 acres)
2,670.00 ha
Calatrava-San Andres-San Agustin 1982 Romblon
(6,597.7 acres)
328.00 ha
Calauag 1939 Quezon
(810.5 acres)
752.00 ha
Capalonga 1966 Camarines Norte
(1,858.2 acres)
26,010.00 ha
Catanduanes 1987 Catanduanes
(64,272.1 acres)
44.00 ha
Dahican 1933 Camarines Norte
(108.7 acres)
8,558.00 ha
Dalanas River 1990 Antique
(21,147.3 acres)
4,528.00 ha
Dibalo-Pingit-Zabali-Malayat 1992 Aurora
(11,188.9 acres)
1,786.00 ha
Dipaculao 1987 Aurora
(4,413.3 acres)
20,760.00 ha Bulacan
Doña Remedios-General Tinio 1988
(51,299.1 acres) Nueva Ecija
424.80 ha
Dupax 1934 Nueva Vizcaya
(1,049.7 acres)
2,815.00 ha
Ilocos Norte Metro 1934 Ilocos Norte
(6,956.0 acres)
10,211.00 ha Negros
Ilog-Hilabangan 1990
(25,231.9 acres) Occidental
Infanta 384.00 ha 1967 Quezon
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(948.9 acres)
9,228.00 ha
Jalaur River 1990 Iloilo
(22,802.9 acres)
432.00 ha Negros
Kabankalan 1991
(1,067.5 acres) Occidental
180,460.00 ha
Lake Lanao 1992 Lanao del Sur
(445,926.4 acres)
52,820.00 ha
Libungan 1990 Cotabato
(130,521.1 acres)
19,410.00 ha
Loboc River 1953 Bohol
(47,963.2 acres)
418.00 ha
Lopez 1940 Quezon
(1,032.9 acres)
39,304.00 ha
Lower Agno 1983 Benguet
(97,122.3 acres)
6,150.00 ha
Maasin 1923 Iloilo
(15,197.0 acres)
136.00 ha Misamis
Mahugunao 1932
(336.1 acres) Oriental
235.00 ha
Malagos 1933 Davao del Sur
(580.7 acres)
6,105.00 ha
Marcos Highway 1978 Benguet
(15,085.8 acres)
325.00 ha
Mariveles (Palanas) 1919 Bataan
(803.1 acres)
26.00 ha
Mulanay 1938 Quezon
(64.2 acres)
90.00 ha
Naguilian 1936 La Union
(222.4 acres)
6,335.00 ha
Olongapo (Palanas) 1987 Zambales
(15,654.1 acres)
4,776.00 ha
Palawan 1982 Palawan
(11,801.8 acres)
2,392.00 ha
Palompon 1988 Leyte
(5,910.8 acres)
4,350.00 ha
Panay River 1990 Capiz
(10,749.1 acres)
84,500.00 ha
Pantabangan–Carranglan Watershed 1969 Nueva Ecija
(208,804.0 acres)
130.00 ha
Polillo 1966 Quezon
(321.2 acres)
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25.00 ha
Santa 1935 Ilocos Sur
(61.8 acres)
1,894.20 ha
South Upi 1987 Maguindanao
(4,680.7 acres)
37,156.00 ha Nueva Ecija
Talavera 1938
(91,814.5 acres) Nueva Vizcaya
41.00 ha
Tanap 1971 Ilocos Norte
(101.3 acres)
280.00 ha
Tibiang-Damagandong 1938 Quezon
(691.9 acres)
105.00 ha
Torrijos 1932 Marinduque
(259.5 acres)
17,670.00 ha
Tumauini 1994 Isabela
(43,663.5 acres)
6,992.00 ha
Wangag 1987 Cagayan
(17,277.6 acres)
3. Alienable and disposable lands refer to those lands of the public domain which have been the
subject of the present system of classification and declared as not needed for forest purposes.
4. Forest lands include the public forest, the permanent forest or forest reserves, and forest
reservations.
5. Grazing 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.
One of the grazing lands in the Philippines is the grassland vegetation in Western Leyte.
6. Mineral lands refer to those lands of the public domain which have been classified as such by
the Secretary of Natural Resources in accordance with prescribed and approved criteria,
guidelines and procedure.
7. Forest reservations refer to forest lands which have been reserved by the President of the
Philippines for any specific purpose or purposes.
8. National 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 exclusively to
preserve the scenery, the natural and historic objects and the wild animals or plants therein, and
to provide enjoyment of these features in such a manner as will leave them unimpaired for
future generations.
The following are the national parks in the Philippines4:

Name Area Established Location Coordinates
Aurora Memorial National 5,676.00 ha Aurora 15°35′03″N
1937
Park (14,025.7 acres) Nueva Ecija 121°24′00″E
4 Wikipedia: https://en.wikipedia.org/wiki/List_of_national_parks_of_the_Philippines (citing Establishing and

Managing Protected Areas. DENR-Protected Areas and Wildlife Bureau.); last accessed Nov. 2, 2017.
5

Balbalasang-Balbalan 1,338.00 ha 17°27′00″N
1972 Kalinga
National Park (3,306.3 acres) 121°09′00″E
13.90 ha 16°29′00″N
Bangan Hill National Park 1995 Nueva Vizcaya
(34.3 acres) 121°09′00″E
23,688.00 ha 14°36′22″N
Bataan National Park 1945 Bataan
(58,534.3 acres) 120°30′31″E
Biak-na-Bato National Park 2,117.00 ha 1937 Bulacan 15°07′08″N
(5,231.2 acres) 121°05′06″E
Bulabog Putian National 854.33 ha 11°02′01″N
1961 Iloilo
Park (2,111.1 acres) 122°40′02″E
347.00 ha 13°46′49″N
Caramoan National Park 1938 Camarines Sur
(857.5 acres) 123°52′49″E
Cassamata Hill National 57.00 ha 17°35′28″N
1974 Abra
Park (140.9 acres) 120°37′17″E
Fuyot Springs National Park 819.00 ha 1938 Isabela 17°12′40″N
(2,023.8 acres) 122°00′56″E
Guadalupe Mabugnao
57.50 ha 10°08′01″N
Mainit Hot Spring National (142.1 acres) 1972 Cebu 123°36′00″E
Park
Hundred Islands National 1,676.30 ha 16°12′02″N
1940 Pangasinan
Park (4,142.2 acres) 120°02′15″E
Kuapnit Balinsasayao 364.00 ha 10°38′45″N
1937 Leyte
National Park (899.5 acres) 124°55′13″E
68.00 ha 7°44′07″N
Lake Butig National Park 1965 Lanao del Sur
(168.0 acres) 124°17′19″E
1,500.00 ha 7°47′16″N
Lake Dapao National Park 1965 Lanao del Sur
(3,706.6 acres) 124°02′51″E
Libmanan Caves National 19.40 ha 13°39′00″N
1934 Camarines Sur
Park (47.9 acres) 122°48′00″E
16.24 ha 14°35′00″N
Luneta National Park 1955 Metro Manila
(40.1 acres) 120°58′42″E
MacArthur Landing 6.78 ha 11°10′19″N
1977 Leyte
Memorial National Park (16.8 acres) 125°00′45″E
Mado Hot Spring National 48.00 ha 7°13′00″N
1939 Cotabato
Park (118.6 acres) 124°15′00″E
2,018.00 ha 15°18′27″N
Minalungao National Park 1967 Nueva Ecija
(4,986.6 acres) 121°08′33″E
Mount Arayat National Park 3,715.23 ha 1933 Pampanga 15°12′13″N
(9,180.5 acres) 120°43′45″E
213.35 ha 6°00′47″N
Mount Dajo National Park 1938 Sulu
(527.2 acres) 121°03′13″E
6

Mount Data National Park Benguet
5,512.00 ha 16°52′41″N
(Baguio-Bontoc Scenic 1936 Mountain
(13,620.4 acres) 120°50′18″E
National Park) Province
Mounts Iglit–Baco National 75,455.00 ha Mindoro 12°44′36″N
1969
Park (186,453.4 acres) Occidental 121°07′31″E
Benguet
11,550.00 ha 16°35′01″N
Mount Pulag National Park 1987 Ifugao
(28,540.7 acres) 120°53′01″E
Nueva Vizcaya
Naujan Lake National Park 21,655.00 ha 1956 Mindoro Oriental 13°10′22″N
(53,510.7 acres) 121°20′34″E
Northern Luzon Heroes Hill 1,316.00 ha 17°29′10″N
1963 Ilocos Sur
National Park (3,251.9 acres) 120°27′11″E
Olongapo Naval Base 9.04 ha 14°49′37″N
1968 Zambales
Perimeter National Park (22.3 acres) 120°17′10″E
Pagsanjan Gorge National 152.64 ha 14°16′00″N
1939 Laguna
Park (377.2 acres) 121°29′00″E
Pantuwaraya Lake National 20.00 ha 8°02′00″N
1965 Lanao del Sur
Park (49.4 acres) 124°16′00″E
340.00 ha 18°07′16″N
Paoay Lake National Park 1969 Ilocos Norte
(840.2 acres) 120°32′12″E
Puerto Princesa 22,202.00 ha 10°10′00″N
1999 Palawan
Subterranean River Park (54,862.3 acres) 118°55′00″E
Quezon Memorial National 22.70 ha 14°39′04″N
1975 Metro Manila
Park (56.1 acres) 121°02′57″E
8°03′40″N
Rungkunan National Park undetermined 1965 Lanao del Sur
124°24′11″E
Sacred Mountain National 94.00 ha 8°01′16″N
1965 Lanao del Sur
Park (232.3 acres) 124°17′47″E
7°52′14″N
Salikata National Park undetermined 1965 Lanao del Sur
124°21′32″E
9. Game 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 excess population
may flow and restock surrounding areas.
The game refuges in the Philippines are5:
(a) Calauit Safara Park in Palawan, established in 1976;
(b) Calavite and FB Harrisson in Occidental Mindoro, established in 1920;
(c) Lake Buluan in Cotabato, established in 2006;
(d) Lake Malimanga in Zamabales, established in 1980; and
5 Wikipedia: https://en.wikipedia.org/wiki/List_of_protected_areas_of_the_Philippines#Game_Refuge_and_Bird
_ Sanctuaries; last accessed Nov. 2, 2017.
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(e) Olango Island in Cebu, established in 1992.

10. Marine parks refers to any off-shore area inhabited by rare and unique species of marine flora
and fauna.
The marine parks in the Philippines are6:
(a) Masinloc and Oyon Bay in Zambales, established in 1993;
(b) Palaui Island in Cagayan, established in 1994;
(c) Sagay in Negros Occidental, estbalished in 2001; and
(d) Taklong Island in Guimaras, established in 1990.
11. Seashore park refers to any public shore area delimited for outdoor recreation, sports fishing,
water skiing and related healthful activities.
12. Watershed reservation is a forest land reservation established to protect or improve the
conditions of the water yield thereof or reduce sedimentation.
13. Watershed is a land area drained by a stream or fixed body of water and its tributaries having a
common outlet for surface run-off.
14. Critical watershed is a drainage area of a river system supporting existing and proposed
hydro-electric power and irrigation works needing immediate rehabilitation as it is being
subjected to a fast denudation causing accelerated erosion and destructive floods. It is closed
from logging until it is fully rehabilitated.
15. Mangrove is a term applied to the type of forest occurring on tidal flat along the sea coast,
extending along streams where the water is brackish.
It is indispensable to note that Palawan and Sulu have the largest mangrove forest in the
Philippines, while Pangasinan is the richest in mangrove species with 25 species, followed
by Zambales with 21 mangrove species, and Ilocos Norte with 7 species.
16. Kaingin is a portion of the forest land, whether occupied or not, which is subjected to shifting
and/or permanent slash-and-burn cultivation having little or no provision to prevent soil
erosion.
“Kaingin” is a Filipino word that means clearing. Kaingin system is the illegal act of cutting
down and burning of trees and plant growth in an area for cultivation purposes. Known as
“swidden farming” in other countries, it is a traditional but destructive agricultural system
practiced in many parts of the globe. After the land is cleared and transformed into a fertile
and cultivable land, farmers plant and harvest crops until the soil fertility recedes. Swidden
farmers will move to another land, leaving the field fallow until the land recovers and is
once again suitable for planting crops. The rampant practice of kaingin system has led to the
deforestation of many rainforests and the significant dwindling of wildlife around the world.
In order to stop the illegal act of Kaingin, Congress passed RA No. 37017 or “An Act To
Discourage Destruction Of Forests, Further Amending For The Purpose Section Twenty-Seven
Hundred Fifty-One Of The Revised Administrative Code”. It states:
“Unlawful occupation or destruction of public forest. Without the written permission of the
Director of Forestry or his duly authorized representative, it shall be unlawful for any
person willfully to enter upon any public forest, proclaimed timberland, communal forest,
6 Wikipedia: https://en.wikipedia.org/wiki/List_of_protected_areas_of_the_Philippines#Marine_Reserves; last
accessed Nov. 2, 2017.
7 RA 3701; June 22, 1963. http://www.lawphil.net/statutes/repacts/ra1963/ra_3701_1963.html; last accessed Nov. 2, 2017.
8
communal pasture, and forest reserve and occupy the same, or to make "caingin" therein or
in any manner destroy such forest or part thereof, or to cause any damage to the timber
stand and other forest products and forest growth found therein, or to assist, aid or abet any
other person so to do. It shall also be unlawful for any person negligently to permit a fire
which has been set upon his own premises to be communicated, with destructive results, to
any of the public forests hereinabove described.”
17. Forest product means timber, pulpwood, firewood, bark, tree top, resin, gum, wood, oil, honey,
beeswax, 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.
18. Dipterocarp 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 Philippine mahogany group,
apitong and the yakals.
19. Pine forest is a forest composed of the Benguet Pine in the Mountain Provinces or the Mindoro
pine in Mindoro and Zambales provinces.
20. Industrial tree plantation is any tract of forest land purposely and extensively planted to
timber crops primarily to supply the raw material requirements of existing or proposed
processing plants and related industries.
21. Tree farm refers to any tract of forest land purposely and extensively planted to trees of
economic value for their fruits, flowers, leaves, barks, or extractives, but not for the wood
thereof.
22. Multiple-use is the harmonized utilization of the numerous beneficial uses of the land, soil,
water, wildlife, recreation value, grass and timber of forest lands.
23. Selective logging means the systematic removal of the mature, over-mature and defective trees
in such manner as to leave adequate 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.
24. Seed tree system is partial clearcutting with seed trees left to regenerate the area.
25. Healthy residual is a sound or slightly injured tree of the commercial species left after logging.
26. Sustained-yield management implies continuous or periodic production of forest products in a
working unit with the aid of achieving at the earliest practicable time an approximate 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.
27. Processing plant is any mechanical set-up, machine or combination of machine used for the
processing of logs and other forest raw materials into lumber, veneer, plywood, wallboard,
block-board, paper board, pulp, paper or other finished wood products.
B. Organizational Structure
The Department of Environment and Natural Resources (DENR) is the government agency
primarily responsible for the implementation of the Revised Forestry Code's state policies. In the
discharge of its responsibility, the DENR shall assure the availability and sustainability of the country’s
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natural resources through judicious use and systematic restoration or replacement, whenever possible,
and increase in the productivity of natural resources in order to meet the demands of the growing
population for the products of forest lands, mineral lands, and water resources.
Pursuant to Section 4 of EO No. 192 dated June 10, 1987, the DENR “shall be the primary
government agency responsible for the conservation, management, development and proper use of the
country’s environment and natural resources, specifically forest and grazing lands, mineral resources,
including those in reservation and watershed areas and lands of public domain, as well as the licensing
and regulations of all natural resourcesa as may be provided for by law in order to ensure equitable
sharing for the benefits derived therefrom for the wrlfare of the present and future generations of
Filipinos”.
1. May the courts interfere with the executive department's policy determination on the proper
management of the forest resources?
In Ysmael vs Deputy Executive Secretary8, the petitioner sought the reinstatement of its timber
license agreement which was cancelled in August 1983, pursuant to the instructions of the President
and the memorandum of the then Minister of Natural Resources to stop all logging operations in Nueva
Vizcaya and Quirino, in order to conserve the country’s remaining forest resources.
Sustaining the cancellation of petitioner’s timber license agreement, the Supreme Court,
through Justice Cortes, explained that the task of implementing the policy to develop and conserve the
country’s natural resources rests upon the shoulders of the DENR Secretary. Both executive and
legislative departments of the incumbent administration then were presently taking stock of its
environmental policies with regard to the utilization of timber lands and developing an agenda for
future programs for their conservation and rehabilitation. The Court took judicial notice of the wasting
of the country’s forest resources. It has resulted not only in the irreversible loss of flora and fauna
peculiar to the region, but also in the production of even more disastrous and lasting economic-social
effects. The Court futher held:
“While the administration grapples with the complex and multifarious problems caused by
unbriddled exploitation of these resources, the judiciary will stand clear. A long line of cases establish
the basic rule that the courts will not interfere in matters which are addressed to the sound discretion of
government agencies entrusted with the regulation of activities coming under the special technical
knowledge and training of such agencies.”
However, the holders of agreements issued by the DENR are not precluded from seeking relief
in the courts. In Semirara Corporation vs HGL Development Co.9, the Court held that the grantee of a
pasture lease agreement, like the respondent, has the right to the lawful possession of the property for
the period stated in the agreement, and any disturbance of its possession is a valid ground for the
issuance of writ of preliminary mandatory injuction.
Case digest: Semirara Corporation vs HGL Development Co.
FACTS: Petitioner Semirara Mining Corporation is a grantee by the Department of Energy of a

Coal Operating Contract over the entire 5,500-hectare Island of Semirara, Antique. Private
respondent HGL Development Corporation is a grantee of Forest Land Grazing Lease Agreement
8 GR No. 79538; Oct. 18, 1990.

9 GR No. 166854; Dec. 6, 2006.
10
(FLGLA) by the then Ministry of Environment and Natural Resources, over 367 hectares of land
also in Semirara, Antique.
Sometime in 1999, Semirara's representatives approached HGL and requested for permission to
allow their trucks and other equipment to pass through the property covered by the FLGLA. HGL
granted the request on condition that petitioners use would not violate the FLGLA in any way.
Subsequently, however, Semirara erected several buildings for its administrative offices and
employees' residences without HGL's permission. Semirara also conducted blasting and excavation,
constructed an access road to their minesite, and maintained a stockyard for their coal. Thus, the
land which had been used for cattle grazing was greatly damaged, causing the decimation of HGL's
cattle. HGL wrote to Semirara demanding full disclosure of its activities on the subject land as well
as prohibiting it from constructing any improvements without HGL's permission. Semirara ignored
the demand and continued with its activities.
The DENR unilaterally cancelled the FLGLA and ordered HGL to vacate the premises, finding that
HGL failed to pay the annual rental. HGL sent a letter dated to DENR Secretary Alvarez seeking
reconsideration. The DENR did not act on the letter. HGL filed a complaint against the DENR for
specific performance and damages with prayer for a TRO and/or writ of preliminary injunction.
HGL also filed a complaint against Semirara for Recovery of Possession and Damages with Prayer
for TRO and/or Writ of Preliminary Mandatory Injunction.
Semirara filed its Answer, raising the defense that HGL no longer had any right to possess the
subject property since its FLGLA has already been cancelled and said cancellation had already
become final.
The Court of Appeals ruled in favor of HGL. Under the said lease agreement, HGL was granted
permission to use and possess the subject land for cattle-grazing purposes. However, Semirara
averred that the FLGLA on which HGL's cause of action is based was already cancelled by the
DENR. While it was true that the DENR issued the Orders cancelling the FLGLA, the same was
not yet final since it was the subject of a civil case pending in the RTC. Thus, for all intents and
purposes, the FLGLA was still subsisting.
HELD: “The construction of numerous buildings and the blasting activities thereon by Semirara,
undertaken without the consent of HGL, blatantly violates the rights of the latter because it reduced
the area being used for cattle-grazing. As holder of a pasture lease agreement, HGL has a clear and
unmistakable right to the possession of the subject property, for a period of 25 years or until 2009.
As lawful possessor, HGL is entitled to protection of its possession of the subject property and any
disturbance of its possession is a valid ground for the issuance of a writ of preliminary mandatory
injunction in its favor. The urgency and necessity for the issuance of a writ of mandatory injunction
also cannot be denied, considering that HGL stands to suffer material and substantial injury as a
result of petitioners continuous intrusion into the subject property. Semirara's continued occupation
of the property not only results in the deprivation of HGL of the use and possession of the subject
property but likewise affects HGLs business operations.”
2. Who has the authority to manage and control communal forests?
In Ruzol v. Sandiganbayan10, the issue was whether the authority to monitor and regulate the
transportation of salvaged forest products is solely with the DENR and no one else. The Court ruled
10 GR No. 186739; April 17, 2013.
11
that the DENR is not the sole government agency vested with the authority to issue permits relevant to
the transportation of salvaged forest products. Pursuant to the general welfare clause 11, the local
government units (LGUs) may also exercise such authority.
Forestlands, although under the management of the DENR, are not exempt from the territorial
application of municipal laws. Hence, in the case of Aquino vs Municipality of Malay, the Court ruled
that the petitioner-company, Boracay Island West Cove Management Philippines, which applied for a
building permit to construct a three-storey hotel, is bound not only by the provisions of the Forest Land
Use Agreement for Tourism Purposes (FLAgT) issued by the DENR which covers the land on which
they plan to construct their hotel, but also with the “no build zone restriction” imposed by a municipal
ordinance which was enacted even before the FLAgT was entered into.
The authority of the LGUs to manage communal forests within their respective jurisdictions,
however, is still subject to the control and supervision of the DENR.
B.2. The Forest Management Bureau
1. Jurisdiction and Functions

The Revised Forestry Code provides that the Forest Management Bureau (FMB) shall have
jurisdiction and authority over all forestlands, grazing lands, and all forest reservations including
watershed reservations presently administered by other government agencies or instrumentalities.
It shall be responsible for the following:
1. the protection, development, management, regeneration, and reforestation of forestlands;
2. 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;
3. the implementation of multiple use and sustained yield management in forest lands;
4. the protection, development and preservation of national parks, marine parks, game
refuges and wildlife;
5. the implementation of measures and programs to prevent kaingin and managed
occupancy of forest and grazing lands;
6. the effective, efficient and economic classification of lands of the public domain, in
collaboration with other bureaus; and
7. the enforcement of forestry, reforestation, parks, game and wildlife laws, rules, and
regulations.
It shall also 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.
It is important to note, however, that not every activity inside the forest area is subject to the
jurisdiction of the FMB. In Lagua vs Cusi12, the Court held that the Revised Forestry Code does not
vest any power in the FMB to determine whether the closure of a logging road is legal or illegal and to
make such determination a prerequisite before an action for damages may be maintained. It held:
“Moreover, the complaint instituted by the petitioners is clearly for damages based on the
alleged illegal closure of the logging road. Whether or not such closure was illegal is a matter to be
established on the part of the petitioners and a matter to be disproved by the private respondents. This
should appropriately be threshed out in a judicial proceeding. It is beyond the power and authority of
11 Note: LGUs are granted governmental powers over their defined territorial jurisdiction.
12 G.R. No. L-44649; April 15, 1988.
12
the Bureau to determine the unlawful closure of a passage way much less award or deny the payment
of damages. Not every activity inside the forest area is subject to the jurisdiction of the Bureau.”
Case digest: Lagua vs Cusi
FACTS: The hauling trucks of petitioner Lagua, et al., loaded with logs, were prevented by
Eastcoast Development Enterprises, from passing through a national highway leading to where
their logs would be needed. As a result, they suffered damages and losses. Hence, they filed a case
against Eastcoast.
Contention of respondents: The acts complained of by the petitioners arose out of the legitimate
exercise of Eastcoast's rights as a timber licensee, more particularly in the use of its logging roads,
therefore, the resolution of this question is properly and legally within the Bureau of Forest
Development, citing as authority PD No. 705.
Trial court's ruling: The court dismissed the case, agreeing with Eastcoast, holding that: Under
the law, the Bureau has the exclusive power to regulate the use of logging road and to determine
whether their use is in violation of laws. Since the damages claimed to have been sustained by the
plaintiffs arose from the alleged illegal closure of a logging road. The simple fact is there was an
illegal closure of the national highway affecting the private rights of the plaintiffs who sustained
damages and losses as a consequence thereof — the question whether or not the road was illegally
closed must first be determined by the Bureau. If it finds that the road was legally closed, an action
for damages may be filed in Court. Otherwise, no civil action would prosper, for there would be no
tortious act.
Contention of petitioner: They maintain that since their action is for damages, the regular courts
have jurisdiction over the same. According to them, the respondent court had no basis for holding
that the Bureau of Forestry Development must first determine that the closure of a logging road is
illegal before an action for damages can be instituted.
HELD: The Supreme Court ruled in favor of the petitioners. P.D. No. 705 upon which the trial
court based its order does not vest any power in the Bureau of Forest Development (now FMB) to
determine whether or not the closure of a logging road is legal or illegal and to make such
determination a pre -requisite before an action for damages may be maintained. Moreover, the
complaint instituted by the petitioners is clearly for damages based on the alleged illegal closure of
the logging road. Whether or not such closure was illegal is a matter to be established on the part of
the petitioners and a matter to be disproved by the private respondents. This should appropriately
be threshed out in a judicial proceeding. It is beyond the power and authority of the Bureau to
determine the unlawful closure of a passage way, much less award or deny the payment of damages
based on such closure.
2. Organization
The Bureau is headed by a Director, who shall be assisted by one or more Assistant Directors.
They shall be appointed by the President.
The Code states that no person shall be appointed Director or Assistant Director of the Bureau
unless he or she meets the following qualifications:
13
(a) natural born citizen of the Philippines;

(b) at least 30 years of age;
(c) a holder of at least a Bachelor's Degree in Forestry or its equivalent; and
(d) a registered forester.
Nonito M. Tamayo and Mayumi Quintos-Natividad13 are currently serving as Director and
Assistant Director, respectively. The organization of the Bureau as of 201714 is as follows:
3. Supervision and Review

The Bureau shall be under the direct control and supervision of the Secretary of the DENR. All
actions and decisions of the Director are subject to review, motu propio or upon appeal of any person
aggrieved, by the DENR Secretary. The decision of the DENR Secretary shall be final and executory
13 Forestry Management Bureau's official website: http://forestry.denr.gov.ph/index.php/about-fmb/organization#od; last
accessed Nov. 3, 2017.
14 Ibid.
14
after the lapse of thirty (30) days from receipt by the aggrieved party, unless appealed to the President
in accordance with the EO No. 19, series of 1966.
The Decision of the DENR Secretary may not be reviewed by the courts except through a
special civil action for certiorari or prohibition.
4. Exhaustion of Administrative Remedies

The doctrine of exhaustion of administrative remedies calls for aggrieved parties to resort first
to the appropriate administrative authorities, in the resolution of a controversy falling under their
jurisdiction, before the same may be elevated to the courts of justice for review.
The theory is that the administrative authorities are in a better position to resolve questions
addressed to their particular experties and errors committed by subordinates in their resolution may be
rectified by their superiors if given a chance to do so.
In Addition Hills Mandaluyong Civic Social Organization vs Megaworld Properties and
Holdings, Inc.15 Supreme Court said: “We have consistently declared that the doctrine of exhaustion of
administrative remedies is a cornerstone of our judicial system. The thrust of the rule is that courts
must allow administrative agencies to carry out their functions and discharge their responsibilities
within the specialized areas of their respective competence. The rationale for this doctrine is obvious. It
entails lesser expenses and provides for the speedier resolution of controversies. Comity and
convenience also impel courts of justice to shy away from a dispute until the system of administrative
redress has been completed.”
In Republic vs Lacap16, the Supreme Court expounded on the doctrine of exhaustion of
administrative remedies and the related doctrine of primary jurisdiction in this wise: “The general rule
is that before a party may seek the intervention of the court, he should first avail of all the means
afforded him by administrative processes. The issues which administrative agencies are authorized to
decide should not be summarily taken from them and submitted to a court without first giving such
administrative agency the opportunity to dispose of the same after due deliberation.”
Corollary to this is the doctrine of primary jurisdiction, that is, courts cannot or will not
determine a controversy involving a question which is within the jurisdiction of the administrative
tribunal prior to the resolution of that question by the administrative tribunal, where the question
demands the exercise of sound administrative discretion requiring the special knowledge, experience
and services of the administrative tribunal to determine technical and intricate matters of fact.
In the Lacap case, the Court noted that the two doctrines are not inflexible rules. There are
many accepted exceptions, such as:
(a) where there is estoppel on the part of the party invoking the doctrine;
(b) where the challenged administrative act is patently illegal, amounting to lack of
jurisdiction;
(c) where there is unreasonable delay or official inaction that will irretrievably prejudice
the complainant;
(d) where the amount involved is relatively small so as to make the rule impractical and
oppressive;
(e) where the question involved is purely legal and will ultimately have to be decided by
the courts of justice;
15 GR No. 175039; April 18, 2012.
16 GR No. 158253; March 2, 2007.
15
(f) where judicial intervention is urgent;

(g) when its application may cause great and irreparable damage;
(h) where the controverted acts violate due process;
(i) when the issue of non-exhaustion of administrative remedies has been rendered moot;
(j) when there is no other plain, speedy and adequate remedy;
(k) when strong public interest is involved; and
(l) in quo warranto proceedings.
Even if it be assumed that the forestry laws do not expressly require prior resort to
administrative remedies, the reason for the doctrine would suffice to still require its observance. Even if
such reasons are disregarded, there would still be the explicit language of pertinent laws vesting in the
DENR the power to "regulate, exercise jurisdiction" in the "management of disposition of all lands of
the public domain" and in the Bureau the responsibility for the enforcement of the forestry laws and
regulations here claimed to have been violated. It implies that, at the very least, the DENR should be
allowed to rule in the first instance on any controversy coming under its express powers, before the
courts of justice may intervene.
It is important to point that the DENR is the primary responsible to the enforcement of foresty
law, rules, and regulations. By the very nature of its function, the DENR should be given a free hand
unperturbed by judicial intrusion to determine a controversy which is well within its jurisdiction
It is an established doctrine that the decision and orders of administrative agencies have, upon
their finality, the force and binding effect of a final judgment within the purvie of the doctrine of res
judicata. These decisions and orders are as conclusive upon the rights of the affected parties as though
the same had been rendered by a court of general jurisdiction. The rule of res judicita thus forbids the
reopening of a matter once determined by a competenet authority acting within their exclusive
jurisciction.
In the Ysmael case17, the petitioner sent a letter to the Office of the President and DENR seeking
the reconsideration of a memorandum order issued by the Bureau of Forest Development which
cancelled its timber license agreement in 1983. The record showed that the petitioner did not avail of
its remedies under the law by attacking the validity of these administrative actions until after 1986. By
the time petitioner sent its letter to the newly appointed Secretary of DENR, these were already settled
matters as far as petitioner is concern.
The fact that petitioner failed to seasonably take judicial resources to have the earlier
administrative actions reviewed by the courts through a petition for certiorari was held prejudicial to
the cause. The petitioner’s delay constitutes unreasonable and inexcusable neglect tantamount to
laches.
C. Classification and Survey
1. What are the functions of the DENR Secretary?

(a) to classify and survey lands of the public domain:
- 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:
i. agricultural;
17 See note 9, supra.
16
ii. industrial or commercial;

iii. residential;
iv. resettlement;
v. mineral;
vi. timber or forest;
vii. grazing lands; and
viii. into such other classes as now or may later on be provided by law, rules and
regulations.
(b) to determine which unclassified lands shall form part of forest reserves:
- simplify, through inter-bureau 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.
(c) to decree lands not needed for forest purposes as alienable and disposable:
- decree those classified and determined not to be needed for forest purposes as alienable
and disposable lands, the administrative jurisdiction and management of which shall be
transferred to the Bureau of Lands.
- Mangrove and other swamps not needed for shore protection and suitable for fishpond
purposes are released to, and placed under the administrative jurisdiction and
management of, the Bureau of Fisheries and Aquatic Resources.
- Lands still to be classified continue to remain part of public forest. Forest lands which
have been subject of pasture leases and permits remain classified as forest lands until
classified as grazing lands. Its administration, management and disposition of grazing
lands shall remain under the Forest Management Bureau.
2. Definition of Forest Lands
Lexical definition Legal definition

Large tract of land covered with natural Include the public forest, the permanent
growth of trees and underbrush; a large forest or forest reserves, and forest
wood reservations.
• Descriptive of what appears on • A legal status, a classification for
the land legal purposes
• Changes from time to time, • The classification is descriptive
depending on the activity done on of its legal nature or status and
the land does not have to be descriptive of
what the land actually looks like
Complexities in setting the legal definition:

B.H. Baden Powell, Forest Law of India, said: “Every definition of a forest that can be framed
for legal purposes will be found either to exclude some cases to which the law ought to apply or
include some with which the law ought not to apply.”
17
C.2. Characteristics of Forest Lands
1. Forest lands are not capable of private appropriation.
General rule: Public forest lands or forest reserves are part of inalienable lands of the public domain in
accordance with the Regalian doctrine and thus, not capable of private appropriation.
Exception: They may be capable of appropriation if declassified and released by positive acts of the
government. The prerogative of classifying or reclassifying lands of the public domain belongs to the
government and not the court. The onus to prove that a land subject to registration is alienable and
disposable belongs to the applicant.
On Ancestral Lands: RA 8371 or the Indigenous Peoples Rights Act (IPRA) converts ancestral lands to
public agricultural land which may be disposed by the State. Hence, there is no need to secure a
separate certification that the ancestral land is alienable and disposable in character, it being sufficient
to show that the land is duly identified, delimited, and certified as such.
Republic vs Court of Appeals and Lastimado:

If the land in question was inside the military reservation at the time it was claimed, then, it
cannot be the object of any cadastral proceeding nor can it be the object of reopening under Republic
Act No. 931. Similarly, if the land in question, indeed forms part of the public forest, then, possession
thereof, however long, cannot convert it into private property as it is within the exclusive jurisdiction of
the Bureau of Forestry and beyond the power and jurisdiction of the Cadastral Court to register under
the Torrens System.
Case digest: Republic vs Court of Appeals and Lastimado
FACTS: Isabel Lastimado filed on September 11, 1967, in the Court of First Instance of Bataan, a
petition for reopening of a cadastral proceeding over a portion of lot of the Mariveles Cadastre
consisting of 971 hectares. The trial Court issued an order for the issuance of a decree of
registration on November 20, 1967, and on November 21, 1967, the Land Registration Commission
issued Decree No. N-117573 in favor of private respondent. Original Certificate of Title No. N-144
was also issued in her favor.
On June 3, 1968, or within one year from the entry of the decree of registration, the Republic filed a
Petition for Review on the ground of fraud in obtaining the certificate of title. The land was part of
the U.S. Military Reservation in Bataan, which was formally turned over to the Republic of the
Philippines only on December 22, 1965, and that the same is inside the public forest of Mariveles,
Bataan and, therefore, not subject to disposition or acquisition under the Public Land Law.
The Petition for Review was dismissed on the ground that the Solicitor General had failed to file
opposition to the original Petition for reopening of the cadastral proceedings and was, therefore,
estopped from questioning the decree of registration ordered issued therein. The CA upheld the
decision of the trial court.
18
ISSUE: Whether a forest land, which is part of the public domain, could be validly appropriate by
private individuals.
HELD: If the land in question was inside the military reservation at the time it was claimed, then,
it cannot be the object of any cadastral proceeding nor can it be the object of reopening under
Republic Act No. 931. Similarly, if the land in question, indeed forms part of the public forest, then,
possession thereof, however long, cannot convert it into private property as it is within the
exclusive jurisdiction of the Bureau of Forestry and beyond the power and jurisdiction of the
Cadastral Court to register under the Torrens System.
Yngson vs Secretary of Agriculture and Natural Resources:

It is elementary in the law governing the disposition of lands of the public domain that until
timber or forest lands are released as disposable and alienable neither the Bureau of Lands nor the
Bureau of Fisheries has authority to lease, grant, sell, or otherwise dispose of these lands for
homesteads, sales patents, leases for grazing or other purposes, fishpond leases, and other modes of
utilization.
Case digest: Yngson vs Secretary of Agriculture and Natural Resources
FACTS: Several persons filed their applications with the Bureau of Fisheries, to utilize mangrove
swamps in Sitio Urbaso, Barrio Mabini, Municipality of Escalante, Negros Occidental for fishpond
purposes. The first and second applications were rejected, however, because said area were then
still considered as communal forest and therefore not yet available for fishpond purposes. On
March 19, 1952, petitioner- appellant Serafin B. Yngson filed a similar application for fishpond
permit with the Bureau of Fisheries followed by those of the respondents-appellees, Anita de
Gonzales and Jose M. Lopez, who filed their respective applications with the same bureau on
March 19 and April 24, 1953.
The lands were only released for said purpose on April 10, 1954. The whole area was awarded in
favor of Yngson prompting Gonzales and Lopez to appeal such award to the Department of
Agricultural and Natural Resources (DANR). DANR Secretary set aside the order and caused the
division of the area in three equal portions for each applicant. Yngson was not satisfied and filed a
petition for certiorari in the CA.
CA: Dismissed, failed to establish "capricious and whimsical exercise of judgment" on the part of
the Department of Agriculture and Natural Resources and the Office of the President of the
Philippines as to constitute grave abuse of discretion justifying review by the courts in a special
civil action.
ISSUE: Did the administrative agencies having jurisdiction over leases of public lands for
development into fishponds gravely abuse their discretion in interpreting and applying their own
rules?
HELD: It is elementary in the law governing the disposition of lands of the public domain that
until timber or forest lands are released as disposable and alienable neither the Bureau of Lands nor
the Bureau of Fisheries has authority to lease, grant, sell, or otherwise dispose of these lands for
19
homesteads, sales patents, leases for grazing or other purposes, fishpond leases, and other modes of
utilization.
Since all applications are made prematurely (before reclassification as alienable and disposable),
none of the applicants have a preferential right over the other. The action of the Office of the
President and DANR to redeem the rejected applications and award the lands proportionately to the
three claimants is an exercise of sound discretion which should not be disturbed.
2. Forest lands are not registrable.
Republic vs. Court of Appeals and Bernabe:

The transfer to innocent purchasers for value does not divest the government of its right to
cancel the titles. It is well-settled that a certificate of title is void, when it covers property of public
domain classified as forest or timber and mineral lands. Any title issued on non-disposable lots even in
the hands of an alleged innocent purchaser for value, shall be cancelled. In the case at bar, it will be
noted that in granting titles to the land in dispute, the lower court counted the period of possession of
private respondents before the same were released as forest lands for disposition, which release is
tantamount to qualifying the latter to a grant on said lands while they were still non-disposable.
Case digest: Republic vs Court of Appeals and Bernabe
FACTS: Lot No. 622 of the Mariveles Cadastre was declared public land in a decision rendered
before the last war in a Cadastral. On July 6, 1965, Lot 622 was segregated from the forest zone
and released and certified by the Bureau of Forestry as an agricultural land for disposition under the
Public Land Act. On April 26, 1967, Emilio Bernabe seek to reopen the cadastral case to perfect
their imperfect titles over the lot. They allege that they acquired the land by purchasing the same
for value. They also allege that they and their predecessor-in-interest have been in continuous,
open, active exclusive, public and adverse possession of the land for more than 30 years.
The Director of Forestry filed an opposition stating that the area involved is found to be within the
timberland and therefore inalienable under the Constitution. The Director of Forestry withdrew his
petition when he discovered that the area is already released from the mass of public forests. The
lower court awarded titles in favor of the applicants.
The Republic of the Philippines, acting on behalf of the Director of Mines and Director of Forestry,
through the Solicitor-General, filed a petition for review.
Contentions of the Republic:

1. The entire proceeding was vitiated by lack of notice to the Solicitor General of the subsequent
hearings of the petition for re-opening of the cadastral proceedings.
2. The parcels of land subject matter of the petition to re-open cadastral proceedings are portions of
the public domain, admittedly within the unclassified public forest of Mariveles, Bataan, opened for
disposition only on or about July 6, 1965; and subsequently, respondents do not have a registerable
title to the land subject matter of the proceedings
3. The lower court, without jurisdiction to decree the confirmation of registerable title to
respondents over portions of the public domain.
20
Contention of the Applicants:

1. The trial court has no jurisdiction over the nature of the action or suit as there is no fraud to
justify the setting aside on review of a decree of registration.
2. The petition states no cause of action, the parcels of land involved in the actions having been
already transferred to innocent purchasers for value long before the Solicitor-General even filed the
petition for review.
CA: Affirmed the grant of title to the applicants
ISSUE: Whether the grant of title is proper
HELD: The applicants are not entitled titles to the land in question. The private respondents could
only be credited with 1 year, 9 months and 20 days possession and occupation of the lots involved,
counted from July 6, 1965, the date when the land area which includes the lots claimed by
respondents, had been segregated from the forest zone and released by the Bureau of Forestry as an
agricultural land for disposition under the Public Land Act. Consequently, under the above
mentioned jurisprudence, neither private respondents nor their predecessors-in-interest could have
possessed the lots for the requisite period of thirty (30) years as disposable agricultural land.
Also, the transfer to innocent purchasers for value does not divest the government of its right to
cancel the titles. It is well-settled that a certificate of title is void, when it covers property of public
domain classified as forest or timber and mineral lands. Any title issued on non-disposable lots
even in the hands of an alleged innocent purchaser for value, shall be cancelled. In the case at bar, it
will be noted that in granting titles to the land in dispute, the lower court counted the period of
possession of private respondents before the same were released as forest lands for disposition,
which release is tantamount to qualifying the latter to a grant on said lands while they were still
non-disposable. Thus, under the foregoing rulings, even assuming that the transferees are innocent
purchasers for value, their titles to said lands derived from the titles of private respondents which
were not validly issued as they cover lands still a part of the public domain, may be cancelled.
C.3. Topography
General rule: Lands that have a slope of 18% or over cannot be classified as alienable and disposable.
If already classified as Alienable and Disposable, it shall be reverted as forest lands by the DENR
Secretary.
Exception: When there are vested rights—the land is already covered by existing titles or approved
public land applications, or actually occupied openly, continuously, adversely, and publicly for a period
of not less than 30 years as of effectivity of PD 705, where the occupant is qualified for a free patent
under the Public Land Act.
Exception to the Exception: When public interest so requires, steps shall be taken to expropriate, cancel
defective titles, reject public land application, or eject occupants thereof.
Forest lands 50% in slope or over cannot be classified as grazing land.
21
C.4. Areas Needed for Forest Purposes

1. Areas less than 250 hectares which are far from, or are not contiguous with, any certified
alienable and disposable land;
2. Isolated patches of forest of at least five (5) hectares with rocky terrain, or which protect a
spring for communal use;
3. Areas which have already been reforested;
4. Areas within forest concessions which are timbered or have good residual stocking to
support an existing, or approved to be established, wood processing plant;
5. Ridge tops and plateaus regardless of size found within, or surrounded wholly or partly by,
forest lands where headwaters emanate;
6. Appropriately located road-rights-or-way;
7. Twenty-meter strips of land along the edge of the normal high waterline of rivers and
streams with channels of at least five (5) meters wide;
8. Strips of mangrove or swamplands at least twenty (20) meters wide, along shorelines facing
oceans, lakes, and other bodies of water, and strips of land at least twenty (20) meters wide
facing lakes;
9. Areas 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
10. Areas previously proclaimed by the President as forest reserves, national parks, game
refuge, bird sanctuaries, national shrines, national historic sites.
Effect if they are titled in favor of a private person: If public interest so requires, steps shall be
taken to have said title cancelled or amended, or the titled area be appropriated.
Mangrove swamps or manglares

They are comprised within the public forests of the Philippines, as provided for in the
Administrative Code of 1917. Mangrove swamps are “mud flats, alternately washed and exposed by
the tide, in which grows various kindred plants which will not live except when watered by the sea,
extending their roots deep into the mud and casting their seeds, which also germinate there. These
constitute the mangrove flats of the tropics, which exist naturally, but which are also, to some extent
cultivated by man for the sake of the combustible wood of the mangrove and like trees as well as for
the useful nipa palm propagated thereon.”18
They cannot be subject of adverse possession and consequent ownership. They must first be
released as agricultural land by the Director of Forest Development.
The Bureau of Fisheries and Aquatic Resources has no jurisdiction to administer or dispose of
swamplands or mangrove lands forming a part of the public domain until such lands have been released
for fishery purposes.
Director of Forestry vs Villareal:

The mere existence of such a plan would not have the effect of converting the mangrove
swamps, as forest land, into agricultural land. Such approval is ineffectual because it is clearly in
officious. The Director of Lands was not authorized to act in the premises. Under the Revised
Administrative Code, it is the Director of Forestry who has the authority to determine whether forest
18 Montano vs Insular. G.R. No. 3714; January 26, 1909.
22
land is more valuable for agricultural rather than forestry uses, as a basis for its declaration as
agricultural land and release for private ownership.
Case digest: Director of Forestry vs Villareal
FACTS: Ruperto Villareal applied for registration of land 178,113 square meters of mangrove
swamps located in the municipality of Sapian, Capiz. He allege that he and his predecessor-in-
interest has been in possession of the land for more than forty years. The private respondent
invokes the survey plan of the mangrove swamps approved by the Director of Lands, to prove that
the land is registerable.
HELD: The mere existence of such a plan would not have the effect of converting the mangrove
swamps, as forest land, into agricultural land. Such approval is ineffectual because it is clearly in
officious. The Director of Lands was not authorized to act in the premises. Under the Revised
Administrative Code, it is the Director of Forestry who has the authority to determine whether
forest land is more valuable for agricultural rather than forestry uses, as a basis for its declaration as
agricultural land and release for private ownership.
Mangrove swamps or manglares should be understood as comprised within the public forests of the
Philippines as defined in the aforecited Section 1820 of the Administrative Code of 1917. The
legislature having so determined, we have no authority to ignore or modify its decision, and in
effect veto it, in the exercise of our own discretion.
C.5. Establishment of Boundaries

All boundaries between permanent forests and alienable and disposable lands shall be clearly
marked and maintained on the ground.
How: with infrastructure or roads, or concrete monuments at intervals of not more than five
hundred (500) meters in accordance with established procedures and standards, or any other visible and
practicable signs.
Why: to insure protection of the forest.
C.6. Reservations in forest lands and off-shore areas
Powers of the President:

1. 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
2. modify boundaries of existing ones
Powers of the DENR Secretary: to reserve and establish any portion of the public forest or forest
reserve as site or experimental forest for use of the Forest Research Institute.
Off-shore areas may be established as marine parks, provided that:

1. public interest so requires; and
2. the area is needed for the preservation and protection of its educational, scientific,
historical, ecological and recreational values and the marine life included therein.
23
Effect of reservation: Grantee acquires full ownership of the land.
International Hardwood and Veneer Co. vs University of the Philippines:

When it ceded and transferred the property to UP, the Republic of the Philippines completely
removed it from the public domain and, more specifically, in respect to the areas covered by the timber
license of petitioner, removed and segregated it from a public forest; it divested itself of its rights and
title thereto and relinquished and conveyed the same to the UP; and made the latter the absolute owner
thereof, subject only to the existing concession. The proviso regarding existing concessions refers to the
timber license of petitioner. It means that the right of petitioner as a timber licensee must not be
affected, impaired or diminished; it must be respected. But, insofar as the Republic of the Philippines is
concerned, all its rights as grantor of the license were effectively assigned, ceded and conveyed to UP
as a consequence of the above transfer of full ownership.
Case digest: International Hardwood and Veneer Co. vs University of the Philippines
FACTS: In a special civil action for declaratory relief with injunction, the Court declared that Rep.
Act No. 3990 does not empower the University of the Philippines (UP), in lieu of the Bureau of
Internal Revenue and Bureau of Forestry, to scale, measure and seal the timber cut by the petitioner
within the tract of land referred to in said Act, and collect the corresponding forest charges
prescribed by the National Internal Revenue Code therefor. RA 3990 was enacted to reserve and
cede ownership over the disputed land for the UP as experiment station for its research and
extension functions. This was known as the Paete Land Grand.
Following this judgement, Hardwood wants a declaration that UP does not have the right to
supervise and regulate the cutting and removal of timber and other forest products, to scale,
measure and seal the timber cut and/or to collect forest charges, reforestation fees and royalties
from them and/or impose any other duty or burden in that portion of its concession covered by the
License Agreement. They also pray that UP be enjoined from the acts complained of and pay
damages in the amount of P100,000.
Trial Court: UP has no legal basis to demand from Hardwood.
ISSUE: Whether UP has the right to supervise and regulate the activities in the license.
HELD: Yes, such rights were transferred to UP. When the Republic ceded and transferred the
property to UP, the Republic of the Philippines completely removed it from the public domain and,
more specifically, in respect to the areas covered by the timber license of petitioner, removed and
segregated it from a public forest; it divested itself of its rights and title thereto and relinquished
and conveyed the same to the UP; and made the latter the absolute owner thereof, subject only to
the existing concession.
That the law intended a transfer of the absolute ownership is unequivocally evidenced by its use of
the word "full" to describe it. Full means entire, complete, or possessing all particulars, or not
wanting in any essential quality. The proviso regarding existing concessions refers to the timber
license of petitioner. All that it means, however, is that the right of petitioner as a timber licensee
must not be affected, impaired or diminished; it must be respected. But, insofar as the Republic of
24
the Philippines is concerned, all its rights as grantor of the license were effectively assigned, ceded
and conveyed to UP as a consequence of the above transfer of full ownership. This is further home
out by Section 3 of R.A. No. 3990 which provides, inter alia, that "any incidental receipts or
income therefrom shall pertain to the general fund of the University of the Philippines.
Having been effectively segregated and removed from the public domain or from a public forest
and, in effect, converted into a registered private woodland, the authority and jurisdiction of the
Bureau of Forestry over it were likewise terminated. This is obvious from the fact that the condition
in Proclamation No. 971 to the effect that the disposition of timber shall be subject to forestry laws
and regulations is not reproduced iii R.A. No. 3990. The latter does not likewise provide that it is
subject to the conditions set forth in the proclamation. An owner has the right to enjoy and dispose
of a thing without other limitations than those established by law. The right to enjoy includes the
jus utendi or the right to receive from the thing what it produces, and the jus abutendi or the right to
consume the thing by its use.
D. Utilization & Management
1. What is allowed under PD 705?

Section 19 states that only the utilization, exploitation, occupation or possession of any
forestland, or any activity therein*, involving one or more of 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 injury to its other resources, are allowed.
Stated otherwise, the requisites are:
1. that the activity* is done in a forestland;
2. that it will produce optimum benefits to the country's development and progress, and to
the public welfare; and
3. that it will be done:
(a) without impairment; or
(b) with the least injury to the forestland's other resources.
2. What is not allowed?

Section 19 further states that there can be no logging operations in critical watersheds
and national parks.
3. Preservation and protection of forests

Adherence to public policy should be followed. In Director of Forestry vs Munoz19, Justice
Sanchez wrote that the absence of “the necessary green cover on our lands” produces “ill effects of
serious proportions”. The lack of trees has caused the drying up of watersheds, rivers and lakes which
then results to the disappearance of fishes. The lack of trees has also caused gelogical erosion which
now results floods which then cause destruction of property, crops, and human lives. He surmised that
the observations made in the case should be written down in a “lumberman's decalogue” or in other
words, it must be in the loggers' commandments.
In an earlier case, Ramos vs Director of Lands20, Justice Malcolm had also written about the
19 GR L-24796; June 28, 1968.
20 GR No. 13298; Nov. 19, 1918.
25
need to conserve our natural resources. He eloquently compared the situation to the “prodigality of a
spendthrift” who, he writes, must be retrained in order to protect Nature, for the sake of the generations
to come. The spendthrift—our country—must learn to control the use of our natural resources and be
thrify in the sense that it shouldn't use the resources excessively, for fleeting pleasures, at the expense
of future generations.
4. The principle of inter-generational responsibility

The principle was used by the petitioners in the landmark case Oposa vs Factoran21. They
invoked the right to a healthful and balanced ecology, stated in Section 16 of Article II of the
Constitution. They associated such right with the twin concepts of (1) inter-generational responsibility;
and (2) inter-generational justice.
The petitioners in this case, who were minors represented by their parents or guardians, prayed
for the prevention of the misappropriation or impairment of our rainforests and “arrest the unabated
hemorrhage of the country's vital life support systems and continued rape of Mother Earth.” They
alleged the following tragedies caused by deforestation:
(a) water shortages resulting from drying up of the water table, otherwise known as the
"aquifer," as well as of rivers, brooks and streams;
(b) salinization of the water table as a result of the intrusion therein of salt water;
(c) massive erosion and the consequential loss of soil fertility and agricultural productivity,
with the volume of soil eroded estimated at one billion cubic meters per annum —
approximately the size of the entire island of Catanduanes;
(d) the endangering and extinction of the country's unique, rare and varied flora and fauna;
(e) the disturbance and dislocation of cultural communities, including the disappearance of the
Filipino's indigenous cultures;
(f) the siltation of rivers and seabeds and consequential destruction of corals and other aquatic
life leading to a critical reduction in marine resource productivity;
(g) recurrent spells of drought as is presently experienced by the entire country;
(h) increasing velocity of typhoon winds which result from the absence of windbreakers;
(i) the floodings of lowlands and agricultural plains arising from the absence of the absorbent
mechanism of forests;
(j) the siltation and shortening of the lifespan of multi-billion peso dams constructed and
operated for the purpose of supplying water for domestic uses, irrigation and the generation
of electric power; and
(k) the reduction of the earth's capacity to process carbon dioxide gases which has led to
perplexing and catastrophic climatic changes such as the phenomenon of global warming,
otherwise known as the "greenhouse effect."
Case digest: Oposa vs Factoran
FACTS: A taxpayer’s class suit was filed by 45 minors, on behalf generation and generations yet
unborn, and represented by their parents, together with the Philippine Ecological Society, against
Fulgencio Factoran Jr., then Secretary of the DENR. They prayed that judgment be rendered
ordering Factoran, his agents, representatives and other persons acting in his behalf to:
21 GR No. 101083; July 30, 1993.
26
1. cancel all existing Timber Licensing Agreements (TLA) in the country;

2. cease and desist from receiving, accepting, processing, renewing, or appraising new TLAs;
and
3. grant the plaintiffs such other reliefs that are just and equitable under the premises.
They alleged that they have a clear and constitutional right to a balanced and healthful ecology and
hence entitled to protection by the State in its capacity as parens patriae. They also claim that the
act of the defendant in allowing TLA holders to cut and deforest the remaining forests constitutes a
misappropriation and/or impairment of the natural resources property he holds in trust for the
benefit of the plaintiff minors and succeeding generations.
Sec. Factoran filed a motion to dismiss the complaint on the following grounds:
1. Plaintiffs have no cause of action against him;
2. The issues raised by the plaintiffs is a political question which properly pertains to the
legislative or executive branches of the government.
ISSUE: Do the petitioner-minors have a cause of action in filing a class suit to prevent the
misappropriation or impairment of Philippine rainforests?
HELD: Yes. Petitioner-minors assert that they represent their generation as well as generations to
come. The Supreme Court ruled that they can, for themselves, for others of their generation, and for
the succeeding generation, file a class suit.
Their personality to sue in behalf of succeeding generations is based on the concept of

intergenerational responsibility insofar as the right to a balanced and healthful ecology is
concerned. Such a right considers the “rhythm and harmony of nature” which indispensably
include, inter alia, the judicious disposition, utilization, management, renewal and conservation of
the country’s forest, mineral, land, waters, fisheries, wildlife, offshore areas and other natural
resources to the end that their exploration, development, and utilization be equitably accessible to
the present as well as the future generations.
Needless to say, every generation has a responsibility to the next to preserve that rhythm and
harmony for the full enjoyment of a balanced and healthful ecology. Put a little differently, the
minor’s assertion of their right to a sound environment constitutes at the same time, the
performance of their obligation to ensure the protection of that right for the generations to come.
5. The nature of a timber license agreement (TLA)

A timber license is not a contract but a mere privilege which doesn't create irrevocable rights.
As such, the terms and conditions may be changed or cancelled at an earlier date, when public interest
so requires.
This has been repeated and applied in the following cases:
(a) In Tan vs Director of Forestry22, Justice Makasiar justfified the cancellation of the TLA of xxx
(read case) by pointing out that watersheds serve as a defense against soil erosion and guarantee
the steady supply of water. Hence, if the licensees are abusing the watersheds through their
logging, their TLAs may be cancelled.
22 GR No. L-24548; Oct. 27, 1983.
27
(b) In Ysmael vs Deputy Executive Secretary23, the Court held that TLAs aren't contracts within the
purview of the due process and non-impairment of contracts clause in the Constitution. Thus,
the Chief Executive can validly amend, modify, replace, or rescind them when national interests
so require.
(c) In Republic vs Caguioa24, the Court emphasized that the grantor of a license may impose such
conditions as he sees fit, including revocation at the grantor's pleasure.
Under Section 20 of PD 705, a person must be authorized by a license agreement, license,

lease, or permit in order to perform the following:
(a) utilize, exploit, occupy, possess, or conduct any activity within any forest land; or
(b) establish or operate any woodprocessing plant.
E. Timber
1. What is the duration of a license agreement or license to harvest timber in forest lands?
The duration of the privilege to harvest timber granted by the license agreement or license
should be fixed and determined in accordance with the following:
1. the annual allowable cut;
2. the established cutting cycle;
3. the yield capacity of harvestable timber; and
4. the capacity of healthy residuals for a second growth.
2. When does it terminate?

The privilege shall automatically terminate the moment the harvestable timber have been
utilized without leaving leaving any logged-over area capabe of commercial utilization.
3. What is the maximum period allowed?

The maximum period of any privilege to harvest timber is 25 years. It is renewable for a
period not exceeding 25 years, if necessary, to utilize all the remaining commercial quantity or
harvestable timber either from the unlogged or logged-over area.
4. Are there any conditions imposed by law?

Yes. Under Section 27, the licensee may enjoy continued privilege on the condition that he
will reforest all the areas which shall by determined by the Forest Management Bureau.
As to the size of the forest concessions, Section 28 states that it shall be limited to a size
which a person may effectively utilize and develop for a period of 50 years, considering the followng:
(a) the cutting cycle;
(b) the past performance of the applicant
(c) the applicant's capacity to utilize, protect, and manage the whole area; and
(d) the requirements of processing plants existing or to be installed in the region.
23 GR No. 79538; Oct. 18, 1990.

24 GR No. 168584; Oct. 15, 2007.
28
F. Reforestation
According to the Forest Management Bureau (FMB) of the DENR, the annual loss of forest
cover nationwide reached almost 47,000 hectares from 2003 to 2010. Since then, the government
implemented the National Greening Program (NGP) to reforest and rehabilitate approximately 1.2
million hectares of land across the country.
In 2016, the Food and Agriculture Organization (FAO) reported that the Philippines is the 5 th
among 234 countries with the greatest reported gain in forest area annually. The country increased its
forest area to 240,000 hectares per year from 2010 to 2015. Until now, the NGP is in force; it not only
being used as the government’s reforestation strategy but also as a climate change mitigation strategy.
1. Forest lands to be reforested

The following shall be reforested and covered with suitable and sufficient trees25:
(a) Bare or grass-covered tracts of forest lands with at least 50% slope;
(b) Bare or grass-covered tracts of forest lands with less than 50% slope, but with soil so highly
erodible as to make grass cover inadequate 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) Open tracts of forest lands with slopes or gradients generally exceeding 50% interspersed
with patches of forest each of which is less than 250 hectares in area;
(e) Denuded or inadequately-timbered areas proclaimed by the President as forest reserves and
reservations as critical watersheds, national parks, game refuge, bird sanctuaries, national
shrines, national historic sites;
(f) Inadequately-stocked forest lands within forest concessions;
(g) Portions of areas covered by pasture leases or permits having a slope of at least 50%; and
(h) River banks, easements, road rights-of-ways, deltas, swamps, former river beds, and
beaches.
2. Industrial tree plantations and tree farms

Timber or forest lands of the public domain with a minimum area of 1,000 hectares for
industrial tree plantation, and 100 hectares for tree farm, may be leased for a period of 25 years,
renewable for another period not exceeding 25 years.26
The Department of Environment and Natural Resources (DENR), upon recommendation of the
Director, has the power to grant such lease to any person qualified to develop and exploit natural
resources.
G. Forest Protection
1. Control of concession area

In order to achieve the effective protection of the forest lands and its resources from illegal
entry, unlawful occupation, kaingin, fire, insect infestation, theft, and other forms of forest destruction,
the utilization of timber therein shall not be allowed except through license agreements under which its
25 PD 705, Section 33.
26 Id. Section 34.
29
holders shall have the exclusive 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
exclusion of all others, except 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.27
If the holder of a license agreement over a forest area expressly or impliedly waives the
privilege to utilize 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.
2. Regulation of timber utilization in all other classes of lands and of wood-processing plants
PD No. 705 regulates the utilization of timber in alienable and disposable lands, private lands,
civil reservations, and all lands containing standing or felled timber, including those under the
jurisdiction of other government agencies, and the establishment and operation of sawmills and other
wood-processing plants. The purpose of such regulation is to prevent them from being used as shelters
for excessive and unauthorized harvests in forest lands, and shall not therefore be allowed except
through a license agreement, license, lease, or permit.28
3. Swamplands and mangrove forest

Strips 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. Such 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.29
All mangrove swamps set aside for coast-protection purposes shall not be subject to clear-
cutting operation.
Mangrove and other swamps released to the Bureau of Fisheries and Aquatic Resources for
fishpond purposes which are not utilized, or which have been abandoned for five (5) years from the
date of such release shall revert to the category of forest land.
4. Visitorial power
The DENR Secretary, by himself or through the Director or any qualified representative, may
investigate, inspect and examine 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, the Revised Forestry Code and other
pertinent laws and regulations.30
5. Authority of forest officers

Forest officers, or other government officials or employees duly authorized by the DENR
27 Id. Section 38.

28 Id. Section 29.
29 Id. Section 43.
30 Id. Section 44.
30
Secretary or Director shall have free entry into areas covered by a license agreement, license, or lease
permit when they are in the performance of their official duties. They are also authorized to administer
oath and take acknowledgement in official matters connected with the functions of their office, and to
take testimony in official investigations conducted under the authority of the Revised Forestry Code
and the implementing rules and regulations.31
6. Scaling stations
In 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.32
7. Roads and other infrastructure

Roads and other infrastructure in forest lands shall be constructed with the least impairment to
the resource values thereof.33
Government 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 utilization or destruction of timber and/or other forest resources, or watershed
disturbance therein, in order to adopt measures to avoid or reduce damage or injury to the forest
resource values. They shall likewise extend assistance in the planning and establishment of roads,
wharves, piers, port facilities, and other infrastructure in locations designated as wood-processing
centers or for the convenience of wood-based industries.
In 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 Director, or in alienable and
disposable lands, civil reservations and other government lands, without the approval of the
government agencies having administrative jurisdiction over the same.
All roads and infrastructure constructed by holders of license agreements, licenses, leases and
permits belong to the State and the use and administration thereof shall be transferred to the
government immediately upon the expiration or termination thereof. Prior thereto the Bureau may
authorize the public use thereof, if it will not be detrimental to forest conservation measures.Where
roads are utilized by more than one commercial forest user, the Bureau shall prescribe the terms and
conditions of joint use including the equitable sharing of construction and/or maintenance costs, and of
the use of these roads by other parties and the collection of such fees as may be deemed necessary.
8. Logging roads
There shall be indiscriminate construction of logging roads. Such roads shall be strategically
located and their widths regulated so as to minimize clear-cutting, unnecessary damage or injury to
healthy residuals, and erosion. Their construction must not only serve the transportation need of the
logger but, most importantly, the requirement to save as many healthy residuals as possible during
cutting and hauling operations.
31 Id. Section 45.

32 Id. Section 46.
33 Id. Section 49.
31
H. Qualifications
1. General principle on diffusion of benefits

The privilege to utilize, exploit, occupy, or possess forest lands, or to conduct any activity
therein, or to establish and operate wood-processing plants, shall be diffused to as many qualified and
deserving applicants as possible.34
2. Citizenship
Those Filipino-owned corporations where 60% of the equitable shares are owned by Filipinos
are qualified for this benefit.
In the evaluation of applications of corporations, increased Filipino equity and participation
beyond the 60% constitutional limitation shall be encouraged. All other factors being equal, the
applicant with more Filipino equity and participation shall be preferred.35
3. Financial and technical capability

A corporation must show that they have the financial and technical capability to:
(a) Minimize utilization of forest lands;
(b) Practice forest protection, conservation and development measures to insure
the perpetuation of said forest in productive condition.36
4. Transfers
In order that a licensee, lessee, or permittee may transfer, exchange, sell or convey his license
or permit, or his rights and interests therin, or his assets used in connection therewith37:
(a) It must be authorized by the DENR Secretary.
(b) The corporation must not have violated any forestry law, rule or regulation.
(c) The corporation must have faithfully complied with the terms and conditions of the
license agreement, lease, permit, etc.
(d) The transferee has all the qualifications and none of the disqualifications to hold a license.
Once the transfer has been made, the transferor shall forever be barred from acquiring another
license agreement, license, lease or permit.
5. Service contracts
The Department Head, 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 exploration, development,
exploitation or utilization of the forest resources, covered by their license agreements, licenses, leases
or permits.
Existing valid and binding service contracts for financial, technical, management or other forms
of assistance are hereby recognized as such.38
34 Id. Section 58.

35 Id. Section 59.
36 Id. Section 60.
37 Id. Section 61.
38 Id. Section 62.
32
Is the a licensee allowed to involve foreign persons or entities in their forest exploitation activities?
Yes, but only for what we know as service contract. The service contract with any foreign person or
entity may come in the form of financial, technical, management, or other forms of assistance for the
exploration, development, exploitation or utilization of the forest resources, covered by the
Filipino corporation’s license agreement, license, lease or permit.
The service contract must be authorized by the DENR Secretary to be valid.
I. Criminal Offenses under PD No. 705
1. Section 68 – Cutting, Gathering, and Collecting Timber or other products without license
a. What are the punishable acts?

According to Justice Carpio, there are three punishable acts39:
i. Cutting, gathering, collecting, or removing timber or other forest products in forest lands
without license;
ii. Possession of timber or other forest products without the proper legal documents40; and
iii. Cutting, gathering, collecting, or removing timber or other forest products in any alienable and
disposable public land, or from private land without license.
b. Clarificatory terms under DENR Administrative Order No. 97-32, Series of 1997
i. Forest products – timber, lumber, pulpwood, firewood, bark, tree top, resin, gum, wood, oil,
honey, beeswax, nipa, rattan, charcoal, or other forest growth like shrubs, flowering plants in
forest lands and others.
ii. Illegal forest products – any forest product that is removed, cut, collected, processed, or
transported:
(a) without authorization or permit;
(b) without complete supporting documents;
(c) with genuine authorizations or permits but expired or contained forged entries; or
(d) with fake authorizations, permits, and supporting documents.
iii. Conveyance – any mode or type of class of vehicle or craft or any other means used for
transportation either on land, water, air, or any combination thereof, whether motorized or not,
used for or in taking and/or maintaining temporary or permanent possession, control, gathering,
collecting, processing, disposing of, or transporting illegal forest products.
c. Who may be considered an offender?

The offender can be a Filipino, an alien, or a juridical entity. As expressly provided by in
Section 68: “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 Commission on Immigration and
Deportation.”
39 Merida vs People. GR No. 158182; June 12, 2008.

40 Note: As per amendment by EO No. 277, series of 1987.
33
d. Nature of the offense

By virtue of EO No. 277, Section 68 has become malum prohibitum, and the mere possession of
timber and other forest products without the required permits, licenses, and other documents is
punishable. It must be read with Section 2 of DENR Admin. Order No. 97-32, series of 1997 for further
understanding:
“In implementing these Rules, original documents shall be required at all times to
actually accompany any forest products being moved or transported to any place and for
any purpose. Whenever the requisite authorization and/or supporting documentation are
required to but do not actually accompany the forest products, such absence constitutes a
violation covered by these Rules.”
As explained by the Supreme Court in Villarin vs People41, the word “possession”, in relation to the
second instance does not only connote actual possession, but also constructive possession. There is
actual possession when the object is within offender’s immediate physical control. There is
constructive possessio when the object is under the dominion and control of the accused, or that the
accused exercises dominion or control over the place where the object is found.
The amendment of Section 68 was put in place to avoid instances where the offender
conveniently justifies the cutting, gathering, etc. of forest products under a valid license/authority, but
that they “forgot” to bring it.
e. What are the possible defenses one can raise?

i. The operations were lawful and all papers and documents required by law were complete
at the time the verification was made by authorities.
ii. The prosecution failed to prove beyond reasonable doubt that there was intent to possess
on the part of the accused.
f. Penalties
ii. Confiscation of the timber, forest product, etc. and conveyances in the government’s favor.
Note: The RTC has jurisdiction to order the confiscation of the timber or forest products as
well as the machinery, equipment, implements, and tools illegally used. However, the
DENR Secretary, or his duly authorized representative has jurisdiction to confiscate
conveyances used. This was clarified in DENR vs Daraman.
ii. The same penalty for theft and qualified theft which is now imprisonment ranging from arresto
menor to reclusion temporal depending on the value of the confiscated forest products by virtue
of RA 10951.
iii. Cancellation of his license agreement, lease, license or permit and perpetual disqualification
from acquiring any such privilege shall if the timber is cut or removed from the licensed or
leased area of another, without prejudice to whatever civil action the latter may bring against
the offender.
2. Section 69 – Unlawful Occupation or Destruction of Forest

Lands a. What are the punishable acts?
i. Occupation and possession for private use of forest land without authority or license
41 GR No. 175289
34
ii. Makes kaingin over forest land to occupy and possess it for his own private use without
authority or license
iii. Destruction of forest land or its part in any manner
iv. Causing damage to timber stand and other forest products
v. Aiding or abetting in the destruction or damage
vi. Negligently permitting fire to be set on forest land
b. Penalties
i. For numbers 1, 3, 4, 5, and 6 – Imprisonment of six months to two years and a fine between
P20,000 to P500,000 plus payment of ten times the accrued rental fees and other charges.
ii. For number 2 – Imprisonment from two years to four years and fine eight times the regular
forest charges due for the forest products destroyed, without prejudice to the payment of the full
cost of restoration of the occupied area as determined by the Bureau of Forestry.
iii. For all offenses – The Court shall further order the eviction of the offender from the land and
the forfeiture to the Government of all improvements made and all vehicles, domestic animals
and equipment of any kind used in the commission of the offense. If not suitable for use by the
Bureau, said vehicles shall be sold at public auction, the proceeds of which shall accrue to the
Development Fund of the Bureau.
iv. In 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 disqualified from
holding any elective or appointive position.
3. Section 70 – Pasturing Livestock
a. Elements
i. The offender grazes or causes to graze livestock.
ii. It is committed in forest lands, grazing lands and alienable and disposable lands which have not
as yet been disposed of in accordance with the Public Land Act.
iii. It was done without the required authorization under the law.
b. Penalties
i. Imprisonment for not less than six (6) months nor more than two (2) years
ii. A fine equal to ten (10) times the regular rentals due had the grazing been authorized or licensed
iii. Confiscation of livestock and all improvement introduced in the area in favor of the government In
case the offender is a corporation, partnership or association, the officers and directors will be liable.
4. Section 71 – Illegal occupation of national parks systems and recreation

areas and vandalism therein
a. Punishable acts
i. Occupying, without permit, 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
ii. Mutilating, defacing or destroying objects of natural beauty or of scenic value within areas in
35
the national parks system

iii. Hunting, capturing, or killing any kind of bird, fish or wild animal life within any area in the
national parks system
b. Penalties
i. A fine of not less than two hundred (P200.00) pesos or more than five hundred (P500.00) pesos
exclusive of the value of the thing damaged.
ii. If the area requires rehabilitation or restoration as determined by the Director, the offender shall
also be required to restore or compensate for the restoration of the damage
iii. Eviction of the offender from the land
iv. Forfeiture in favor of the Government 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
If 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.
In 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 Section, fifty per centum (50%) of the
fine collected shall accrue to such municipality or city for the development of local parks.
5. Section 72 – Destruction of wildlife resources
a. Punishable acts
What is punishable under this section is the non-compliance with the regulations set by the
Bureau of Forestry or by law, on the killing and destruction of wildlife in forest lands.
b. Penalties
i. Fine of not less than one hundred (P100.00) pesos for each such violation
ii. Denial of a permit for a period of three (3) years from the date of the violation
6. Section 73 – Survey by unauthorized person
a. Punishable act
Entering, and conducting surveys on, forest lands, whether covered by a license agreement,
lease, license, or permit, or not, without permit to survey from the Director of the Forest Management
Bureau.
b. Penalties
i. Imprisonment for not less than two (2) nor more than four (4) years.
ii. Confiscation of the implements used.
iii. Cancellation of the license to survey, if any.
36
7. Section 74 – Misclassification and survey by government official or employee
a. Elements
i. The offender is a public officer or employee.
ii. He knowingly surveys, classifies, or recommends the release of forest lands as alienable and
disposable lands.
iii. Such classification is contrary to the criteria and standards established in this Code, or the rules
and regulations promulgated.
b. Penalties
i. Imprisonment of not less than one (1) year.
ii. A fine of not less than one thousand, (P1,000.00) pesos.
c. Dismissal of offender
There must be a proper administrative proceeding to be followed before the employee could be
dismissed. The dismissal from service is with prejudice to re-employment.
The survey, classification or release of forest lands shall be null and void.
8. Section 80 – Arrest and Institution of criminal

actions a. Who may effect the arrest and seizure?
A 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 Chapter IV of PD No.
705. He shall also seize and confiscate, in favor of the Government, the tools and equipment 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 has the following duties:
i. to deliver the offender within six (6) hours from the time of arrest;
ii. to deliver the confiscated forest products, tools and equipment to; and
iii. to file the proper complaint with the appropriate official designated by law to conduct
preliminary investigations and file informations in court.
b. Is there an exception to the six-hour rule?

Yes. If the arrest and seizure are made in the forests, far from the authorities designated by law
to conduct preliminary investigations, the delivery to, and filing of the complaint shall be done within a
reasonable time sufficient for ordinary travel from the place of arrest to the place of delivery.
The seized products, materials and equipment shall be immediately disposed of in accordance
with forestry administrative orders promulgated by the DENR Secretary.
c. Can other persons make the arrest?

The DENR Secretary may deputize any member or unit of the Philippine Constabulary, police
agency, barangay or barrio official, or any qualified person to protect the forest and exercise the power
or authority to effect the arrest and seizure.
Reports and complaints regarding the commission of any of the offenses, not committed in the
37
presence of any forest officer or employee, or any of the deputized 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.
If there is prima facie evidence to support the complaint or report, the investigating forest
officer shall file the necessary complaint with the appropriate official authorized by law to conduct a
preliminary investigation of criminal cases and file an information in Court.
Cases
People vs Que
• Ruling related to Sec. 68: The Court rejected the argument that the possessor cannot be held
liable if he proves that the cutting, gathering, collecting or removal of such forest products is
legal. Mere possession of forest products without the proper documents consummates the
crime. Whether or not the lumber comes from a legal source is immaterial because EO No. 277
considers the mere possession of timber or other forest products without the proper legal
documents as malum prohibitum.
• Ruling related to Sec. 80: A warrantless search is valid as long as the officers conducting the
search have reasonable or probable cause to believe, before the search, that they will find the
instrumentality or evidence pertaining to a crime in the vehicle to be searched.
• The police officers in the case had probable cause to search the truck. A member of the
Provincial Task Force on Illegal Logging received reliable information that a ten-wheeler truck
with plate number PAD-548 loaded with illegal lumber would pass through Ilocos Norte. Two
weeks later, while members of the Provincial Task Force were patrolling along General
Segundo Avenue, they saw the ten-wheeler truck described by the informant. When they
apprehended it, the accused-appellant admitted that there were sawn lumber in between the
coconut slabs. When the police officers asked for the lumber's supporting documents, accused-
appellant could not present any. The foregoing circumstances were sufficient to prove the
existence of probable cause which justified the extensive search of the truck even without a
warrant.
Mustang Lumber vs CA
• Ruling related to Sec. 68: Lumber is necessarily included in timber, as it is processed timber.
• Ruling related to Sec. 80: It was duly established that on April 1, 1990, the petitioner's truck
with Plate No. CCK-322 was coming out from the petitioner's lumberyard loaded with lauan
and almaciga lumber of different sizes and dimensions which were not accompanied with the
required invoices and transport documents. The seizure of such truck and its cargo was a valid
exercise of the power vested upon a forest officer or employee by Section 80 of PD No. 705, as
amended by PD No. 1775.
Merida vs People
• Ruling related to Sec. 68: Section 68 penalizes three categories of acts:
1. the cutting, gathering, collecting, or removing of timber or other forest products
from any forest land without any authority;
2. the cutting, gathering, collecting, or removing of timber from alienable or disposable
38
public land, or from private land without any authority; and

3. the possession of timber or other forest products without the legal documents as
required under existing forest laws and regulations.
• Ruling as to the application of the penalty: To prove the amount of the property taken for fixing
the penalty imposable against the accused under Article 309 of the RPC, the prosecution must
present more than a mere uncorroborated estimate of such fact. In the absence of independent
and reliable corroboration of such estimate, courts may either apply the minimum penalty under
Article 309 or fix the value of the property taken based on the attendant circumstances of the
case.
DENR vs Daraman
• Ruling related to Section 68: A comparison of the provisions of the two relevant sections of PD
No. 705, as amended, shows that the jurisdiction of the RTC covers the confiscation of the
timber or forest products as well as the machinery, equipment, implements and tools illegally
used in the area where the timber or forest products are found; it is the DENR that has
jurisdiction over the confiscation of forest products and, to stress, all conveyances used in the
commission of the offense. The confiscation would necessarily take place before the ruling
finding petitioners guilty of the offense. This is because the DENR Secretary or his authorized
representatives do not possess criminal jurisdiction. Thus, they are not capable of making such
a ruling, which is properly a function of the courts. Hence, we cannot expect the DENR to rule
on the criminal liability of the accused before it impounds the vehicles.
Villarin vs People
• Ruling related to Sec. 68: Mere possession of timber without the legal documents required
under forest laws and regulations makes one automatically liable of violation of Section 68.
• Lack of criminal intent is not a valid defense. Possession, under the law, includes not only
actual possession, but also constructive possession. Actual possession exists when the object of
the crime is in the immediate physical control of the accused. On the other hand, constructive
possession exists when the object of the crime is under the dominion and control of the accused
or when he has the right to exercise dominion and control over the place where it is found.
• However, the prosecution must prove that the accused had the intent to possess (animus
possidendi) the timber.
Factoran vs CA
• Ruling related to Rule 80: The issuance of the Confiscation Order by the DENR Secretary was
a valid exercise of his power under Sec. 68-A of PD No. 705. By virtue of said Order, the narra
lumber and six-wheeler truck of the accused were held in custodia legis and hence, beyond the
reach of replevin.
Calub vs CA
• Forest products confiscated by the DENR Secretary are beyond the reach of replevin.
• Property already impounded by the DENR due to violation of forestry laws and, in fact,
already forfeited in favor of the government by order of the DENR is deemed in custodia legis.
• In this case, the acts for which the petitioners were being called to account for were performed
39
by them in the discharge of their official duties. The acts in question were clearly official in
nature. In implementing and enforcing Sections 78-A and 89 of the Forestry Code through the
seizure carried out, petitioners were performing their duties and functions as officers of the
DENR, and did so within the limits of their authority. There was no malice nor bad faith on
their part. Hence, a suit against the petitioners who represent the DENR is a suit against the
State. It cannot prosper without the State's consent.
II. RA 8371: INDIGENOUS PEOPLE’S RIGHTS ACT
A. Constitutional basis of the IPRA

1. Article II, Sec. 22: The State recognizes and promotes the rights of indigenous cultural
communities within the framework of national unity and development.
2. Article XII, Sec. 5: The State, subject to the provisions of this Constitution 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 wellbeing. The Congress
may provide for the applicability of customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain.
3. Article XIII, Sec. 6: The State shall apply the principles of agrarian reform or stewardship,
whenever applicable in accordance with law, in the disposition or utilization of other natural
resources, including lands of the public domain under lease or concession suitable to
agriculture, subject to prior rights, homestead rights of small settlers, and the rights of
indigenous communities to their ancestral lands.
4. Article XVI, Sec. 17: The State shall recognize, respect, and protect the rights of indigenous
cultural communities to preserve and develop their cultures, traditions, and institutions. It shall
consider these rights in the formulation of national plans and policies.
B. Constitutionality of the IPRA

The provisions of IPRA do not contravene the Constitution. There is nothing in the law that
grants the ICCs or IPs ownership over the natural resources within their ancestral domain. Ownership
over the natural resources in the ancestral domains remains with the State and the rights granted by the
IPRA to the ICCs or IPs over the natural resources in their ancestral domains merely gives them, as
owners and occupants of the land on which the resources are found, the right to the small scale
utilization of these resources, and at the same time, a priority in their large scale development and
exploitation.42
Additionally, ancestral lands and ancestral domains are not part of the lands of the public
domain. Ancestral lands are private lands that belong to the ICCs/IPs by native title 43, which is a
concept of private land title that has long existed, irrespective of any royal grant from the State. With
respect to the ancestral domains, however, the right of ownership and possession by the ICCs/IPs is a
limited form of ownership and does not include the right to alienate the same.
42 Cruz vs Secretary of DENR, 347 SCRA 128 (2000).

43 Carino vs Insular Government, 212 U.S. 449 (1909).
40
C. Declaration of State Policy44

1. The State shall recognize and promote the rights of ICCs/IPs within the framework of national
unity and development;
2. The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their
economic, social and cultural well-being and shall recognize the applicability of customary
laws governing property rights or relations in determining the ownership and extent of ancestral
domain;
3. The State shall recognize, respect and protect the rights of ICCs/IPs to preserve and develop
their cultures, traditions and institutions. It shall consider these rights in the formulation of
national laws and policies;
4. The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally enjoy
the full measure of human rights and freedoms without distinctions or discriminations;
5. The State shall take measures, with the participation of the ICCs/IPs concerned, to protect their
rights and guarantee respect for their cultural integrity, and to ensure that members of the
ICCs/IPs benefit on an equal footing from the rights and opportunities which national laws and
regulations grant to other members of the population; and
6. The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for
cultural integrity by assuring maximum ICC/IP participation in the direction of education,
health, as well as other services of ICCs/IPs, in order to render such services more responsive to
the needs and desires of these communities.
D. Definition of Terms45
1. Indigenous Peoples or Indigenous Cultural Communities (IPs/ICCs) refer to:
(a) a group of people or homogenous societies;
(b) identified by self-ascription and ascription by others;
(c) who have continuously lived as organized community on communally bounded and
defined territory; and
(d) 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 colonization, non-indigenous religions and
culture, became historically differentiated from the majority of Filipinos.
ICCs/IPs shall likewise include persons who are regarded as indigenous on account of their
descent from the populations which inhabited the country, at the time of conquest or
colonization, or at the time of inroads of non-indigenous 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.
2. Ancestral domains refer to all areas generally belonging to ICCs/IPs comprising lands, inland
waters, coastal areas, and natural resources therein, held under a claim of ownership, occupied
or possessed by ICCs/IPs, themselves or through their ancestors, communally or individually
since time immemorial, continuously to the present except when interrupted by war, force
majeure or displacement by force, deceit, stealth or as a consequence of government projects or
44 IPRA, Section 2.
45 Id. Section 3.
41
any other voluntary dealings entered into by government and private individuals, corporations,
and which are necessary to ensure their economic, social and cultural welfare.
It shall include ancestral land, forests, pasture, or otherwise, residential, agricultural, and other
lands individually owned whether alienable and disposable, hunting grounds, burial grounds,
worship areas, bodies of water, mineral and other natural resources, and lands which may no
longer be exclusively occupied by ICCs/IPs but from which their traditionally had access to for
their subsistence and traditional activities, particularly the home ranges of ICCs/IPs who are
still nomadic and/or shifting cultivators.
3. Ancestral lands refers to land occupied, possessed and utilized by individuals, families and
clans who are members of the ICCs/IPs since time immemorial, by themselves or through their
predecessors-in-interest, under claims of individual or traditional group ownership,
continuously, to the present except when interrupted by war, force majeure or displacement by
force, deceit, stealth, or as a consequence of government projects and other voluntary dealings
entered into by government and private individuals/corporations, including, but not limited to,
residential lots, rice terraces or paddies, private forests, swidden farms and tree lots.
4. Native title refers to pre-conquest rights to lands and domains which, as far back as memory
reaches, have been held under a claim of private ownership by ICCs/IPs, have never been
public lands and are thus indisputably presumed to have been held that way since before the
Spanish Conquest.
5. Time immemorial refers to a period of time when as far back as memory can go, certain
ICCs/IPs are known to have occupied, possessed in the concept of owner, and utilized a defined
territory devolved to them, by operation of customary law or inherited from their ancestors, in
accordance with their customs and traditions.
E. Indigenous Concept of Ownership46

It is the view that all ancestral lands and domains serve as part of the IPP’s cultural identity, and
must be preserved. Ancestral domains are the ICC's/IP's private but community property which belongs
to all generations and therefore cannot be sold, disposed or destroyed. It likewise covers sustainable
traditional resource rights.
The IPRA connotes communal ownership. Ancestral domains may be private, but it is not
owned by one particular individual. Communal rights are held by the Indigenous Community and
future generations.
F. Rights of the IPs/ICCs under the IPRA

1. Rights to ancestral domains including the:
a. right of ownership;
b. right to develop land and natural resources;
c. right to stay in the territories;
d. right in case of displacement;
e. right to regulate entry of migrants;
f. right to safe and clean air and water;
g. right to claim parts of reservations; and
h. right to resolve conflict;
46 Id. Section 5.
42
2. Right to self-governance and empowerment including the:

a. right to use their own justice system, conflict resolution institutions, and peace building
processes;
b. right to participate in decision-making; and
c. right to determine and decide priorities for development;
3. Social justice and human rights including:
a. equal protection and non-discrimination rights during armed conflict;
b. right to equal opportunity and treatment;
c. right to basic services; and
d. guarantee of the rights of women, children and youth; and
4. Cultural integrity including:
a. State protection of indigenous culture, traditions and institutions;
b. right to control and establish their own educational system;
c. community intellectual rights;
d. rights to religious, cultural sites and ceremonies;
e. right to indigenous knowledge systems and practices and to develop their own sciences
and technologies;
f. right of access to biological and genetic resources; and
g. right to sustainable agro-technical development.
G. Requirements for Development Interventions

The ICCs/IPs have the right to accept or reject certain development interventions in their
particular communities. The following are the requirements before interventions may be allowed:
1. Free and Prior Informed Consent (FPIC) which is defined as the consensus of all members of
the IPs/ICCs to be determined in accordance with their respective customary laws and practices,
free from any external manipulation, interference and coercion, and obtained after fully
disclosing the intent and scope of an activity, in a language and process understandable to the
community.
This shall first be secured by the project proponent in accordance with the IPs’ own practices.
The law, however, also provides that only the affected community or communities shall give
FPIC.
2. Full Access to Records and Information which provides that the IPs shall have full access
to records and information about the project.
This shall be ensured through an undertaking on full disclosure and full access to records
and information.
3. Submission of Environmental and Socio-cultural Impact Statement along with the
usual requirement of DENR under the Environmental Impact Statement (EIS) System.
4. Benefits and Compensation which requires the proponent to enter into a written undertaking
with the IPs, clearly stating the following:
a. the proponent's commitment for damage compensation and cash or suretybond,
b. the sharing of benefits; and
c. the measures to protect the rights and value system of the indigenous community.
43
H. Responsibilities of ICCs/IPs to their Ancestral Domains47

1. Maintain ecological balance – to preserve, restore, and maintain a balanced ecology in the
ancestral domain by protecting the flora and fauna, watershed areas, and other reserves;
2. Restore denuded areas – to actively initiate, undertake and participate in the reforestation
of denuded areas and other development programs and projects subject to just and
reasonable remuneration; and
3. Observe laws – to observe and comply with the provisions of the IPRA and the rules and
regulations for its effective implementation.
I. Delineation of Ancestral Domains48

1. Petition for Delineation – It is initiated by the NCIP with the consent of the ICC/IP concerned,
or a Petition with the NCIP, by a majority of the members of the ICCs/IPs.
2. Delineation Proper – The official delineation of ancestral domain boundaries including census
of all community members, shall be immediately undertaken by the Ancestral Domains Office
(ADO) upon filing of the application by the ICCs/IPs concerned. Delineation 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.
3. Show proof of ancestral claims which include testimony of elders or community under oath and
other documents indirectly or directly attesting to possession or ownership of area since time
immemorial.49
4. Preparation of Maps with technical descriptions and description of the natural features and
landmarks.
5. Notice and Publication – A copy of each document, including a translation in the native
language of the ICCs/IPs concerned shall be posted in a prominent place and in the local,
provincial and regional offices of the NCIP, for at least 15 days. It shall be published in a
newspaper of general circulation once a week for two consecutive weeks. If there is no
newspaper in the area, radio broadcasting is a valid substitute.
6. Endorsement by ADO to NCIP – Within 15 days from the publication, ADO shall prepare report to
the NCIP endorsing a favorable action upon a claim that is deemed to have sufficient proof.
47 Id. Section 9.
48 Id. Section 52.
49 Id. Section 52 (d) states that it shall be any one of the following authentic documents:
1. Written accounts of the ICCs/IPs customs and traditions;
2. Written accounts of the ICCs/IPs political structure and institution;
3. Pictures showing long term occupation such as those of old improvements, burial grounds, sacred places and old
villages;
4. Historical accounts, including pacts and agreements concerning boundaries entered into by the ICCs/IPs concerned
with other ICCs/IPs;
5. Survey plans and sketch maps;
6. Anthropological data;
7. Genealogical surveys;
8. Pictures and descriptive histories of traditional communal forests and hunting grounds;
9. Pictures and descriptive histories of traditional landmarks such as mountains, rivers, creeks,
ridges, hills, terraces and the like; and
10. Write-ups of names and places derived from the native dialect of the community.
44
However, if the proof is deemed insufficient, the Ancestral Domains Office shall require the
submission of additional evidence.50
7. Certification of NCIP of delineation and notification to other government agencies of such
delineation.
8. Issuance of Certificate of Ancestral Domain Title (CADT) of officially delineated land of NCIP.
9. Registration of CADT to the Register of Deeds in place where the property is situated.
J. Identification, Delineation and Certification of Ancestral Lands51

1. The allocation of lands within any ancestral domain to individual or indigenous corporate
(family or clan) claimants shall be left to the ICCs/IPs concerned to decide in accordance with
customs and traditions.
2. Individual and indigenous corporate claimants of ancestral lands which are not within ancestral
domains, may file applications with the Ancestral Domains Office. An individual or recognized
head of a family or clan may file such application in his behalf or in behalf of his family or clan.
3. Proofs 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 Section 5252 of the IPRA, including tax declarations and proofs of payment of taxes.
4. A copy of each document, including a translation in the native language of the ICCs/IPs
concerned shall be posted in a prominent place and in the local, provincial and regional offices
of the NCIP, for at least 15 days. It shall be published in a newspaper of general circulation
once a week for two consecutive weeks. If there is no newspaper in the area, radio broadcasting
is a valid substitute.
5. Fifteen (15) days after such publication, the Ancestral Domains Office shall investigate and
inspect each application, and if found to be meritorious, shall cause a parcellary survey of the
area being claimed.
6. The Ancestral Domains Office shall prepare and submit a report on each and every application
surveyed and delineated to the NCIP, which shall, in turn, evaluate the report submitted.
7. If the NCIP finds such claim meritorious, it shall issue a Certificate of Ancestral Land Title
(CALT).
K. The IPRA converts ancestral land into public agricultural land

The identification and delineation expressly converts land as alienable and disposable. There is
no need to issue a separate certification.
Hence, with respect to individually-owned ancestral lands, individual members of cultural
communities who, by themselves or through their predecessors -in-interest, have been in continuous
possession and occupation of said lands in the concept of owner since the immemorial or for a period
50 If the ADO rejects any claim which was false and fraudulent, all concerned parties shall be given notices containing the
grounds for denial. When there are conflicting claims among ICCs/IPs on the boundaries, the Ancestral Domains Office
shall conduct preliminary resolution of the conflict.
51 IPRA, Section 53.
52 See note 47, supra.
45
of not less than thirty (30) years immediately preceding the approval of the IPRA 53 and uncontested by
the members of the same ICCs/IPs, shall have the option 54 to secure title to their ancestral lands, either
under the provisions of:
1. CA No. 141 or the Public Land Act; or
2. PD No. 1529 or the Property Registration Deree.
A Torrens title of ancestral lands has the same efficacy, validity and indefeasibility as a regular
Torrens title. The registration of ancestral land is different from regular registration only in the
following aspects:
a. the applicant is a member of the ICC/IP;
b. the 30-year possession;
c. the land is already alienable and disposable by operation of law.
L. Can you transfer ownership of ancestral lands?

Yes. Ancestral lands may be transferred, subject to the following limitations55:
a. Only to members of same ICCs/IPs.
b. In accordance to customs and traditions.
c. Subject to right of redemption for a period of 15 years; if transferred to non-member.
M. Can you open ancestral land for mining operations?

Generally, no. Under RA No. 7942 (Mining Act of 1995) and RA No. 7046 (Small-Scale
Mining Act of 1991), prior consent of the ICCs and IPs concerned is required. RA No. 7942 also
requires that they be given royalties, while RA No. 7046 requires that they be given priority in
awarding small scale contracts.
N. The National Commission on Indigenous Peoples (NCIP)

The NCIP is the primary government agency which is responsible for the formulation and
implementation of policies, plans and programs to recognize, protect and promote the rights of
ICCs/IPs. The IPRA granted the NCIP administrative, quasi-legislative and quasi-judicial powers to
carry out its mandate.
O. What are the powers of the NCIP?

1. Formulation of policies, issuance of rules and regulations56
2. Resolution of conflicts57
3. Issuance of CADTs and CALTs
4. Cancellation of ancestral land and ancestral domain titles
5. Power to cite for contempt and issue restraining order58
53 Note: The IPRA was approved on October 29, 1997.

54 IPRA, Section 12.
55 IPRA, Section 8.
56 Id. Section 44.
57 Id. Section 66.
58 Id. Section 69.
46
P. Power of “Certification Precondition”59

All departments and other governmental agencies are strictly enjoined from issuing, renewing or
granting any concession, license or lease, or entering into any production-sharing agreement, without prior
certification from the NCIP that the area affected does not overlap with any ancestral domain.
Q. Conflict Resolution
The NCIP, through its regional offices, has jurisdiction over all claims and disputes involving
the rights of ICCs/IPs. However, no such dispute shall be brought to the NCIP unless the parties have
exhausted all remedies provided under their customary laws. For this purpose, a certification shall be
issued by the Council of Elders/Leaders who participated in the attempt to settle the dispute that said
dispute has not been resolved. The certification shall be a condition precedent to the filing of a petition
with the NCIP.
If the dispute is between and/or among ICCs/IPs regarding the traditional boundaries of their
respective ancestral domains, customary process shall be followed.
The NCIP shall promulgate the necessary rules and regulations to carry out its adjudicatory
functions. Any decision, order, award or ruling of the NCIP on any ancestral domain dispute or on any
matter pertaining to the application, implementation, enforcement and interpretation of the IPRA may
be brought by a petition for review to the Court of Appeals within fifteen (15) days from receipt of a
copy thereof.
R. Other Matters
1. On Certification as a precondition in the acquisition of a Timber License Agreement

One must first secure a certification from the NCIP in accordance with Section 59 of IPRA.
Ancestral domains remain as such even when possession or occupation of these areas has been
interrupted by causes provided under the law, such as voluntary dealings entered into by the
government and private individuals/corporations. Consequently, the issuance of a TLA did not
cause the ICCs/IPs to lose their possession or occupation over the area.60
2. Who has priority over natural resources within ancestral domains?

The ICCs/IPs shall have priority rights in the harvesting, extraction, development or
exploitation of any natural resources within the ancestral domains. A non-member of the
ICCs/IPs concerned may be allowed to take part in the development and utilization of the
natural resources for a period of not exceeding twenty-five (25) years renewable for not more
than twenty-five (25) years, provided that a formal and written agreement is entered into with
the ICCs/IPs concerned or that the community, pursuant to its own decision making process,
has agreed to allow such operation.
3. Do the ICCs/IPs have the right to self-governance?

Yes. ICCs/IPs have the inherent right to self-governance and self-determination. The State
respects the integrity of their values, practices and institutions. The State shall guarantee the
right of ICCs/IPs to freely pursue their economic, social and cultural development. The
59 Id. Section 59.
60 Alvarez vs PICOP Resources (G.R. No. 162243; December 3, 2009).
47
ICCs/IPs shall have the right to use their own commonly accepted justice systems, conflict
resolution institutions, peace building processes or mechanisms and other customary laws and
practices within their respective communities and as be compatible with the national legal
system and with internationally recognized human rights.
4. Are the lands certified to be ancestral domains covered by real estate taxes?
These lands are exempt from real property taxes, special levies, and other forms of exaction
except such portion of the ancestral domains as are actually used for large-scale agriculture,
commercial forest plantation and residential purposes or upon titling by private persons.
5. What law must be applied first when there is a conflict on ancestral lands?
Customary laws, traditions and practices of the ICCs/IPs of the land where the conflict arises
shall be applied first with respect to property rights, claims and ownerships, hereditary
succession and settlement of land disputes. Any doubt or ambiguity in the application and
interpretation of laws shall be resolved in favor of the ICCs/IPs.
– End of Report --
48
PHILIPPINE MINING ACT OF 1995

RA 7942
PRELIMINARY
Governing Law
On March 3, 1995, RA 7942, or the Philippine Mining Act of 1995 was enacted,
instituting a new system of mineral resources exploration, development, utilization and
conservation in the country.
On July 6, 2012, Executive Order No. 79 was issued where it bans mining in protected
and tourism areas and holds off issuance of new mining permits pending the approval of a new
revenue sharing scheme.
Evolution of pertinent mining laws
a. Decree of May 1867 or the Spanish Mining Law
This was the prevailing mining law in the Philippines before the cession of the Philippine
islands to the United States under the Treaty of Paris.
b. Act of Congress of July 1, 1902 or the Philippine Bill of 1902
The Bill contained provisions which declared all valuable mineral deposits in public
lands in the Philippine islands to be free and open to exploration, occupation and purchase of
mineral deposits and the land where they may be found.
Any qualified person desiring to locate a mineral claim may enter a plot not exceeding to
1,000 feet in length and not exceeding 1,000 feet in breadth, in a rectangular form.
The holder of the mineral claim where it is located owns all the minerals which may lie
under his claim.
The mine claim locator must have his claim recorded in the mining recorder within 30
days after the location.
c. Act No. 624, amending the Philippine Bill of 1902
Approved on February 7, 1903 and it prescribed regulations to govern the location and
the manner of recording mining claims and the amount of work to establish ownership.
d. Commonwealth Constitution or the 1935 Constitution
Took effect on November 15, 1935, declaring all natural resources of the Philippines including
mineral lands and minerals to be a property belonging to the State except those who have vested
rights.
e. CA No 137 or the Mining Act
Enacted on November 7, 1936.
Since the 1935 Constitution prohibits the alienation of mining lands, this act granted lease rights
to mining claimants who are proscribed from purchasing the mining claim itself.
f. Ordinance Appended to the Constitution or the Parity Rights
On March 11, 1947, this excepted the citizens of the United States and its business
enterprises which would have the equal right in the disposition, exploitation, development and
utilization of our natural resources, among them are our mining lands and minerals for the period
of July 4, 1946 to July 3, 1974.
g. EO No. 141
Issued by President Marcos on August 1, 1968 declaring that what matters in maintaining
and preserving possessory title to the claim is the continuous performance of the required
assessment work not the filing of an affidavit which may be disproved by findings on the ground.
h. The 1973 Constitution
Took effect on January 17, 1973, it providedthat all lands of the public domain, waters,
minerals, coal, petroleum and other mineral oils, all forces of potential energy, fisheries, wildlife,
and other natural resources of the Philippines belong to the State.
i. PD No. 463
Enacted on May 17, 1974 which revised CA No. 137 or the Mining Act. It declared that
all mineral deposits in public or private lands belong to the State, inalienably and imprescriptibly.
It also recognized whatever rights and reservations had already been existing with respect to
mining lands.
The act also stated that the possessory rights of mining claim holders under the Philippine
Bill of 1902 remain effective as long as said holders complied with the annual work requirement.
j. PD NO. 1214
On October 14, 1977, PD 1214 required all the holders of unpatented mining claims to
secure mining claims lease contracts under PD 463.
The filing of such mining lease applications was considered as a waiver of the holder’s
rights to the issuance of mining patents for their claims. This should be filed within one year,
lapsed of one year will forfeit their right to their claims.
k. The 1987 Constitution
On February 2, 1987 the 1987 Constitution was enacted. It reiterated the dominant
feature of the 1935 and 1973 Constitutions – ownership by the State of all natural resources. As
stated in Section 2, Article XII.
l. RA 7942 or the Philippine Mining Act of 1995
On March 3, 1995, RA 7942 was enacted, instituting a new system for the exploration,
development utilization and conservation of the natural resources of the country.
RA 7942 defines the modes of mineral arrangements for mining operations, outlines the
procedure for their filing and approval, assignment, transfer, withdrawal and fixes their terms.
RA 7942 prescribes the qualifications of contractors and grants them certain rights. The
act also restricts the conditions for exploration, quarry and other permits.
RA 7942 regulates the transport, sale and processing of minerals, and promotes the
development of mining communities, science and mining technology, and safety and
environmental protection.
m. DENR Administrative Order (DAO) No. 95-23 repealed by DAO No. 96-40
On August 15, 1995, the DENR issued the Implementing Rules and regulations of RA
7942 (DAO No. 95-23).
On December 20, 1996, the DENR issued DAO no. 96-40.
Declaration of Policy
The State shall ensure, for the benefit of the Filipino people, the full exploration and
development as well as the judicious disposition, utilization, management, renewal, and
conservation of the country’s forest, mineral, land, waters, fisheries, wildlife, off-shore areas and
other natural resources, consistent with the necessity of maintaining a sound ecological balance
and protecting and enhancing the quality of the environment and the objective of making the
exploration, development and utilization of such natural resources equitably accessible to the
different segments of the present as well as the future generations. (Sec. 1, Chapter 1, Title IV,
EO no. 292).
All mineral resources in public and private lands within the territory and exclusive
economic zone of the Philippines are owned by the State. It shall be the responsibility of the
State to promote their rational exploration, development, utilization 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
(Sec. 2, RA 7942).
Mineral production is a major support of the national economy and therefore the
intensified discovery, exploration, development and wise utilization of the country’s mineral
resources are urgently needed for national development (PD No. 463).
Ownership of mineral resources - Laws
a. Section 2, Article XII of the 1987 Constitution
Section 2, Article XII of the 1987 Constitution echoes the concept of jura regalia pursuant
to which all lads of the public domain belong to the State, and that the State is the source of any
asserted right to ownership in land and charged with the conservation of such patrimony. All
lands not appearing to be clearly of private dominion presumptively belong to the State
(Republic v. Naguiat).
The Regalian doctrine is intended for the benefit of the State, not of private persons. The
rule simply reserves to the State all minerals that may be found in public and even private land
devoted to agriculture, industrial, commercial, residential or for other purpose other than mining
(Republic v. Court of Appeals and De la Rosa).
Thus, if a person is the owner of the agricultural land in which mineral s are discovered,
his ownership of the land does not give him the right to extract or utilize the said minerals
without the permission of the State. Once minerals are discovered in the land, whatever the use
to which it is being devoted at the time, such use may be discontinued by the State to enable it to
extract the minerals in the exercise of its sovereign prerogative (Republic v. Court of Appeals
and De la Rosa).
b. Sections 4 and 5 of PD 463 or the Mineral Resources Decree of 1974
Ownership of mineral deposits by the State is also a dominant principle expressed in PD
463, to wit:
Section 4. Minerals Excluded from other Rights to Lands. The ownership or the
right to use public or private lands whether exposed or submerged, for agricultural, logging,
industrial, commercial, residential, petroleum exploration and/or exploitation or purposes or any
purpose other than mining, does not include the ownership of, nor the right to develop, exploit or
utilize, the mineral deposits found in, on or under the surface of such lands, except with respect
to quarry resources as provided for this Decree.
Section 5. Mineral Deposits Open to Location and Lease. Subject to any existing
rights or reservations, all valuable mineral deposits in public land including timber or forest land
as defined in Presidential Decree No. 389, otherwise known as the Forestry Reform Code or in
private land not closed to mining location, and the land which they are found, shall be free and
open to prospecting, occupation, location and lease.
c. Section 4, Chapter II of the Philippine Mining Act , RA 7942
SEC. 4. Ownership of Mineral Resources - Mineral resources are owned by the State and
the exploration, development, utilization, and processing thereof shall be under its full
control and supervision. The State may directly undertake such activities or it may enter
into mineral agreements with contractors. The State shall recognize and protect the rights
of the indigenous cultural communities to their ancestral lands as provided for by the
Constitution.
d. Section 5 of RA 7942
This section empowers the President when the national interest requires, to establish
mineral reservations where mining operations shall be undertaken directly by the State or
through a contractor. This is in effect in recognizing the importance of the country’s natural
resources not only for national economic development but also for its security and national
defense.
OWNERSHIP OF MINERAL RESOURCES – CONCEPTS

a. Full Control and supervision by the State in the exploration, development and utilization
of the country’s natural resources
This constitutional policy recognizes the concept of jura regalia as well as the importance
of the country’s natural resources, not only for economic development but also for its security
and national defense.
The options open to the State are through direct undertaking or by entering into joint
venture, co-production, or production-sharing agreements, or by entering into agreement with
foreign-owned corporations involving either technical or financial assistance for large scale
exploration, development and utilization 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.
Section 2, Article XII, is also geared towards a more equitable distribution of
opportunities, income and wealth; a sustained increase in the amount of goods and services
produced by the nation for the benefit of the people; and an expanding productivity as the key to
raising the quality of life for all, especially the underprivileged.
Our natural resources which constitute the exclusive heritage of the Filipino nation,
should be preserved for those under the sovereign authority of that nation and prosperity. This
will ensure the country’s survival as a viable and sovereign republic (Miners Association of the
Philippines v. Factoran).
b. The old system of exploration, development and utilization of natural resources through
licenses, concessions or leases has been omitted under the 1987 Constitution
Section 2, Article XII of the 1987 Constitution applies prospectively and not retroactively
to a license, concession, or lease granted before the effectivity of the 1987 Constitution.
RA 7942 or the Philippine Mining Act of 1995, embodies the new constitutional mandate.
It has repealed or amended all laws, executive orders, presidential decrees, rules and regulations
that are inconsistent with any of its provisions. But respects previously issued valid and existing
licenses as stated in Sections 5, 7, and 18 of the law.
c. RA No. 7942 reiterates ownership of natural resources by the State
Under Section 4 of RA 7942, mineral resources are owned by the State and the
exploration, development, utilization and processing thereof shall be under its full control and
supervision.
d. Activities which may be undertaken by the State in connection with its full control and
supervision
The State, being the owner of the natural resources, is accorded the primary power and
responsibility in the exploration, development and utilization. It may undertake these activities
through four modes:
1. The State may directly undertake such activities.
2. The State may enter into co-production, joint venture or production-sharing agreements
with Filipino citizens or qualified corporations.
3. Congress may, by law, allow small-scale utilization of natural resources by Filipino
citizens.
4. For the large-scale exploration, development, and utilization of minerals, petroleum and
other mineral oils, the president may enter into agreements with foreign-owned corporations
involving technical or financial assistance.
RA No. 7942 provides for the State’s control and supervision over mining operations.
The following provisions establish the mechanism of inspection and visitorial rights over mining
operations and institute reportorial requirements in this manner:
1. Section 8, which provides for the DENR’s power of over-all supervision and periodic
review for the conservation, management, development and proper use of the State’s mineral
resources;
2. Section 9, which authorizes the Mines and Geosciences Bureau (MGB) under the DENR
to exercise charge in the administration and disposition of mineral resources and empowers
the MGB to monitor the compliance by the contractor of the terms and conditions of the
mineral agreements, confiscate surety and performance bonds, and deputize whenever
necessary any member or unit of the Philippine National Police, barangay, duly registered
non-governmental organization (NGO) or any qualified person to police mining activities;
3. Section 66, which vests in the Regional Director exclusive jurisdiction over safety
inspections of all installations, whether surface or underground, utilized in mining operations.
4. Section 35, which incorporates into all FTAAs the following terms, conditions and
warranties, such as;
g. The mining operations shall be conducted in accordance with the provisions of this
Act and its implementing rules and regulations;
h. Work programs and minimum expenditures commitments;
xxx
k. Requiring the proponent to effectively use appropriate anti-pollution 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 Government 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. Requiring the proponent to dispose of the minerals and byproducts 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 Act;
n. Provide for consultation and arbitration with respect to the interpretation and
implementation of the terms and conditions of the agreements; and
o. Such other terms and conditions consistent with the Constitution and with this Act
as the Secretary may deem to be for the best interest of the State and the welfare of
the Filipino people.
Right of a locator to a perfected mining claim
Under the regalia doctrine the ownership of the natural resources belongs to the state, but
there was a time when the mining laws prevailing in this jurisdiction were compromising of the
Filipino people inherent right to their natural wealth.[Agcaoili, Law on Natural Resources and
Rules of Procedure for Environmental Cases, 2016 Ed., 136-152]
In the case of Mc-Daniel vs. Apacible, [GR. No. 17597, Feb 7, 1922, 47 Phil 749.] it was
held that a perfected, valid appropriation of public mineral lands operates as a withdrawal of the
tract from the body of the public domain, and so long as such appropriation remains valid and
subsisting, the land covered thereby is deemed private property. A mining claim perfected under
the law is property in the highest sense, which may be sold and conveyed and will pass by
descent. It has the effect of a grant (patent) of the right of present and exclusive possession of the
lands located. The owner of a perfected valid appropriation of public mineral lands is entitled to
the exclusive possession and enjoyment against everyone, including the Government itself.
Where there is a valid and perfected location of a mining claim, the area becomes segregated
from the public domain and the property of the locator. A valid and subsisting location of mineral
land, made and kept up in accordance with the provisions of the statutes, has the effect of a grant
of the present and exclusive possession of the lands located. The discovery of minerals in the
ground by one who has a valid mineral location perfects his claim and his location not only
against third person, but also against the Government.
The moment the locator discovered a valuable mineral deposit on the lands located, and
perfected his location in accordance with law, the power of the Government to deprive him of the
exclusive right to the possession and enjoyment of the located claim was gone, the lands had
become mineral lands and they were exempted from lands that could be granted to any other
person. The reservations of public lands cannot be made so as to include prior mineral perfected
locations; and, of course, if a valid mining location is made upon public lands afterward included
in a reservation, such inclusion or reservation does not affect the validity of the former location.
By such location and perfection, the land located is segregated from the public domain even as
against the Government.
Mining rights acquired under the Philippine Bill of 1902 and prior to the affectivity of the
1935 Constitution were vested right that could not be impaired even by the
government[Republicvs. Court of Appeals, Nos. L-43938, L-44081, L-44092, April 15, 1988,
160 SCRA 228.]
In the case of Yinlu Bicol Mining Corporation vs. Trans-Asia Oil and energy
Development Corporation [GR No. 207942, Jan 12, 2015.] this principle was reiterated, the court
held that the mining patents of Yinlu were issued pursuant to the Philippine Bill of 1902 and
were subsisting prior to the effectivity of the 1935 Constitution. Consequently, Yinlu and its
predecessors-in-interest had acquired vested rights in the disputed mineral lands that could not
and should not be impaired even in light of their past failure to comply with the requirement of
registration and annual work obligations. Relevantly, we advert to the DENR’s finding that
PIMI’s failure to register the patents in 1974 pursuant to PD No. 463 was excusable because of
its suffering financial losses at that time, which eventually led to the foreclosure of the mortgages
on its assets by the MBC and PCIB as its creditors. The failure of Yinlu’s predecessors-in-interest
to register and perform annual work obligations did not automatically mean that they had already
abandoned their mining rights, and that such right had already lapsed. For one, the DENR itself
declared that it had not issued any specific order cancelling the mining patents. Also, the tenets
of due process required that Yinlu and its predecessors-in-interest be given written notice of their
non-compliance with PD No. 463 and the ample opportunity to comply.
But mere recording of a mining claim, without performing annual work obligation, does not
convert land into mineral land
In Atok Big-Wedge Mining Co. vs. Intermediate Appellante Court[GR No. 63528, Sept 9,
1996 SCRA 529], which involved the issue, does the mere recording or location of a mining
claim ipso facto and irreversibly convert the land into mineral land, notwithstanding the fact the
mining claimant failed to comply with the strict work requirement under the Philippine Bill of
1902 – the court held that the mere recording or location of a mining claim ipso facto and
irreversibly convert the land into mineral land. Mere location does not mean absolute ownership
over the affected land or mining claim. It merely segregates the located land or area from the
public domain by barring other would-be locators from locating the same and appropriating for
themselves the minerals found therein. To rule otherwise would imply that location is all that is
needed to acquire and maintain rights over a located mining claim. The process of recording
mining claims could not have been intended to be the operative act of classifying lands into
mineral lands. The recording of a mining claim only operates to reserve to the registrant
exclusive rights to undertake mining activities upon the land subject of the claim. The power to
classify lands into mineral lands into mineral lands could not have been intended under the
Philippine Bill of 1902 to be vested in just anyone who records a mining claim. In fact, this
strengthens our holding that the rights of a mining claimant are confined to possessing the land
for purposes of extracting therefrom minerals in exclusion of any or all other persons whose
claims are subsequent to the original mining locator. Thus, if no minerals are extracted
therefrom, notwithstanding the recording of the claim, the land is not mineral and registration
thereof is not precluded by such recorded claim.
Thus, it can be said (1) that the rights under the Philippine Bill of 1902 of a mining claim
holder over his claim has been made subject by the said Bill itself to the strict requirement that
he actually performs work or undertakes improvements on the mine every year and does not
merely file his affidavit of annual assessment, which requirement was correctly identified and
declared in E.O. No. 141; and (2) that the same rights have been terminated by P.D. No. 1214, a
police power enactment, under which non-application for mining lease amounts to waiver of all
rights under the Philippine Bill of 1902 and application for mining lease amounts to waiver of
the right under said Bill to apply for patent. In the light of these substantial conditions upon the
rights of a mining claim holder under the Philippine Bill of 1902, there should remain no doubt
now that such rights were not, in the first place, absolute or in the nature of ownership, and
neither were they intended to be so.
PD No. 1214 was issued requiring all locators under the Act of Congress to secure mining
lease contracts under the provision of PD No. 463, thus -
Section 1. Holders of subsisting and valid patentable mining claims, lode or placer,
located under the provisions of the Act of Congress of July 1, 1902, as amended, shall file a
mining lease application therefor with the Mines Regional office concerned within a period
of one (1) year from the approval of this Decree, and upon the filling thereof, holders of the
said claims shall be considered to have waived their rights to the issuance of mining patents
therefor: Provided, however, That the non-filing of the application for mining lease by the
holders thereof within the period herein prescribed shall cause the forfeiture of all his rights
to the claim.
Section 2. No mines temporary permit shall be required of a holder of a patentable

mining claim, lode or placer, in the extraction and disposal of minerals taken therefrom
prior to the filling of the mining lease application therefor; Provided, That upon the filling
of the said application, the provisions of Presidential Decree No. 463 shall apply: Provided,
further, That patent applications already published shall be exempted from the publication
requirements of Presidential Decree No. 463.
In the case of Zambales Chromite Mining Co., Inc, vs. Leido[ GR No. 49143, Aug. 21,
1989, 176 SCRA 602.], the court held that PD No. 1214 is constitutional. The court cited its
ruling in Santa Rosa Mining Co., Inc. vs. Leido[GRNo. L-49109, Dec, 1, 1987, 156 SCRA 1.]
where it upheld the constitutionality of PD No. 1214 –
As to the issue of constitutionality, the Court categorically stated that P.D. No. 1214 is
constitutional. The Court ruled: It is a valid exercise of the sovereign power of the State, as
owner, over lands of the public domain, of which petitioner's mining claims still form a part, and
over the patrimony of the nation, of which mineral deposits are a valuable asset. It may be
underscored, in this connection, that the Decree does not cover all mining claims located under
the Phil. Bill of 1902, but only those claims over which their locators had failed to obtain a
patent. And even then, such locators may still avail of the renewable twenty-five year (25) lease
prescribed by Pres. Decree No. 463, the Mineral Development Resources Decree of 1974.
Mere location does not mean absolute ownership over the affected land or the mining claim. It
merely segregates the located land or area from the public domain by barring other would be
locators from locating the same and appropriate for themselves the minerals found therein. To
rule otherwise would imply that location is all that is needed to acquire and maintain rights over
a located mining claim. This, we cannot approve or sanction because it is contrary to the
intention of the lawmaker that the locator should faithfully and consistently comply with the
requirements for annual work and improvements in the located mining claim.
Abandonment
In the case of Medrana vs. Office of the President [GR No. 85904, Aug 21, 1990, 188 SCRA
818.] the court define the word abandonment by citing the case of Teodoro v. Macaraeg[27
SCRA 7 (1969)] which states that –
The word "abandon", in its ordinary sense, means to forsake entirely; to forsake or
renounce utterly. The dictionaries trace this word to the root Idea of "putting under a ban."
The emphasis is on the finality and the publicity with which something or body is thus put
in the control of another, and hence the meaning of giving up absolutely, with intent never
again to resume or claim one's rights or interests. In other words the act of abandonment
constitutes actual, absolute and
irrevocable desertion of one's right or property. In the case at bar, Macaraeg merely intended
to vacate his leasehold possession on the condition that a certain Claus be taken as his
successor. Hence, his act did not constitute desertion of his leasehold as it was a mere
intended surrender of the same. And as correctly espoused by the counsel for the respondent
court, it is 'only through the actual surrender of the land that tenancy relation terminates; no
amount of intention to surrender severs the relationship'. Furthermore, the said act of
Macaraeg was not an absolute renunciation of his leasehold possession, as it was in
fact clearly conditional.
Thus, abandonment may be said to result where there is concurrence of two (2) elements: the
first being the intent to abandon a right or claim and the second being the external act by which
that intention is expressed and carried into effect. There must, moreover, be an actual, as
distinguished from a merely projected, relinquishment of a claim or right; otherwise the right or
claim is not vacated or waived so as to be susceptible of being appropriated by the next owner.
These two (2) requirements are clearly lacking in the case at bar. The Director of Mines and
public respondent Office of the President had found that, in point of fact, private respondent
Supreme Aggregates had performed its annual work obligations. Supreme Aggregates could not
therefore be said to have intended to abandon its mining claim or lease, notwithstanding the fact
that it had failed to submit the normal documentary proof of performance of annual work
obligations that is, the Affidavit of Annual Work Obligations.
In Greenhills Mining Co. vs. Office of the President [GR No. L-75962, June 30, 1988, 163
SCRA 350] the court held:
The cases of McDaniel v. Apacible, Gold Creek Mining Corporation v. Rodriguez,and Salacot
Mining Company v. Abadilla,
relied upon by the petitioner, and where we held that the appropriation of a mineral land pursuant
to a valid claim segregates it from the public domain, are not in point. The petitioner assumes
that the claims of other claimants recorded in 1933 and 1934 were still valid when the Southern
Zambales Forest Reservation was established in 1956.
According to the office of the President, however, the original claimowners had failed to
perform annual development work on the claims in violation of the provisions of Section 36 of
the Philippine Bill of 1902. As a consequence, the area became "open to relocation ... as if no
location of the same had ever been made." 7 Conversely, assuming that the government lost the
property when the petitioner, or the original claimowners staked their claims in 1933 and 1934, it
reverted to the public dominion upon abandonment thereof Accordingly, when President
Magsaysay established the Southern Zambales Forest Reserve in 1956, the areas covered by the
said abandoned claims already formed part of the public domain. The petitioner cannot,
moreover, claim privity of title with the owners of the prior locations. Such prior locations had
been abandoned, or at most, forfeited, and the petitioner's own location cannot be considered a
continuation thereof.
Mineral Reservation
Section 5 of RA No. 7942 states that:
When the national interest so requires, 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 President may establish mineral
reservations upon the recommendation of the Director through the Secretary. Mining
operations in existing mineral reservations and such other reservations as may thereafter
be established, shall be undertaken by the Department or through a contractor:
Provided, That a small scale-mining cooperative covered by Republic Act No. 7076 shall
be given preferential right to apply for a small-scale mining agreement for a maximum
aggregate area of twenty-five percent (25%) of such mineral reservation, subject to valid
existing mining/quarrying rights as provided under Section 112 Chapter XX hereof. All
submerged lands within the contiguous zone and in the exclusive economic zone of the
Philippines are hereby declared to be mineral reservations.
A ten per centum (10%) share of all royalties and revenues to be derived by the
government from the development and utilization of the mineral resources within mineral
reservations as provided under this Act shall accrue to the Mines and Geosciences
Bureau to be allotted for special projects and other administrative expenses related to the
exploration and development of other mineral reservations mentioned in Section 6
hereof.
However, Sec 6 of RA No. 7942 states that:
Mining operations in reserved lands other than mineral reservations may be

undertaken by the Department, subject to limitations as herein provided. In the event that
the Department cannot undertake such activities, they may be undertaken by a qualified
person in accordance with the rules and regulations promulgated by the Secretary. The
right to develop and utilize the minerals found therein shall be awarded by the President
under such terms and conditions as recommended by the Director and approved by the
Secretary: Provided, that the party who undertook the exploration of said reservation
shall be given priority. The mineral land so awarded shall be automatically excluded
from the reservation during the term of the agreement: Provided, further, That the right of
the lessee of a valid mining contract existing within the reservation at the time of its
establishment shall not be prejudiced or impaired.
RA No. 7942 does not generally prohibit mining applications in all forest reserves but
onltthode specifically provided in Section 19 of this law.
Section 19. Mineral agreement or financial or technical assistance agreement

applications shall not be allowed:
a. In military and other government reservations, except upon prior written clearance by
the government agency concerned;
b. Near or under public or private buildings, cemeteries, archeological and historic sites,
bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure
projects, public or private works including plantations or valuable crops, except upon
written consent of the government agency or private entity concerned;
c. In areas covered by valid and existing mining rights;
d. In areas expressedly prohibited by law;
e. In areas covered by small-scale miners as defined by law unless with prior consent of
the small-scale miners, in which case a royalty payment upon the utilization 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. Old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas,
mangrove forests, mossy forests, national parks provincial/municipal forests, parks,
greenbelts, game refuge and bird sanctuaries as defined by law and in areas expressly
prohibited under the National Integrated Protected Areas System (NIPAS) under Republic
Act No. 7586, Department Administrative Order No. 25, series of 1992 and other laws.
Even if the area is a government reservation, defined as proclaimed reserved lands for
specific purpose other than mineral reservation, such does not necessarily preclude mining
activity in the area.[ Supra, see note 1] Section 18 of RA No. 7942 provides that:
Subject to any existing rights or reservations and prior agreements of all parties, all
mineral resources in public or private lands, including timber or forestlands as defined in
existing laws, shall be open to mineral agreements or financial or technical assistance
agreement applications. Any conflict that may arise under this provision shall be heard
and resolved by the panel of arbitrators.
Section 18 allows mining in public or private lands, including timber or forest lands
subject to existing right and reservation. [ibid.]
In the case of PNOC-Energy Development vs. Veneracion[GR No. 129820, Nov. 30,
2006] which involves the conflicting claims of the petitioner Philippine National Oil
Corporation-Energy Development Corporation and the respondent over the mining rights over
Block 159 of the Malangas Coal Reservation, Alicia,
Zamboanga del Sur.
On 31 January 1989, respondent applied with the Mines and Geo-Sciences Development
Services, DENR, Region IX, Zamboanga City
for a Declaration of Location (DOL) over Block 159 of the Malangas Coal Reservation, situated
at Barangays Payongan and
Kauswagan, Alicia, Zamboanga del Sur. On
18 May 1989, the Office of the Regional Executive Director (RED) of the DENR informed the
respondent that his DOL cannot be registered since Block 159 was part of the Malangas Coal
Reservation, as provided under Proclamation No. 284, issued by the President on 19 July 1938.
With the endorsement of the Office of Energy Affairs (OEA) and the DENR Secretary, the
respondent petitioned the Office of the President for the withdrawal of Block 159 from the coal
reservation and its conversion into a mineral reservation. The petitioner applied for a mineral
prospecting permit over Block 159 (and Blocks 120 and 160) with the OEA, which the latter
granted on 4 September 1989. The Malangas Coal Reservation was, at that time, under the
administration of the OEA. When it had initially applied for a mineral prospecting permit over
lands within the Malangas Coal Reservation, the OEA advised it to obtain the permission of the
Bureau of Mines and Geo-Sciences (BMGS).
On 18 October 1991, petitioner submitted to the DENR an application/proposal for a

Mineral Production Sharing Agreement (MPSA) over Blocks 120, 159 and 160 of
the Malangas Coal Reservation. On 21 February 1992, the Officer-In-Charge Regional Technical
Director Dario R. Mioza of the Mines and Geo-Sciences Developmental Service (MGDS)
advised the petitioner to amend its application for MPSA by excluding Block 159 as the same is
covered by the application of the respondent.Nevertheless, the petitioner did not exclude Block
159 from its MPSA. Records also show that it had not applied for nor was it able to obtain an
Exploration Permit from the BMGS over Block 159. However, on 13 April 1992, Presidential
Proclamation No. 890 was issued, which effectively excluded Block 159 from the operation of
Proclamation No. 284, and declared Block No. 159 as government mineral reservation open for
disposition to qualified mining applicants, pursuant to Executive Order No. 279.
This Court finds no merit in this Petition, they rule against the pertitioner’s claim of
preferential rights over Block 159. In the instant case, petitioner failed to state any compelling
reason for not filing its appeal within the mandated period. Instead, the records show that after
failing to comply with the period within which to file their motion for reconsideration on time,
they again failed to file their appeal before the Office of the DENR Secretary within the time
provided by law. But, even if petitioner had not lost its right to appeal, it cannot claim any
mining rights over Block 159 for failure to comply with the legal requirements. Petitioner
applied for an MPSA with the DENR on 18 October 1991, prior to the release of Block 159 from
the Malangas Coal Reservation under Proclamation No. 890 on 13 April 1992. Thus, the
provisions on the acquisition of mining rights within a government reservation other than a
mineral reservation under Presidential Decree No. 463 and the Consolidated Mines
Administrative Order (CMAO) should apply.
The court stated that as a general rule, prospecting and exploration of minerals in a
government reservation is prohibited under Section 13 of Presidential Decree No. 463. However,
the same rule provides an exception involving instances when the government agency concerned
allows it. They held that Section 8 of Presidential Decree No. 463 reiterates the rule and clarifies
it further by stating that prospecting, exploration and exploitation of minerals on reserved lands
other than mineral reservations may be undertaken by the proper government agency. As an
exception to this rule, qualified persons may undertake the said prospecting, exploration and
exploitation when the said agencies cannot undertake them. Section 15 of the CMAO is more
straightforward when it states that government reserved lands are open for prospecting, subject to
the rules and regulations provided therein.
The law enumerates the following requirements: (1) a prospecting permit from the agency
that has jurisdiction over the area, in this case, the OEA; (2) an exploration permit from the
BMGS; (3) if the exploration reveals the presence of commercial deposit, the permitee applies
before the BMGS for the exclusion of the area from the reservation; (4) granting by the president
of the application to exclude the area from the reservation; and (5) a mining agreement approved
by the DENR Secretary.
Classification of Minerals
CA No. 137 or the Mining Act classifies the land available for lease for the purposes of
mining, which as follows:
1. First group — Metals or metalliferous ores.
2. Second group — Precious stones.
3. Third group — Fuels.
4. Fourth group — Salines and mineral waters.
5. Fifth group — Building stone in place, clays, fertilizers, and other nonmetals.[ Sec. 15,
CA No. 137, enacted Nov 7, 1936]
Lands of the first group shall be those which contain any of the metallic elements or
minerals, or their combinations, such as gold, silver, platinum, tin, chromium, iron, manganese,
copper, nickel, lead, zinc, cinnabar, tungsten, and the like. [Ibid, Sec 16.]
Lands of the second group shall be those which contain minerals mainly used for ornamental
purposes such as diamond, ruby, emerald, sapphire, topaz, amethyst, zircon, aquamarine, opal,
jade, agate, tourmaline, beryl, garnet, turquoise and the like.[Ibid, Sec 17.]
Lands of the third group shall be those which contain combustible substances in solid,
liquid, gaseous form, such as peat, coal, mineral oils, natural gas, oil shales, asphalt, and the like,
but not the recent products of organic life. [Ibid, Sec 18.]
Lands of the fourth group shall be those which contain surface or subterranean soluble
substances or waters which by their mineral contents are classified as mineral waters, such as
salt, nitrates, sulphurated, carbonated, sodic, calcic, and other waters.
Lands of the fifth group shall be those which contain nonmetallic substances, such as:
(a) Those used for building or construction purposes, such as marble, granite, clay, and
the like.
(b) Asbestos, feldspar, lime, mica, guano, phosphate, potash, saltpeter, niter, and the like.
(c) Other substances used in the manufacture of paints, ceramics and fertilizers and for
other industrial purposes. [Ibid, Sec 20.]
Mineral lands may be classified under more than one group, depending upon the nature and
uses of the minerals contained therein.[Ibid, Sec 22.]
Definition of Terms
Section 3 of RA No. 7942. Definition of Terms - As used in and for purposes of this Act,
the following terms, whether in singular or plural, shall mean:
a. Ancestral lands refers to all lands exclusively and actually possessed, occupied, or utilized
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. Block or meridional block means an area bounded by one-half (1/2) minute of latitude and
one-half (1/2) minute of longitude, containing approximately eighty-one hectares (81 has.).
c. Bureau means the Mines and Geosciences Bureau under the Department of Environment
and Natural Resources.
d. Carrying capacity refers to the capacity of natural and human environments to

accommodate and absorb change without experiencing conditions of instability and attendant
degradation.
e. Contiguous zone refers to water, sea bottom and substratum measured twenty-four nautical
miles (24 n.m.) seaward from the base line of the Philippine archipelago.
f. Contract area means land or body of water delineated for purposes of exploration,
development, or utilization of the minerals found therein.
g. Contractor means a qualified person acting alone or in consortium who is a party to a

mineral agreement or to a financial or technical assistance agreement.
h. Co-production agreement (CA) means an agreement entered into between the Government
and one or more contractors in accordance with Section 26(b) hereof.
i. Department means the Department of Environment and Natural Resources.
j. Development means the work undertaken to explore and prepare an ore body or a mineral
deposit for mining, including the construction of necessary infrastructure and related facilities.
k. Director means the Director of the Mines and Geosciences Bureau.
l. Ecological profile or eco-profile refers to geographic-based instruments for planners and

decision-makers which presents an evaluation of the environmental quality and carrying
capacity of an area.
m. Environmental compliance certificate (ECC) refers to the document issued by the

government agency concerned certifying that the project under consideration will not bring
about an unacceptable environmental impact and that the proponent has complied with the
requirements of the environmental impact statement system.
n. Environmental impact statement (EIS) is the document which aims to identify, predict,
interpret, and communicate information regarding changes in environmental quality
associated with a proposed project and which examines the range of alternatives for the
objectives of the proposal and their impact on the environment.
o. Exclusive economic zone means the water, sea bottom and subsurface measured from the
baseline of the Philippine archipelago up to two hundred nautical miles (200 n.m.) offshore.
p. Existing mining or quarrying right means a valid and subsisting mining claim or permit or
quarry permit or any mining lease contract or agreement covering a mineralized area
granted/issued under pertinent mining laws.
q. Exploration 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 existence, extent,
quantity and quality thereof and the feasibility of mining them for profit.
r. Financial or technical assistance agreement means a contract involving financial or

technical assistance for large-scale exploration, development, and utilization of mineral
resources.
s. Force majeure 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, earthquake, storm, flood or other adverse weather conditions, explosion, fire,
adverse action by government or by any instrumentality or subdivision thereof, act of God or
any public enemy and any cause that herein describe over which the affected party has no
reasonable control.
t. Foreign-owned corporation means any corporation, partnership, association, or cooperative

duly registered in accordance with law in which less than fifty per centum (50%) of the capital
is owned by Filipino citizens.
u. Government means the government of the Republic of the Philippines.
v. Gross output means the actual market value of minerals or mineral products from its mining
area as defined in the National Internal Revenue Code.
w. Indigenous cultural community means a group or tribe of indigenous Filipinos who have
continuously lived as communities on communally-bounded 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.
x. Joint venture agreement (JVA) means an agreement entered into between the Government
and one or more contractors in accordance with Section 26(c) hereof.
y. Mineral processing means the milling, beneficiation or upgrading of ores or minerals and
rocks or by similar means to convert the same into marketable products.
z. Mine wastes and tailings 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. Minerals refers to all naturally occurring inorganic substance in solid, gas, liquid, or any
intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive
materials, and geothermal energy.
ab. Mineral agreement means a contract between the government and a contractor, involving
mineral production-sharing agreement, co-production agreement, or joint-venture agreement.
ac. Mineral land means any area where mineral resources are found.
ad. Mineral resource means any concentration of minerals/rocks with potential economic
value.
ae. Mining area means a portion of the contract area identified by the contractor for purposes
of development, mining, utilization, and sites for support facilities or in the immediate vicinity
of the mining operations.
af. Mining operation means mining activities involving exploration, feasibility, development,
utilization, and processing.
ag. Non-governmental organization (NGO) includes nonstock, nonprofit organizations

involved in activities dealing with resource and environmental conservation, management and
protection.
ah. Net assets refers to the property, plant and equipment as reflected in the audited financial
statement of the contractor net of depreciation, as computed for tax purposes, excluding
appraisal increase and construction in progress.
ai. Offshore 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 (200 n.m.) exclusive
economic zone including the archipelagic sea and contiguous zone.
aj. Onshore means the landward side from the mean tide elevation, including submerged lands
in lakes, rivers and creeks.
ak. Ore means a naturally occurring substance or material from which a mineral or element
can be mined and/or processed for profit.
al. Permittee means the holder of an exploration permit.
am. Pollution control and infrastructure devices refers to infrastructure, machinery, equipment
and/or improvements used for impounding, treating or neutralizing, precipitating, filtering,
conveying and cleansing mine industrial waste and tailings as well as eliminating or reducing
hazardous effects of solid particles, chemicals, liquids or other harmful byproducts and gases
emitted from any facility utilized in mining operations for their disposal.
an. President means the President of the Republic of the Philippines.

ao. Private land 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
acquired a vested right thereto under the law, although the corresponding certificate or
evidence of title or patent has not been actually issued.
ap. Public land refers to lands of the public domain which have been classified as agricultural
lands and subject to management and disposition or concession under existing laws.
aq. Qualified person means any citizen of the Philippines with capacity to contract, or a
corporation, partnership, association, or cooperative organized or authorized for the purpose
of engaging in miring, with technical and financial capability to undertake mineral resources
development and duly registered in accordance with law at least sixty per centum (60%) of the
capital of which is owned by citizens of the Philippines: Provided, That a legally organized
foreign-owned corporation shall be deemed a qualified person for purposes of granting an
exploration permit, financial or technical assistance agreement or mineral processing permit.
ar. Quarrying means the process of extracting, removing and disposing quarry resources
found on or underneath the surface of private or public land.
as. Quarry permit means a document granted to a qualified person for the extraction and
utilization of quarry resources on public or private lands.
at. Quarry resources refers to any common rock or other mineral substances as the Director of
Mines and Geosciences Bureau may declare to be quarry 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:
Provided, That such quarry resources do not contain metals or metallic constituents and/or
other valuable minerals in economically workable quantities: Provided, further, That non-
metallic minerals such as kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles,
bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and
semi-precious stones, and other non-metallic minerals that may later be discovered and which
the: Director declares the same to be of economically workable quantities, shall not be
classified under the category of quarry resources.
au. Regional director means the regional director of any mines regional office under the
Department of Environment and Natural Resources.
av. Regional office means any of the mines regional offices of the Department of Environment
and Natural Resources.
aw. Secretary means the Secretary of the Department of Environment and Natural Resources.
ax. Special allowance refers to payment to the claim-owners or surface right-owners

particularly during the transition period from Presidential Decree No. 463 and Executive
Order No. 279, series of 1987.
ay. State means the Republic of the Philippines.
az. Utilization means the extraction or disposition of minerals.
ORGANIZATIONAL STRUCTURE
Authority Of The Department (DENR)
Under Section 8 of RA 7942, the Department shall be the primary agency responsible for the
conservation, management, development, and proper use of the State's mineral resources
including those in reservations, watershed areas, and lands of the public domain. The Secretary
shall have the authority to enter into mineral agreements on behalf of the Government upon the
recommendation of the Director, promulgate such rules and regulations as may be necessary to
implement the intent and provisions of this Act.
a. Rule-making authority of the DENR Secretary
In the case of Miners Association of the Philippines vs. Factoran, it was held that
EO No. 279 which has the force and effect of a statute or law validly modified or altered
the privileges granted, as well as the terms and conditions of mining leases and
agreements under EO No. 211 after the effectivity of the 1987 Constitution by
authorizing the DENR Secretary to negotiate and conclude joint venture, co-production,
or production-sharing agreements for the exploration, development and utilization of
mineral resources and prescribing the guidelines for such agreements and those
agreements involving technical or financial assistance by foreign-owned corporations for
large scale exploration, development, and utilization of minerals.
b. Role of LGUs in mining projects within their respective jurisdiction:

1. To ensured that relevant laws on public notice, public consultation and public
participation are complied with;
2. In coordination with the Bureau/Regional Office(s) and subject to valid and existing
mining rights, to approve applications for small-scale mining, sand and gravel, quarry,
guano, gemstone gathering and gratuitous permits and for industrial sand and gravel
permits not exceeding five (5) hectares;
3. To receive their share as provided for by law in the wealth generated from the
utilization of mineral resources and thus enhance economic progress and national
development;
4. To facilitate the process by which the community shall reach an informed decision on
the social acceptability of a mining project as a requirement for securing an
Environmental Compliance Certificate (ECC);
5. To participate in the monitoring of any mining activity as a member of the Multipartite
Monitoring team referred to in Section 185 hereof;
6. To participate as a member of the Mines Rehabilitation Fund Committee as provided
for in Sections 182 to 187 hereof;
7. To be the recipient of social infrastructure and community development projects for
the utilization of the host and neighboring communities in accordance with Chapter
XIV hereof;
8. To act as mediator between the indigenous cultural communities and the contractors as
may be requested;
9. To coordinate with the Department and Bureau in the implementation of the Act and
the implementing rules and regulations in their respective jurisdictions. In areas
covered by the Southern Philippine Council for Peace and Development (SPCPD),
Autonomous Region of Muslim Mindanao (ARMM) and future similar units, the
appropriate offices of said units shall coordinate with the Department and Bureau in
the implementation of the Act and these implementing rules and regulations; and
10. To perform such other powers and functions as may be provided for by applicable
laws, rules and regulations.
Authority Of The Bureau
The MGB is headed by a Director and assisted by an Assistant Director. It shall advise
the Secretary on matters pertaining to geology and mineral resources exploration, development,
utilization and conservation. It shall have the following authority:
1. To have direct charge in the administration and disposition of mineral lands and
mineral resources;
2. To undertake geological, mining, metallurgical, chemical and other researches, as
well as mineral exploration surveys: Provided, that for areas closed to mining
applications as provided for in Section 15 hereof, the Bureau can undertake studies
for purposes of research and development;
3. To confiscate, after due process, surety, performance and guaranty bonds after notice
of violation;
4. To recommend to the Secretary the granting of Mineral Agreements or to endorse to
the Secretary for action by the President the grant of FTAAs, in favor of qualified
persons and to monitor compliance by the contractor with the terms and conditions of
the Mineral Agreements and FTAAs. For this purpose, an efficient and effective
monitoring system shall be established to ascertain periodically whether or not these
objectives are realized;
5. To cancel or to recommend cancellation, after due process, mining rights, mining
applications and mining claims for non-compliance with pertinent laws, rules and
regulations;
6. To deputize, when necessary, any member or unit of the Philippine National Police
(PNP) and barangay, duly registered and Department-accredited Non-governmental
Organizations (NGO) or any qualified person to police all mining activities;
7. To assist the Environmental Management Bureau (EMB) under the Department
and/or the Department Regional Office in the processing or conduct of environmental
impact assessment in mining projects; and
8. To exercise such other authority vested by the Act and as provided for in these
implementing rules and regulations.
NOTE:The Director may delegate such
authority and other powers and
functions to the Regional Director.
a. Bureau conferred with quasi-judicial powers

Under Section 7 of PD No. 1281, MGB was conferred with original and exclusive
jurisdiction to hear and decide cases involving among others, the “cancellation and/or
enforcement of mining contracts due to the refusal of the claim owner/operator to abide by the
terms and conditions thereof” to effectively discharge its task as the government’s arm in the
administration and disposition of mineral resources.
In Benguet Corporation vs. Leviste, the subject is a mining contract and private respondent,
in seeking a judicial declaration of its nullity, did not wish to abide by its terms and conditions.
Whatever the basis for the refusal to abide the contract’s terms and conditions, the basic issue
remains one of its cancellation, which is precisely what PD No. 1281 places within the exclusive
original jurisdiction of the Bureau.
In the case of Asaphil Construction and Development Corporation vs. Tuason, while the
Agreement to Operate Mining claims is a mining contract, the ground upon which the contract is
sought to be annulled is due to Asaphil’s refusal to abide by the terms and conditions of the
agreement, but due to Induplex’s alleged violation of the condition imposed by the BOI in its
Joint Venture Agreement with Grefco, Inc. Also, Tuason sought the nullity of the Contract for
Sale and Purchase of Perlite Ore, based on the same alleged violation. Obviously, this raises a
judicial question, which is proper for determination by the regular courts. Hence, the Mines
Adjudication Board (MAB) committed an error in taking cognizance of the appeal, and in ruling
upon the validity of the contracts.
In Gonzales vs. Climax Mining Ltd., the Court reiterated that the resolution of the validity or
voidness of the contracts remains a legal or judicial question as it requires the exercise of judicial
function.
b. Doctrine of Primary Jurisdiction
It is applicable in case like where the question is what coal areas should be exploited and
developed and in which entity should be granted coal operating contracts over said areas since
the question involves a technical determination by the Bureau as the administrative agency in
possession of the specialized expertise to act on the matter.
The findings of the Bureau shall are controlling on the courts.
c. Non-interference by the courts on purely administrative matters
The administrative decision in matters within the executive jurisdiction can only be set aside
on proof of gross abuse of discretion, fraud or error of law.
RECORDING SYSTEM
 A mineral resource database system shall be set up in the Bureau which shall include a
mineral rights management system.
 The Bureau shall publish at least annually, a mineral gazette of nationwide circulation, a
current list of mineral right, their locations in the map, mining rules and regulation, other
official acts affecting mining, and other information relevant to mineral resources
development.
 A system and publication fund shall be included in the regular budget of the Bureau.
SCOPE OF APPLICATION
Areas Open To Mining Operations
 All mineral resources in public or private lands, including timber or forestlands, but
subject to any existing rights or reservations and prior agreements of all parties.
 A panel of arbitrators shall hear and resolve any conflict under this provision.
Areas Closed To Mining Operations
Not allowed:
1. In military and other government reservations, except upon prior written clearance by the
government agency concerned;
2. Near or under public or private buildings, cemeteries, archeological and historic sites,
bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects,
public or private works including plantations or valuable crops, except upon written
consent of the government agency or private entity concerned;
3. In areas covered by valid and existing mining rights;
4. In areas expressly prohibited by law;
5. In areas covered by small-scale miners as defined by law unless with prior consent of the
small scale miners, in which case a royalty payment upon the utilization of minerals shall
be agreed upon by the parties, said royalty forming a trust fund for the socioeconomic
development of the community concerned; and
6. Old growth or virgin forests, proclaimed watershed, forest reserves, wilderness area,
mangrove forests, mossy forests, national parks, provincial/municipal forests, parks,
greenbelts, game refuge and bird sanctuaries as defined by law in areas expressly
prohibited under the National Integrated Protected Area System (NIPAS) under RA 7586,
DAO No. 25, series of 1992 and other laws.
However, they may be opened for mining applications subject to the following conditions:
1. Military and other government reservations, upon prior written clearance by the
government agency having jurisdiction over such reservations;
2. Areas near or under public or private buildings, cemeteries, archaeological and historic
sites, bridges, highways, railroads, reservoirs, dams or other infrastructure projects,
public or private works, including plantations or valuable crops upon written consent of
the concerned government agency or private entity subject to technical evaluation and
validation by the Bureau.
3. Areas covered by Financial or Technical Assistance Agreement (FTAA) applications
which shall be opened for quarry resources mining applications pursuant to Section 53
upon the written consent of the FTAA applicants: Provided, that sand and gravel permit
applications shall not require consent from the FTAA, Exploration Permit or Mineral
Agreement applicant, except for Mineral Agreement or Exploration Permit applications
covering sand, gravel and/or alluvial gold: Provided, further, that the Director shall
formulate the necessary guidelines to govern this provision;
4. Areas covered by small-scale mining under RA 70706 or PD 1899 upon prior consent of
the small-scale miners, in which case a royalty payment, upon the utilization of minerals,
shall be agreed upon by the concerned parties and shall form a Trust Fund for the
socioeconomic development of the concerned community; and
5. DENR Project Areas upon prior consent from the concerned agency.
EXPLORATION PERMIT
Section 20.Exploration Permit. – An exploration permit grants the right to conduct exploration
for all minerals in specified areas. The Bureau shall have the authority to grant an exploration
permit to a qualified person.
 Exploration activities may be directly undertaken by the Department, or
 By a qualified person in specified areas as determined by the Secretary in the event that
in cannot be undertaken by the Department
 The Department or any of its authorized agency and the exploration permit applicant may
enter into a memorandum of agreement to jointly undertake such technical study of an
area when necessary
Sec. 3(aq) of RA 7947 is Constitutional

“Qualified person" means any citizen of the Philippines with capacity to
contract, or a corporation, partnership, association, or cooperative organized or
authorized 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 sixty per centum (60%) of the capital of which is
owned by citizens of the Philippines: Provided, That a legally organized foreign-
owned corporation shall be deemed a qualified person for purposes of granting
an exploration permit, financial or technical assistance agreement or mineral
processing permit.
 An exploration permit merely grants to a qualified person the right to conduct exploration
for all minerals in specified areas.
 It does not amount to an authorization to extract and carry off the mineral resources that
may be discovered.
 It also serves as a practical and legitimate purpose in that it protects the interests and
preserves the rights of the exploration permit grantee (the would-be contractor) – foreign
or local – during the period of time that it is spending heavily on exploration works,
without yet being able to earn revenues to recoup any of its investments and
expenditures.
Submission Of Work Program
 Permit holder will be required to file with MGB a declaration of mining project
feasibility to be accompanied by a work program for development.
 It will enable the government to access all the information it may need in order to
determine in advance the amounts of pre-operating and developmental expenses that the
contractor may legitimately recover and the approximate period of time needed to effect
such recovery.
Term Of Exploration Permit
 A period of two (2) years from the date of issuance
 Renewable but not to exceed a total term of four (4) years for non-metallic mineral
exploration or six (6) years for metallic mineral exploration
 Provided, no renewal of permit shall be allowed unless the permittee has complied with
all the terms and conditions and has not been found guilty of violation any provision of
the Act and these implementing rules and regulations
 Provided, further, that the conduct of a feasibility study and filing of the declaration of
mining project feasibility shall be undertaken during the term of the exploration permit,
subject to the provisions of Section 30 hereof.
Transfer Of Exploration Permit
Section 25. Transfer or Assignment. - An exploration permit may be transferred or assigned to a
qualified person subject to the approval of the Secretary upon the recommendation of the
Director.
 In the case of Apex Mining Co., Inc vs. Southeast Mindanao Gold Mining Corporation,
the respondent has not acquired any right to the Diwalwal gold rush area because the
transfer of Exploration Permit 133 was not with the prior approval of the DENR
Secretary.
Maximum Area For Exploration Permit
Section 22. Maximum Areas for Exploration Permit. The maximum area that a qualified person
may hold at any one time shall be:
1. Onshore, in any one province -
(1) For individuals, twenty (20)
blocks; and
(2) For partnerships, corporations, cooperatives, or associations, two hundred
(200) blocks.
2. Onshore, in the entire Philippines -
(1) For individuals, forty (40)
blocks; and
(2) For partnerships, corporations, cooperatives, or associations, four hundred
(400) blocks.
3. Offshore, beyond five hundred meters (500m) from the mean low tide level -
(1) For individuals, one
hundred (100) blocks; and
(2) For partnerships, corporations, cooperatives, or associations, one thousand
(1,000) blocks.
Rights And Obligations Of The Permitee

Section 23. Rights and Obligations of the Permittee. - An exploration permit shall grant to the
permittee, his heirs or successors-in-interest, the right to enter, occupy and explore the area:
Provided, That if private or other parties are affected, the permittee shall first discuss with the
said parties the extent, necessity, and manner of his entry, occupation and exploration and in case
of disagreement, a panel of arbitrators shall resolve the conflict or disagreement.
The permittee shall undertake an exploration work on the area as specified by its permit
based on an approved work program.
The permittee may apply for a mineral production sharing agreement, joint 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 qualifications
and the terms and conditions of any such agreement: Provided, That the exploration period
covered by the exploration permit shall be included as part of the exploration period of the
mineral agreement or financial or technical assistance agreement.
Terms And Conditions Of Exploration Permit
1. The right to explore shall be subject to valid, prior and existing rights of any
party(ies) within the subject area;
2. The permit shall be for the exclusive use and benefit of the permittee or its duly
authorized representative and, shall under no circumstances, be used by the permittee
for purposes other than exploration;
3. The term of the permit shall be for a period of two (2) years form date of the issuance,
renewable for like periods but not to exceed a total term of four (4) years for
nonmetallic mineral exploration or six (6) years for metallic mineral exploration:
Provided, that no renewal of permit shall be allowed unless the permittee has
complied with the terms and conditions of the permit and has not been found guilty of
violation of any provision of the Act and these implementing rules and regulations:
Provided, further, that in case of failure to file the declaration of mining project
feasibility during the total term of four (4) years of the exploration permit for
nonmetallic minerals or six (6) years of the same exploration permit for metallic
minerals, the permittee may apply for further renewal of the exploration permit,
which may be granted for another term of two (2) years for the very purpose of
preparing or completing the feasibility studies, and filing of the declaration of mining
project feasibility and the pertinent mineral agreement or FTAA application. The
complete and final exploration report shall be required in this renewal of the
exploration permit: Provided, furthermore, that in case the exploration permit expires
prior to the approval of the declaration of the mining project feasibility and/pr filing
of the mineral agreement or FTAA application, the said exploration permit shall be
deemed automatically extended until such time that the mineral agreement or FTAA
application is approved.
4. The permittee shall submit to the Bureau/Regional Office concerned within thirty (30)
calendar days after the end of each semester a report under oath of the exploration
work program implementation and expenditures showing discrepancies/deviations
including the results of the survey, laboratory reports, geological reports/maps subject
to semi-annual inspection and verification by the Bureau/Regional Office concerned
at the expense of the permittee: Provided, that any expenditure in excess of the yearly
budget of the approved exploration work program may be carried forward and
credited to the succeeding years covering the duration of the permit;
5. The permittee shall submit to the Bureau/Regional Office concerned within thirty (30)
calendar days from the end of the six (6) months after the approval of the
environmental work program (EWP) and every six (6) months thereafter a status
report on its compliance with the said EWP.
6. The permittee shall annually relinquish at least 20% of the permit area during the first
two (2) years of exploration and at least 10% of the remaining permit area annually
during the extended exploration period. However, if the permit area is less than five
thousand (5,000) hectares, he permittee need not relinquish any part thereof. A
separate report of relinquishment shall be submitted to the Bureau/Regional Office
concerned with a detailed geologic report of the relinquished area accompanied by
maps at a scale of 1:50,000 and results of analyses and corresponding expenditures,
among others. The minimum exploration expenditures for the remaining area after
relinquishment shall be based on the approved EWP;
7. The Secretary or his duly appointed representative shall annually review the
performance of the permittee;
8. The permittee shall submit to the Bureau/Regional Office concerned a final report
upon the expiration or the relinquishment of the permit or its conversion into mineral
agreement or FTAA in a form and substance comparable to published reports of
respected international organizations and shall incorporate all the findings in the
permit area, including locations of samples, assays, chemical analyses and assessment
of the mineral potential. Such report shall include complete detailed expenditures
incurred during the exploration;
9. In case of diamond drilling, the permittee shall, upon the requires of the
Bureau/Regional Office concerned, submit to the Bureau/Regional Office concerned
a quarter of the core samples which shall be deposited in the Bureau/Regional Office
core library concerned for reference and safekeeping;
10. Offshore exploration activities shall be carried out in accordance with the United
Nations Convention on the Law of the Sea (UNCLOS) and in a manner that will not
adversely affect the safety of navigation at sea and will ensure accommodation with
other marine activities such as fishing, aquaculture, transportation, etc;
11. Onshore exploration activities shall be carried out in a manner that will, at all times,
safeguard the environment;
12. If the permittee applies for a mineral agreement or FTAA over the permit area, the
exploration period covered by the exploration permit shall be considered as the
exploration period of the mineral agreement or FTAA;
13. The permittee shall comply with pertinent provisions of the Act and these
implementing rules and regulations; and
14. The permittee in the case of a juridical entity shall annually submit a copy of its
Securities and Exchange Commission-received general information sheet; and
15. Other terms and conditions which the Bureau/Regional Office concerned may deem
appropriate.
Registration Of Exploration Permit
Upon evaluation that all the terms and conditions and all pertinent requirements are in
order and that the subject area has been cleared form any conflict, the Director shall approve and
issue the exploration permit, and the permitted shall cause the registration of the same with the
Bureau/Regional Office concerned within fifteen (15) working days form the receipt of the
written notice and upon payment of the required fees: Provided, that if all the mandatory and
other requirements have been complied with and the exploration permit application is still
awaiting approval five (5) months after its date of filing, the said exploration permit application,
upon submission of an affidavit by the applicant attesting to the full compliance with all the
pertinent requirements, shall be deemed approved and the Director shall issue the exploration
permit within five (5) working days from receipt of said affidavit for registration and release.
This is without prejudice to the Department undertaking the necessary investigation to determine
any liability as to the non-issuance of the exploration permit within the prescribed period. It is
required that the permitted shall comply with the required consultation with the Sanggunian
concerned pursuant to the pertinent provisions of RA 7160, the Local Government Code of 1991,
prior to the implementation of the EWP.
Exploration Permit Revocable When Demanded By Police Power
 A mining license, being a mere privilege, does not vest absolute rights in the holder.
 Without the due process and the non-impairment clauses of the Constitution, it can be
revoked by the State in the public interest.
MINERAL AGREEMENTS
Forms
1.Mineral Production Sharing Agreement (MPSA)
2. Co-production agreement (CA)
3. Joint-venture agreement (JVA)
*A mineral agreement shall grant an exclusive right to conduct mining operations and to extract
all mineral resources found in the contract area to the contractor. In addition, the contractor is
allowed to convert his agreement into any of the modes of agreement subject to the approval of
the Secretary.
Scope
1. MPSA
 the government participates the least
 the government grants the contractor the exclusive right to conduct mining
operations within a contract area and shares in the gross output.
 the MPSA contractor provides the financing, technology, management and
personnel necessary for the agreement’s implementation.
 the total government share in an MPSA is the excise tax on mineral products
under RA No. 7729, amending Section 151 (a) of the National Internal Revenue
Code, as amended
2. CA
 the government provides inputs to the mining operations other than the mineral
resource
3. Joint Venture Agreement
 where the government enjoys the greatest participation
 the gov’t and the JVA contractor organize a company with both party having
equity shares
 the gov’t is also entitled to a share in the gross output
The gov’t may enter into a CA or JVA into one or more contractors. Provided that these
should be taken into consideration (Section 81 of RA 7942)
a. capital investment of the project
b. the risks involved
c. contribution to the project to the economy
d. other factors that will provide for a fair and reasonable equitable sharing
between the gov’t and the contractor.
- the gov’t should be entitled to compensation
Eligibility
A qualified person may enter into any of the three modes of mineral agreement.
A qualified person means—
a. In case of an individual—must be a Filipino citizen of legal age and with the
capacity to contract; or
b. In case of a corporation, partnership, association, or cooperative— must be
organized or authorized for the purpose of engaging in mining, duly registered in accordance
with law, at least 60% if the capital of which is owned by Filipino citizens
Maximum Area
The maximum area that a qualified person may hold at any time under a mineral
agreement shall be
a. Onshore, in any one province
1. For individuals, ten blocks; and
2. For partnerships, cooperatives, associations, or corporations, 100 blocks.
b.Onshore, in the entire Philippines—
1. For individuals, 50 blocks;
2. For partnerships, cooperatives, associations, or corporations, 500 blocks; and
3. For the exclusive economic zone, a larger area to be determined by the
Secretary.
-shall not include mining/quarry areas under operating agreements between the contractor
and a claim owner/lessee/permittee/licensee entered into under PD 463
Filing and approval
-shall be filed in the region where the areas of interest are located
Exception: mineral reservations
Secretary -> President.
President -> provide a list to Congress of every approved mineral agreement within 30
days of approval by the Secretary
Assignment Of Transfer
 shall be subject to the prior approval of the Secretary upon recommendation of the
Director
 must be accompanied by deed of assignment (transferee/assignee assumes all obligations
of the transferor/ assignor)
 shall comply with all the terms and conditions of the agreement
 shall be deemed automatically approved by the Secretary if not acted upon by the
Secretary within 30 calendar days from official receipt thereof, unless unconstitutional to
illegal
Term
Mineral agreements shall have a term not exceeding 25 years to start from the date of
execution thereof, and renewable for a term not exceeding 25 years under the same terms and
conditions thereof, without prejudice to changes mutually agreed upon by the parties.
Publication, Posting, Radio Announcement

Within 15 working days from receipt of the necessary area clearances, the Bureau or
Regional Office concerned shall issue to the applicant the Notice of Application for Mineral
Agreement for publication, posting, and radio announcement which shall be done within 15
working days from the receipt of the notice.
The notice must contain:
 name and complete addresses of the applicant
 duration of the agreement applied for
 extent of application to be undertaken
 area location
 geographical coordinates/ meridional block (s) of the proposed contract area and
location map/sketch plan with index map relative to major environmental features
and projects to the nearest municipalities.
Registration
Approval by the Secretary -> forwarded to the Bureau for numbering-> The Director
shall notify the contractor to cause the registration of its mineral agreement with the Bureau with
the areas inside mineral reservations or with the concerned Regional Office for areas outside
mineral reservations within 15 working days from receipt of the written notice. Registration is
effected only upon payment of the required fees-> The Bureau or Regional Office shall officially
release the mineral agreement to the contractor after registration of the same
*Failure to cause registation -> sufficient ground for cancellation

Issuance Of Special Mines Permit
 Application is valid and existing
 Has been granted an area status and clearance
 NCIP precondition certification and endorsement from the concerned Sanggunian
 Has no pending mining dispute/ conflict as certified by the concerned Panel Arbitrators/
Mines Adjudication Board
-may be issued by the Director upon clearance by the Secretary
-shall be for a period of one year renewable once (may be further renewed)
-In cases where public welfare so requires the Secretary may, after verification and evaluation of
the Bureau, grant other forms of special mines permit so as to address the specific conditions in
the areas concerned.
*THe DENR has the authority to cancel mining agreements

FINANCIAL OR TECHNICAL ASSISTANT AGREEMENT
Definition
A contract involving financial or technical assistance for large-scale exploration,
development, and utilization of natural resources.
The FTAA is subject to negotiation
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
pre-operating expenses, exploration, and development expenditures, inclusive”
 A FTAA is a contract or property right which merits protection by the due process clause
Eligibility
1. Any qualified person with technical and financial capability to undertake large-scale
exploration, development, and utilization of natural resources in the Philippines may
enter into such agreement directly with the government through the DENR.
2. A legally organized foreign-owned corporation (any corporation, partnership, association,
or cooperative duly registered in accordance with law in which less than 50% of the
capital is owned by Filipino citizens) is deemed a “qualified person”.
Minerals Subject OfFtaa

1. Gold
2. Copper
3. Nickel
4. Chromite
5. Lead
6. Zinc
7. Other Minerals
No FTAAS may be granted with respect to:

1. Cement raw materials
2. Marble
3. Granite
4. Sand and gravel and construction aggregates
Maximum Contract Area

1. 1,000 meridional blocks onshore
2. 4,000 meridional blocks offshore; or
3. Combination of a and b provided that it shall not exceed the maximum limits for onshore
and offshore areas
Term
An FTAA shall have a term not exceeding 25 years from the date of execution thereof,
and renewable for another term not exceeding 25 years under such terms and conditions as may
be provided for by law and mutually agreed upon by the parties. The activities of each phase of
mining operations must be completed within the ff periods:
1. Exploration- up to 2 years from the date of FTAA execution, extendible for another two
years;
2. Pre-feasibility study, if warranted- up to 2 years from expiration of the exploration
period;
3. Feasibility study- up to 2 years from the expiration of the exploration/pre-feasibility study
period or from declaration of mining project feasibility; and
4. Development, construction, and utilization- remaining years of FTAA
The mine should have profitable operating life of more than 10 years, to ensure the
collection of the gov’t share, given a maximum five-year recovery cost period.
Negotiations
Section 36 of RA No. 7942 provides
“A financial or technical assistance agreement shall be negotiated by the
Department and executed and approved by the President. The President shall notify Congress of
all financial or technical assistance agreements within 30 days from execution and approval
thereof”
Filing and evaluation
All FTAAs shall be filed with the Bureau after payment of the required processing fees. If
it is sufficient in form and in substance after evaluation, it shall be recorded with the appropriate
gov’t agency to give the proponent the prior right to the area covered by such proposal. Provided,
the agreements and rights are not impaired or prejudiced thereby. The Secretary shall recommend
its approval to the President.
Any application that transcends two or more regions shall be filed with the Regional
Office which has the largest area covered by the application.
The FTAA application shall be accepted only upon payment of the required fees to be
accompanied by eight stes of the FTAA proposal and five sets of the following mandatory
requirements.
Publication, posting, and radio announcement

Within 15 working days from receipt of the necessary area clearances, the Bureau or Regional
Office concerned shall issue to the applicant the FTAA for publication, posting, and radio
announcement which shall be done within 15 working days from the receipt of the notice.
The notice must contain:
 name and complete addresses of the applicant
 extent of operation to be undertaken
 area location
 geographical coordinates/ meridional block (s) of the proposed contract area and location
map/sketch plan with index map relative to major environmental features and projects to
the nearest municipalities.
Terms and condition of FTAA
The following terms, conditions, and warranties, among others, shall be incorporated in the
FTAA:
1. A firm commitment, in the form of a sworn statement during the existence of the
agreement, that the contractor shall comply with the minimum ground expenditures
during the exploration and pre-feasibility periods;
2. A stipulation that the contractor shall not, by virtue of the FTAA, acquire any title over
the contract/mining area without prejudice to the acquisition by the contractor/mining
area without prejudice to the acquisition by the contractor of the land/surface rights
through any mode of acquisition provided for by the law;
3. Representations and warranties
4. A stipulation that the contractor shall give preference to goods and services produced and
offered in the Philippines of comparative quality and cost.
5. A stipulation that the contractor is obliged to give preference to Filipinos in all types of
mining employment for which they are qualified that the technology shall be transferred
to the same
6. A stipulation that alien employment shall be limited to technologies requiring highly
specialized training and experience
Assignment or transfer
A FTAA may be assigned or transferred, in whole or in part, to a qualified person subject
to the approval of the President: Provided. That the President shall notify the Congress of every
financial or technical assistance agreement assigned or converted in accordance with this
provision within 30 days from the date of the approval thereof.
FTAA provisions of RA No. 7942 and DAO No. 96-40, s, 1996, earlier held valid
a. La Bugal-B’laan Tribal Association, Inc. v. Ramos
b. Didipio Earth-Saver’s Multi-Purpose Association v. Gozun
QUARRY RESOURCES
Quarrying means the process of extracting, removing and disposing quarry resources
found on or underneath the surface of private or public land.
Quarry resources refers to any common rock or other mineral substances as the Director
of Mines and Geosciences Bureau may declare to be quarry 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.
Quarry operations
Quarry sand and gravel, guano and gemstone resources in private and/or public lands
may be extracted, removed, disposed and/or utilized.
Provincial/City Mining Regulatory Board
The Provincial/City Mining Regulatory Board shall accept, process and evaluate
applications and determine administrative charges and fees for quarry, sand and gravel, guano,
gemstone gathering and small-scale mining permits.
It shall be chaired by the concerned Regional Director or his/her duly authorized
representative and the Provincial Governor/City Mayor or his/her representative as Vice-chair.
The members are the small-scale mining representatives, large-scale mining representative, and
department-duly accredited environmental non-governmental organization representatives. The
concerned regional office shall provide the technical secretariat to the Provincial/City Mining
Regulatory Board.
Quarry Permit
Quarry permit means a document granted to a qualified person for the extraction and
utilization of quarry resources on public or private lands.
Who may apply?
Any qualified person may apply for a quarry permit with the Provincial Governor/City
Mayor through the Provincial/City Mining Regulatory Board for the extraction, removal and
disposition of quarry resources.
Size of area covered by quarry permit
A quarry license shall cover an area of not more than five hectares, and a production rate
of not more than 50, 000 tons annually and/or whose project cost is not more than P10, 000,
000.00.
Term of a quarry permit
Quarry permit is valid for a term of five years from the date of its issuance and renewable
for like period but not to exceed a total term of 25 years.
The application for renewal shall be filed before the expiry date of the permit. The permit
holder must have complied with all the terms and conditions of the Permit and has not been
found guilty of violation of any provision of the Act and its implementing rules and regulations.
No quarry permit shall be issued or granted on any area covered by a mineral agreement
or FTAA, except on areas where a written consent is granted by the mineral agreement or FTAA
contractor.
The existing quarry permits at the effectivity of this order under which the production
rate is not more than 50, 000 tons annually and/or whose project cost is not more than P10, 000,
000.00 shall not be renewed but shall be given preferential right to a mineral agreement
application.
Sand and gravel permits
Commercial sand and gravel permit
Any qualified person may apply for a commercial sand and gravel permit with the with
the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for
the extraction, removal and disposition of sand and gravel and other loose or unconsolidated
materials which are used in their natural state without undergoing processing covering an area of
not more than five hectares for a term of one year from date of issuance thereof, renewable for
like period and in such quantities as may be specified in the permit.
Only one permit shall be granted to a qualified person in a municipality at any one time
under such terms and conditions as may be provided.
Industrial sand and gravel permit
Any qualified person may apply for a commercial sand and gravel permit with the with
the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for
the extraction, removal and disposition of sand and gravel and other loose or unconsolidated
materials that necessitate the use of mechanical processing covering an area of not more than
five hectares at any one time for a term of five years from date of issuance thereof, renewable for
like periods but not to exceed a total term of 25 years.
Any qualified person may apply for an industrial sand and gravel permit with the
Regional Director through the Regional Office for areas covering more than five hectares but not
to exceed 20 hectares at any one time for a term of five years from date of issuance thereof,
renewable for like periods but not to exceed a total term of 25 years.
Only one permit shall be granted to a qualified person in a municipality at any one time
under such terms and conditions as may be provided.
Exclusive sand and gravel permit
Any qualified person may apply for an exclusive sand and gravel permit with the with the
Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the
extraction, removal and disposition of sand and gravel and other loose or unconsolidated
materials from public land for its own use covering an area of not more than one hectare for a
non-renewable period not exceeding 60 calendar days and a maximum volume of 50 cubic
meters provided that there will be no commercial disposition thereof.
Rights and obligations of the quarry or commercial/industrial sand and gravel permit holder
The quarry or sand and gravel permit holder, its heirs or successors-in-interest shall have
the right to exclusively extract, remove, dispose and/or utilize quarry or sand and gravel
resources within the permit area with full rights of ingress and egress, the right to occupy the
same, all other rights provided for in the Act and its IRR; and the obligation to fully comply with
the terms and conditions of the permit.
GRATUITOUS PERMITS
Government gratuitous permit
Any Government entity/instrumentality in need of quarry, sand and gravel or
loose/unconsolidated materials in the construction of building(s) and/or infrastructure for public
use or other purposes may apply for a Government Gratuitous Permit with the Provincial
Governor/City Mayor through the Provincial/City Mining Regulatory Board for a period
coterminous with the construction stage of the project but not to exceed one (1) year in
public/private land(s) covering an area of not more than two (2) hectares. The applicant shall
submit a project proposal stating where the materials to be taken shall be used and the estimated
volume needed.
Private gratuitous permit

Any landowner may apply for a Private Gratuitous Permit with the Provincial
Governor/City Mayor through the Provincial/City Mining Regulatory Board for the extraction,
removal and utilization of quarry, sand and gravel or loose/unconsolidated materials from his/her
land for a non-renewable period of sixty (60) calendar days: Provided, That there is adequate
proof of ownership and that the materials shall be for personal use.
Guano permit
Any Qualified Person, whose domicile is within the municipality where the area applied
for is located, may apply for a Guano Permit with the Provincial Governor/City Mayor through
the Provincial/City Mining Regulatory Board for the extraction, removal, disposition, and/or
utilization of loose unconsolidated guano and other organic fertilizer deposits in specific caves
and/or confined sites for a term of one (1) year or upon the extraction of the quantity as specified
in the Permit: Provided, That only one (1) Guano Permit shall be issued for the same cave or
area: Provided, further, That the maximum area for the Guano Permit that a Qualified Person
may hold at any one (1) time shall not be more than five (5) hectares.
Gratuitous Guano Permit
A Gratuitous Guano Permit may be granted to an individual for his/her personal use or to
any Government agency in need of the material within a specified period and in such quantity
not more than two thousand kilograms (2,000 kg).
Commercial Guano Permit
A Commercial Permit may be granted to a Qualified Person for sale or commercial
disposition thereof within a specified period and in such quantity as may be specified thereof.
Rights and Obligations of the Guano Permit Holder
The Guano Permit Holder, its heirs or successors-in-interest shall have the right to
exclusively conduct extract, remove, dispose and/or utilize guano resources within the permit
area with full rights of ingress and egress, the right to occupy the same, all other rights provided
for in the Act and these implementing rules and regulations; and the obligation to fully comply
with the terms and conditions of the Permit.
Gemstone gathering permit

Any Qualified Person may apply for a Gemstone Gathering Permit with the
Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the
extraction, removal and utilization of loose stones useful as gemstones for a term not exceeding
one (1) year from the date of issuance thereof, renewable for like periods.
The application for renewal shall be filed before the expiry date of the Permit. And the
Permit Holder has complied with all the terms and conditions of the original Permit as provided
herein and has not been found guilty of violation of any provision of the Act and these
implementing rules and regulations.
Rights and Obligations of the Gemstone Gathering Permit Holder
The Gemstone Gathering Permit Holder, its heirs or successors-in-interest shall have the
right to exclusively conduct extract, remove and dispose loose stones useful as gemstones within
the permit area with full rights of ingress and egress, the right to occupy the same, all other rights
provided for in the Act and these implementing rules and regulations; and the obligation to fully
comply with the terms and conditions of the permit.
Cancellation/Revocation/Termination of a Quarry/Sand and Gravel/Gratuitous/Guano/
Gemstone Gathering Permit
The Quarry/Sand and Gravel/Gratuitous/ Guano/Gemstone Gathering Permit may be
canceled/revoked/terminated, after due process, by the Regional Director/Provincial
Governor/City Mayor concerned based on the following grounds:
a. Failure to comply with the terms and conditions of the Permit and ECC, if applicable;
b. Violation of any provision of the Act and these implementing rules and regulations;
c. Failure to pay the excise tax for two (2) consecutive years;
d. Any misrepresentation in any statement made in the application or those made later in
support thereof;
e. If the commodity stipulated in the Permit has been exhausted before the expiry date thereof;
and
f. When national interest and public welfare so require or for environmental protection or
ecological reasons.
Upon cancellation of the Permit, the said areas shall automatically be revertedback to its
original status.
TRANSPORT, SALE AND PROCESSING OF MINERALS

Ore transport permit
A permit specifying the origin and quantity of non-processed mineral ores or minerals
shall be required for their transport. Transport permits shall be issued by the mines regional
director who has jurisdiction over the area where the ores were extracted. In the case of mineral
ores or minerals being transported from the small-scale mining areas to the custom mills or
processing plants, the Provincial Mining Regulatory Board (PMRB) 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 Government to confiscate the ores or minerals being transported, the tools and
equipment utilized, and the vehicle containing the same. Ore samples not exceeding two metric
tons (2 m.t.) to be used exclusively for assay or pilot test purposes shall be exempted from such
requirement.
Mineral trading registration
No person shall engage in the trading of mineral products, either locally or
internationally, unless registered with the Department of Trade and Industry and accredited by
the Department, with a copy of said registration submitted to the Bureau.
Minerals processing permit
No person shall engage in the processing of minerals without first securing a minerals
processing permit from the Secretary. Minerals processing permit shall be for a period of five (5)
years renewable for like periods but not to exceed a total term of twenty-five (25) years. In the
case of mineral ores or minerals produced by the small-scale 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 Republic Act No. 7076.
SAFETY AND ENVIRONMENTAL PROTECTION

Mines Safety and Environmental Protection
All contractors and permittees shall strictly comply with all the mines safety rules and
regulations as may be promulgated by the Secretary concerning the safe and sanitary upkeep of
the mining operations and achieve waste-free and efficient mine development. Personnel of the
Department involved in the implementation of mines safety, health and environmental rules and
regulations shall be covered under Republic Act No. 7305.
Mine Labor
No person under sixteen (16) years of age shall be employed in any phase of mining
operations and no person under eighteen (18) years of age shall be employed underground in a
mine.
Mine Supervision
All mining and quarrying operations that employ more than fifty (50) workers shall have
at least one (1) licensed mining engineer with at least five (5) years of experience in mining
operations, and one (1) registered foreman.
Power to Issue Orders
The mines regional director shall, in consultation with the Environmental Management
Bureau, forthwith or within such time as specified in his order, require the contractor to remedy
any practice connected with mining or quarrying operations, which is not in accordance with
safety and anti-pollution laws and regulations. In case of imminent danger to life or property, the
mines regional director may summarily suspend the mining or quarrying operations until the
danger is removed, or appropriate measures are taken by the contractor or permittee.
Pollution cases under the jurisdiction of the Pollution and Adjudication Board
Republic vs Marcopper Mining Corporation
The Pollution and Adjudication Board (PAB) under RA No. 3931 (An Act Creating The
National Water And Air Pollution Control Commission), as amended by PD No. 9884 (National
Pollution Control Decree of 1976) has not been divested of its authority to try and hear pollution
cases connected with mining operations by virtue of the subsequent enactment of RA No. 7942
(Philippine Mining Act of 1995). Section 19 of EO No. 192 vested the PAB with the specific
power to adjudicate pollution cases in general.
Environmental Impact Assessment (EIA)
Except during the exploration period of a mineral agreement or financial or technical
assistance agreement or an exploration permit, an environmental clearance certificate shall be
required based on an environmental impact assessment and procedures under the Philippine
Environmental Impact Assessment System including Sections 26 and 27 of the Local
Government Code of 1991 which require national government agencies to maintain ecological
balance, and prior consultation with the local government units, non-governmental and people's
organizations and other concerned sectors of the community: Provided, That a completed
ecological profile of the proposed mining area shall also constitute part of the environmental
impact assessment. People's organizations and non-governmental organizations shall be allowed
and encouraged to participate in ensuring that contractors/permittees shall observe all the
requirements of environmental protection.
SURFACE RIGHTS
Easement Rights
When 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 just compensation, shall be entitled to
enter and occupy said mining areas or lands.
Entry into Private Lands and Concession Areas
Subject 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: Provided, That any damage done to the property of the
surface owner, occupant, or concessionaire as a consequence of such operations shall be properly
compensated as may be provided for in the implementing rules and regulations: Provided,
further, That to guarantee such compensation, the person authorized 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.
Compensation of the Surface Owner and Occupant
Any damage done to the property of the surface owner, occupant, or concessionaire
thereof as a consequence of the mining operations or as a result of the construction or installation
of the infrastructure mentioned in Section 104 above shall be properly and justly compensated.
Such compensation shall be based on the agreement entered into between the holder of
mining rights and the surface owner, occupant or concessionaire thereof or, where appropriate, in
accordance with P.D. No. 512.
In case of disagreement or in the absence of an agreement, the matter shall be brought
before the Panel of Arbitrators for proper disposition.
Compensable “taking” for public use

Didipio Earth-Savers’ Multi-Purpose Association, Inc. vs Gozun
“Considering that Section 1 of Presidential Decree No. 512 granted the qualified mining
operators the authority to exercise eminent domain and since this grant of authority is deemed
incorporated in Section 76 of Rep. Act No. 7942, the inescapable conclusion is that the latter
provision is a taking provision.
While this Court declares that the assailed provision is a taking provision, this does not
mean that it is unconstitutional on the ground that it allows taking of private property without the
determination of public use and the payment of just compensation.
Mining industry plays a pivotal role in the economic development of the country and is a
vital tool in the governments thrust of accelerated recovery. The importance of the mining
industry for national development is expressed in Presidential Decree No. 463 (which states that
mineral production is a major support of the national economy, and therefore the intensified
discovery, exploration, development and wise utilization of the country’s mineral resources are
urgently needed for national development).
Irrefragably, mining is an industry which is of public benefit.”
Determination of compensation by the Panel of Arbitrators is only preliminary
“The question on the judicial determination of just compensation has been settled in the
case of Export Processing Zone Authority v. Dulay wherein the court declared that the
determination of just compensation in eminent domain cases is a judicial function. Even as the
executive department or the legislature may make the initial determinations, the same cannot
prevail over the courts findings.
Implementing Section 76 of Rep. Act No. 7942, Section 105 of DAO 96-40 states that
holder(s) of mining right(s) shall not be prevented from entry into its/their contract/mining areas
for the purpose of exploration, development, and/or utilization. That in cases where surface
owners of the lands, occupants or concessionaires refuse to allow the permit holder or contractor
entry, the latter shall bring the matter before the Panel of Arbitrators for proper
disposition. Section 106 states that voluntary agreements between the two parties permitting the
mining right holders to enter and use the surface owners lands shall be registered with the
Regional Office of the MGB. In connection with Section 106, Section 107 provides that the
compensation for the damage done to the surface owner, occupant or concessionaire as a
consequence of mining operations or as a result of the construction or installation of the
infrastructure shall be properly and justly compensated and that such compensation shall be
based on the agreement between the holder of mining rights and surface owner, occupant or
concessionaire, or where appropriate, in accordance with Presidential Decree No. 512. In cases
where there is disagreement to the compensation or where there is no agreement, the matter shall
be brought before the Panel of Arbitrators. Section 206 of the implementing rules and regulations
provides an aggrieved party the remedy to appeal the decision of the Panel of Arbitrators to the
Mines Adjudication Board, and the latters decision may be reviewed by the Supreme Court by
filing a petition for review on certiorari.
An examination of the foregoing provisions gives no indication that the courts are
excluded from taking cognizance of expropriation cases under the mining law. The disagreement
referred to in Section 107 does not involve the exercise of eminent domain, rather it
contemplates of a situation wherein the permit holders are allowed by the surface owners entry
into the latters lands and disagreement ensues as regarding the proper compensation for the
allowed entry and use of the private lands. Noticeably, the provision points to a voluntary sale or
transaction, but not to an involuntary sale.
Although Section 105 confers upon the Panel of Arbitrators the authority to decide cases
where surface owners, occupants, concessionaires refuse permit holders entry, thus, necessitating
involuntary taking, this does not mean that the determination of the just compensation by the
Panel of Arbitrators or the Mines Adjudication Board is final and conclusive. The determination
is only preliminary unless accepted by all parties concerned. There is nothing wrong with the
grant of primary jurisdiction by the Panel of Arbitrators or the Mines Adjudication Board to
determine in a preliminary matter the reasonable compensation due the affected landowners or
occupants.[52] The original and exclusive jurisdiction of the courts to decide determination of just
compensation remains intact despite the preliminary determination made by the administrative
agency.”
Surface rights must be based on compliance with legal requirements
Standard Mineral Products, Inc. vs Court of Appeals
Under the Regalian doctrine, minerals found in one’s land belong to the State and not to a
private landowner (Section 8, Article XIV, 1973 Constitution; Sections 3 and 4, Mining Act).
Nonetheless, a condition sine qua non is that the prospecting, exploration, discovery and location
must be done in accordance with the law. Where applicant’s rights to use and exploit the mineral
resources discovered and located never matured because of its omission to comply with a
condition precedent, its claim for surface rights and right of way would be to countenance illegal
trespass into private property.
Voluntary Agreement
A voluntary agreement between a surface owner, occupant or concessionaire thereof
permitting holders of mining rights to enter into and use its land for mining purposes shall be
registered with the Regional Office concerned. The said agreement shall be binding upon the
parties, their heirs, successors-in-interest and assigns.
TRANSPORT OF MINERALS/MINERAL PRODUCTS AND CONFISCATION,

SEIZURE AND DISPOSITION OF ILLEGALLY-SOURCED MINERALS/MINERAL
PRODUCTS
Ore transport permit
The transport of all minerals/mineral products and by-products, including gold bullions,
by Permit Holders, Contractors, accredited traders, retailers, processors and other mining rights
holders must be accompanied by an Ore Transport Permit issued by the Regional Director
concerned or his/her duly authorized representative: Provided, That the transport of sand and
gravel shall be covered by a Delivery Receipt.
In case of mineral ores/minerals/mineral products and by-products, including gold
bullions, being transported from the small-scale mining areas to the custom mills or processing
plants, the Provincial/City Mining Regulatory Board concerned shall formulate its own policies
to govern such transport of ores produced by small-scale miners.
For MPSA and FTAA Contractors, Ore Transport Permits (OTP) shall be issued under the
Agreements: Provided, That a written notice prior to shipment or transport of ores shall be
furnished to the Regional Office concerned for the purpose of monitoring mining activities in the
contract area: Provided, further, That such activity is in accordance with the terms and conditions
of the Agreement.
An OTP is not necessary for ore samples not exceeding two (2) metric tons to be used
exclusively for assay and pilot test purposes. Instead, a certification regarding the same shall be
issued by the Regional Director concerned. For ore samples exceeding two (2) metric tons to be
transported exclusively for assay and pilot tests purposes, an OTP shall be issued by the Regional
Director concerned for a limited amount based on the type of ore, metallurgical tests to be
undertaken and other justifiable reasons as determined by the Regional Office concerned.
Arrests, Confiscations And Seizures
The absence of foregoing documents shall:
a. Be considered as prima facie evidence of illegal mining.
b. Cause the confiscation of the minerals or products, and the tools and equipment including
conveyance used in the commission of offense in favor of the government.
If it is found that mineral or mineral products seized have been MINED, EXTRACTED
or REMOVED without any permit or authority, final confiscation can be effected to be
followed by the filing of the complaint for theft of minerals.
Custody Of The Confiscated/Seized Minerals/Mineral Products, Tools Equipment And

Conveyance.
a. apprehension by BUREAU FIELD OFFICER:
It shall be deposited with the concerned Regional Office or wherever it is most
convenient for safekeeping for further investigation and disposition.
**If transfer is NOT immediately FEASIBLE:
It shall be placed under the custody of any licensed mine operator or the nearest local
public official ( Brgy Captain, Mayor, Governor, PNP).
b. apprehension by the PNP, Economic Intelligence and Investigation Bureau(EIIB),Coast Guard
and other government law enforcement agencies:
The apprehending agency shall notify the concerned Regional Office and turn over the
seized items for proper investigation and disposition.
c. For CONFISCATED gold and other precious metals:
The Regional Office shall first determine if they conform with the BSP requirements.
*If satisfied the minimum weight but it does not conform the physical
requirements=The metals shall be delivered by the accountable officer and escorted by
security officers to the Bureau or concerned Regional Office Metallurgy Laboratory for
processing,
*If weight is not satisfied= Chief cashier of the Regional Office shall store it on a
safety deposit box of the nearest reputable banking institution.
*Once the metals reaches the weight requirement= chief cashieer will turn over
the metal to Metallurgy Office, and the latter shall turn over immediately after
processing into saleable form the metals to Accountant.
In each turn over, accountability is transferred through a MEMORANDUM RECEIPT.
Settlement Of Conflicts
Panel of Arbitrators
Composed of THREE members
 Two must be members of Philippine Bar in Good Standing
 One licensed mining engineer duly designated by secretary
Presiding Officer - selected by drawing of lots
 The Panel have 30 days to decide the case
The panel have exclusive and original jurisdiction to hear and decide on the following:
a. Disputes involving rights to mining areas.
b.Disputes involving mineral agreements or permits
c.Disputes involving surface owners, occupants and claim holders/ concessionaires.
d. Disputes pending before the Bureau and the Department at the date of the effectivity of
the act
Sample Case
Gonzales v Climax Mining Ltd
“Arbitration before the Panel of Arbitrators is proper only when there is
disagreement between the parties as to some provisions of the contract between them,
which needs the interpretation and the application of that particular knowledge and
expertise possessed by members of that panel. It is not proper when one of the parties
repudiates the validity of such contract or agreement on the ground of fraud. The
validity of contract cannot be subject of arbitration proceedings and it is within the
jurisdiction of ordinary courts of law ”
Appeal: decision of POA may be appealed to the Mines Adjudication Board(MAB) Within 15
days from receipt and shall be decided within 30 days from submission for decision.
Mines Adjudication Board
Composed of THREE members
The Secretary as chairman
Director of Mines and Geosciences Bureau and Under Secretary for operations of the
Department as members.
POWERS:
a.) Promulgate rules and regulations governing the hearing and disposition of cases
before it, as well as its internal function and rules and regulations to carry out such
functions.
b.)Administer oaths, summon the parties to a controversy, issue a subpoena requiring
the attendance and testimony of witnesses or the production of documents material to the
investigation, and to testify in any investigation or hearing.
c.) Conduct hearings on all matters within its jurisdiction, hear and determine disputes
in the absence of any parties, conduct its proceedings public or private, adjourn hearings at
any time and place, direct parties to be joined and excluded from the proceedings
Where it is trivial or where further proceedings by the board are not necessarily
desirable:
1.) Hold any person in contempt, directly or indirectly, and impose appropriate penalty.
2.) Enjoin any or all acts involving or arising from any case pending before it, if not
restrained will cause grave or irreparable damage that may affect socail and econimoc
stability.
* MAB has NO authority over Pollution Cases
Appeal:
Rule 43: Court of Appeals
Petition for Review by Certiorari : Supreme Court.
GOVERNMENT SHARE
Government Share in Mineral Production Sharing Agreement
The total government share in mineral production sharing agreement shall be the excise
tax on Mineral Products.
Government Share in other mineral agreements
The following shall be considered by the government and contractor:
a.) Capital investment of the project
b.) Risks involved
c.) Contribution of the project to the economy
d.)Other factors that will provide fair and equitable sharing between the
government and the contractor.
Government Share in Financial or Technical assistance shall consist of:
Contractor’s corporate income tax
Excise tax
Allowance
Withholding tax
**The collection of government share in financial or technical assistance shall commence
after the contractor has fully recovered its pre-operating expenses, exploration and development
expenditures.
INCENTIVES
Fiscal and Non-fiscal incentives
Mining activities shall always be included in the investment priorities plan.
Incentives for pollution control devices
Shall not be subject to real properties and other taxes assessments, provided that
payment of mine wastes and tailings fees is not exempted.
Investment Guarantees
A.) Repatriation of investments
- The right to Repatriate the entire proceeds of the liquidation of the foreign
investment in the currency in which the investment was originally made and at the
exchange rate prevailing at the time of repatriation.
B.) Remittance of earnings
- The right to remit earnings from the investment in the currency in which the
foreign investment was originally made at at the exchange rate prevailing at the
time of remittance.
C.) Foreign loans and contracts
- The right to remit at the exchange rate prevailing at the time of remittance
such sums as maybe necessary to meet the payments of interest and principal on
foreign loans and foreign obligations arising from financial or technical assistance
contracts.
D.) Freedom from any expropriation
-The right to be free from any expropriations.
E.) Requisition of Investment
-The right to be free from any requisition of the property presented by
investment or of the property of the enterprises except in cases of war or national
emergency.
F.) Confidentiality
-Any confidential information supplied by the contractor pursuant to this act
shall be treated as such by the government and during the term of the project to
which it relates.
Grounds For Cancellation, Revocation And Termination

A.) Late or non-filing of requirements.
B.) Violation of the terms and conditions of permits and agreements
C.)Non-payment of taxes and fees.
D.)Suspension or cancellation of Tax Incentives or Credits
GROUNDS:
1.) Any violation of the Act, rules and regulations implementing the same
or the terms and conditions in mineral agreement.
2.)Any material misrepresentation or false statements made to the bureau at
any time before or after the approval of its Mineral Agreement.
3.)Whenever the project cease to be viable and its continued operation
would require additional costs to the economy.
E.) Falsehood or omission of facts in the statement.
Effect Expiration or Cancellation of Permit and mineral agreement.
Upon expiration, the mining operations may be undertaken by the government through
one of its agencies or through one qualified independent contractor.
Upon cancellation, the Director shall cause the same to be entered in the registration and
book of notice and be posted on the bulletin board of the Bureau and the Regional Office
and the mining area covered shall be opened to new applicants.
ACTS PUNISHABLE PENALTY

False Statements fine not exceeding
P10,000
Illegal Exploration fine not exceeding
P50,000
Theft of Minerals
Elements:
1.)accused extracted,
removed and disposed Imprisonment of six
minerals months to six years
Fine from P10,000 to
2.) minerals belong to P20,000
the government or
owned by other person
3.)accused did not

possess mining lease or
a temporary permit.
Destruction of Mining Imprisonment of five

Structure years
Damages
Mines Arson Imprisonment of six
months to six years
Damages
Willful Damage to a Imprisonment not
Mine exceeding five years
Damages
Illegal obstruction to Imprisonment not
Permittee or exceeding one year
contractors Fine not exceeding P5,000
Violation of the terms Imprisonment of six
and conditions of months to six years
environmental Fine from P50,000 to
compliance certificate P200,000
Obstruction of Imprisonment not

government officials exceeding one year
Fine not exceeding P5,000
Other Violations Fine not exceeding P5,000
The People’s Small Scale Mining Act of 1991 (RA 7076)

I. Key Provisions
a. The People’s Small Scale Mining Act shall be implemented by the Department of
Environment and Natural Resources.
b. The law created the Provincial/City Mining Regulatory Board under the direct
supervision of DENR Secretary.
c. The law is intended to promote, develop, protect and rationalize viable small scale
mining activities, which would generate employment opportunities and provide
equitable sharing of the nation’s wealth and natural resources.
d. The law recognizes the impact of small scale mining in the economy, especially for the
rural poor communities.
II. Definitions
a. Small Scale Mining –Mining activities which rely heavily on manual labor using simple
implements and methods and do no use explosives or heaving mining equipment. Also
known as “Minahang Bayan”.
b. Small Scale Mining Contract – Co-production, joint venture or mineral production
sharing agreement between the State and a small-scale mining contractor for the small
scale utilization of a plot of mineral land.
III. Types of Agreements under RA 7076
a. Co-production
b. Joint Venture
c. Production-sharing
IV. People’s Small-scale Mining Program / Minahang Bayan – intended to provide an orderly,
systematic and rational scheme for the small-scale development and utilization of mineral
resources and to address social, economic, technical and environmental small-scale mining
activities.
a. The identification, segregation and reservation of certain mineral lands as people’s
small-scale mining areas.
i. Done by the Mining Regulatory Board
ii. Priority is given to the areas already actively mined by small-scale miners
iii. The Board shall determine the technical and commercial viability of the active
mining areas.
iv. Forest, tourist, marine, parks and wildlife reservations are excluded.
v. The following areas may be declared as Minahang Bayan
1. Active Mining Areas
2. Public lands covered by mining applications, subject to certain
conditions
3. Public lands covered by existing mining permits, although not active
mining areas
4. Private lands, subject to the consent of the landowner and the payment
of royalties, which shall not exceed one percent of the gross value of
minerals recovered and actual damages, among other rights and
conditions
5. Ancestral lands and domains – Priority is given for the benefit of
Indigenous Cultural Communities (ICC) upon obtaining Free and Prior
Informed Consent (FPIC) under the supervision of the National
Commission for Indigenous Peoples (NCIP)
b. The recognition of prior existing rights and productivity.
c. The encouragement of formation of cooperatives.
d. THe extension of technical and financial assistance and other social services;
e. The extension of assistance in processing and marketing.
f. The generation of ancillary livelihood activities
g. The regulation of the small-scale mining industry with the view to encourage growth and
productivity
h. THe efficient collection of government revenue.
V. Small-scale Mining under PD 1899
a. Defines small-scale mining differently – as referring to any single unit mining operation
having an annual production of not more than 50,000 metric tons of ore with the
following requisites:
i. The working is artisanal, either open cast or shallow underground mining,
withour the use of sophisticated mining equipment
ii. Minimal investment on infrastructures and processing plant
iii. Heavy reliance on manual labor
iv. Owned, managed or controlled by an individual or entity qualified under existing
mining laws.
b. Harmonization of PD 1899 and RA 7076 (SR Metals, Inc. vs Reyes)
i. FACTS: In the case of SR Metals, Inc. vs Reyes, the petitioners questioned the
definition in PD 1899 to be violative of the equal protection clause. In PD 1899,
there is a limit as to the annual production to 50,000 metric tons to be
considered as a small-scale miner. In RA 7076, there is no limit as to the annual
production to be considered as small scale miner. This will give undue advantage
to the small-scale mining contracts under RA 7076 as compared to the small-
scale mining permits under PD 1899.
ii. ISSUE: Are the two definitions incompatible?
iii. DECISION: The court ruled that the two definitions were harmonized by the
DENR when it issued the Clarificatory Guidelines in the Implementation of the
Small-scale Mining Laws. In the guidelines, the 50,000 direct metric tons were
now applicable to both small-scale mining contracts under RA 7076 and permits
under PD 1899. This was properly done in the delegated rule-making power of
the DENR to implement the Philippine mining laws.
VI. Registration of Small-scale Miners
a. This may be done individually or through cooperatives before the Mining Board.
b. Registration is intended for proper regulation.
c. Registration is a prerequisite for the awarding of a people’s small-scale mining contract.
VII. Awarding of Contracts
a. A contract may be awarded to small-scale miners who have voluntarily organized as an
individual or as a cooperative.
b. Only one contract may be awarded to a registered small-scale miner or cooperative at
any one time within one year from the date of the award.
c. The contract area shall not exceed 20 hectares per contractor and whose maximum
depth or length of tunnel shall be determined by the Director of MGB based on:
i. Size of membership and capitalization of the cooperative
ii. Size of mineralized area
iii. Quantity of mineral deposits
iv. Safety of miners
v. Environmental impact
vi. Other related circumstances
VIII. Easement Rights
a. Rights of small-scale miners are determined by the Director of MGB in consultation with
the operator, claimowner or landowner or lessor of the affected areas, including the
roads, ports, communication facilities and processing plants.
b. There shall be reasonable payment of fees to the owner, operator or lessor of the
property.
IX. Rights under a Small-scale Mining Contract
a. Right to mine
b. Right to extract
c. Right to dispose of mineral ores for commercial purposes
d. Prohibitions: subcontracting, assignment and transfer
X. Terms and conditions of the contract
a. Term: Two years, renewable for like periods as long as the contractor complies with the
provisions of the lawe.
b. Duties and obligations:
i. Undertake mining activities only in accordance with a mining plan duly approved
by the Board;
ii. Abide by the safety rules and regulations of the Mines and Geosciences Bureau;
iii. Comply with his obligations as the holder of an existing mining right;
iv. Pay all taxes, royalties or government production share as are now or may
hereafter be provided by law;
v. Comply with pertinent rules and regulations on environmental protection and
conservation, particularly those on tree-cutting, mineral-processing and
pollution control;
vi. File under oath at the end of each month a detailed production and financial
report to the Board; and
vii. Assume responsibility for the safety of persons working in the mines.
XI. Rights of Claimowners
a. In case a site declared and set aside as a people’s-scale mining area is covered by an
existing mining right, the claimowner and the small-scale miners therein are encouraged
to enter into a voluntary and acceptable contractual agreement.
b. The claimowner shall be entitled to the following rights and privileges:
i. Exemption from the performances of annual work obligations and payment of
occupation fees, rental, and real property taxes;
ii. Subject to the approval of the Board, free access to the contract area to conduct
metallurgical tests, explorations and other activities, provided such activities do
not unduly interfere with the operations of the small-scale miners; and
iii. Royalty equivalent to one and one half percent of the gross value of the metallic
mineral output or one percent of the gross value of the nonmetallic mineral
output to be paid to the claimowner.
XII. Rights of private landowners
a. Right to be notified of plans to declare his land as small-scale mining area.
b. If a private land is declared as a people’s small-scale mining area, the owner and the
small-scale mining contractors are encouraged to enter into a voluntary and acceptable
contractual agreement for the small-scale utilization of the mineral values from the
private land.
c. Right to actual damages which the landowndermay suffer as a result of such declaration.
d. Right to royalties which shall not exceed one percent of the gross value of the minerals
recovered.
XIII. Ownership of Mill Taillings
a. The small-scale mining contractor shall be the owner of all mill tailings produced from
the contract area. He may sell the tailings or have them processed in any custom mill in
the area.
b. If the contractor decides to sell its mill tailings, the claimowner shall have a preemptive
right to purchase the same at prevailing market prices.
XIV. Sale of gold - All gold extracted by small-scale miners in any mineral area shall be sold to the
Central Bank at prices competitive prevailing in the world market.
XV. Custom mills.
a. Custom Mills should be safe and efficient licensed by the Mining Board subject to
pollution control.
b. Government shall build custom mills if private persons cannot establish such in the area.
c. The DENR shall establish assay laboratories to cross-check the integrity of custom mills
and to render metallurgical and laboratory services to mines.
d. Custom mills shall be constituted as withholding agents for the royalties, production
share or other taxes due the government.
XVI. Government share and allotment - The revenue to be derived by the government from the
operation of the mining program shall be subject to the sharing provided in the Local
Government Code.
XVII. People’s small-scale mining protection fund
a. Created 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 equipment in emergency situations
like landslides, tunnel collapse, or the like.
b. Available to address the needs of the small-scale miners brought about by accidents
and/or fortuitous events.
XVIII. Rescission of contracts and administrative fines
a. Non-compliance with the terms and conditions of the contract
b. Violation of the rules and regulations
c. Abandonment of the mining site by the contractor
XIX. Reversion of people’s small-scale mining areas -The DENR Secretary, upon recommendation
of the Director, shall withdraw the status of the people’s small-scale mining area when:
a. No longer feasible for operation
b. Safety, health and environmental conditions warrant reversion thereof to the State for
proper disposition.
XX. Actual occupation by small-scale miners – No dispossession, ejectment, or removal from
areas already mined by small-scale miners, provided they comply with the law.
XXI. Provincial/City Mining Regulatory Board
The law has created a Mining Regulatory Board which shall exercise the following
powers and functions:
a. Declare and segregate existing gold-rush areas for small-scale mining;
b. Reserve future gold and other mining areas for small-scale mining;
c. Award contracts to small-scale miners;
d. Formulate and implement rules and regulations related to small-scale mining;
e. Settle disputes, conflicting claims within a people’s small-scale mining area, an area that
is declared a small-mining; and
f. Perform such other functions as may be necessary to achieve the goals and objectives of
the Act.
XXII. Composition of the Board
a. Regional Director of Mines and Geosciences Bureau or authorized representative as
Chairperson
b. Provincial Governor or City Mayor or his/her representative as Member;
c. One small-scale mining representatives as Member (nominated by organizations and
appointed by RD);
d. One large-scale mining representative as Member(nominated by organizations and
appointed by RD);
e. One representative from an environmental non-government organization as Member.
XXIII. Administrative supervision – The Secretary shall:
a. Exercise direct supervision and control over the small-scale miners within the people’s
small-scale mining area.
b. Promulgate rules and regulations for the effective implementation of the Act. The rules
shall ensure the least disruption in the operations of the small-scale miners.
c. Control over small-scale mining in the provinces.
CASE: League of Provinces of the Philippines v. Department of Environment and Natural

Resources,
FACTS: The League of Provinces of the Philippines questioned the control and
supervision of the DENR over the Small-scale Mining Operations within their provinces
by virtue of RA 7076 for violation of the local autonomy.
ISSUE: Is the Small Scale Mining Act a violation of autonomy of local governments?
DECISION: No. The DENR isin charge of carrying out the State’s constitutional mandate,
under Section 2, Article XII of the Constitution, to control and supervise the exploration,
development, utilization and conservation of the country’s natural resources. Hence, the
enforcement of small-scale mining law in the provinces is made subject to the
supervision, control and review of the DENR under the Local Government Code 1991. On
the other hand, small-scale mining is to be implemented by the DENR Secretary in
coordination with other concerned local government agencies. The Local Government
Code did not fully devolve the enforcement of the small-scale mining law to the
provincial government, as its enforcement is subject to the supervision, control, and
review of the DENR Secretary.
The Court has clarified that the constitutional guarantee of local autonomy in
the Constitution refers to the administrative autonomy of local government units or, cast
in more technical language, the decentralization of government authority. It does not
make local governments sovereign within the State.
XXIV. Applications for Small-scale Mining Permits
a. If outside mineral reservations - filed in the Office of the Provincial Governor/City Mayor
through the Provincial/City Regulatory Board
b. If within mineral reservations – filed with the regional office of MGB. Permit shall be
registered by the applicant with the MGB upon payment of the required fees within 15
days.
XXV. Environmental protection, safety and health.
a. To ensure the protection of the environment and the development of host and
neighboring communities, the small-scale mining contractors and processor shall comply
with all applicable environmental laws, rules and regulations.
b. To ensure the safety and health of small-scale miners or mineral processing plant
workers, the small-scale mining contractor or mineral processor shall abide by the
provisions of the “Small-Scale Mine Safety Rules and Regulations,” and other rules.
ELECTRIC POWER INDUSTRY REFORM ACT OF 2001
RA 9136
The Electric Power Industry Reform Act of 2001 or EPIRA was

enacted with the intention of ensuring affordable and reliable electricity
to all power consumers in the Philippines. It seeks to achieve this
through the introduction of sweeping reforms including the restructuring
and the deregulation of the entire power industry and the privatization of
most state-owned power generation and transmission assets. The EPIRA
was passed with the following end goals: lower power rates, sufficient
capacity and an environment equally protective of investors and
consumers.
In addition, it also declares as policy of the State the following:
1. To ensure and accelerate the total electrification of the country;

2. To ensure the quality, reliability, security and affordability of the
supply of electricpower;
3. To ensure transparent and reasonable prices of electricity in a
regime of free and faircompetition and full public accountability
to achieve greater operational andeconomic efficiency and
enhance the competitiveness of Philippine products in theglobal
market;
4. To enhance the inflow of private capital and broaden the
ownership base of thepower generation, transmission and
distribution sectors;
5. To ensure fair and non-discriminatory treatment of public and
private sector entitiesin the process of restructuring the electric
power industry;
6. To protect the public interest as it is affected by the rates and
services of electricutilities and other providers of electric
power;
7. To assure socially and environmentally compatible energy
sources and
infrastructure;
8. To promote the utilization of indigenous and new and renewable
energy resources inpower generation in order to reduce
dependence on imported energy;
9. To provide for an orderly and transparent privatization of the
assets and liabilities ofthe National Power Corporation (NPC);
10. To establish a strong and purely independent regulatory
body and system to ensureconsumer protection and enhance the
competitive operation of the electricity market;
11. To encourage the efficient use of energy and other
modalities of demand side
management.
The Energy Regulatory Commission

Through the EPIRA law, the Energy Regulatory Commission or the
ERC was created. It is an independent, quasi-judicial regulatory body
abolishing the Energy Regulatory Board. Under the EPIRA law, the
powers and functions of the Energy Regulatory Board consistent with the
provisions of the EPIRA law are transferred to the ERC. The transfer of
powers and functions includes all applicable funds and appropriations,
records, equipment, property and personnel.
Under the EPIRA law, the ERC shall be composed of a Chairman and
four members to be appointed by the President of the Philippines.
Requirements for the Chairman and members of the ERC:
1. Natural-born citizens and residents of the Philippines

2. Persons of good moral character
3. At least 35 years of age
4. Of recognized competence in any of the following fields: energy,
law, economics, finance, commerce, or engineering with at least
three years actual and distinguished experience in their respective
fields of expertise
The EPIRA law further requires that at least one of the four members
of the ERC should be a member of the Philippine Bar with at least ten years
of experience in the active practice of law and one should be a certified
public accountant with at least ten years of experience in active practice. In
addition, the EPIRA law mandates that the Chairman of the ERC must be a
member of the Philippine Bar who shall act as the Chief Executive Officer of
the ERC.
In the case of Freedom from Debt Coalition vs. Energy Regulatory

Commission the Supreme Court speaking through Justice Tinga stated that
EPIRA provides for a framework for the restructuring of the industry,
including the privatization of assets of the National Power Corporation
(NPC), the transition to a competitive structure, and the delineation of the
roles of various government agencies and the private entities. The law
ordains the division of the industry into four distinct sectors, namely:
generation, transmission, distribution, and supply. Corollary, the NPC
generating plants have to be privatized and its transmission business spun
off and privatized thereafter.
Abolition of Energy Regulatory Board
Pursuant to the EPIRA law, the Energy Regulatory Board has been
abolished and its place is the Energy Regulatory Commission. The functions
of the ERB have been transferred to the ERC. With its new and expanded
functions, the ERC is tasked to promote competition, encourage market
development, ensure customer choice and penalize abuse of market power
in the restructured electricity industry. In addition, the ERC is granted the
following functions:
1. Enforce the rules and regulations governing the operations of the

electricity spot market and the activities of the spot market
operator and other participants in the spot market for the purposes
of ensuring a greater supply and rational pricing of electricity.
2. Amend or revoke, after due notice and hearing, the authority to
operate of any person or entity which fails to comply with the
provisions of the EPIRA law or its Implementing Rules and
Regulations or any order or resolution of the ERC. In the event that
a divestment is required, the ERC shall allow the affected party
sufficient time to remedy the infraction or for an orderly disposal,
but in no case exceed twelve months from the issuance of the
order.
3. Exercise original and exclusive jurisdiction over all cases
contesting rates, fees, fines, and penalties imposed by the ERC in
the exercise of the above-mentioned powers, functions and
responsibilities and over all cases involving disputes between and
among participants or players in the energy sector.
Moreover, the EPIRA law further directs the ERC to regulate and
facilitate the unbundling of rates prescribed under Section 36 of the said
law.
Other Important Matters Regarding EPIRA and the ERC
A. A public utility must submit to government regulations
In the case of Republic vs. Meralco, the Court stated that

the business operations of a public utility are vested with public
interest hence it must submit to the regulation of government
authorities and surrenders certain business prerogatives,
including the amount of rates that it may charge.
Moreover, in Surigaodel Norte Electric Cooperative, Inc.

vs. ERC, the Court held that:
“The regulation of rates to be charged by public utilities is

founded upon the police powers of the State and statutes
prescribing rules for the control and regulation and regulation
of public utilities are a valid exercise thereof…Submission to
regulation may be withdrawn by the owner by discontinuing
use; but as long as use of the property is continued, the same is
subject to public regulation.”
B. ERC has authority to issue provisional rate increases
Under Sections 44 and 80 of the EPIRA, the ERC is

endowed with the statutory authority to approve provisional
rate adjustments.
Section 44 states that:
“The powers and functions of the Energy RegulatoryBoard not

inconsistent with the provisions of this Act are hereby transferred to the
ERC. The foregoingtransfer of powers and functions shall include all
applicable funds and appropriations, records, equipment,property and
personnel as may be necessary.”
Meanwhile, Section 80 states:
“The applicability provisions of CommonwealthAct No. 146, as

amended, otherwise known as the “Public Service Act”; Republic Act 6395,
as amended,revising the charter of NPC; Presidential Decree 269, as
amended, referred to as the National ElectrificationDecree; Republic Act
7638, otherwise known as the “Department of Energy Act of 1992”;
Executive Order172, as amended, creating the ERB; Republic Act 7832
otherwise known as the “Anti-Electricity andElectric Transmission Lines /
Materials Pilferage Act of 1994”,shall continue to have full force and
effectexcept insofar as they are inconsistent with this Act.
The provision with respect to electric power of Section 11(c) of Republic

Act 7916, as amended,and Section 5(f) of Republic Act 7227, are hereby
repealed or modified accordingly.
Presidential Decree No. 40 and all laws, decrees, rules and regulations, or
portion thereof,inconsistent with this Act are hereby repealed or modified
accordingly.”
Application for rate adjustment or any relief affecting the consumers

must be verified and published
Under Section 4 ( e ), Rule III of the Implementing Rules and

Regulations of the EPIRA, it states that every petition or application for
rate of adjustment or for any relief affecting the consumers must be
verified and accompanied with a certification of the notice of publication in
a newspaper of general circulation in the same locality.
DEPARTMENT OF ENERGY (DOE)
-created and established under RA 7638 or the Department of Energy Act of

1992, as amended by RA 9136 or the Electric Power Industry Reform Act of
2001.
Principal Function: to prepare, supervise and control all plans and

activities of the government in relation to energy projects. The thrust of the
Philippine energy program under the law is toward privatization of
government agencies related to energy, deregulation of the power and
energy industry and reduction of dependency on oil-fired plants and to
encourage free and active participation and investment by the private
sector in all energy activities.
I. State Policy:
1. Self-reliance in the country’s energy requirements through:
a. exploration, production, management, and development of energy
resources
b. conservation, renewal and efficient utilization of energy
c. active participation of the private sector in the various areas of energy
resource development.
2. Self-sufficiency and enhanced productivity in power and energy without

sacrificing ecological concerns.
Energy projects - activities relative to the exploration, extraction,

production, importation-exportation, processing, transportation, marketing,
distribution, utilization, conservation, stockpiling, or storage of all forms of
energy products and resources.
Powers and Functions of the DOE:
(a) Formulate a comprehensive program for the efficient supply and

economical use of energy
(b) Develop and update annually the existing Philippine Energy Plan (PEP);
(c) Prepare and update annually a Power Development Program (PDP) and
integrate the same into the Philippine Energy Plan.
(d) Ensure the reliability, quality and security of supply of electric power;
(e) Following the restructuring of the electricity sector, the DOE shall,
among others:
(i) Encourage private sector investments in the electricity sector and

promote development of indigenous and renewable energy sources;
(ii) Facilitate and encourage reforms in the structure and operations of

distribution utilities for greater efficiency and lower costs;
(iii) Promote a system of incentives to encourage industry participants;

and
(iv) Undertake information campaign to educate the public on the

restructuring of the electricity sector and privatization of National
Power Corp. (NPC) assets;
(f) Jointly with the electric power industry participants, establish the
wholesale electricity spot market and formulate the detailed rules
governing the operations thereof;
(g) Establish and administer programs for energy projects of all forms,
whether conventional or non-conventional;
(h) Exercise supervision and control over all government activities relative
to energy projects;
(i) Develop policies and procedures for a system of energy development

incentives to enable and encourage electric power industry participants
to provide adequate capacity;
(j) Monitor private sector activities relative to energy projects and endeavor
to provide for an environment conducive to free and active private
sector participation and investment in all energy projects;
(k) Develop various forms of energy production and utilization technologies

through research;
(l) Formulate and implement programs, including a system of providing

incentives and penalties, for the judicious and efficient use of energy in
all energy-consuming sectors of the economy;
(m) Formulate and implement a program for the accelerated development of

non-conventional energy systems and the commercialization of its
applications;
(n) Devise ways and means of giving direct benefit to the community and
people affected, and equitable preferential benefit to the region that
hosts the energy resource and/or the energy-generating facility;
(o) Encourage private enterprises engaged in energy projects to broaden

the base of their ownership andnencourage the widest public ownership
of energy-oriented corporations;
(p) Formulate rules and regulations
(q) Exercise such other powers
Functions of the Secretary of the DOE
(a) Establish policies and standards for the operation of the DOE
(b) Exercise direct supervision and control over all functions and activities
of the Department, as well as all its officers and personnel;
(c) Devise a program of international information on the geological and

contractual conditions obtaining in the Philippines for oil and gas
exploration in order to advance the industry;
(d) Create regional offices and such other service units and divisions as may
be necessary;
(e) Create regional or separate grids as may be necessary or beneficial.
Inherent Powers of the DOE

1. Visitorial Powers – examining authority over nongovernment entities
with contracts for the exploration, development, or utilization of the natural
resources for energy purposes to determine the share of the Government in
the revenue or product thereof, and to ascertain that all such funds
collectible and products due the Government have actually been collected
or delivered.
The refusal by any nongovernment entity to allow an examination of its

pertinent records or its concealment of any material information concerning
its financial status shall be a breach of its contract with the Government and
shall constitute a legal ground for the cancellation of contract
2. Contingency Powers – In time of critically low-energy supply or

imminent danger, the President may, upon the determination and
recommendation of the Secretary, issue a declaration of the same. The
Secretary is then authorized to implement the fuel and energy allocation
plan and to formulate other measures for the conservation of energy
including, but not limited to, power or fuel rationing, load curtailments, and
restrictions on the use of government vehicles and resources.
Bureaus and Services
1. Energy Resource Development Bureau (ERDB) - Formulates and

implements government policies, programs and regulations relating to the
exploration, development and production of indigenous petroleum, coal and
geothermal energy resources, and related product and market development
thereof.
2. Energy Utilization Management Bureau (EUMB) – Formulates and

implements policies, plans, programs and regulations on new energy
technologies, alternative fuels and the efficient, economical transformation,
marketing and distribution of conventional and renewable energy
resources, and ensures efficient and judicious utilization of conventional
and renewable energy resources.
3. Energy Policy and Planning Bureau (EPPB) - Formulates, updates,

monitors and evaluates national and local energy plans, policies, programs
and projects, and provides a comprehensive assessment of demand
scenarios and supply options as well as studies the impacts of international
commitments on energy policies, economy and impacts of international
commitments on energy policies, economy and environment.
4. Electric Power Industry Administration Bureau (EPIAB) -

Supervises the implementation of electric power industry restructuring to
establish a competitive, market-based environment, and encourage private-
sector participation; ensures adequate, efficient and reliable supply of
electricity, and formulates plans, programs and strategies relative to rural
electrification.
5. Oil Industry Administration/Management Bureau (OIAB/OIMB) -

Formulates and Implements polices, plans, programs and regulations on the
downstream oil industry, including the importation, exportation, stockpiling,
storage, shipping, transportation, refining, processing,marketing and
distribution of petroleum crude oils, products and by products, and
monitors developments in the downstream oil industry.
6. Renewable Energy Management Bureau (REMB) - Formulate and

implement policies, plans and programs related to the accelerated
development, transformation, utilization and commercialization of
renewable energy resources including emerging energy technologies.
Attached Agencies and Corporations:
1. Philippine National Oil Company (PNOC) - created by Presidential

Decree No. 334, November 9, 1973, to provide and maintain an adequate
and stable supply of oil. It also aims to vevelop and implement a gas
distribution system in the country (Sec.3 PD 334 as amended and establish
the country's strategic petroleum reserve (Sec.4a, PD 334 as amended).
(Participated in the Malampaya Deepwater Gas-to-Power Project, the

largest energy infrastructure undertaking in Philippine history)
2. National Power Corporation (NPC) - conduct missionary electrification

throughout the Philippine archipelago. Originally organized as a non-stock,
public corporation under Commonwealth Act No. 120. The law nationalized
the hydroelectric industry and reserved for the use of NPC, all streams,
lakes and springs in the Philippines where power may be developed, subject
to existing rights. In 1960, under Republic Act No. 2641, it was converted
into a wholly government-owned stock corporation.
3. National Electrification Administration (NEA) - Created and

established through Republic Act 2717 (which created the Electrification
Administration). Functions are enumerated in PD 269 as amended by PD
1649. NEA is tasked to fully implement the Rural Electrification program
(REP) and reinforce the technical capability and financial viability of rural
Electric Cooperatives (ECs) that they may compete under the deregulated
electricity market.
4. National Transmission Corporation (TransCo) - created in 2001 by
the Electric Power Industry Reform Act (RA 9136). It is a corporate entity
wholly owned by the Power Sector Assets and Liabilities Management
(PSALM). It is the owner of the country's power grid that is being operated,
maintained, expanded, and constructed (for transmission projects) by the
National Grid Corporation of the Philippines (NGCP). As owner of the
national transmission facilities, it assumed all of National Power
Corporation's spowers and functions.
5. Philippine National Oil Company (PNOC) - a government-owned and

controlled corporation founded under martial law to supply oil to the
Philippines. Since then, its charter has been amended several times to
include exploration, exploitation and development of all energy resources in
the country.
6. Power Sector Assets and Liabilities Management Corporation

(PSALM) - created through Sec. 49, RA 9136 or the Electric Power Industry
Reform Act of 2001 (EPIRA). It shall take ownership of all existing NPC
generation assets, and other disposable assets. All outstanding obligations
of the NPC by virtue of its indebtedness shall be transferred and assumed
by PSALM.Its purpose is to manage the orderly sale, disposition and
privatization of NPC to liquidate all NPC financial obligations in an optimal
manner.
Relationship with Other Government Departments
The Department and its priority projects shall enjoy preferential treatment
from the DENR relative to the exploration, development, exploitation, and
extraction of petroleum, coal, and other geothermal resources, and in the
matter of providing technical support necessary for the establishment of
power-generating plants.
Perez vs. LPG Refillers Association
DOE issued Circ. No. 2000-06-010 to implement Batas Pambansa Blg. 33, penalizes illegal trading, hoarding, overpricing,
adulteration, underdelivery, and underfilling of petroleum products, as well as possession for trade of adulterated petroleum products
and of underfilled liquefied petroleum gas (LPG) cylinder. The said law sets the monetary penalty for violators to a minimum of P
20,000 and a maximum of P 50,000. LPG Refillers Assoc. of the Philippines asked the DOE to set aside the Circular for being
contrary to law but to no avail, hence they filed an action before the RTC to nullify the circular.
Issue: Whether or not the circular is valid.
Held: For an administrative regulation, to have the force of penal law, the following must concur:
1. the violation of the administrative regulation must be made a crime by the delegating statute itself; and,
2. the penalty for such violation must be provided by the statute itself
The circular only states the various modes by which the said criminal acts may be perpetrated, namely: no price display board, no
weighing scale, no tare weight or incorrect tare weight markings, no authorized LPG seal, no trade name, unbranded LPG cylinders,
noserial number, no distinguishing color, no embossed identifying markings on cylinder, underfilling LPG cylinders, tampering LPG
cylinders, and unauthorized decanting of LPG cylinders.The acts and omissions stated in the circular are well within the modes
contemplated by the BP 33 and serves the purpose of curbing pernicious practices of LPG dealers.
As for the second requirement, the statute provides a minimum and maximum amount as penalties.The maximum pecuniary penalty
for retail outlets is P20,000, an amount within the range allowed by law.While the circular is silent as to the max penalty for refillers,
marketers, and dealers, such does not amount to violation of the statutory maximum limit.
The mere fact that the Circular provides penalties on a per cylinder basis does not in itself run counter to t he law since all that BP 33
prescribes are the minimum and the maximum limits of penalties.Nothing in the Circular contravenes the law because DOE was
expressly authorized by BP 33 and RA 7638 to impose fines and penalties.
The enabling laws on which the Circular is based were specifically intended to provide the DOE with increased administrative and
penal measureswith which to effectively curtail rampant adulteration and shortselling, as well as other acts involvingpetroleum
products, which are inimical to public interest.To nullify the Circular in this case would render inutile government efforts to protect the
general consuming public against the nefarious practices of some unscrupulous LPG traders.
IDEALS, Inc. vs PSALM

GR 192088, 9 Oct 2012
FACTS:
Sometime in August 2005, PSALM commenced the privatization of the 246-megawatt Angat Hydro Electric Power Plant (AHEPP)
located in San Lorenzo, Norzagaray, Bulacan. The Angat Dam and AHEPP are utilized for power generation, irrigation, water supply
and flood control purposes. An invitation to bid was published and the highest bidder, Korea Water Resources Corporation (K-
Water), was identified. The sale to K-Water was sought to be enjoined by petitioners who contend that the award to K-Water was a
violation of the Constitutional provision that the utilization and appropriation of the water as a natural resource, implemented by the
Water Code, which limits water rights to Filipino citizens and corporation which are at least 60% Filipino-owned.
ISSUES:
1. Was there a violation of Sec. 2, Art XII, Constitution, by the approval and confirmation of the bidding to the Korean Corporation?
2. Was there a violation of the Water Code provision on the grant of water rights?
RULING:
1. Foreign ownership of a hydropower facility is not prohibited by law provided that the ownership only include the construction,
rehabilitation and development of the plants which the Built-Operate-Transfer (BOT) Law allows. The nationality issue has been
framed in terms of the nature of the project, whether the activity amounts to the utilization of natural resources within the meaning of
Sec. 2, Art. XII of the Constitution.
2. Under the Water Code, a foreign company may not be said to be ‘appropriating’ our natural resources it if utilizes the waters
collected in the dam and converts them into electricity through artificial devices. Since the NPC remains in control of the operation of
the dam by virtue of water rights granted to it by law, there is no legal impediment to foreign-owned companies undertaking the
generation of electric power using wates ALREADY APPROPRIATED by the NPC, the holder of the water permit. While the Water
Code imposes a nationality requirement to the grant of water permits, it refers to the privelege “to appropriate and use water” - the
extraction of water from its natural source (Art. 9, PD1067). When water is removed from its natural source, the water ceases to be
part of the natural resouces of the country and may be then be acquired by foreigners. A foreign company may not be said to be
appropriating our natural resources if it utilizes the waters collected in the dam and converts the same into electricity through
artificial devices.
Philippine Fisheries Code
RA 8550, as amended by RA 10654:
"An Act to Prevent, Deter and Eliminate Illegal, Unreported and

Unregulated Fishing."
Governing Law
Policy considerations (PAGE PAL)
(a) to protect the rights of fisherfolk

(b) to achieve food security
(c) to grant the private sector the privilege to utilize fishery resources.
(d) to ensure the rational and sustainable development, management and
conservation of the fishery and aquatic resources in Philippine waters
(e) to provide support to the fishery sector
(f) To adopt the precautionary principle and manage fishery and aquatic
resources
(g) to limit access to the fishery and aquatic resources of the Philippines
Objectives of the fishery sector (IO CUP)
1. Improvement of productivity of aquaculture within ecological limits;

2. Optimal utilization of offshore and deep-sea resources;
3. Conservation, protection and sustained management of the country's
fishery and aquatic resources;
4. Upgrading of post-harvest technology.
5. Poverty alleviation and the provision of supplementary livelihood
among municipal fisherfolk;
Application of the Law (LAPP)
(a) all lands devoted to aquaculture, or businesses and activities relating to

fishery
(b) all aquatic and fishery resources whether inland, coastal or offshore
fishing areas,
(c) all Philippine waters
(d) all Philippine flagged fishing vessels
Definition of Terms
Aquaculture - fishery operations involving all forms of raising and

culturing fish and other fishery species in fresh, brackish and marine
water areas.
Catch Ceilings - refer to the annual catch limits allowed to be taken,
gathered or harvested from any fishing area in consideration of the need
to prevent overfishing and harmful depletion of breeding stocks of
aquatic organisms.
Closed Season - the period during which the taking of specified fishery
species by a specified fishing gear is prohibited in a specified area or
areas in Philippine waters.
Coastal Area/Zone - is a band of dry land and adjacent ocean space

(water and submerged land. in which terrestrial processes and uses
directly affect oceanic processes and uses, and vice versa; its geographic
extent may include areas within a landmark limit of one (1. kilometer
from the shoreline at high tide to include mangrove swamps, brackish
water ponds, nipa swamps, estuarine rivers, sandy beaches and other
areas within a seaward limit of 200 meters isobath to include coral reefs,
algal flats, seagrass beds and other soft-bottom areas.
Commercial Fishing - the taking of fishery species by passive or active

gear for trade, business & profit beyond subsistence or sports fishing, to
be further classified as:
○ (1) Small scale commercial fishing - fishing with passive or
active gear utilizing fishing vessels of 3.1 gross tons (GT) up to
twenty (20) GT;
○ (2) Medium scale commercial fishing - fishing utilizing active
gears and vessels of 20.1 GT up to one hundred fifty (150) GT;
and
○ (3) Large commercial fishing - fishing utilizing active gears and
vessels of more than one hundred fifty (150) GT.
Exclusive Economic Zone (EEZ. - an area beyond and adjacent to the
territorial sea which shall not extend beyond 200 nautical miles from the
baselines as defined under existing laws.
Fisherfolk - people directly or personally and physically engaged in

taking and/or culturing and processing fishery and/or aquatic resources.
Fishing - the taking of fishery species from their wild state of habitat,
with or without the use of fishing vessels.
Maximum Sustainable Yield (MSY. - is the largest average quantity of

fish that can be harvested from a fish stocks/resource within a period of
time (e.g. one year. on a sustainable basis under existing environmental
conditions.
Municipal fishing - refers to fishing within municipal waters using

fishing vessels of three (3. gross tons or less, or fishing not requiring the
use of fishing vessels.
Municipal waters - include not only streams, lakes, inland bodies of

water and tidal waters within the municipality, public forest, timber
lands, forest reserves or fishery reserves, but also marine waters
included between two lines drawn perpendicular to the general coastline
from points where the boundary lines of the municipality touch the sea at
low tide and a third line parallel with the general coastline including
offshore islands and 15 kilometers from such coastline.
Philippine waters - include all bodies of water within the Philippine

territory such as lakes, rivers, streams, creeks, brooks, ponds, swamps,
lagoons, gulfs, bays and seas and other bodies of water now existing or
which may hereafter exist in the provinces, cities, municipalities, and
barangays and the waters around, between and connecting the islands of
the archipelago regardless of their breadth and dimensions, the
territorial sea, the sea beds, the insular shelves, and all other waters
over which the Philippines has sovereignty and jurisdiction including the
200-nautical miles Exclusive Economic Zone and the continental shelf.
Total Allowable Catch (TAC. - the maximum harvest allowed to be

taken during a given period of time from any fishery area, or from any
fishery species or group of fishery species, or a combination of area and
species and normally would not exceed the MSY.
Other concepts
Internal Waters- All waters landwards from the baseline of the territory
Archipelagic Waters- Sec 1 Art 1 1987 Consti

Territorial Sea- Belt of sea outwards from baseline up to 12 nm beyond
“Straight baselines”- Drawn connecting selected points on the coast

without appreciable departure from the general shape of the coast
Continental shelf- Refers to (a) the seabed and subsoil of the

submarine areas adjacent to the coastal state but outside the territorial
sea, to a depth of 200 meters or, beyond that limit, to where the depth
allowed exploitation; and (b) the seabed and subsoil of areas adjacent to
island
Obligations of Coastal states P E
1- Promote the objective of ‘optimum utilization’ of the living resources of

the EEZ
2-Ensure through proper conservation and management measures that the

living resources of the EEZ are not subjected to overexploitation.
Right of the Coastal State 3E
-Explore and exploit the natural resources on the seabed and subsoil
-Erect installations needed
-Eret a safety zone over its installation
XPN: -Right of navigation of others
-Non-resource materials in the shelf area
Use of Philippine Waters (Sec 5)
-Its use and exploitation is reserved exclusively to Filipino citizens.
-XPN: Research and survey activities
● Under strict regulations

● For purely research, scientific, technological and educational
purposes
● Benefit Filipino citizens.
Organizational Structure
Department of Agriculture
(EO 292) - Bureau of Fisheries and Aquatic Resources
Primary Concern: to improve farm income and generate work

opportunities for farmers, fishermen, and other rural workers.
Powers and Functions (Sec 3): PB PE PC PC P
(1) Provide integrated services to farmers, fishermen, and other food

producers
(2) Be responsible for the planning, formulation, execution, regulation, and

monitoring of programs and activities relating to agriculture, food
production and supply;
(3) Promulgate and enforce all laws, rules and regulations governing the
conservation and proper utilization of agricultural and fishery resources
(4) Establish central and regional information systems
(5) Provide comprehensive and effective extension services and training to

farmers and other agricultural entrepreneurs
(6) Conduct, coordinate, and disseminate research studies on appropriate

technologies for the improvement and development of agricultural crops,
fisheries, and other allied commodities
(7) Provide the mechanism for the participation of farmers, fishermen, and
entrepreneurs at all levels of policy-making, planning and program
formulation
(8) Coordinate with and enlist other public and private agencies for
cooperation and assistance on matters affecting the policies, plans and
programs of the Department
(9) Perform such other functions as may be provided by law
The DA prescribes the following:
1. Access to fishery resources (Permits and Licenses)
-Issued by the DA
-Subject to limits of MSY as determined by scientific studies or best
available evidence
-Preference to resource users in local communities adjacent to or
nearest to the municipal waters
2. Catch ceiling
-Prescribed by the DA Secretary

-Limitations or quota on the total quantity of fish captured, for a
specified period of time and specified area
-Based on best available evidence
-May be imposed per specie of fish
-In municipal waters and fishery management areas and waters
under the jurisdiction of special agencies, catch ceilings may be
established upon the concurrence and approval or recommendation of
such special agency and the concerned LGU in consultation with the
Fisheries and Aquatic Resource Management Councils (FARMC) for
conservation or ecological purposes
3. Closed Season
-Declared by the DA Secretary

-In any part or all Philippine waters,outside the boundary of municipal
waters and in bays
-Through public notice
-In at least 2 newspapers of general circulation or public service
announcements
-5 days before the declaration
-for conservation and ecological purposes
-may include waters under the jurisdiction of special agencies,
municipal waters and bays, and other areas reserved for the use of
municipal fisherfolk, done only upon concurrence and approval or
recommendation of such special agency and the concerned LGU and
FARMC.
Composition of the Bureau of Fisheries and Aquatic Resources (Sec

66)
-Headed by a Director
-Assisted by 2 Assistant Directors
Some BFAR Functions (Sec 65):
(a) prepare and implement a Comprehensive National Fisheries Industry

Development Plan;
(b) issue licenses for the operation of commercial fishing vessels;
(c) issue identification cards free of charge to fishworkers engaged in
commercial fishing;
xxx
(g) provide extensive development support services in all aspects of
fisheries production, processing and marketing;
(h) provide advisory services and technical assistance on the improvement
of quality of fish from the time it is caught (i.e. on board fishing vessel, at
landing areas, fish markets, to the processing plants and to the distribution
and marketing chain);
(i) coordinate efforts relating to fishery production undertaken by the
primary fishery producers, LGUs, FARMCs, fishery and
organizations/cooperatives;
(j) advise and coordinate with LGUs on the maintenance of proper
sanitation and hygienic practices in fish markets and fish landing areas;
(k) establish a corps of specialists in collaboration with the Department of
National Defense, Department of the Interior and Local Government,
Department of Foreign Affairs for the efficient monitoring, control and
surveillance of fishing activities within Philippine territorial waters and
provide the necessary facilities, equipment and training therefor;
xxx
(v) adopt and implement a national plan of action to manage fishing
capacity, implement the international code of conduct for responsible
fisheries, and declare fishery management areas as over-exploited in
coordination with the LGUs and FARMCs;
xxx
(x) hear and decide administrative cases before it;
xxx
(z) initiate the criminal prosecution of offenses committed in violation of this
Code regardless of their situs; and
(aa) perform such other related functions which shall promote the
development, conservation, management, protection and utilization of
fisheries and aquatic resources."
Municipal Fisheries
Jurisdiction: Municipal/City Government in consultation with the FARMC
Responsibility: management, conservation, development, protection,

utilization, and disposition of all fish and fishery or aquatic resources within
their respective municipal waters
How? Enactment of appropriate ordinances
Contiguous fishery resources (Sec 76)
-bays that straddle several municipalities, cities, or provinces

-management shall be in integrated manner
-to facilitate their management as single resource systems
-the LGUs which share or border such resources may group themselves and
coordinate with each other
-Venue: FARMCs
General welfare clause (LGC)
-Local government units have the power to enact ordinances to enhance the
right of the people to a balanced ecology.
-Power to grant fishery privileges in municipal waters, and impose rentals,

fees or charges therefor
-Penalize the use of explosives, noxious or poisonous substances, electricity,

muro-ami, and other deleterious methods of fishing; and to prosecute other
methods of fishing;
-Prosecute any violation of the provisions of applicable fishing laws.
-The sangguniang bayan, the sangguniang panlungsod, and the

sangguniang panlalawigan have the duty to enact ordinances to protect the
environment and impose appropriate penalties for acts which endanger the
environment which result in pollution, acceleration of eutrophication of
rivers and lakes or of ecological imbalance
Devolved power of local government units (Sec 17)
-Enforcement of fishery laws in municipal waters
-Those specifically devolved insofar as control and regulation of fishing in

municipal waters and the protection of the marine environment are
concerned, the following are added: 3IE
a) Issuance of permits to construct fish cages, to gather aquarium fishes,

kapis shells, gather or culture shelled mollusks
b) Issuance of licenses to establish seaweed farms, to culture pearls
c) Issuance of auxiliary invoice to transport fish and fishery products
d) Establishment of closed season
Grant of fishing privileges in municipal waters
-Duly registered fisherfolk organization or cooperatives: preference in the

grant of fishery rights by the municipal council pursuant to Sec 149 LGC
-Where there are special agencies or offices vested with jurisdiction over
municipal waters by virtue of special law creating these agencies, they shall
continue to grant permits
The Laguna Lake Development Authority (RA 4850)
-to promote and accelerate the development and balanced growth of the
Laguna Lake area and the surrounding provinces, cities, and towns (the
region)
Purpose:
-environmental management and control
-preservation of the quality of human life and ecological systems
-prevention of undue ecological disturbances, deterioration, and pollution
LLDA v CA: The LLDA has exclusive jurisdiction to issue permits for the
enjoyment of fishery privileges in Laguna de Bay
Users of municipal waters (Sec 18)
-Utilized by municipal fisherfolk and their cooperatives or organizations

who are listed in the registry of municipal fisherfolk.
Note: Bays in an environmentally critical condition and during closed

season.
Registry of municipal fisherfolk (Sec 19)
-Maintained by the LGU
-Contains those who are fishing or may desire to fish in municipal waters
-Purpose: (1) determining priorities among them, (2) limiting entry into the
municipal waters, and (3) monitoring fishing activities and (4) other related
purposes:
Priority of resident municipal fisherfolk (Sect 21)
-priority to exploit municipal and demarcated fishery areas of the said

municipality.
However, the LGU may prohibit or limit fishery activities when it is
determined that a municipal water is overfished or in danger of being
overfished, and that there is a need to regenerate the fishery resources in
that water. (Sec 23)
Preferential right of subsistence fishermen
Tano v Socrates: the right of subsistence to the use of water or marine

resources is not absolute.
Section 2 of Article XII aims primarily not to bestow any right to subsistence
fishermen, but to lay stress on the duty of the State to protect the nation’s
marine wealth. What the provision merely recognizes is that the State may
allow, by law, cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
Differentiate marginal v. subsistence fishermen:
Marginal fishermen – an individual engaged in fishing whose margin or

return is barely sufficient to yield a profit.
Subsistence fishermen – catch yields but irreducible minimum for his
livelihood
COMMERCIAL FISHERIES
What is considered commercial fishing?
- the taking of fishery species by passive or active gear for trade, business
or profit beyond subsistence or sports fishing, to be further classified as:
1) Small scale commercial fishing – fishing with passive or active gear
utilizing fishing vessels of 3.1 gross tons up to 20 gross tons.
2) Medium scale commercial fishing – fishing utilizing active gears and
vessels of 20.1 GT up to 150 GT; and
3) Large scale commercial fishing – fishing utilizing active gears and vessels
of more than 150 GT.
Needs:
1) License from Dept. of Agriculture (Commercial Fishing Vessels
Licences)
*renewable every 3 years
2) Certificates of Philippine Registry for fishing vessel
3) Fishing gear it will utilize in fishing shall be registered (Commercial
Gear Licenses)
4) Medical supplies and life-saving.
A fishing vessel of 20 GT or more shall have as a member of its crew a
person qualified as a first aider duly certified by the Philippine
National Red Cross.
5) A daily record of fish catch and spoilage, landing points, and quantity
and value of fish caught, and off-loaded for transshipment, sale and/or
other disposal. Information shall be duly certified by the vessel's
captain and transmitted monthly to the officer or representative of the
Department, at the nearest designated landing point.
6) Fisherman’s License
Exeption: fishing vessel engaged in scientific, research or educational

purposes within Philippine waters pursuant to an international agreement
of which the Philippines is a signatory and which agreement defines the
status, privileges and obligations of said vessel and its crew and the non-
Filipino officials of the international agency under which said vessel
operates
To whom may a license be issued?
To citizens of the Philippines, partnerships or to associations, cooperatives
or corporations duly registered in the Philippines at least sixty percent
(60%) of the capital stock of which is owned by Filipino citizens
Prohibition: To sell, transfer or assign, directly or indirectly, stock or
interest to any person not qualified to hold a license
Can we fish in International waters? Fishing vessels of Philippine
registry may operate in international waters or waters of other countries
which allow such fishing operations if:
1) That they comply with the safety, manning and other requirements of the
Philippine Coast Guard, Maritime Industry Authority and other agencies
concerned
2) That they secure an international fishing permit and certificate of
clearance from the Department of Agriculture
3) That the fish caught by such vessels shall be considered as caught in
Philippine waters and not subject to all import duties and taxes only when
the same is landed in duly designated fish landings and fish ports in the
Philippines
4) That landing ports established by canneries, seafood processors and all
fish landing sites established prior to the effectivity of this Code shall be
considered authorized landing sites
5) That fishworkers on board Philippine registered fishing vessels
conducting fishing activities beyond the Philippine Exclusive Economic Zone
are not considered as overseas Filipino workers.
Aquaculture
What is aquaculture?
Fishery operations involving all forms of raising and culturing fish and other
fishery species in fresh, brackish and marine areas.
Requirements:
1) Registration in Department of Agriculture
2) Fishpond Lease Agreement (for fishponds)
3) License to operate fish cage, pens, fish cage and similar structures
Who are qualified for Fishpond Lease Agreement? Any Filipino citizen
with preference, primarily to qualified fisherfolk cooperatives/associations
Requirements of Fishpond Lease Agreement
1) Not more than 50 hectares for individuals and 250 hectares for
corporations or fisher folk organizations
2) Lease shall be for a period of 25 years and renewable for another 25
years
3) In case of the death of the lessee, his spouse and/or children, as his
heirs, shall have preemptive rights to the unexpired term of his
Fishpond Lease Agreement subject to the same terms and conditions
provided that the said heirs are qualified
4) Not be subleased
5) Transfer of rights shall be allowed with the written approval of the Dept.
of Agriculture.
6) The area leased shall be developed and producing on a commercial scale
within 3 years from the approval of the lease contract
Effect of acquiring Citizenship from another country:
Cancellation of Lease and forfeiture of the improvements in the land
If the structure obstructs the navigation of navigable bodies of water or

migration paths of fishes then the lease or license is deemed cancelled
FISHERIES RESERVES, REFUGE AND SANCTUARIES

Fisheries Reserves - designate area or areas in Philippine waters beyond
(15) kilometers from shoreline for the exclusive use of the government or
any of its political subdivisions, agencies or instrumentalities, for
propagation, educational, research and scientific purposes
Fish Refuge and Sanctuaries
Area of at least 25% but not more 40% of bays, foreshore lands, continental
shelf or any fishing ground set aside for the cultivation of mangroves to
strengthen the habitat and the spawning grounds of fish. No commercial
fishing shall be allowed within the area.
Acts Punishable
Fishing with no permit/authorization
Section 86 Unauthorized Fishing
Punishable Acts:
1)
a) Capturing or gathering or to cause the capture or gathering of fish, fry

or fingerlings of any fishery species or fishery products without a license
or permit
b) Commercial fishing vessel fishing in municipal waters except when
allowed by law.
Prima Facie Presumption: The discovery of any person in possession of a

fishing gear or operating a fishing vessel in a fishing area where he has no
license or permit
Exception: Fishing for daily food sustenance or for leisure which is not for
commercial, occupation or livelihood purposes.
Who are liable? The boat captain and the three (3) highest officers of the
commercial fishing vessel and the owner or operator
Administrative Liability: Confiscation of catch and gear, and an

administrative fine of five (5) times the value of the catch or the amount
indicated below, whichever is higher:
(1) P50, 000.00 to P100, 000.00 for small-scale commercial fishing;
(2) P150, 000.00 to P500, 000.00 for medium-scale commercial

fishing; and
(3) P1, 000,000.00 to P5, 000,000.00 for large-scale commercial

fishing.
Criminal Liability Imprisonment of 6 months and confiscation of catch and

gear and twice the amount of the administrative fine.
2) Any person not listed in the registry of municipal fisherfolk to engage in

any commercial fishing activity in municipal waters.
Administrative liability: Administrative fine equivalent to twice the value of

catch or P5,000.00, whichever is higher, and confiscation of the catch and
fishing gear: If the offender fails to pay the fine, he shall render community
service.
Section 87. Engaging in Unauthorized Fisheries Activities
1) to exploit, occupy, produce, breed or culture fish, fry or fingerlings of

any fishery species or fishery products without a license, lease or
permit
2) construct and operate fish corrals, fish traps, fish pens and fish cages
or fishponds without a license, lease or permit
.
Prima Facie Presumption: The discovery of any person engaging in any of
the above activities without a lease, license or permit.
Administrative liability: Administrative fine of P500,000.00 to

P1,000,000.00, the dismantling or removal of the structure at the expense
of the offender, the rehabilitation of the area affected by the activity and
confiscation of stocks.
Criminal Liability: Imprisonment of 6 months, a fine equivalent to twice the

amount of the administrative fine, the dismantling or removal of the
structure at the expense of the offender, the rehabilitation of the area
affected by the activity and confiscation of stocks.
Section 88. Failure to Secure Fishing Permit Prior to Engaging in Distant

Water Fishing.
1)
(a) person to fish in the high seas, in the territorial seas, archipelagic
waters, and Exclusive Economic Zones of other states
(b)using a Philippine flagged fishing vessel
(c) without first securing a fishing permit from the Department and
authorization from the coastal state.
Prima Facie Presumption: The discovery of any person in possession

of a fishing gear or operating a fishing vessel in the abovementioned
areas without a fishing permit from the Department or authorization
from the coastal state
2)
(a) an owner or operator, and the three (3) highest officers, of a

commercial fishing vessel
b) to commit acts that are in contravention of the terms and

conditions stated in the fishing permit or as may be promulgated by
the Department.
Who are liable: the owner, operator, and the three (3) highest officers
of the commercial fishing vessel.
Administrative liability: Confiscation of the catch and gear and an

administrative fine equivalent to five (5) times the value of the catch
or the amount indicated below, whichever is higher:
(1) P2,000,000.00 to P9,000,000.00 for small-scale commercial
fishing;
(2) P10,000,000.00 to P15,000,000.00 for medium-scale

commercial fishing; and
(3) P16,000,000.00 to P20,000,000.00 for large-scale

commercial fishing vessels less than 750 gross tons, and
P25,000,000.00 to P45,000,000.00 for large-scale commercial
fishing vessels 750 gross tons or more.
Criminal Liability: Imprisonment of 6 months and a fine equivalent to

twice the amount of the administrative fine, and confiscation of catch
and gear.
Unregulated Fishing
Section 89. Unreported Fisahing
1) Within Philippine Waters
to engage in unreported fishing or to fail to comply with the reportorial

requirements in relation to Section 38
Who are liable? The owner or operator of the municipal or commercial

fishing vessel and the three (3) highest officers of the commercial fishing
vessel who commit unreported fishing
Administrative liability: Administrative fine equivalent to the value of the

catch or the amount indicated below, whichever is higher:
(1) P5,000.00 for municipal fishing. If the offender fails to pay the fine,
he shall render community service;
(2) P100,000.00 for small-scale commercial fishing;
(3) P200,000.00 for medium-scale commercial fishing; and
(4) P500,000.00 for large-scale commercial fishing.
2) Committed in high seas
Administrative Liability: Administrative fine equivalent to 5 times the value

of the catch or the amount indicated below, whichever is higher:
fishing;
(2) P10,000,000.00 to P15,000,000.00 for medium-scale commercial

fishing; and
(3) P16,000,000.00 to,000,000.00 for large-scale commercial fishing

vessels less than 750 gross tons, and P25,000,000.00 to
P45,000,000.00 for large-scale commercial fishing vessels 750 gross
tons or more.
Criminal Liability: Imprisonment of 6 months and a fine equivalent to twice

the amount of the administrative fine, and confiscation of catch and gear.
Section 90. Unregulated Fishing
Punishable Acts:
1) To engage in unregulated fishing in waters within national jurisdiction
2) To engage in unregulated fishing in waters beyond national jurisdiction.
Who are liable: The owner, operator, of the municipal or commercial fishing
vessel and the 3 highest officers of the commercial fishing vessel.
Administrative liability: Confiscation of catch and gear and an

administrative fine equivalent to the value of the catch or amount indicated
below, whichever is higher:
(1) P5,000.00 for municipal fishing: Provided, That if the offender fails
to pay the fine, he shall render community service;
Unregulated fishing in waters beyond national jurisdiction

Administrative Liability: Confiscation of catch and gear, and an
administrative fine equivalent to 5 times the value of the catch or the
amount indicated below, whichever is higher:

fishing;
(2) P10,000,000.00 to P15,000,000.00 for medium-scale commercial

fishing; and
(3) P16,000,000.00 to P20,000,000.00 for large-scale commercial
fishing vessels less than 750 gross tons, and P25,000,000.00 to
P45;000,000.00 for large-scale commercial fishing vessels 750 gross
tons or more.
Criminal Liability: Imprisonment of 6 months and a fine equivalent to twice

the amount of the administrative fines, confiscation of catch and gear.
Section 91. Poaching in Philippine Waters
Punishable Act: Any foreign person, corporation or entity fishing or

operating any fishing vessel in Philippine waters.
Prima Facie presumption: Entry of any foreign fishing vessel in Philippine

waters
Who are liable: any foreign person, corporation or entity.
Administrative liability: Administrative fine of US $600,000.00 to US

$1,000,000.00 or its equivalent in Philippine currency.
Criminal Liability: A fine of US $1,200,000.00, or its equivalent in Philippine

currency, and confiscation of catch, fishing equipment and fishing vessel.
1st time offender: if caught within internal waters, an additional penalty of

imprisonment of 6 months and 1 day to 2 years and 2 months shall be
imposed. 2nd Time offender: if within internal waters, the offender shall be
punished with imprisonment of 3 years and a fine of US $2,400,000.00 or its
equivalent in Philippine currency. No foreign person shall be deported
without the payment of the imposed judicial and/or administrative fines and
service of sentence, if any.
Section 92. Fishing Through Explosives, Noxious or Poisonous Substance,

or Electricity
Punishable Acts:
1) To catch, take or gather or cause to be caught, taken or gathered fish or any

fishery species in Philippine waters with the use of explosives, noxious or
poisonous substance such as sodium cyanide, which will kill, stupefy, disable
or render unconscious fish or fishery species.
Except:
1) For research, educational or scientific purposes only, the use of
poisonous or noxious substances to catch, take or gather fish or
fishery species,
2) The use of poisonous or noxious substances to eradicate predators
and pests in fishponds in accordance with accepted scientific
practices and without causing adverse environmental impact in
neighboring waters and grounds shall
Prima facie presumption:

1) The discovery of dynamite, other explosives and chemical compounds
which contain combustible elements, or noxious or poisonous
substances, or equipment or device for electrofishing in any fishing
vessel or in the possession of any fisherfolk, operator, fishing boat
official or fishworker.
2) The discovery in any fishing vessel of fish caught or killed with the use
of explosives, noxious or poisonous substances, or by electricity
Administrative liability: Confiscation of catch including those not caught

illegally if co-mingled with those caught illegally, gear, explosives and
noxious or poisonous substances, or electrofishing devices and
paraphernalia and gear, and an administrative fine equivalent to 5 times the
value of the catch or the amount of fine indicated below whichever is
higher:
(1) P30,000.00 for municipal fishing;
(3) P1,500,000.00 for medium scale commercial fishing; and
(4) P3,000,000.00 for large scale commercial fishing.
Criminal Liability: Imprisonment from 5 to ten 10 years, confiscation of

catch, including those not caught illegally if co-mingled with those caught
illegally, gear, explosives and noxious or poisonous substances, or
electrofishing devices and paraphernalia, gear, and a fine equivalent to
twice the amount of the administrative fine, without prejudice to the filing
of separate criminal cases when the use of the same result to physical injury
or loss of human life.
The actual use of electrofishing devices for illegal fishing shall be punished
with imprisonment of 6 months and a fine of P5,000.00.
2) For any person to possess explosives, and noxious or poisonous

substances for illegal fishing.
Administrative liability: Confiscation of catch, gear, and an administrative

fine equivalent to five (5) times the value of the catch or the amount
indicated below whichever is higher:
(1) P10,000.00 for municipal fishing;
(3) P500,000.00 for medium scale commercial fishing; and
(4) P1,000,000.00 for large scale commercial fishing.
Criminal Liability: Imprisonment from 6 months to 2 years, and a fine

equivalent to twice the amount of the administrative fine and confiscation of
catch and gear.
Section 93. Use of Fine Mesh Net
Punishable Act: To engage in fishing using nets with mesh smaller than that
which may be determined by the Department: Except when in the
gathering of fry, glass eels, elvers, tabios, and alamang and other species
that by their nature are small but already mature,
Prima Facie Presumption: The discovery of a fine mesh net in a fishing

vessel
Who are Liable: The owner, operator, captain or master fisherman in case of
commercial fishing vessel, or municipal fisherfolk.
Administrative liability: Confiscation of the catch and fishing gear, and an

administrative fine equivalent to 3 times the value of the catch or the value
indicated below, whichever is higher:
(1) P20,000.00 for municipal fishing. If the municipal fisherfolk fails to

pay the fine, he shall render community service;
(3) P100,000.00 for medium-scale commercial fishing;
Criminal Liability: Imprisonment of 6 months to 2 years and a fine

equivalent to twice the administrative fine, and confiscation of catch and
gear.
Section 94. Fishing in Overexploited Fishery Management Areas. –
Punishable Act: To fish in fishery management areas declared as

overexploited.
Administrative liability: Confiscation of catch and fishing gears, and an
administrative fine equivalent to the value indicated below:
(1) 3 times the value of catch or P20,000.00, whichever is higher, for

municipal fishing. If the offender fails to pay the fine, he shall render
community service;

small-scale commercial fishing;

medium-scale commercial fishing;

large-scale commercial fishing.
Criminal Liability: Imprisonment of 6 months and 1 day to 6 years and fine

of P500,000.00 to P5,000,000.00, confiscation of the catch and fishing
equipment used, and cancellation of fishing permit or license.
Section 95. Use of Active Gear in Municipal Waters, Bays and Other
Fishery Management Areas.
Punishable Act: to engage in fishing in municipal waters and in all bays as

well as other fishery management areas using active fishing gears.
Who are punishable: : The owner, operator, boat captain and master
fisherman of the vessel, or the chief executive officer in a corporation, or
the managing partner in a partnership
Administrative liability: confiscation of the catch and fishing gears, and a 3

times the value of the catch or the value indicated below, whichever is
higher:
(1) P20,000.00 for municipal fishing. If the offender fails to pay the
fine, he shall render community service;
Criminal Liability: Imprisonment of 2 years to 6 years and fine equivalent to

twice the administrative fine, confiscation and forfeiture of fishing gear and
catch.
Section 96. Ban on Coral Exploitation and Exportation. –
Punishable Acts:
1) For any person or corporation to gather, possess, commercially transport,

sell or export ordinary, semi-precious and precious corals, whether raw or in
processed form, except for scientific or research purposes.
2) For any person, corporation or entity to commit any activity that damage
coral reefs.
Persons Punishable: the owner/operator of the fishing vessel/s, boat captain,

master fisherman, and recruiter or organizer of fishworkers
Administrative liability: Administrative fine equivalent to 8 times the value

of the corals gathered, possessed, commercially transported, sold, or
exported, or the amount of P500,000.00 to P10,000,000.00, whichever is
higher, and forfeiture of the subject corals. The offender shall also pay
compensation for the restoration of the damaged corals reefs.
Criminal Liablity: Imprisonment from 10 years to 20 years and a fine

equivalent to twice the administrative fine and forfeiture of the subject
corals.
The offender shall also be required to pay the cost of restoration of the
damaged coral reefs based on available studies and as determined by the
Department.
Section 97. Ban on Muro-ami, Other Methods and Gear Destructive to

Coral Reefs and Other Marine Habitat.
Punishable Acts:
1) For any person, natural or juridical, to fish with gear or method that
destroys coral reefs, seagrass beds, and other fishery marine life habitat.
‘Muro-ami’ and any of its variation, and such similar gears and methods that
require diving, other physical or mechanical acts to pound the coral reefs
and other habitat to entrap, gather or catch fish and other fishery species
are also prohibited.
Persons Punishable: The owner, operator, boat captain, master fisherman,

and recruiter or organizer of fishworkers
Administrative liability: Administrative fine equivalent to five (5) times the

value of the fish caught or P2,000,000.00, whichever is higher, and
confiscation of catch and gear. The fishworkers who serve as pounders shall
be penalized with a fine of P20,000.00 or community service in case of
failure to pay the fine.
Criminal liability: Imprisonment of 2 years to 10 years and a fine equivalent

to twice the amount of the administrative fine.
2) For any person, natural or juridical, to gather, possess, commercially

transport, sell or export coral sand, coral fragments, coral rocks, silica, and
any other substances which make up any marine habitat.
Administrative liability: administrative fine of P5,000,000.00 or 5 times the

value of the coral rocks, sand, or silica gathered, possessed, commercially
transported, sold, or exported, whichever is higher, and confiscation of the
substance.
Criminal Liability: Imprisonment from 2 years to 10 years and a fine

equivalent to twice the administrative fine, confiscation of catch or
substances and equipment or gear used.
Section 98. Illegal Use of Superlights or Fishing Light Attractor
Punishable Acts:
To engage in fishing with the use of superlight in municipal waters, or to

fish with fishing light attractor using candlelight power or intensity beyond
the standards set by the Department in consultation with the LGUs for
fishing in municipal waters, or in violation of the rules promulgated by the
Department for fishing with the use of superlight or fishing light attractor
outside municipal waters.
Administrative liability: A fine of P20,000.00 per superlight or fishing light

attractor, and confiscation of catch, superlight or fishing light attractor and
gears. If the offender is a municipal fisherfolk, he may render community
service in lieu of fine.
Criminal Liability: Imprisonment from six 6 months to 2 years and a fine of

P40,000.00 per superlight or fishing light attractor, and confiscation of
catch, superlight or fishing light attractor and gears. If the offender is a
municipal fisherfolk, he may render community service in lieu of fine or
imprisonment.
Section 99. Conversion of Mangroves. –
Punishable Acts: For any person to convert mangroves into fishponds or for
any other purpose.
Administrative liability: A fine equivalent to the ecological value of a hectare
of mangrove based on available studies or administrative fine of
P10,000,000.00 per hectare, whichever is higher. If the area requires
rehabilitation or restoration, the offender shall also be required to restore
or pay for the restoration of the damaged area.
Criminal liability: A fine of P80,000.00, a fine equivalent to the

administrative penalties, and shall suffer the penalty of imprisonment of 6
months and 1 day to 12 years. If the area requires rehabilitation or
restoration as determined by the court, the offender shall also be required
to restore or pay for the restoration of the damage. The offender shall be
liable for environmental damages computed at P500,000.00 per hectare per
year until the area is restored.
Section 100. Fishing During Closed Season. –
Punishable Act: To fish during closed season.
Administrative liability: confiscation of catch and gear and an administrative

fine of:
(1) Three times the value of the catch or P20,000.00 for municipal
fishing, whichever is higher. If the offender fails to pay the fine,
community service shall be rendered;
(2) Five times the value of the catch or P100,000.00, whichever is

higher for small-scale commercial fishing;
(3) Five times the value of catch or P300,000.00, whichever is higher

for medium-scale commercial fishing; and
(4) Five times the value of catch or P500,000.00, whichever is higher

for large-scale commercial fishing.
Criminal Liability: Imprisonment of 6 months and 1 day to 6 years,

confiscation of catch and gear, and fine twice the amount of the
administrative fine and cancellation of license or permit.
Section 101. Fishing in Marine Protected Areas, Fishery Reserves, Refuge

and Sanctuaries.
Punishable Act: To fish in marine protected areas, fishery reserves, refuge,

or fish sanctuaries as declared by the Department or the LGUs.
Administrative liability: Confiscation of catch and gear, and administrative

fine of twice the value of the catch or whichever is higher:
(1)20,000.00 for municipal fishing. If the offender fails to pay the fine,
(4) P1,000,000.00 for large-scale commercial fishing.
Criminal Liability: Imprisonment of 2 years to 6 years and a fine twice the

amount of the administrative fine, confiscation of catch and gear, and
cancellation of license or permit.
Section 102. Fishing or Taking of Rare, Threatened or Endangered

Species. –
Punishable acts:
1) To fish or take, catch, gather, sell, purchase, possess, transport, export,

forward or ship out aquatic species listed in Appendix I of the Convention
on the International Trade in Endangered Species of Wild Flora and Fauna
(CITES), or those categorized by the International Union for Conservation of
Nature and Natural Resources (IUCN) as threatened and determined by the
Department as such.
Administrative liability: A fine equivalent to 5 times the value of the species

or P500,000.00 to P5,000,000.00, whichever is higher, and forfeiture of the
species.
Criminal Liability: Imprisonment of 12 years and 1 day to 20 years and a

fine equivalent to twice the administrative fine, forfeiture of the species and
the cancellation of fishing permit.
2) To fish, take, catch, gather, sell, purchase, possess, transport, export,

forward or ship out aquatic species listed in CITES Appendices II and III if
scientific assessments show that population of the species in the wild
cannot remain viable under pressure of collection and trade. Except: Taking
or fishing of these species from the wild for scientific research, or
conservation breeding simultaneous with commercial breeding.

species.
Criminal Liability: imprisonment of 5 to 8 years and a fine equivalent to

twice the administrative fine and forfeiture of the species.
3) To gather, take, possess, transport, or export, forward or ship out captive-
bred species that have been transplanted to the wild.

species.
Criminal Liability: Imprisonment of 5 to 8 years, a fine equivalent to 3 times

the value of the species or P3,000,000.00, whichever is higher, and
forfeiture of the species.
Committed by a vessel manned by more than 2 persons,

Person liable are: the captain, master, and two highest ranking officers of
the vessel involved in the fishing or taking of protected marine life
Section 103. Capture of Sabalo and Other Breeders/Spawners.
Acts Punishable: For any person to catch, gather, capture or possess mature
milkfish or sabalo and other breeders or spawners of other fishery species
as may be determined by the Department. Except when the catching
of sabalo and other breeders/spawners for local breeding purposes or
scientific or research purposes
Administrative liability: A fine equivalent to 5 times the value of

the sabalo, other breeders, or spawners gathered or captured, or
P500,000.00, whichever is higher, and forfeiture of catch and gear.
Criminal liability: Imprisonment of 6 months and 1 day to 8 years and a fine

equivalent to twice the amount of the administrative fine, forfeiture of catch
and fishing equipment used, and suspension or revocation of license.
Section 104. Exportation of Breeders, Spawners, Eggs or Fry.
Punishable Act: Exportation of breeders, spawners, eggs or fry as

prohibited in this Code except when the Department of Agriculture allowed
it.
Presumption of Conspiracy: Failure on the part of the shipping or

forwarding company from whose possession the breeders, spawners, eggs,
or fry are discovered or seized to fully cooperate in the investigation
conducted by concerned government authorities on the matter
Administrative liability: Administrative fine equivalent to 3 times the value

of the breeders, spawners, eggs, or fry exported or P100,000.00 to
P500,000.00, whichever is higher, confiscation of breeders, spawners, eggs
or fry, suspension or revocation of license for commercial fishing and/or
registration as exporter.
Criminal Liability: Imprisonment of 8 years to 10 years, confiscation of

breeders, spawners, eggs or fry, a fine equivalent to twice the amount of the
administrative fine, revocation of the fishing license, and/or suspension or
revocation of registration as exporter.
Section 105. Importation or Exportation of Fish or Fishery Species.
Punishable Act: Importation or exportation of fish or fishery species in

violation of this Code Presumption of Conspiracy: Failure on the part of the
shipping or forwarding company from whose possession the fish or fishery
species imported or exported are discovered or seized to fully cooperate in
the investigation conducted by concerned government authorities
Administrative liability: administrative fine of 5 times the value of the

species or P300,000.00 to P500,000.00, whichever is higher, and forfeiture
and/or destruction of the species.
Criminal Liability: 8 years of imprisonment and fine of twice the

administrative fine, forfeiture and/or destruction of the
species: Provided, That offenders shall be banned from being members or
stockholders of companies currently engaged in fisheries or companies to
be created in the future, the guidelines for which shall be promulgated by
the Department.
Section 106. Violation of Harvest Control Rules.
Punishable Act: to fish in violation of harvest control rules.
Administrative liability: Confiscation of catch and fishing gear, revocation of

license and an administrative fine of:
(1) Three times the value of the catch or P20,000.00 for municipal
fishing, whichever is higher: If the offender fails to pay the fine,
(2) Five times the value of the catch or P100,000.00 whichever is

higher for small-scale commercial fishing;
(3) Five times the value of the catch or P1,000,000.00, whichever is

higher for medium-scale commercial fishing; and
(4) Five times the value of the catch or P5,000,000.00, whichever is

higher, for large-scale commercial fishing.
Criminal Liability: imprisonment of 6 months and 1 day to 6 years and a fine
twice the administrative fine, confiscation of catch and fishing gear, and
revocation of license.
Section 107. Aquatic Pollution.
Administrative liability: Fine of P300,000.00 to P500,000.00 and an

additional fine of P15,000.00 per day until the violation ceases and the fines
are paid, the imposition of cease and desist order, closure or suspension of
the development, construction or facility, or cessation of operations, or
disconnection of water supply. The order may be issued ex parte pending
resolution of the case.
Criminal Liability: Imprisonment of 6 years and 1 day to 12 years and a fine

twice the amount of the administrative fine and an additional fine of
P15,000.00 per day until the violation ceases and the fines are paid, the
imposition of cease and desist order, closure or suspension of the
development, construction or facility, or cessation of operations, or
disconnection of water supply. The order may be issued ex parte pending
resolution of the case.
Section 108. Failure to Comply with Minimum Safety Standards.
Punishable Act: failure to exhibit or show proof of compliance with the

safety standards upon demand by proper authorities,
Person liable: The owner and captain of a commercial fishing vessel

engaged in fishing.
Administrative liability: Administrative fine of P100,000.00 and suspension

or cancellation of permit or license and impoundment of the vessel until the
safety standard has been complied with.
Criminal liability: Imprisonment from 1 month and 1 day to 6 months and a

fine of twice the amount of the administrative fine, suspension or
cancellation of permit or license and impoundment of the vessel until the
safety standard has been complied with.
Section 109. Failure to Submit a Yearly Report on All Fishponds, Fish Pens
and Fish Cages. Punishable Act: For owners and operators of fishponds,
fishpens and fish cages to fail to submit an annual report to the Department.
Administrative liability: Fine of P5,000.00 per unreported hectare. In case

the fishpond is covered by FLA, nonsubmission of a report for 2 consecutive
years shall result to its cancellation.
Criminal liability: the offender shall be punished with twice the amount of
the administrative fine.
Section 110. Gathering and Marketing of Shell Fishes or Other Aquatic

Species.
Punishable Act: To gather, take, sell, transfer, possess, commercially

transport, export, forward or ship out any sexually mature shell fish or other
aquatic species identified by the Department, or below the minimum size, or
above the maximum quantities prescribed for the species.
Administrative liability: fine equivalent to the value of the species or

P50,000.00, whichever is higher, and confiscation of the same, cancellation
of permit or license shall be imposed upon the offender.
Criminal Liability: Imprisonment from 1 month and 1 day to 6 months and

fine equivalent to twice the amount of the administrative fine, and
cancellation of the permit or license.
Section 111. Obstruction to Navigation or Flow or Ebb of Tide in any

Stream, River, Lake or Bay. Punishable Act: to cause obstruction to
navigation or flow or ebb of tide.
Administrative liability: A fine of P200,000.00 and the dismantling of the

obstruction, fish corrals/traps, fish pens or fish cages at the expense of the
offender.
Criminal liability: imprisonment from 1 month and 1 day to 6 months and

fine of twice the amount of the administrative fine, confiscation of stocks
and dismantling of the obstruction, fish corrals/traps, fish pens or fish cages
at the expense of the violator.
Section 112. Noncompliance with Good Aquaculture Practices.
Noncompliance with good aquaculture practices and the guidelines for

environmentally-sound design and operation for the sustainable
development of the aquaculture industry
Administrative liability: Administrative fine of P10,000.00 to P100,000.00

per day until the violation ceases and the fines are paid.
Criminal Liability: Imprisonment of 3 years and fine of twice the amount of

the administrative fine.
Section 113. Commercial Fishing Vessel Operators Employing Unlicensed
Fisherfolk, Fishworker or Crew. – (1) vessel employing unlicensed fisherfolk
or fishworker or crew
Administrative liability: fine of P4,000.00 for each unlicensed fisherfolk or

fishworker or crew and suspension or revocation of license for commercial
fishing.
(2) for Philippine flagged fishing vessels engaged in distant water fishing to
employ unlicensed fisherfolk or fishworker or crew.
Administrative liability: P40,000.00 for each unlicensed fisherfolk,

fishworker or crew and suspension or cancellation of license.
Criminal Liability: fine of twice the amount of the administrative fine and
suspension or cancellation of license.
Section 114. Obstruction of Defined Migration Paths.
Punishable Act: For any person to obstruct any defined migration path of
anadromous, catadromous and other migratory species.
Administrative liability: administrative fine of P150,000.00 to P500,000.00,

dismantling of the obstruction at the expense of the offender, and the
suspension or revocation of the permit or license.
Criminal liability: Imprisonment of 7 years to 12 years and fine of twice the

amount of the administrative fine, dismantling of the obstruction at the
expense of the offender, and the suspension or revocation of the permit or
license.
Section 115. Obstruction to Fishery Law Enforcement Officer.
Punishable Act: For person to assault, resist, intimidate, harass, seriously

interfere with, or unduly obstruct or delay a fishery law enforcement officer,
authorized inspector or observer, the deputized fishwarden of the LGU, or
any lawfully-boarding government officers, in the exercise of their duties.
Any person who does not allow any authorized officer or an observer to
exercise any of the legal duties shall be deemed to be obstructing that
officer or person.
Person Liable: The fishing vessel owner, master or operator or any other
person acting on behalf of any fishing vessel
Administrative liability: Cancellation of license or permit and an

administrative fine of P1,000,000.00 for fishing vessels operating in
Philippine waters or P2,000,000.00 for fishing vessels operating beyond
Philippine waters.
Criminal liability: Imprisonment from 6 months to 2 years and a fine twice

the amount of the administrative fine and cancellation of license or permit.
Section 116. Noncompliance with Fisheries Observer Coverage. –
Punishable Acts:
(1) For Philippine distant water fishing vessel to sail without a fisheries
observer on board as required by RFMO conservation and management
measures.
(2) For commercial fishing vessels to sail without a fisheries observer in

compliance with this Code and the rules and regulations promulgated by
the Department.
Administrative liability: A fine of P500,000.00 and forfeiture of the catch

and gear.
Criminal Liability: Imprisonment of 1 month and 1 day to 6 months and fine

of twice the amount of the administrative fine, confiscation of catch and
suspension or cancellation of license.
Section 117. Noncompliance with Port State Measures.
Punishable Act: 1) Entry of foreign fishing vessel without providing at least

24-hour prior notice. 2)When a foreign fishing vessel is granted entry,
failure to provide a catch report shall be deemed unlawful. 3) Failure to
comply with other rules on port state measures promulgated by the
Department in coordination with port state authorities.
Punishment: Denial of permission to enter or use of port facilities and the

vessel may be subject to onboard inspection and/or impoundment.
Section 118. Failure to Comply with Rules and Regulations on

Conservation and Management Measures. – punishable Act: Failure to
comply with conservation and management measures adopted in rules and
regulations to be promulgated by the Department pursuant to international
conventions, RFMO resolutions and laws of coastal states where Philippine
vessels fish.
Administrative liability: Confiscation of catch and suspension or cancellation

of license or permit and an administrative fine of twice the value of the
catch or the amount indicated below whichever is higher:
(1) P20,000.00 for municipal fishing or community service in case of
failure to pay the fine;
(2) P1,000,000.00 for small-scale commercial fishing;
(3) P2,500,000.00, for medium-scale commercial fishing; and
(4) P5,000,000.00, for large-scale commercial fishing.
Criminal Liability: imprisonment of 6 months and fine twice the amount of

the administrative fine, and confiscation of the catch and suspension or
cancellation of license.
Section 119. Noncompliance with Vessel Monitoring Measures.
Punishable Act: 1) Non - compliance with the vessel monitoring measures

promulgated by the Department in coordination with the LGUs. For vessels
operating in Philippine waters, only the catcher vessel shall be covered by
this requirement.
2) It shall also be unlawful to intentionally tamper with, switch off or

disable the vessel monitoring system.
Person Liable: The fishing vessel owner, master or any other person acting
on behalf of the vessel owner
Administrative liability: Confiscation of catch, suspension or revocation of

the license and an administrative fine equivalent to twice the value of the
catch or the amount indicated below, whichever is higher:

Violation committed in waters beyond national jurisdiction:

The administrative fine shall be equivalent to five times the value of the
catch or twice the amount indicated above, whichever is higher.
Criminal Violation: Imprisonment of 6 months to 2 years and fine twice the

amount of the administrative fine, confiscation of catch and suspension or
revocation of the license.
Section 120. Constructing, Importing or Converting Fishing Vessels or
Gears Without Permit from the Department. Punishable Act: To construct or
import fishing vessels or gears or to convert other vessels into fishing
vessels without permit from the Department.
Administrative Liability: An administrative fine of:
Criminal Liability: Imprisonment from 1 month and 1 day to 6 months and

fine of twice the amount of the administrative fine.
Section 121. Use of Unlicensed Gear.
Punishable Act: use of a fishing gear or method for commercial fishing

without license
Administrative liability: fine from P200,000.00 to P500,000.00 per gear

depending on the seriousness of the violation.
Criminal Liability: fine from Four P400,000.00 to One P1,000,000.00

depending on the seriousness of the violation.1âwphi1
Section 122. Falsifying, Concealing or Tampering with Vessel Markings,

Identity or Registration
Punishable Act: To falsify, conceal vessel identity or lack of registration or

tamper with the vessel markings, identity or registration.
Administrative liability: Confiscation of catch and suspension or

cancellation of license and an administrative fine of:

(3) P1,000,000.00 for medium-scale commercial fishing; and

In case of violation by distant water fishing vessels, the administrative fine
shall be twice the amount indicated above.
Criminal Liability: Imprisonment from 2 years to 6 years and a fine

equivalent to twice the amount of the administrative fine, confiscation of
catch and suspension or cancellation of license.
Section 123. Concealing, Tampering or Disposing of Evidence Relating to

an Investigation of a Violation.
Punishable Act: For any person to conceal, tamper or dispose evidence

relating to an investigation of a violation.
Administratively liability: Suspension or cancellation of license and an

administrative fine of:

(3) P1,000,000.00 for medium-scale commercial fishing; and
In case of violation by distant water fishing vessels, the administrative fine

shall be twice the amount indicated above.
Criminal Liability: Imprisonment from 5 years to 10 years and fine

equivalent to twice the administrative fine, and suspension or cancellation
of the license.
Section 124. Noncompliance with the Requirements for the Introduction of

Foreign or Exotic Aquatic Species.
Punishable Act: 1) To import, introduce, or breed, foreign or exotic aquatic

species 2) without the conduct of risk analysis and prior approval of the
Department.
Administrative liability: A fine of P200,000.00 to P6,000,000.00 and

confiscation and destruction of the foreign or exotic species. If the species
become invasive and result to predation of native aquatic biota, loss of
income or damage to the habitat, the offender shall bear the costs of
containment, eradication and/or restoration.
Criminal Liability: Imprisonment of 6 years to 12 years and fine from
P400,000.00 to P12,000,000.00, confiscation of foreign or exotic species
and the costs for containment, eradication or restoration.
Section 125. Failure to Comply with Standards and Trade-Related

Measures.
Punishable Act: For any person to fail to comply with standards for weights,
volume, quality and other requirements for all fishery transactions and
trade and trade-related measures prescribed.
Administrative Liability: Administrative fine of P50,000.00 to P2,000,000.00,

depending on the seriousness, extent and volume of trade associated with
the violation, confiscation of the shipment or fishery products and
suspension or revocation of registration or license.
Criminal Liability: imprisonment from 6 months to 2 years and a fine from

P100,000.00 to P4,000,000.00 depending on the seriousness, extent and
volume of trade associated with the violation, confiscation of the shipment
or fishery products and suspension or revocation of registration or license.
Section 126. Possessing, Dealing in or Disposing Illegally Caught or Taken

Fish.
Punishable Act: To ship, commercially transport, offer for sale, sell, import,
export, or have custody, control, or possession of, or to deal in or in any
manner dispose of any fish or species caught, taken or retained in violation
of this Code.
Prima facie presumption of knowledge: The discovery of any fish or species

caught with the use of explosives or noxious or poisonous substances
Administrative liability: Fine of P50,000.00 to P200,000.00 or 5 times the

value of fish or species, whichever is higher, and confiscation of the same.
Criminal Liability: Imprisonment from 6 months to 2 years, and fine of 8

times the value of the species or from P100,000.00 to P500,000.00,
whichever is higher and confiscation of the fish or fishery products and
suspension or revocation of registration or license.
Section 127. Unauthorized Disclosure of Sensitive Technical Information. –
Sensitive technical information - Data from the vessel monitoring system or

vessel monitoring measure and other related data
Punishable Act: Unauthorized disclosure of data including all other data
referred to in Section 155, by any person
Criminal liability: Imprisonment of 6 months and one day to 6 years,

removal from office and forfeiture of all retirement benefits, where
applicable.
Section 128. Other Violations. –
Violations of fishery administrative orders or regulations for the

conservation, preservation, management and sustainable development of
fisheries and aquatic resources.
Administrative Liability: Fine of P100,000.00 to P5,000,000.00, depending

on the socioeconomic impact and seriousness of the violation, volume and
value of the fisheries product, damage to the environment due to the
violation, and the habituality of the offender.
Section 129. Escalation Clause
The fines prescribed shall be increased by at least ten percent (10%) every
three (3) years to compensate for inflation and to maintain the deterrent
function of such fines.
DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998
RA NO. 8479
Downstream Industry, Defined.

Downstream Oil Industry (DOI) or Industry shall refer to the business of
importing; exporting, re-exporting, shipping, transporting, processing,
refining, storing, distributing, marketing and/or selling crude oil, gasoline,
diesel, liquefied petroleum gas (LPG), kerosene, and other petroleum
product.
Basel Convention, Defined.

Basel Convention shall refer to the international accord which governs the
trade or movement of hazardous and toxic wastes across borders.
Hauler, Defined.
Hauler shall refer to any person, whether natural or juridical, engaged in
the transport, distribution, hauling, and carriage of petroleum products,
whether in bulk or packed form, from the oil companies and independent
marketers to the petroleum dealers and other consumers.
LPG Distributor, Defined.

LPG Distributor shall refer to any person or entity, whether natural or
juridical, engaged in exporting, refilling, transporting, marketing, and/or
selling of LPG to end users and other consumers
Crude Oil, Defined.

Crude Oil shall refer to oil in its natural state before the same has been
refined or otherwise treated, but excluding water, bottoms, sediments, and
foreign substances.
Petroleum, Defined.
Petroleum shall refer to the naturally occurring mixture of compounds of
hydrogen and carbon with a small proportion of impurities and shall include
any mineral oil, petroleum gas, hydrogen gas, bitumen, asphalt, mineral
wax, and all other similar or naturally-associated substances, with the
exception of coal, peat, bituminous shale and/or other stratified mineral fuel
deposits.
Petroleum Products, Defined.

Petroleum Products refer to products formed in the case of refining crude
petroleum through distillation, cracking, solvent refining and chemical
treatment coming out as primary stocks from the refinery such as, but not
limited to LPG, naphtha, gasolines, solvents, kerosenes, aviation fuels,
diesel oils, fuel oils, waxes and petrolatums, asphalt, bitumens, coke and
refinery sludges, or other such refinery petroleum fractions which have not
undergone any process or treatment as to produce separate chemically-
defined compounds in a pure or commercially pure state and to which
various substances may have been added to render them suitable for
particular uses. The resultant product must contain not less than fifty
percent (50%) by weight of such petroleum products.
Liberalization of the Industry

Any person or entity may import or purchase any quantity of crude oil and
petroleum products from a foreign or domestic source, lease or own and
operate refineries and other downstream oil facilities and market such
crude oil and petroleum products either in a generic name or his or its own
trade name, or use the same for his or its own requirement.
For monitoring purposes, such person shall give notice to the DOE
exempting such person or entity from securing certificates of quality, health
and safety and environmental clearance from the proper governmental
agencies, reportevery importation/exportation, and make all oil
importations comply with the Basel Convention.
Tariff Treatment
A single and uniform tariff duty shall be imposed and collected both on
imported crude oil and imported refined petroleum products at the rate of
3%. But, the President may reduce such tariff rate when in his judgment
such reduction is warrantedpursuant to the Tariff and Customs Code. The
tariff rate shall be automatically adjusted to the appropriate levelbeginning
January 1, 2004 or upon implementation of the Uniform Tariff Program
under the World Trade Organization and ASEAN Free Trade Area
commitments.
The exemptions from taxes and duties on petroleum products used for
power generation by the National Power Corporation (NPC) shall apply to
purchases through the local refineries and to the importation of fuel oil and diesel.
Promotion of Fair Trade Practices
Department of Trade
Department of Energy
and Industry
- take all measures to promote fair trade and prevent cartelization,

monopolies, combinations in restraint of trade, and any unfair competition
in the industry
- continue to encourage certain practices in the

industry which serve the public interest and are
intended to achieve efficiency and cost
reduction, ensure continuous supply of
petroleum products, and enhance
environmental protection which include borrow-
and-loan agreements, rationalized depot and
manufacturing operations, hospitality
agreements, joint tanker and pipeline
utilization, and joint actions on spill control and
fire prevention
- monitor the relationship between the oil
companies (refiners and importers) and their
dealers, haulers and LPG distributors to help
ensure the observance of fair and equitable
practices and to ensure the enforcement of
existing contracts
- conciliate and arbitrate any dispute that may

arise with respect to the contractual
relationship between the oil companies and the
dealers, haulers and LPG distributors involving
the dealers' mark-up, the freight rate in
transporting petroleum products and the
margins of LPG distributors for the protection
of the public and to prevent ruinous
competition, subject to judicial review under
existing law
THE WATER CODE OF THE PHILIPPINES

Presidential Decree No. 1067
The basic law governing the:
1. Ownership
2. Appropriation
3. Utilization
4. Exploitation
5. Development
6. Conservation
7. Protection
of the water resources including the rights to land related thereto.

Note: Waters, as used in this code, refers to:
1. Waters underground
2. Waters in the atmosphere
3. Waters in the sea
within the territorial jurisdiction of the Philippines

Underlying Principles
a. All waters belong to the State
b. All waters that belong to the State cannot be acquired through
acquisitive Prescription
c. The State may allow the use or development of waters by
administrative concession
d. The utilization, exploitation, development, conservation and
protection of water resources shall be subject to the control of the
government through the National Water Resources Council
e. Preference in the use and development of the waters shall consider
current usage and be responsive to the changing needs of the country.
Ownership of Waters
General Rules:
1. The following belongs to the State:
a) Rivers and their natural beds
b) Continuous intermittent waters of springs and brooks running in
their natural beds and the beds themselves
c) Natural lakes and Lagoons
d) All other categories of surface waters such as water flowing
over lands, water from rainfall whether natural or artificial, and
water from agriculture runoff, seepage and drainage
e) Atmospheric water
f) Subterranean or ground waters and
g) Sea water
1.1 The following waters found on private lands belong to the

State
a) Continuous intermittent waters rising on such lands
b) Lakes and lagoons naturally occurring on such lands
c) Rain water falling on such lands
d) Subterranean or ground waters
e) Waters in swamp and marshes
2. The owner of the land where the water is found may use the same for
domestic purposes without securing permit.
Provided that such use shall be registered when required by the
council.
3. Any person who captures or collects water by means of cisterns,
tanks, or pools shall have exclusive control over such water and the
right to dispose of the same.
4. Water legally appropriated shall be subject to the control of the
appropriator from the moment it reaches the appropriators canal or
aqueduct leading to the place where the water will be used or stored
and, thereafter, so long as it is being beneficially used for the
purposes for which it was appropriated.
Appropriation of Waters
It is the acquisition of rights over the use of waters or the taking or
diverting of waters from a natural source in the manner and for any
purpose allowed by law.
Water may be appropriated for the following purposes:
a. Domestic – for drinking, washing, bathing, cooking or other household
needs, home gardens, and watering of lawns or domestic animals.
b. Municipal – for supplying the water requirements of the community
c. Irrigation – for producing agricultural crops
d. Power generation – for producing electrical or mechanical power
e. Fisheries – for the propagation and culture of fish as a commercial
enterprise
f. Livestock raising – for large herds or flocks of animals raised as a
commercial enterprise
g. Industrial – utilization of water in factories, industrial plants and mines,
including the use of water as an ingredient of a finished product
h .Recreational – for swimming pools, bath houses, boating, water skiing,
golf courses and other similar facilities in resorts and other places of
recreation; and
i. Other purposes
Water Right
Water right is a privilege to appropriate and use water.
As a rule, no person, including government instrumentalities or
government – owned or controlled corporations, shall appropriate water
without a water right, which shall be evidenced by a document known as a
water permit.
The following are exempted from the water permit requirement:
a. Appropriation of water by means of hand carried receptacles; and
b. Bathing or washing, watering or dipping of domestic or farm animals, and
navigation of watercrafts or transportation of logs and other objects by
flotation.
Requirements for the Appropriation of Waters
1. Nationality Requirement
a. Applicant must be a Filipino citizen
b. Of legal age
Or
a. Corporations or associations
b. At least 60% of the capital of which is owned by Filipino
citizens
Rationale: Water is a natural resource of the country which is

reserved for the use of Filipino citizens.
2. Applicant must have a water right as evidenced by a water permit
Application for Appropriation of Waters
1. Applicants must file an application for a water permit with the NWRB.
Factors to be considered in approving or denying the
application:
a. Protests filed if any
b. Prior permits grated
c. Availability of water
d. The water supply needed for beneficial use
e. Possible adverse effects
f. Land-use economics
g. Other relevant factors
2. Application must be made known to the public
a) Any interested party may file a protest to the application.
b) Upon filing of the protest the application will be properly
evaluated by NWRB
c) If no protest was filed NWRB will either deny or approve
the application bases on its merits and the factors to be
considered
3. Upon approval of application, a water permit will be issued
Note: The right to the use of water is deemed acquired as of the date
of filing of the application for water permit but in cases where no
water permit is required, the right to the use of water is deemed
acquired as of the date of actual use.
Rules governing the appropriation of waters
1. Appropriation and use of waters as used in this code refers to the
direct extraction of waters directly from its natural source.
When the water is removed from its natural source it ceases to be part of the
natural resources of the country and are subject of ordinary commerce meaning,
they can now be acquired by foreigners (IDEALS Inc. vs PSALM GR No.
192088).
2. No person, including government instrumentalities or government –

owned or controlled corporations, shall appropriate water without a
water right, which shall be evidenced by a document known as a
water permit.
3. Lease or Transfer of water rights is allowed under the water code
subject to the approval of the NWRB.
Provided that, lessees or transferees comply with the citizenship
requirement
Grounds for revocation of Water Permits
Water permits may be revoked after due notice and hearing based on the
following grounds
1. Non-use
2. Gross violation of conditions imposed in the permit
3. Unauthorized sale of water
4. Willful failure or refusal to comply with the rules and regulations and
any lawful order
5. Pollution
6. Public nuisance
7. Acts detrimental to public health and safety
8. Applicant does not comply with the requisites
9. Conversion of land to non agricultural purposes in cases of irrigations
10. Other similar grounds
Utilization of Waters
Order of preference in the use of waters
In case priority of use cannot be determined at the time of
appropriation, the order of preference shall be as follows:
1. Domestic and municipal use
2. Irrigation
3. Power Generation
4. Fisheries
5. Livestock raising
6. Industrial use
7. Others
Easements
An easement is an encumbrance imposed upon an immovable for the
benefit of another immovable belonging to a different owner.
Prohibitions and conditions for the use of waters
1. No excavation for the purpose of emission of a hot spring or for the

enlargement of the existing opening thereof shall be made without
prior permit. Any person or agency who intends to develop a hot
spring for human consumption must first obtain a permit from the
Department of Health. (Sec 40 RA 1067)
2. No person shall develop a stream, lake, or spring for recreational
purposes without first securing a permit from the Council (Sec 41 RA
1067)
3. Unless-otherwise ordered by the President of the Philippines and only

in time of national calamity or emergency, no person shall induce or
restrain rainfall by any method such as cloud seeding without a
permit from the proper government emergency. (Sec 42 RA 1067)
4. No person shall raise or lower the water level of a river stream, lake,
lagoon, or marsh nor drain the same without a permit(Sec 43 RA
1067)
5. Drainage systems shall be so constructed that their outlets are rivers,

lakes, the sea, natural bodies of water, or such other water course as
may be approved by the proper government agency (Sec 44 RA 1067)
6. When artificial means are employed to drain water from higher to

lower land, the owner of the higher land shall select the routes and
methods of drainage that will cause the minimum damage to the lower
lands, subject to the requirements of just compensation. (Sec 46 RA
1067)
7. When the use, conveyance or storage of waters results in damage to

another, the person responsible for the damage shall pay
compensation. (Sec 47 RA 1067)
8. Any person having an easement for an aqueduct may enter upon the
servient land for the purpose of cleaning, repairing or replacing the
aqueduct or the removal of obstructions therefrom. (Sec 49 RA 1067)
9. Lower estates are obliged to receive the waters which naturally and
without the intervention of man flow from the higher estate, as well as
the stone or earth which they carry with them.
The owner of the lower estate cannot construct works which will
impede this natural flow, unless he provides an alternative method of
drainage; neither can the owner of the higher estate make works
which will increase this natural flow (Sec 50 RA 1067)
10. The banks of rivers and streams and the shores of the seas and
lakes throughout their entire length and within a zone of three (3)
meters in urban areas, twenty (20) meters in agricultural areas and
forty (40) meters in forest areas, along their margins are subject to
the easement of public use in the interest of recreation, navigation,
floatage, fishing and salvage. No person shall be allowed to stay in
this zone longer than what is necessary for recreation, navigation,
floatage, fishing or salvage or to build structures of any kind. (Sec 51
RA 1067)
Right of a water permittee to demand establishment of easements

A holder of a water permit may demand the establishment of
easements necessary for the construction and maintenance of the works
and facilities needed for the beneficial use of the waters to be appropriated
subject to the requirements of just compensation and to the following
conditions:
a. That he is the owner, lessee, mortgage or one having real right over
the land upon which he purposes to use water; and
b. That the proposed easement is the most convenient and the least
onerous to the servient estate.
Note: Easements relating to the appropriation of waters may be modified by
agreement of contracting parties provided that it is not prejudicial to the
rights of third persons.
Obligations of owners of Lower Estates
Lower estates have the obligation to receive the water which naturally
flows from the higher estates as well as the stone or earth which they carry
with them.
The owner of the lower estate cannot construct works which will
impede this natural flflow, unless he provides an alternative method of
drainage; neither can the owner of the higher estate make works which will
increase this natural flow. (Art. 50 of RA 1067)
Remman Enterprises vs CA
The land of REMMAN was devoted for piggery business. REMMAN’s land is higher in
elevation compared to Lat. Lat complained that REMMAN’s waste disposal lagoon was
already overflowing; the trees growing on the flooded portion started to wither and die. So
he filed a complaint for damages.
REMMAN contended that heavy rains caused the over flooding and the law imposes a
natural easement on the owner of the lower estate.
The court held that even assuming that the heavy rains constituted an act of God, by reason
of REMMAN’s negligence; the fortuitous event became humanized, rendering it liable for
the ensuing damages. It further ruled that REMMAN’s property was practically made a
catch – basin of polluted water and other noxious substances emptying from its piggery,
and any damage occasioned thereby entitles the owner of the lower or servient estate to
compensation.
Control of Waters
General Rules and Prohibitions
a. Prohibition against activities that obstruct the flow of water. DPWH
may declare flood control areas
b. Rivers or lakes may be declared navigable. (Art.59 – rivers, lakes and
lagoons may, upon the recommendation of the Philippine Coast Guard, be
declared navigable either in whole or in part.)
c. River beds may not be cultivated (except prior permission from the
Secretary, DPWH)
d. Erection of levees (to protect property from flood; construction does not
cause damage to another’s property)
e. Change of course of rivers (private owner may not compel the
government to restore the river to its former bed)
f. Reservoirs (whoever operates – shall release water for minimum stream
flow)
g. Drilling for subterranean or ground water (No person shall drill a
well without prior permission from the Council)
h. Easement of aqueduct (Any person who may wish to use upon his own
estate any water of which he can dispose shall have the right to make it flow
through the intervening estate, with the obligation to indemnify their
owners, as well as the owners of the lower estates upon which the waters
may filter or descend.)
Conservation and protection of waters and watersheds and related

land resources
a. Watersheds may be declared a protected area
b. A watershed reservation is
In Sta. Rosa Realty Development not subject to occupancy
Corporation v. Court of Appeals, the court
held that the disputed parcels of land in Sta. or alienation.
Rosa Realty form vital part of an area that
need to be protected for watershed purposes. The case of Collado v. Court of Appeals
reiterates the principle that a watershed
reservation is not susceptible of occupancy,
disposition, conveyance or alienation.
c. A timber license is an instrument by which the State regulates the

utilization and disposition of forest resources including watershed
areas, to the end that public interest is promoted.
A timber license is not a contract but a mere priviledge which may be
withdrawn in the public interest.
The National Water Resources Council

In the case of Tan v. Director of Forestry, the NWRC was created by PD
court declared that watersheds serve as a No. 424. As a regulatory and
defense against soil erosion and guarantee the executor agency, it
steady supply of water. coordinates and integrates
water resources development
activities, and grants, determines and adjudicates water rights. Itmis also
responsible for formulating framework plans for water supply, and
promulgating rules and regulations for the exploitation and optimum
utilization of water resources, including the imposition on water
appropriators of such fees or charges as may be deemed necessary for
water resources
Authority to enter upon private lands
The Council and other agencies authorized to enforce the Code are
empowered to enter upon private lands, with previous notice to the owner,
for the purpose of conducting surveys and hydrologic investigations, and to
perform such other acts as are necessary in carrying out their functions
including the power to exercise the right of eminent domain.
Jurisdiction of the Council over water disputes
Pertinent provisions of PD No. 1067 (Water Code)
provide:
“Art. 88. The Council shall have original jurisdiction over all disputes
relating to appropriation, utilization, exploitation, development, control,
conservation and protection of waters within the meaning and context of
the provision of this Code.
The decision of the Council on water rights controversies shall be
immediately executory and the enforcement thereof may be suspended only
when a bond, in an amount fixed by the Council to answer for damages
occasioned by the suspension or stay of execution, shall have been filed by
the appealing party, unless the suspension is by virtue of an order of a
competent court.
All disputes shall be decided within sixty (60) days after the parties submit
the same for decision or resolution. The Council shall have the power to
issue writs of execution and enforce its decision with the assistance of local
or national police agencies.
Art. 89 The decision of the Council on water rights controversies may
be appealed to the Regional Trial Court of the province where the subject
matter of the controversy is situated within fifteen (15) days from the date
the party appealing receives a copy of the decision, on any of the following
grounds:
a) grave abuse of discretion;
b) question of law; and
c) question of fact and law.”
Regular courts have jurisdiction where the issue involves the

enjoyment of an existing right to use water
Where the case does not involve the settlement of a water rights disputes,
but the enjoyment of a right to water use for which a permit was already
granted, the regular court has jurisdiction over the dispute, not the National
Water Resources Council.
Rule on exhaustion of administrative remedies
The issue in the case of Abe-Abe v. Manta is whether the CFI of Camaguin
has jurisdiction to adjudicate a dispute over water rights for irrigation
purposes even if the controversy had not yet been passed upon by the
National Water Resources Council. The Court held that the petitioners’
immediate recourse is to ventilate their grievances first with the Council
which is the administrative agency exclusively vested with original
jurisdiction to settle water rights disputes under the Water Code, consistent
with the rule on exhaustion of administrative remedies.
But in Metro Iloilo Water District v. CA, it was held that
since the petitions focus on the violations incurred by
private respondents by virtue of their alleged
unauthorized extraction and withdrawal of ground water
within petitioner’s service area vis-à-vis petitioner’s vested
rights as a water district, it is at once obvious that the
petitions raise a judicial question, hence, the rule on
exhaustion of administrative remedies does not apply.
Appeals taken to the Court of Appeals
Sec. 9(1) of BP Blg. 129 granted the Court of Appeals original jurisdiction to
issue writs of mandamus, prohibition, certiorari, habeas corpus and quo
warranto, and auxiliary writs or processes, whether or not in aid of its
appellate jurisdiction.
Penalties
Art. 90 and 91 of the Water Code enumerate the acts that may be penalized
under the Code.
Water Districts
It was created by PD No. 198, otherwise known as the Provincial Water
Utilities Act of 1973” as amended by PD No. 768 and PD No. 1479.
“ xxx.. water districts derive their legal existence and power from PD No.
198. Sec. 6 of the decree in fact provides that water district “shall exercise
the powers, rights and privileges given to private corporations under
existing laws, in addition to the powers granted in, and subject to such
restrictions imposed under this Act.”
Functions:
a) To sell water to residents within their territory, under such schedules
of rates and charges as may be determined by their boards.
b) They shall manage, administer, operate and maintain all watersheds
within their territorial boundaries, safeguard and protect the use of
the waters therein, supervise and control structures within their
service areas, and prohibit any person from selling or otherwise
disposing of water for public purposes within their service areas
where district facilities are available to provide such service.
c)
Dissolution of water districts

Sec. 45 of PD No. 198, as amended by PD No. 768, states:
“Sec. 45. Dissolution. – A district may be dissolved by resolution of its
board of directors filed in the manner of filing the resolution forming the
district: Provided, however, That prior to the adoption of any such
resolution:
(1) another public entity has acquired the assets of the district and has
assumed all obligations and liabilities attached thereto;
(2) all bondholders and other creditors have been notified and they
consent to said transfer and dissolution; and
(3) the court has found that said transfer and dissolution are in the best
interest of the public.”
The Local Water Utilities Administration

(LWUA)
Powers and functions:
Specific powers and duties:
(1) Prescribe minimum standards and regulations in order to assure
acceptable standards of construction materials and supplies,
maintenance, operation, personnel training, accounting and fiscal
practices for local water utilities;
(2) Furnish technical assistance and personnel training programs for
local water utilities;
(3) Monitor and evaluate local water standards; and
(4) Effect systems integration, joint investment and operations, district
annexation and deannexation
The LWUA has no adjudicatory functions
The LWUA has quasi-judicial power only as regards rates or charges
fixed by water districts, which it may review to establish compliance with
the provisions of PD No. 198, without prejudice to appeal being taken
therefrom by a water concessionaire to the National Water Resources
Council whose decision thereon shall be appealable to the Office of the
President.
The SEC has no supervisory powers over water districts

It was held in the case of Marilao Water
Consumers Association, Inc. v.
Intermediate Appellate Court, that
although water districts created by PD
No. 198 are considered as quasipublic
corporations and authorized to exercise
the powers, rights and privileges given to
private corporations under existing laws,
they are entirely distinct from
corporations organized under the
Corporation Code, PD No. 902-A, as
amended.
PHILIPPINE CLEAN AIR ACT (RA 8749)
June 23, 1999
PURPOSE:
(e) Is to provide guidelines on the operationalization of the Philippine Clean Air Act of 1999.
Section 3: The State shall pursue a policy of balancing development and environmental protection.
STATE POLICIES:
(d) Formulate a holistic national program of air pollution management through proper
delegation and effective coordination of functions and activities;
(e) Encourage cooperation and self-regulation among citizens and industries though the
application of market-based instruments;
(f) Focus primarily on pollution prevention rather than on control and provide for a
comprehensive management program for air pollution;
(g) Promote public information and education to encourage the participation of an informed
and active public in air quality planning and monitoring; and
(h) Formulate and enforce a system of accountability for short and long-term adverse
environmental impact of a project, program or activity. This shall include the setting up of a
funding or guarantee mechanism for clean-up and environmental rehabilitation and compensation
for personal damages.
RIGHTS OF CITIZENS:
2 to breathe clean air;
2 Utilize and enjoy all natural resources according to the principle of sustainable development;
Note: Environmental protection v. Development “Development that meets the needs of the
present
without compromising the ability of future generations to meet their own needs.”
2 to participate in the formulation, planning, implementation and monitoring of environmental
policies and programs and in the decision- making process;
2 to participate in the decision-making process concerning development policies, plans and
programs projects or activities that may have adverse impact on the environment and public
health;
2 to be informed of the nature and extent of the potential hazard of any activity
2 access to public records
2 to bring action in court or quasi- judicial bodies:
← to enjoin all activities in violation of environmental laws and regulations,
← to compel the rehabilitation and cleanup of affected area
← to seek the imposition of penal sanctions against violators of environmental laws;
2 to bring action in court for compensation of personal damages resulting from the adverse
environmental and public health impact of a project or activity.
DEFINITION OF TERMS:
Air pollutant - any matter found in the atmosphere other than oxygen, nitrogen, water vapor, carbon
dioxide, and the inert gases in their natural or normal concentrations, that is detrimental to health or the
environment. It includes but not limited to smoke, dust, soot, cinders, fly ash, solid particles of any kind,
gases, fumes, chemical mists, steam and radio-active substances;
Air pollution - any alteration of the physical, chemical and biological properties of the atmospheric air,
or any discharge thereto of any liquid, gaseous or solid substances that will create or to render the air
resources of the country harmful, detrimental, or injurious to public health, safety or welfare or which will
adversely affect their utilization for domestic, commercial, industrial, agricultural, recreational, or other
legitimate purposes;
Ambient air quality - the general amount of pollution present in a broad area; and refers to the
atmosphere's average purity as distinguished from discharge measurements taken at the source of
pollution;
Hazardous substances - those present either:

2 Short-term acute hazards such as acute toxicity by ingestion, inhalation, or skin absorption,
corrosivity or other skin or eye contact hazard or the risk of fire explosion; or
3 Longterm toxicity upon repeated exposure, carcinogenicity (which in some cases result in acute
exposure but with a long latent period), resistance to detoxification process such as
biodegradation, the potential to pollute underground or surface waters;
Pollution control device - device or apparatus used to prevent, control or abate the pollution of air caused
by emissions from identified pollution sources at levels within the air pollution control standards
established by the Department.
KINDS OF WASTE:
5. Medical waste - materials generated as a result of patient diagnosis, treatment, or immunization
of human beings or animals;
6. Infectious waste - portion of medical waste that could transmit an infectious disease;
7. Municipal waste - generated from communities within a specific locality;
RESPONSIBLE FOR IMPLEMENTATION:
(f) Department of Environment and Natural Resources (DENR): A. Environmental

Management Bureau
← the policy-making and standard-setting body; and
← provides technical services related to air quality management.
(g) Local Government Unit (LGU) - responsible for the “full administration of the air quality
management and regulation within their territorial jurisdiction.
(h) Other Government Agencies responsible for the implementation of clean air act:
Department of Transportation and Communication Department of Science and
Technology Department of Trade and Industry
Philippine Atmospheric Geophysical and Astronomical Service Administration
Philippine Nuclear Research Institute Department of Education Commission on
Higher Education Department of Interior and Local Governments Philippine
Information Agency
CLEARANCES AND PERMITS:
3. management tools for LGUs in the development of their action plan.
4. The DENR shall have the authority to issue permits as it may determine necessary for the
prevention and abatement of air pollution. Permits shall cover emission, limitations for the
regulated air pollutants to help attain and maintain ambient air quality standards.
AIR QUALITY MANAGEMENT SYSTEM ACTION PLANS:
1. Air Quality Monitoring and Information Network

3 Preparation of annual National Air Quality Status Report as basis in formulating the Integrated
Air Quality Improvement Framework.
Contents of Status Report:
← Extent of pollution in the country;
← Analysis and evaluation of the current state;
← Identification of critical areas, activities, or projects which will need closer monitoring or
regulation;
← Recommendations for necessary executive and legislative action; and
← Other pertinent qualitative and quantitative information concerning the extent of air pollution and
the air quality performance rating of industries in the country.
4 Integrated Air Quality Improvement Framework

← It shall prescribed the emission reduction goals using permissible standards, and control
measures within a specified period of time.
← Serve as the official blueprint with which all government agencies must comply and attain
ambient air quality standards.
10. Clean Air Action Plans
(a) Within six months after the formulation of the framework, the Department shall, with public
participation, formulate and implement an air quality control action plan.
(b) Shall designate airsheds.
o Airsheds - areas with common weather or meteorological conditions and sources of air
pollution that affect the interchange and diffusion of pollution in atmosphere.
Designation of Airsheds - a tool for LGU to bring down air pollution levels.
5 The Secretary of DENR upon recommendation of the Environmental Management Bureau will
divide the country into different airsheds.
5 Based on climate weather, meteorology and topology which affect the mixture and diffusion of
pollutants in the air, share common interests or face similar development problems.
GOVERNING BOARDS:
Composition:
Chairman: DENR Secretary
Members: Provincial Governor
City/Municipal Mayor Representatives from:
2each concerned government agency
3 Peoples Organization
-Non-Government Organization
-Private Sector
Functions:
17. Formulate policies
18. Prepare common action plan
6 Submission and publication of Annual Air Quality Status Report
SOURCES OF AIR POLLUTION:
← Stationary Sources
← Mobile Sources ( Motor Vehicles)
← Other Sources
26. Stationary sources - any building or immobile structure, facility or installation which emits or
may emit any air pollutant.
SEC. 20. Ban on Incineration.

Incineration - the burning of municipal, biomedical and hazardous waste, which process emits
poisonous and toxic fumes is hereby prohibited. But, the prohibition shall not apply to traditional small-
scale method of community/neighborhood sanitation siga, traditional, agricultural, cultural, health and
food preparation and crematoria. The existing incinerators dealing with biomedical wastes shall be out
within three years after the effectivity of this Act. In the interim, such units shall be limited to the burning
of pathological and infectious wastes, and subject to close monitoring of DENR.
*The DENR regulate and formulate standards for air emissions.

28. Mobile sources (Motor Vehicles) - any vehicle propelled by or through combustion of carbon-
based or other fuel, constructed and operated principally for the conveyance of persons or the
transportation of property goods;
DOTC regulates and formulate air emissions: Every 2 years, to further improve the emission
standards, the DENR shall review revise and publish standards.
Heneras v. LTFRB “Mandamus does not lie to compel public utility vehicle to use compressed natural
gas as alternative furl in the absence of specific law on the matter.”
Compliance mandates:
2. Exhaust emission standards for various mobile sources that are either in-use, new, rebuilt and
imported second hand have been set.
3. All new motor vehicles classified under the Philippine National Standards 1891 are to be covered
by a Certificate of Conformity (COC). The COC is to be issued by the DENR to the motor
vehicle manufacturer, assembler or importer.
New vehicle - a vehicle constructed entirely from new parts that has never been sold or registered with
the DOTC or with the appropriate agency or authority, and operated on the highways of the Philippines,
any foreign state or country.
Regulation of all vehicles and engines:

8 Any imported new or locally assembled new motor vehicle shall not be registered unless it complies
with the emission standards set as evidenced by a Certificate of Conformity (COC) issued by the
Department.
8 Any imported used motor vehicle or rebuilt motor vehicle using new or used engines, major parts or
components shall not be registered unless it complies with emission standards.
← In case of non-compliance: allowed to modify or rebuild the vehicle or engine.

← No motor vehicle may be registered until tested and passes the emission testing.
Ortigas and Co. Limited Partnershi v. Feati Bank and Trust Co. “City Zoning ordinance to safeguard
the health or people from noise and pollution is a valid exercise of police power.”
8. Other sources (smoking inside public building or enclosed public place, inside vehicles or other
means of transport, or any other enclosed are outside of one’s residence.)
The regulation is implemented by the LGU
OTHER POLLUTANTS:
13 Ozone Depleting Substances (ODS) - substances that significantly deplete or modify the ozone
layer that result in adverse effects of human health and the environment such as, but not limited to,
chlorofluorocarbons, halons and the like;
← Montreal Protocol on Substances that deplete the ozone layer and other international agreements
and protocols to which Philippines is a signatory (phase out ozone-depleting substances)
14Greenhouse gases - gases that can potentially or can reasonably be expected to induce global
warming. Include carbon dioxide, methane, oxides of nitrogen, chlorofluorocarbons, and the like;
← PAGASA shall regularly monitor meteorological factors affecting environmental conditions
including ozone depletion and greenhouse gases.
← Coordinate with DENR
← DENR together with other concerned agencies and LGU: prepare and implement a National plan
consistent with UN framework convention on climate change.
15 Radioactive emissions
All projects which will involve the use of atomic or nuclear energy, and will entail release and
emission of radioactive substances into the environment, incident to the establishment or possession of
nuclear energy facilities and radioactive materials, handling, transport, production, storage, and use of
radioactive materials, shall be regulated in the interest of public health and welfare by the Philippine
Nuclear Research Institute (PNRI), in coordination with Department and other appropriate government
agencies.
INSTITUTIONAL MECHANISM
(e) Lead Agency
← DENR shall be the primary government agency responsible for the implementation and
enforcement of this Act.
← To be more effective, Environmental Management Bureau (EMB) shall be converted from a staff
bureau to a line bureau for a period of no more than two (2) years, unless a separate,
comprehensive environmental management agency is created.
(f) Linkage Mechanism

← DENR shall consult, participate, cooperate and enter into agreement with:
o other government agencies;
o with affected non- governmental organizations (NGOs); o people's organizations (POs); or
o private enterprises.
Role of Local Government Units

15 Responsibile in the management and maintenance of air quality within their territorial jurisdiction. It
shall implement air quality standards set by the Board in areas within their
jurisdiction
Technology Developers, Inc. v. CA “Town Mayor has responsibility of protecting its
inhabitants from pollution.”
Environment and Natural Resources Office

(f) Established in every province, city, or municipality which shall be headed by the environment
and natural resources officer and shall be appointed by the Chief Executive of every province,
city or municipality in accordance with the provisions of Section 484 of Republic Act No.
7160.
ACTIONS:
17 Administrative action involving stationary sources. Administrative Action - DENR on its

own instance or upon verified complaint by any person, institute administrative proceedings against any
person who violates:
← Standards or limitation provided under this Act; or
← Any order, rule or regulation issued by the Department with respect to such standard or
limitation.
← For any violation of the law and standards, the DENR on its own instance, through the Pollution
Adjudication Board (PAB), or upon verified complaint by any person institute administrative
proceedings
18 Citizen Suits -any person may file an appropriate action, civil, criminal or administrative against any
person who violates the law and standard.
Filed against:
(m) Any person who violates or fails to comply with the provisions of this Act or its implementing
rules and regulations;
(n) Any public officer who willfully or grossly neglects the performance of an act specifically
enjoined as a duty by this Act or its implementing rules and regulations; or abuses his authority in
the performance of his duty; or in any manner, improperly performs his duties under this Act or
its implementing rules and regulations; or
(o) The Department or other implementing agencies with respect to orders, rules and regulations
issued inconsistent with this Act.
FINES AND PEALTIES
2. Violation of Standards for stationary sources:

(a) fine of not more than P100,000.00 for every day of violation
3. Violation of Standards for stationary sources

1st Offense -P2,000.00
2nd Offense -P2,000.00 to P4,000.00
rd
3 Offense -1 year suspension of registration and a fine
P4,000.00 to P6,000.00
2 Violation of other provisions of the Act

a Fine not less than P10,000.00 but not more than P100,000.00 or 6 months to 6 years
imprisonment or both shall be imposed
3 Gross Violations
a PAB shall recommend to the proper agency for the filing of appropriate criminal charges against
the violator.
CLEAN WATER ACT
Republic Act No. 9275
AN ACT PROVIDING FOR A COMPREHENSIVE WATER QUALITY MANAGEMENT AND FOR OTHER
PURPOSES
The State shall pursue a policy of economic growth in a manner consistent with the protection, preservation and revival of
the quality of our fresh, brackish and marine waters.
A. OBJECTIVES
To achieve this end, the framework for sustainable development shall be pursued. As such, it shall be the policy of the
State:
2 To streamline processes and procedures in the prevention, control and abatement of pollution of the country's
water resources;
3 To promote environmental strategies, use of appropriate economic instruments and of control mechanisms for the
protection of water resources;
4 To formulate a holistic national program of water quality management that recognizes that water quality
management issues cannot be separated from concerns about water sources and ecological protection, water
supply, public health and quality of life;
5 To formulate an integrated water quality management framework through proper delegation and effective
coordination of functions and activities;
6 promote commercial and industrial processes and products that are environment friendly and energy efficient;
7 To encourage cooperation and self-regulation among citizens and industries through the application of incentives
and market-based instruments and to promote the role of private industrial enterprises in shaping its regulatory
profile within the acceptable boundaries of public health and environment;
8 To provide for a comprehensive management program for water pollution focusing on pollution prevention;
9 To promote public information and education and to encourage the participation of an informed and active public
in water quality management and monitoring;
a To formulate and enforce a system of accountability for short and long-term adverse environmental impact of a
project, program or activity; and
b To encourage civil society and other sectors, particularly labor, the academe and business undertaking
environment-related activities in their efforts to organize, educate and motivate the people in addressing pertinent
environmental issues and problems at the local and national levels.
4. Coverage:
This Act shall apply to water quality management in all water bodies: Provided, that it shall primarily apply to the
abatement and control of pollution from land based sources: Provided, further, That the water quality standards and
regulations and the civil liability and penal provisions under this Act shall be enforced irrespective of sources of pollution.
C. Water Quality Management Area
The Department of Environment and Natural Resources (DENR), in coordination with National Water Resources Board
(NWRB), shall designate certain areas as water quality management areas using appropriate physiographic units such as
watershed, river basins or water resources regions. Said management areas shall have similar hydrological,
hydrogeological, meteorological or geographic conditions which affect the physicochemical, biological and bacteriological
reactions and diffusions of pollutants in the water bodies, or otherwise share common interest or face similar development
programs, prospects or problems.
D. Composition of the Governing Board:
Lead Agency - The Department of Environment and Natural Resources shall be the primary government agency
responsible for the implementation and enforcement of this Act unless otherwise provided herein.
Chairman: DENR Representatives
Members: Representatives of mayors and governors of member local government units (LGUs), and representatives of
relevant national government agencies, duly registered non-governmental organization (NGO), water utility sector, and
business sector.
In the case of the LGUs with memberships on more than one (1) management board, the LGU shall designate only one
(1) single representative for all the management areas wherein is a member.
The governing board shall formulate strategies to coordinate policies necessary for the effective implementation of this
Act in accordance with those established in the framework and monitor the compliance with the action plan.
Each management area shall create a multi-sectoral group to establish and affect water quality surveillance and
monitoring network including sampling schedules and other similar activities. The group shall submit its report and
recommendation to the chairman of the governing board.
E. Qualifications of the members of a management area:
A technical secretariat for each management area is hereby created which shall be part of the department and shall
provide technical support to the governing board. They shall be composed of at least four (4) members who shall have
the following minimum qualifications:
← One (1) member shall be a member of the Philippines Bar;
← One (1) member shall be a Chemical Engineer, Chemist, Sanitary Engineer, Environmental Engineer or
Ecologist or significant training and experience in chemistry;
← One (1) member shall be a Civil Engineer or Hydrologist or Significant training and experience in closely
related fields and experience on ground water, respectively; and
← One (1) member shall be a Geologist, Biologist, or significant training and experience in closely related
fields.
11. Functions, powers and responsibilities:
← Prepare a National Water Quality Status Report within twenty-four

← months from the effectivity of this Act: Provided, That the Department shall thereafter review or revise
and publish annually, or as the need arises, said report;
← Prepare an Integrated Water Quality Management Framework within twelve (12) months following the
completion of the status report;
3. Prepare a ten (10) year Water Quality Management Area Action Plan within twelve (12) months following the
completion of the framework for each designated water management area. Such action plan shall be reviewed by the
water quality management area governing board every five (5) years or as need arises;
4. Prepare and publish a national a national groundwater vulnerability map incorporating the prevailing standards and
methodologies, within twenty-four (24) months after the effectivity of this Act;
5. Enforce, review and revise within twelve (12) months from the effectivity of this Act water quality guidelines after due
consultation with the concerned stakeholder sectors: Provided, That the Department, in coordination with appropriate
agencies shall review said guidelines every five (5) years or as need arises;
6. Review and set effluent standards every five (5) years from the effectivity of this Act or sooner as determined by the
Department: Provided, That in the interim, the provisions of DENR Administrative Order No. 35 of the Department
shall apply: Provided, further, That when new and more stringent standards are set in accordance with this section, the
Department may establish a grace period with a maximum of five (5) years: Provided, finally, That such grace period
shall be limited to the moratorium on the issuance of cease and desist and/or closure order against the industry's
operations except in the event such operation poses serious and grave threat to the environment, or the industry fails to
institute retooling, upgrading or establishing an environmental management system (EMS).
7. Establish within twelve (12) months from the effectivity of this Act, internationally-accepted procedures for sampling
and analysis of pollutants and in coordination with other concerned agencies, formulate testing procedures and
establish an accreditation system for laboratories;
8. Within eighteen (18) months from the effectivity of this Act and every two (2) years thereafter, categorize point and
non-point sources of water pollution;
9. Classify groundwater sources within twelve (12) months from the effectivity of this Act;
10. Classify or reclassify all water bodies according to their beneficial usages: Provided, that in the interim, the provisions
of DENR Administrative Order No.34 shall apply: Provided, further, that such classification or reclassification shall
take into consideration
the operation of businesses or facilities that are existing prior to the effectivity of the Act: Provided, furthermore,
that the Department may authorize the use of the water for other purposes that are more restrictive in
classification: Provided, finally, That discharges resulting from such use shall meet the effluent standards set by
the Department;
3. Exercise jurisdiction over all aspects of water pollution, determine its location, magnitude, extent, severity, causes,
effects and other pertinent information on pollution, and to take measures, using available methods and
technologies to prevent and abate such pollution;
4. Exercise supervision and control over all aspects of water quality management;
5. Establish a cooperative effort in partnership with the government, LGUs, academic institutions, civil society and
the private sector to attain the objectives of this Act;
6. Disseminate information and conduct educational awareness and value formation programs and campaigns on the
effects of water pollution on health and environment, water quality management, and resource conservation and
recovery to encourage an environmentally action-oriented society in coordination with government agencies
identified in Section 22 (f);
7. Promote. and encourage private and business sectors especially manufacturing and processing plants the use of
water quality management systems equipment, including but not limited to, industrial wastewater treatment
collection and treatment facilities;
8. Report, on an annual basis, to Congress the, quality status of water bodies and other pertinent information and
recommend possible legislation, policies and programs for environmental management and water pollution
control;
9. Issue rules and regulations for the effective implementation of the provisions of this Act;
10. Issue orders against any person or entity and impose fines, penalties and other administrative sanctions to compel
compliance with water quality the provisions of this Act;
11. Undertake appropriate protocol with other concerned agencies for immediate coordinated responses to water
related emergency incidents;
12. Issue permits, clearances and similar instruments pursuant to this Act; and
2 Exercise such powers and perform such other functions as may be necessary to carry out the objectives of this Act
The Department shall gradually devolve to the LGUs, and to the governing boards the authority to administer some aspects
of water quality management and regulation, including, but not to be limited to, permit issuance, monitoring and imposition
of administrative penalties, when, upon the Department's determination, the LGU or the governing board has demonstrated
readiness and technical capability to undertake such functions.
Role of Local Government Units - Local government units shall share the responsibility in the management and
improvement of water quality within their territorial jurisdictions.
Each local government unit shall within six (6) months after the establishment of the water quality management area action
plan prepare a compliance scheme in, accordance thereof, subject to review and approval of the governing board.
Each local government unit shall, through its Environment and Natural Resources Office (ENRO) established in Republic
Act No.7160, have the following powers and functions:
3. Monitoring of water quality;
4. Emergency response;
5. Compliance with the framework of the Water Quality Management Action Plan;
6. To take active participation in all efforts concerning water quality protection and rehabilitation; and
7. To coordinate with other government agencies and civil society and the concerned sectors in the implementation
of measures to prevent and control water pollution: Provided, however, That in provinces/cities/municipalities
where there are no environment and natural resources officers, the local executive concerned may, with the
approval of the Secretary of the DENR designate any of his official and/or chief of office preferably the
provincial, city or municipal agriculturist, or any of his employee: Provided, finally, That in case an employee is
designated as such, he must have sufficient experience in environmental and natural resources management,
conservation and utilization.
Linkage Mechanism. - The Department and its concerned attached agencies including LLDA shall coordinate and enter
into agreement with other government agencies, industrial sector and other concerned sectors in the furtherance of the
objectives of this Act - The following agencies shall perform tile functions specified hereunder:
21 Philippine Coast Guard in coordination with DA and the Department shall enforce for the enforcement of water
quality standards in marine waters, set pursuant to this Act, specifically from offshore sources;
22 DPWH through its attached agencies, such as the MWSS, LWUA, and including other urban water utilities for the
provision or sewerage and sanitation facilities and the efficient and safe collection, treatment and disposal of
sewage within their area of jurisdiction;
23 DA, shall coordinate with the Department, in the formulation of guidelines for the re-use of wastewater for
irrigation and other agricultural uses and for the prevention, control and abatement of pollution from agricultural
and aquaculture activities: Provided, That discharges coming from non-point sources be categorized and further
defined pursuant to this Act: Provided, further, That the Bureau of Fisheries and Aquatic Resources (BFAR) of the
DA shall be primarily responsible for the prevention and control of water pollution for the development,
management and conservation of the fisheries and aquatic resources;
24 DOH shall be primarily responsible for the promulgation, revision and enforcement of drinking water quality
standards;
25 DOST, in coordination with the Department and other concerned agencies, shall prepare a program for the
evaluation, verification, development and public dissemination of pollution prevention and cleaner production
technologies; and
26 Department of Education (DepEd), Commission Higher Education (CHED), Department of the Interior and Local
Government (DILG) and Philippine Information Agency (PIA) shall assist and coordinate with the Department in,
the preparation and implementation of a comprehensive program pursuant to the objectives of this Act.
Pollution Research and Development Programs - The Department, in coordination with the Department of Science
and Technology (DOST), other concerned agencies and academic research institutions, shall establish a national research
and development program for the prevention and control of water pollution. As part of said program, the DOST shall
conduct and promote the coordination and acceleration of research, investigation, experiments, training, survey and studies
relating to the causes, extent, prevention and control of pollution among concerned government agencies and research
institutions.
G. REWARDS AND INCENTIVES
Rewards. - Rewards, monetary or otherwise, shall be provided to individuals, private organization and entities, including
civil society, that have undertaken outstanding and innovative projects, technologies, processes and techniques or activities
in water quality management. Said rewards shall be sourced from the Water Quality Management Fund herein created.
Incentives Scheme. - An incentive scheme is hereby provided for the purpose of encouraging LGUs, water districts
(WDs), enterprises, or private entities, and individuals, to develop or undertake an effective water quality management, or
actively participate in any program geared towards the promotion thereof as provided in this Act.
H. Prohibited Acts.
(l) Discharging, depositing or causing to be deposited material of any kind directly or indirectly into the water bodies
or along the margins of any surface water, where, the same shall be liable to be washed into such surface water,
either by tide action or by storm, floods or otherwise, which could cause water pollution or impede natural flow in
the water body;
(m) Discharging, injecting or allowing to seep into the soil or sub-soil any substance in any form that would pollute
groundwater. In the case of geothermal projects, and subject to the approval of the Department, regulated
discharge for short- term activities (e.g. well testing, flushing, commissioning, venting) and deep re-injection of
geothermal liquids may be allowed: Provided, That safety measures are adopted to prevent the contamination of
the groundwater;
(n) Operating facilities that discharge regulated water pollutants without the valid required permits or after the permit
was revoked for any violation of any condition therein;
← Disposal of potentially infectious medical waste into sea water by vessels unless the health or safety of
individuals on board the vessel is threatened by a great and imminent peril;
← Unauthorized transport or dumping into sea waters of sewage sludge or solid waste as defined under Republic
Act No. 9003;
← Transport, dumping or discharge of prohibited chemicals, substances or pollutants listed under Republic Act
No. 6969;
← Operate facilities that discharge or allow to seep, willfully or through gross negligence, prohibited chemicals,
substances or pollutants listed under R. A. No. 6969 into water bodies or wherein the same shall be liable to be
washed into such surface, ground, coastal, and marine water;
← Undertaking activities or development and expansion of projects, or operating wastewater/ sewerage facilities
in violation of Presidential Decree. No. 1586 and its implementing rules, and regulations;
← Discharging regulated water pollutants without the valid required discharge permit pursuant to this Act or after
the permit was revoked for any violation of condition therein;
← Non-compliance of the LGU with the Water Quality Framework and Management Area Action Plan. In such a
case, sanctions shall be imposed on the local government officials concerned;
← Refusal to allow entry, inspection and monitoring by the Department in accordance with this Act;
← Refusal to allow access by the Department to relevant reports and records in accordance with this Act;
← Refusal or failure to submit reports whenever required by the Department in accordance with this Act;
← Refusal or failure to designate pollution control officers whenever required by, the Department in accordance
with this Act; and
← Directly using booster pumps in the distribution system or tampering with the water supply in such a way as to
alter or impair the water quality.
3. Fines, Damages and Penalties.
(b) Any person who commits any of the prohibited acts provided in the immediately preceding section or violates
any of the provision of this Act or its implementing rules and regulations, shall be fined by the Secretary, upon
the recommendation of the PAB in theamount of not less than Ten thousand pesos (P10, 000.00) nor
more than Two hundred thousand pesos (P200, 000.00) for every day of violation.
← The fines herein prescribed shall be increased by ten percent (10%) every two (2) years to compensate for
inflation and to maintain the deterrent function of such fines.
← The Secretary, upon recommendation of the PAB may order the closure, suspension of development or
construction, or cessation of operations or, where appropriate disconnection of water supply, until such time
that proper environmental safeguards are put in place and/or compliance with this Act or its rules and
regulations are undertaken.
(d) Failure to undertake clean-up operations, willfully, or through gross negligence, shall be punished by imprisonment of
not less than two (2) years and not more than four (4) years and a fine not less than Fifty thousand pesos
(P50,000.00) and not more than One hundred thousand pesos (P100,000.00) per day for each day of
violation.
(e) Such failure or refusal which results in serious injury or loss of life and/or irreversible water contamination of surface,
ground, coastal and marine water shall be punished with imprisonment of not less than six (6) years and one day
and not more than twelve (12) years, and a fine of Five Hundred Thousand Pesos (P500, 000.00) per day
for each day during which the omission and/or contamination continues.
(f) In case of gross violation of this Act, the PAB shall issue a resolution recommending that the proper government agencies file criminal
charges against the violators. In which case, offenders shall be punished with a fine of not less than Five hundred thousand pesos
(P500,000.00) but not more than Three million pesos (P3,000,000.00} per day for each day of violation or imprisonment of not
less than six (6) years but not more than ten
← years, or both, at the discretion of the court.
A If the offender is a juridical person, the president, manager and the pollution control officer or the official
in charge of the operation shall suffer the penalty herein provided.
(c) For violations falling under Section 4 of Presidential Decree No. 979 or any regulations prescribed in pursuance
thereof, such person shall be liable for a fine of not less than Fifty thousand pesos {P50, 000.00) nor more
than One million pesos (P1, 000,000.00) or by imprisonment of not less than one (1) year nor more than
six (6) years or both, for each offense, without prejudice to the civil liability of the offender in accordance with
existing laws.
A If the offender is a juridical entity, then its officers, directors, agents or any person primarily responsible
shall be held liable: Provided, That any vessel from which oil or other harmful substances are discharged in
violation of Section 4 of Presidential Decree No. 979 shall be liable for penalty of fine specified in the
immediately preceding paragraph and clearance of such vessel from the port of the Philippines may be
withheld until the fine is paid and such penalty shall constitute a lien on such vessel which may be
recovered in proceedings by libel in rem in the proper court which the vessel may be. The owner or
operator of a vessel or facility which discharged the oil or other harmful substances will be liable to pay for
any clean-up costs.
Provided, finally, That water pollution cases involving acts or omissions --- committed within the Laguna Lake Region shall
be dealt with in accordance with the procedure under R. A. No.4850 as amended.
Administrative Sanctions Against Non-compliance with the Water Quality Management Area Action Plan. - Local
government officials concerned shall be subject to Administrative sanctions in case of failure to comply with their action
plan accordance with the relevant provisions of R.A. No. 7160.
Administrative Action - Without prejudice to the right of any affected person to file an administrative action, the
Department shall, on its own instance or upon verified complaint by any person, institute administrative proceedings in the
proper forum against any person who violates:
2 Standards or limitations provided by this Act; or
3 By any such order, rule or regulation issued by the Department with respect to such standard or limitation.
J. RELATED CASES
LLDA VS. CA
G.R. NO. 120865-71, DECEMBER 7, 1995
FACTS: The Laguna Lake Development Authority (LLDA) was created through RA No. 4850 in order to execute the policy
towards environmental protection and sustainable development so as to accelerate the development and balanced growth of
the Laguna Lake area and the surrounding provinces and towns.
PD No. 813 amended certain sections of RA 4850 since water quality studies have shown that the lake will deteriorate
further if steps are not taken to check the same.
EO 927 further defined and enlarged the functions and powers of the LLDA and enumerated the towns, cities and provinces
encompassed by the term “Laguna de Bay Region”.
Upon implementation of RA 7160 (Local Government Code of 1991), the municipalities assumed exclusive jurisdiction &
authority to issue fishing privileges within their municipal waters since Sec.149 thereof provides: “Municipal corporations
shall have the authority to grant fishery privileges in the municipal waters and impose rental fees or charges therefore…”
Big fishpen operators took advantage of the occasion to establish fishpens & fish cages to the consternation of the LLDA.
The implementation of separate independent policies in fish cages & fish pen operation and the indiscriminate grant of
fishpen permits by the lakeshore municipalities have saturated the lake with fishpens, thereby aggravating the current
environmental problems and ecological stress of Laguna Lake.
The LLDA then served notice to the general public that (1) fishpens, cages
3. other aqua-culture structures unregistered with the LLDA as of March 31, 1993 are declared illegal; (2) those declared
illegal shall be subject to demolition by the Presidential Task Force for Illegal Fishpen and Illegal Fishing; and (3) owners
of those declared illegal shall be criminally charged with violation of Sec.39-A of RA 4850 as amended by PD 813.
A month later, the LLDA sent notices advising the owners of the illegally constructed fishpens, fishcages and other aqua-
culture structures advising them to dismantle their respective structures otherwise demolition shall be effected.
ISSUES:
(e) Which agency of the government – the LLDA or the towns and municipalities comprising the region – should
exercise jurisdiction over the Laguna Lake and its environs insofar as the issuance of permits for fishery
privileges is concerned?
(f) Whether the LLDA is a quasi-judicial agency?
HELD:
25 Sec. 4 (k) of the charter of the LLDA, RA 4850, the provisions of PD 813, and Sec.2 of EO No.927, specifically
provide that the LLDA shall have exclusive jurisdiction to issue permits for the use of all surface water for any
projects or activities in or affecting the said region. On the other hand, RA 7160 has granted to the municipalities
the exclusive authority to grant fishery privileges on municipal waters. The provisions of RA 7160 do not
necessarily repeal the laws creating the LLDA and granting the latter water rights authority over Laguna de Bay
and the lake region.
Where there is a conflict between a general law and a special statute, latter should prevail since it evinces the
legislative intent more clearly than the general statute. The special law is to be taken as an exception to the
general law in the absence of special circumstances forcing a contrary conclusion. Implied repeals are not favored
and, as much as possible; effect must be given to all enactments of the legislature. A special law cannot be
repealed, amended or altered by a subsequent general law by mere implication.
The power of LGUs to issue fishing privileges was granted for revenue purposes. On the other hand, the power of
the LLDA to grant permits for fishpens, fish cages, and other aqua-culture structures is for the purpose of
effectively regulating & monitoring activities in the Laguna de Bay region and for lake control and management.
It partakes of the nature of police power which is the most pervasive, least limitable and most demanding of all
state powers including the power of taxation. Accordingly, the charter of the LLDA which embodies a valid
exercise of police power should prevail over the LGC of 1991 on matters affecting Laguna de Bay.
(i) The LLDA has express powers as a regulatory and quasi-judicial body in respect to pollution cases with authority
to issue a “cease and desist order” and on matters affecting the construction of illegal fishpens, fish cages and
other aqua-culture structures in Laguna de Bay.
Sec. 149 of RA 7160 has not repealed the provisions of the charter of the LLDA, RA 4850, as amended. Thus, the
LLDA has the exclusive jurisdiction to issue permits for enjoyment of fishery privileges in Laguna de Bay to the
exclusion of municipalities situated therein and the authority to exercise such powers as are by its charter vested
on it.
HIZON VS CA
GR NO. 119619 DEC. 3, 1996
FACTS: Accused crew members and fishermen of F/B Robinson owned by First Fishermen Fishing Industries, Inc.,
caught fish with use of obnoxious or poisonous substance (sodium cyanide), of more or less one (1) ton of assorted live
fishes which were illegally caught thru the use of obnoxious/ poisonous substance (sodium cyanide). Petitioners were
arraigned and they pled not guilty to the charge. As defense, they claimed that they are legitimate fishermen of the First
Fishermen Industries, Inc., a domestic corporation licensed to engage in fishing. They alleged that they catch fish by the
hook and line method and that they had used this method for one month and a half in the waters of Cuyo Island. On July 9,
1993, the
trial court found the thirty-one petitioners guilty. On appeal, the Court of Appeals affirmed the decision of the trial court.
Hence, this petition
ISSUE: Whether or not the conviction was proper.
HELD: Not Guilty. Petitioners were charged with illegal fishing penalized under sections 33 and 38 of P.D. 704 which
provide as follows:
“Sec. 33. Illegal fishing, illegal possession of explosives intended for illegal fishing; dealing in illegally caught fish or
fishery/aquatic products. -- It shall be unlawful for any person to catch, take or gather or cause to be caught, taken or
gathered fish or fishery/aquatic products in Philippine waters with the use of explosives, obnoxious or poisonous substance,
or by the use of electricity as defined in paragraphs (l), (m) and (d), respectively, of section 3 hereof: Provided, That mere
possession of such explosives with intent to use the same for illegal fishing as herein defined shall be punishable as
hereinafter provided: Provided, That the Secretary may, upon recommendation of the Director and subject to such
safeguards and conditions he deems necessary, allow for research, educational or scientific purposes only, the use of
explosives, obnoxious or poisonous substance or electricity to catch, take or gather fish or fishery/aquatic products in the
specified area: Provided, further, That the use of chemicals to eradicate predators in fishponds in accordance with accepted
scientific fishery practices without causing deleterious effects in neighboring waters shall not be construed as the use of
obnoxious or poisonous substance within the meaning of this section: Provided, finally, That the use of mechanical bombs
for killing whales, crocodiles, sharks or other large dangerous fishes, may be allowed, subject to the approval of the
Secretary.”
The prosecution failed to explain the contradictory findings on the fish samples and this omission raises a reasonable doubt
that the one ton of fishes in the cage was caught with the use of sodium cyanide.
Apparently, the members of the PNP Maritime Command and the Task Force Bantay Dagat were the ones engaged in an
illegal fishing expedition. This method of fishing needs approximately two hundred (200) fishermen to execute. What the
apprehending officers instead discovered were twenty-eight (28) fishermen in their sampans fishing by hook and line. The
authorities found nothing on the boat that would have indicated any form of illegal fishing. All the documents of the boat
and the fishermen were in order. It was only after the fish specimens were tested, albeit under suspicious circumstances, that
petitioners were charged with illegal fishing with the use of poisonous substances.
“The authorities found nothing on the boat that would have indicated any form of illegal fishing. All the documents of the
boat and the fishermen were in order. It was only after the fish specimens were tested, albeit under suspicious
circumstances, that petitioners were charged with illegal fishing with the use of poisonous substances.”
NAVARRO VS IAC
GR NO. 68166
FACTS: Sinforoso Pascual sits in the midst of a land registration case. The story begins on 1946 upon his desire to register
land on the northern section of his existing property. His current registered property is bounded on the east by Talisay River,
on the West by Bulacan River and on the North by the Manila bay. Both rivers flow towards the Manila Bay. Because of
constantly flowing water, extra land of about 17 hectares formed in the northern most section of the property. It is this
property he sought to register.
The RTC denied the registration claiming this to be foreshore land and part of public domain (accretion formed by the sea is
public dominion). His Motion for Reconsideration likewise burned. In 1960, he attempted registry again, claiming that the
Talisay and Bulacan rivers deposited more silt resulting on accretion. He claimed this land as riprarian owner. The Director
of Lands, Director of Forestry and the Fiscal opposed.
Then a new party surfaced. Emiliano Navarro jumped into the fray opposing the same application, stating the he leased part
of the property sought to be registered. He sought to protect his fishpond that rested on the same property. Sinforoso was not
amused and filed ejectment against Mr. Navarro, claiming that Navarro used stealth force and strategy to occupy a portion
of his land. Pascual lost the case against Navarro so he appealed. During the appeal, his original land registration case was
consolidated and tried jointly. Pascual died, and then his heirs took over the case.
On 1975, the court decided that the property was foreshore land and therefore part of public domain. The RTC dismissed the
complaint of
Pascual for ejectment against Navarro and also denied his land registration request. Pascual’s heirs appealed and the RTC
was reversed by the IAC. The Appellate court granted petition for registration since according to the Court, the accretion
was caused by the two rivers, not Manila Bay. Hence it wasn’t foreshore land.
The confusion though, lies in the fact that the accretion formed adjacent to Manila Bay which is a sea. Aggrieved, the
Director of Forestry moved for reconsideration but the Government insists it is foreshore and hence, public domain. The
Appellate court denied all motions of the Director and the Government. The matter went to the SC.
ISSUE: Whether or not the accretion taking place on property adjacent to the sea can be registered under the Torrens
system.
HELD: It cannot be registered. This is land of Public domain. Pascual claimed ownership under Article 457 of the Civil
Code saying that the disputed 14-hectare land is an accretion caused by the joint action of the Talisay and Bulacan Rivers
Art 457: Accretion as a mode of acquiring property and requires the concurrence of the following requisites: (1) that the
accumulation of soil or sediment be gradual and imperceptible; (2) that it be the result of the action of the waters of the
river; and (3) that the land where the accretion takes place is adjacent to the bank of the river.
Unfortunately, Pascual and Heirs claim of ownership based on Art 457 is misplaced. If there’s any land to be claimed, it
should be land ADJACENT to the rivers Talisay and Bulacan. The law is clear on this. Accretion of land along the river
bank may be registered. This is not the case of accretion of land on the property adjacent to Manila Bay.
Furthermore, Manila Bay is a sea. Accretion on a sea bank is foreshore land and the applicable law is not Art 457 but Art 4
of the Spanish Law of Waters of 1866. This law, while old, holds that accretion along sea shore cannot be registered as it
remains public domain unless abandoned by government for public use and declared as private property capable of
alienation.
Article 4 of the Spanish Law of Waters of August 3, 1866 provides as follows:
Lands added to the shores by accretions and alluvial deposits caused by the action of the sea, form part of the public
domain. When they are no longer washed by the waters of the sea and are not necessary for purposes of public utility, or for
the establishment of special industries, or for the coast -guard service, the Government shall declare them to be the property
of the owners of the estates adjacent thereto and as increment thereof.
The IAC decision granting registration was reversed and set aside.
Registration cannot be allowed.
“Accretion along an area adjacent to the sea is public domain, even if the accretion results from rivers emptying into the
sea. It cannot be registered.”
PEOPLE OF THE PHILIPPINES VS VERGARA
GR NO. 110286 APRIL 2, 1977
FACTS: In the morning of 04 July 1992, a team composed of deputized Fish Warden and President of the Leyte Fish
Warden Association Jesus P. Bindoy, Police Officers Casimiro Villas and Diosdado Moron of the Palo PNP Station, Leyte,
Fish Wardens Mario Castillote and Estanislao Cabreros and Fish Examiner Nestor Aldas of the Department of Agriculture
were on board, " Bantay-Dagat," a pumpboat, on "preventive patrol" along the municipal waters fronting barangays
Baras and Candahug of Palo, Leyte, when they chanced upon a blue-colored fishing boat at a distance of approximately 200
meters away. The boat, 30 feet long, had on board appellant Renerio Vergara and his three co-accused Bernardo Cuesta,
Pedro Dagaño and Ernesto Cuesta, Jr., and was on parallel course toward the general direction of Samar.
Momentarily, the team saw appellant throw into the sea a bottle known in the locality as " badil" containing ammonium
nitrate and having a blasting cap on top which, when ignited and thrown into the water, could explode. The explosion would
indiscriminately kill schools and various species of fish within a certain radius. Approximately three seconds after appellant
had thrown the " badil" into the sea, the explosion occurred. Vergara and Cuesta dove into the sea with their gear while
Dagaño and Cuesta, Jr., stayed on board to tend to the air hose for the divers.
The team approached the fishing boat. SP02 Casimiro Villas boarded the fishing boat while Fish Warden Jesus Bindoy held
on to one end of the boat.
Moments later, Vergara and Cuesta surfaced, each carrying a fishnet or "sibot" filled with about a kilo of "bolinao"
fish scooped from under the water. Having been caught red-handed, the four accused were apprehended and taken
by the patrol team to the "Bantay- Dagat" station at Baras, and later to the police station in Palo, Leyte. The fishing
boat and its paraphernalia, as well as the two fishnets of "bolinao ," were impounded. Accused Renerio P. Vergara
was found guilty beyond reasonable doubt of violating Section 33 of Presidential Decree No. 704, as amended by
P.D. No. 1508.
ISSUE: Whether the court has acted correctly in finding accused-appellant guilty of violating Section 33 of
Presidential Decree No. 704, as amended by P.D. No. 1508.
RULING: Yes. The Court is convinced that the trial court has acted correctly in finding accused-appellant guilty of
the offense charged.
Sections 33 and 38 of P.D. No. 704, as amended by P.D. No. 1058, read:
Sec. 33. Illegal fishing; illegal possession of explosives intended for illegal fishing; dealing in illegally caught fish
or fishery/ aquatic products . — It shall be unlawful for any person to catch, take or gather or cause to be caught, taken
or gathered fish or fishery/aquatic products in Philippine waters with the use of explosives, obnoxious or poisonous
substance, or by the use of electricity as defined in paragraphs (1), (m) and (d), respectively, of section 3 hereof:
Provided, That mere possession of such explosives with intent to use the same for illegal fishing as herein defined shall be
punishable as hereinafter provided: Provided, That the Secretary may, upon recommendation of the Director and subject
to such safeguards and conditions he deems necessary, allow for research, educational or scientific purposes only, the use
of explosives, obnoxious or poisonous substance or electricity to catch, take or gather fish or fishery/aquatic products in
specified area: Provided further, That the use of chemicals to eradicate predators in fishponds in accordance with
accepted scientific fishery practices without causing deleterious effects in neighboring waters shall not be construed as the
use of obnoxious or poisonous substance within the meaning of this section: Provided, finally , That the use of
mechanical bombs for killing whales, crocodiles, sharks or other large dangerous fishes, may be allowed, subject to the
approval of the Secretary.
Sec. 38. (1) By the penalty of imprisonment ranging from twelve (12) years to twenty-five (25) years in the case of
mere possession of explosives intended for illegal fishing; by imprisonment ranging from twenty (20) years to life
imprisonment, if the explosive is actually used: Provided, That if the use of the explosive results in 1) physical
injury to any person, the penalty shall be imprisonment ranging from twenty-five (25) years to life imprisonment, or
2) in the loss of human life, then the penalty shall be life imprisonment to death.
R.A. 387 or the Petroleum Act of 1949
Constitutional Basis – Jura Regalia: Sec 2 Art XII, also affirmed in Sec 3 of RA 387. All
natural and gas deposits in the Phils belong to the state.
Ownership or right to the lands does not include exploitation of petroleum or natural gas deposits.
Definition of Terms (Sec. 4):
27 Petroleum – any mineral oil, hydrocarbon gas, bitumen, asphalt, mineral wax, and other
naturally associated substances except coal, peat, bituminous shale and/or other stratified
mineral fuel deposits
28 "Crude oil" - oil in its natural state before the same has been refined or otherwise treated, but
excluding water and foreign substances.
29 "Natural gas" - gas from boreholes and wells and
consisting primarily of hydrocarbon.
4. “Permittee, concessionaire or contractor” - a person to whom a permit, concession, or
contract, as the case may be, has been granted or awarded under the provisions of this Act, his
successors and assigns.
5. “Barrel” – about 158.98 meters or 42 U.S. gallons.
Kinds of concessions:
31 Non-exclusive exploration permit – grants the permittee the non-exclusive right to explore
specified areas
34 Exploration Concession – grants the exclusive right to explore for petroleum in specified areas
35 Exploitation concession – grants the concessionaire the exclusive right to develop petroleum
production within specified areas.
Grant of petroleum rights or concessions (Sec. 5):
2 Granted only to qualified persons, which is discretionary with the government
(Sec. 6), with the government reserving the right to undertake such work by itself or through
its instrumentalities, or other competent independent contractors under a contract of service
executed by the government by the president and approved by Congress.
3 Exploration and Exploitation rights may be exclusive. Rights for refining and transportation
cannot be exclusive.
4 Granting concession rights become mandatory on:
H.Exploitation Concessions, to the holder of an Exploration Concession, for such
parcels as he may select for exploitation and to the holders of Petroleum Drilling
Leases issued under the former Petroleum Act still existing at the time of effectivity of
RA 387;
I. Refining Concessions and/or Pipe Line Concessions, to the holder of an
Exploitation Concession, when the manufacturing or transportation is directly related,
although not necessarily restricted, to the Exploitation Concession; and
2. Refining Concessions, to the holder of a Pipe Line Concession, or Pipe Line
Concession to the holder of a Refining Concession, when the two concessions are
directly, although not restrictively, related.
Administrative Organization:
(c) The Secretary of the DENR is the executive officer charged with enforcing RA 387,
through the Director of Mines and Geosciences.
(d) The Secretary of DENR can prescribe rules and regulations, issue orders to enforce RA
387
(e) He can also create an Administration Unit and a Technical Board (Art. 95)
Reservation of Petroleum Areas (Art 13):
(e) Who can reserve? The President, upon recommendation by the DENR Secretary.
Government can explore, exploit and develop petroleum by itself, its instrumentality, or
an independent contractor working for the government under a contract of service.
(f) Persons qualified can also propose to carry out work for the government by
filing their proposal with the Director of Mines and Geosciences, with their
recommendations and findings.
(g) You cannot reserve petroleum lands already covered by an application for exploration or
exploitation already filed or granted.
What areas can be granted concessions?
39 All lands within the territorial limits of the Philippines, EXCEPT National Reserve areas,
and places with already valid and existing exploration or exploitation concession, or
petroleum drilling leases (Sec 14).
National Reserve Areas. They are:
b Concessions given up by concessionaire voluntarily, by renunciation or application for
areas already with existing concessions;
c Concessions with have expires or cancelled;
d Concessions that were found to be in excess of the maximum areas for such concession.
These areas can only be applied for concession again after a public announcement that they
are available for concession (Art 15).
The government has the right to establish other reservations and rights other than
petroleum to the same land that was given rights under RA 387 (Art 18).
Concessionaires have a right to enter the private land covered by their concessions
and to use all instruments necessary to carry out geological and geophysical studies with an
obligation to indemnify the owner for all material damage caused (Art 16). If the owner refuses
to give entry, the RTC can compel them to allow entry (Art 20).
The RTC can also compel the owner to grant the concessionaire easements of temporary
occupancy, if the owner refuses to do such (Art 21). For easement of temporary
occupancy on public land, the DENR may grant such, with due regard to the prior right of third
parties (Art 22).
Application for Concessions
d. Application for concessions shall be filed with the Director of Mines and Geosciences.
e. The Director shall then forward the said application together with his recommendation to
the DENR Secretary for appropriate action after notice of the application has been duly
published.
f. At any time during the period of publication an adverse claim may be filed with the
Director of Mines and Geosciences.
g. If no adverse claim is filed it shall be conclusively presumed that no such adverse claim
exists and thereof no objection from any third parties.
h. Thereafter the concession of the contract shall be executed by the Secretary of DENR for
appropriate action.
Use of water Timber and Clay
41 Concessionaires under this Act may utilize for any of the work to which his concession
relates, timber, water, and clay from any public lands within such concession, all subject
to existing prior rights thereto, to the regulations issued under this Act and to other laws
and regulations on the matter.
What are the general obligations of Concessionaires?
b Work corresponding to concession granted under this Act shall be commenced with
reasonable promptness and prosecuted with reasonable diligence in accordance with good
oil field practice; provided, that in the case of Exploration or Exploitation Concession, the
performances of the corresponding work, in compliance with the provisions of this article,
successively in various areas included in the concession, in accordance with an efficient
and economic program determined by the concessionaire and submitted to the Secretary
of Agriculture and Natural Resources will be construed as reasonable diligence in regard
to the total area included in such concession; conforming with accepted good practices in
connection with modern and scientific methods of exploration, drilling, equipping and
operating wells to enable maximum economic production of petroleum; avoiding hazards
to life, health and property; avoiding the pollution of the air, and of public or private land
or waters.
g. Non-compliance with the provisions of this article may be the cause of the imposition of
penalties under the provisions of this or other laws; or of court action to compel
compliance therewith; and continued non-compliance shall constitute cause for
cancellation of the concession.
NON EXCLUSICVE EXPLORATION PERMIT
Who may Apply?

b Any person legally qualified to acquire concession What will they apply for?
c A permit for a NON-EXCLUSIVE RIGHT to undertake surface geological or geophysical
investigations within the free areas.
Where shall they file it?
b Applications shall be filed with the Director of Mines and Geosciences and shall forward
his
recommendation to the DENR Secretary for final action..
What is the right conveyed under a non-exclusive exploration permit?
b The only right conveyed is the permission for geological and geophysical exploration
which shall be preparatory for an application for exclusive exploration concession.
EXPLORATION CONCESSION
What is “Exploration”
c. “Exploration”means all work that have for their object the discovery of petroleum,
including, but not restricted to, surveying and mapping, aerial photography, surface
geology, geophysical investigations, testing of subsurface conditions by means of borings
or structural drillings, and all such
auxiliary work as are useful in connection with such operations.
Where may exploration concessions be held?
c. Any lands within the free and national reserve areas which are not covered by valid and
existing exploration or exploitation concessions, petroleum drilling leases acquired under
the Petroleum Act, or by petroleum mining claims located and held under the Act of
Congress of July 1, 1902.
What are the Limitations of allowable exploration areas?
b No person shall be entitled to more than 500,000 hectares of exploration areas in any one
petroleum region nor more than 1,000,000 hecatares in the whole territory of the
Philippines
What is the right conveyed under an exclusive exploration permit?
b. The Exploration Concession conveys upon the concessionaire, his heirs and assigns, from
the date of the granting of the concession, and during the exploration period and any
extension thereof, the exclusive right to explore the block granted, to do geological and
geophysical work, to open test pits, to conduct drilling operations, and to do such other
work related to exploration.
What are the Obligations of Work Explorations?
b At the beginning of each calendar year during the life of the concession, the concessionaire
shall submit to the Director of Mines, a program of exploration work to be undertaken by
the concessionaire with his concession during that year. He is obligated to spend in the
direct prosecution of exploration work within his concession, such as topographic, or
geological reconnaissance; mapping or cross sectioning, geophysical surveys by
magnetometer, gravimeter or seismograph; core or
exploratory drilling; or any combination of the said work which the amounts are indicated
in the law.
Service Contracts for Petroleum Exploration may be allowed only through a law passed by Congress.
c. In Resident Marine Mammals Vs. Reyes, It was held that the service contract for
petroleum exploration and extraction entered into by the government and Japan Petroleum
Exploration Co.
Ltd. In Tanon Strait, a protected seascape is null and void on the following grounds:
v. There is no law authorizing energy resource exploitation in the Tanon strait
c. No ECC had been secured and
c. Contract was not signed by the President himself and reported to Congress as
required by the Cobnstitution.
EXPLOITATION CONCESSION
What is “Exploitation”?
b “Exploitation” means all work within the area embraced by an Exploitation Concession
that have for their object the production of petroleum within such area, including, but not
restricted to, drilling and operating wells, providing and operating pumping and storage
facilities; pipe lines and other such work and facilities as are useful for the purpose of
making petroleum available for sale, manufacture or refining within or for shipment from
such area; but does not include any operation which is a part of manufacturing or refining,
or any work outside such area which are a part of a pipe line or other special
transportation system.
What are the areas available for exploitation?
d. Areas covered by exploration concession held by the applicant and areas within the
National Reserve are available for exploitation.
What are the limitations of the area of exploitation?
b No person shall be allowed to hold more than 250,000 hectares of exploitation area in any
one petroleum region, nor more than 500,000 hectares in the whole territory of the
Philippines.
What are the rights conveyed under exploitation concession?
706. An exploitation concessionaire, his heirs and assigns, has the exclusive right, during
the term of the concession, to drill within the boundaries projected vertically downward of
the parcel or parcels covered by his concession, to extract within the boundaries thereof
the substances referred to in this Act, to utilize them once they are extracted, and to do all
acts authorized within the scope of exploitation, as defined in article fifty-one of this Act,
subject to the provisions of this Act and the Regulations that may be issued by the
Secretary of Agriculture and Natural Resources regarding conservation, prevention of
waste, and other pertinent matter.
In case roads and/or bridges are constructed by the concessionaire in connection with the
operation of his exploitation concession, the same shall be available for public use except
when otherwise agreed upon between the Secretary of Agriculture and Natural Resources
and the concessionaire.
What are the obligations of exploration work?
• At the beginning of each calendar year during the life of the concession, the
concessionaire shall submit to the Director of Mines, a program of exploitation work
proposed to be undertaken by the concessionaire within his concession during that
year. The concessionaire shall commence drilling operations within one year from the
date the Exploitation Concession is granted within the area covered by the concession and
shall continue diligently such drilling operations in accordance with good oil field
practice. He shall be obligated to develop and bring into production the exploitation area
granted to him and any discovery areas that he may find, and to continue such
development and production until at least the domestic consumption requirements of
petroleum in the Philippines, determined in consultation with the Secretary of Agriculture
and Natural Resources, are met by the total net production from all sources of indigenous
production in the Philippines, if the petroleum deposit discovered by the concessionaire
shall permit such development in accordance with good petroleum engineering practice.
REFINING CONCESSION
Definition of “refining”
“Refining” means the processing or treating of petroleum by chemical of physical means for the
purpose of making or separating marketable products.
However, it does not include operations separate from the foregoing, as gas compression, removal of
noxious gases, crude oil stabilization or treatment for emulsion, or any other operation which has as its
principal aim the avoidance of hazard or loss, or which is incidental to production or to transportation.
Application for refining concession
Application shall be filed with the Director of Mines and Geosciences in accordance with Article 28
of the Act.
The DENR Secretary may, in his discretion, grant a refining concession to any person duly qualified
under the Act even though he is not a holder of an exploitation concession. Likewise, a refining concession
may be granted to any person who, without being a holder of an exploitation concession, discovers and
registers with the Bureau of Mines and Geosciences any natural deposit of oil or seep or emanation of gas.
Rights conveyed under refining concession
Refining concession confers upon the concessionaire the non-exclusive right to:
• provide facilities for the manufacture of, and to manufacture, petroleum products, subject to the
provisions of the Act; and
• to carry out such auxiliary works and operations as are essential to the successful conduct of the
undertaking, such as but not limited to:
← the generation of steam and electricity;
← the treatment and use of water;
← the production or regeneration of chemicals used in manufacturing;
← the fabrication and filling of containers;
← the erection of shops, warehouses, and other buildings;
← the construction and operation of communication system and roads within and for
access to the works; and
← the provision and operation of facilities for receiving, storing, and shipping materials
or products and for their transportation within or between parts of the works to which
the concession relates
Utilization of refining capacity
The holder of a refining concession shall have the preferential right to utilize his installations for the
refining or
manufacture of petroleum produced by him from his concession, but is obligated to utilize any remaining
capacity for the refining or manufacture, pro rata, of such other petroleum as may be offered by others for
refining or manufacture, and to charge without discrimination such rates as may have been approved by the
DENR Secretary.
When a refining concessionaire is also an exploitation concessionaire, the Secretary may require that
the royalty in kind due to the government from the same concessionaire, or an equivalent amount of petroleum
of the government from other sources, be refined or manufactured, pro rata, with that owned by the refining
concessionaire, up to the capacity of the installation; and in all cases petroleum owned by the government shall
have priority over all other petroleum for the utilization of the refining or manufacturing capacity in excess of
that required to refine or manufacture petroleum owned by the refining concessionaire.
The term of a refining concession shall not exceed twenty-five (25) years counted from the date of its
issuance, renewable for another twenty -five years, upon application of the concessionaire filed prior to the
expiration of the original term.
Benefits derived from the establishment of oil refineries
The establishment of a petroleum refinery in the Philippines will undoubtedly contribute much to the
economic welfare of the nation.
• Additional source of taxes for government,
• Afford more opportunities for employment of our people, and
• May reduce the cost of petroleum products as the basic needs and essential in progressive
industrialization of the economy
The operation of such refinery may also induce the intensification of the search for oil in the
Philippines, as there will be a refinery available to turn into manufactured products the crude petroleums that
may be found and produced locally.
PIPELINE CONCESSION
Application for pipeline concession

Application for pipeline concession shall be filed with the Director of Mines and Geoscinces in
accordance with Article 28 of the Act.
Pipeline concession may also be granted to any person legally qualified under this Act who is not a
holder of an exploitation or refining concession upon his filing an application therefore.
The Energy Regulatory Commission (ERC), formerly the Board of Energy, shall have the power to
regulate and fix the rates of pipeline concessionaires under the provisions of RA NO. 387, as amended,
otherwise known as the Petroleum Act, and to prescribe and promulgate the necessary rules and regulation on
the matter.
Rights conveyed under pipeline concession
• pipeline concessionaire acquires the non-exclusive right to transport petroleum, by means of, a
pipeline or system of pipe lines, between the source of production and/or refining and the places defined in the
pipeline concession.
This concession right includes the construction and operation of pipelines, pumping or compressing
stations, storage tanks, gas tanks, power plants, shops, storehouses and other buildings, water supply and
communication systems, roads, and such other equipment or facilities as may be needed for the purpose of the
concession
A pipeline concessionaire shall have the preferential right to utilize his installations for the
transportation of petroleum owned by him,, but is obliged to utilize any remaining transportation capacity pro
rata for the transportation of such other petroleum as may be offered by others for transport and to charge
without discrimination such rates approved by the DENR.
Term shall not exceed twenty-five years counted from the date of issuance, renewable for another
twenty-five years, upon
application of the concession filed prior to the expiration of the original term.
Pipeline concessionaire as common carrier
A pipeline concessionaire shall have the preferential right to utilize his installations for the
transportation of petroleum owned by him, but is obligated to utilize any remaining transportation capacity
pro rata for the transportation of such other petroleum as may be offered by others for transport, and to charge
without discrimination such rates as may have been approved by the DENR Secretary.
When the pipeline concessionaire is also an exploitation concessionaire, the Secretary may require
that the royalty in kind of the government received from the same concessionaire, be transported, pro rata,
with that owned by the concessionaire from the same concession; and in all cases the petroleum of the
government shall have priority over all other petroleum in the utilization of the excess capacity of the pipeline
over that required to transport petroleum owned by the pipeline concessionaire.
ISSUE: whether the petitioner, a grantee of a pipeline concession under RA 387, is considered a
“common carrier” and, therefore, exempt from paying tax on gross receipts.
RULLING: The court held that petitioner is a common carrier, adverting to the definition of a
common carrier (Art. 1732 Civil Code), as “any person, corporation, firm or association engaged in the
business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation,
offering their services to the public.”
It was determined that petitioner is engaged in the business of transporting or carrying goods,
i.e., petroleum products, for hire as a public employment. It undertakes to carry for all persons indifferently,
that is, to all persons who choose to employ its services, and transports the goods by land and for
compensation.
In addition, the Court held that RA NO. 387 also regards petroleum operation as a public
utility, referring to Art. 7 OF THE Act which provides “that everything relating to the exploration for and
exploitation of petroleum… and everything relating to the
manufacture, refining, storage, or transportation by special methods of petroleum.
PENALTIES AND EXTINCTION OF RIGHTS
Cancellation of concession
The statements made in the application or made in support thereof shall be considered as conditions
and essential parts of the concession. Any falsehood in those statements or omission of facts which may alter,
change or affect, substantially the facts set forth in said statements may cause the cancellation of the lease
granted.
Other causes for cancellation of concession:
a. Exploration concessions may be cancelled under any of the following causes:

← For failure of the concessionaire to perform the work obligations required by Article 47 of
the Act for two consecutive years; and
←For failure to pay for two consecutive years the exploration tax due thereon, as required by
article 49 of this Act.
• Exploitation concessions may be cancelled under any of the following causes:
← for failure of the concessionaire to perform the exploitation work obligation as required
under the provisions of Art. 60 and 61 of the Act for two consecutive years;
← For suspending production operations for more than 6 months without prior written
approval of the DENR Secretary;
←For failure to pay for two consecutive years the annual exploitation tax due thereon; and
← For failure to deliver or pay to the government its royalty within one year from the
date such royalty becomes due
• Refining and pipeline concessions may be cancelled for failure of the concessionaire to begin the
construction of a refinery and pipe line, as the case may be, within one year from the date o the
issuance of such concessions.
Extinctions of Rights
Rights acquired by virtue of a concession shall become extinguished upon the expiration of its
term including the extensions or renewals thereof, if any, or upon the cancellation or renunciation of
such concession. In such extinction of rights, any sum payable to the government by the
concessionaire and then unpaid shall become due and payable forthwith, the property of the
concessionaire shall be disposed of in accordance with Art. 93 of the Act, and the concession contract
shall be surrendered to the DENR Secretary.
[ARTICLE 93, RA 387]
B Upon the renunciation, cancellation, or expiration of an Exploration or Exploitation
Concession, the area covered thereby shall automatically become part of the National Reserve.
C Upon the renunciation, cancellation, or expiration of an Exploration Concession, or of
an Exploitation Concession within the first term of twenty-five years or within the first fifteen years of
its renewal, if any, as provided for in this Act, the title rights to all apparatus, materials, equipment,
supplies and other personal properties, all works, buildings and other facilities and structures which
the concessionaire places on the land under the terms of the concession, including but not limited to
drilling pipe, warehouse stocks, automotive, aviation and marine equipment, shall remain vested in
the concessionaire, and the concessionaire shall have the right to remove and export the same at any time within
one year counted from the date the concessionaire shall cease to retain the right to use the lands subject to the
concession on which the said property is located: Provided, however, That the Government shall acquire title to
all properties not so revoked at the end of the said one-year period: Provided, further, That the Government
shall have the exclusive right of option, but not the obligation, to buy from the concessionaire any or all of
the properties which the concessionaire has the right to remove under this paragraph within ninety days
from the date the concession is renounced, cancelled or terminated: And provided, finally, That the
concessionaire shall maintain said properties, pending decision of the Government to purchase the same,
in as good condition as the condition of said properties on the date of the said renunciation, cancellation or
termination of the concession, ordinary wear and tear and damage caused by circumstances beyond the
control of the concessionaire excepted.
C. In case of renunciation, cancellation or termination of the Exploitation Concession after

the fifteenth year from the date of the renewal, if any, of the concession, all the property mentioned in
the preceding paragraph shall become the property of the Government without payment or
indemnification to the concessionaire.
D. The above provisions do not apply to any refinery built by the concessionaire as said
refinery shall continue to be the exclusive property of the owner thereof even after the termination of
the concession: Provided, That roads and bridges constructed by the concessionaire shall become the
property of the Government.
Transfer and assignment
Holder of concessions under this Act shall not, without previous written approval of the Secretary of
Agriculture and Natural Resources, transfer or assign in whole or in part, their rights on their
concessions; provided that no such transfer or assignment shall be made to a person who is not
qualified to acquire or hold concession under this Act, or who shall hold a total area under exploration
or exploitation concessions, including that being transferred or assigned to him, of more than the
maximum areas allowed under this Act. (ARTICLE 112, RA 387)
Settlement of disputes by agreement
For the purpose of settling or terminating any controversy arising out of the provisions of this Act, other
than those arising out of conflict of applications, the Secretary of Agriculture and Natural Resources is
authorized, to enter into agreement with any petroleum concessionaire, and in case of their failure to come to
such an agreement, the Secretary of Agriculture and Natural Resources shall render his decision thereon, from
which decision the concessionaire adversely affected thereby, may bring the matter to the court of competent
jurisdiction (within forty-five days from the date of his receipt of decision).
WORK OBLIGATIONS, TAXES AND ROYALTIES
Work obligations, special taxes and royalties which are fixed by the provisions of this Act or by the
concession for any of the kinds of concessions to which this Act relates, are considered as inherent on such
concessions after they are granted, and shall not be increased or deceased during the life of the concession to
which they apply; nor shall any other special taxes or levies be applied to such concessions, nor shall
concessionaires under this Act be subject to any provincial, municipal, or other local taxes or levies; nor shall
any sales tax be charged on any petroleum produced from the concession or portion thereof, manufactured by the
concessionaire and used in the working of his concession.
All such concessionaires, however, shall be subject to such taxes as are of general application, in
addition to taxes and other levies specifically provided in this Act
Custom duties
During the first five years following the granting of any concession, the concessionaire may import free
of customs duty, all equipment, machinery, material, instruments, supplies and accessories.
No exemption shall be allowed on goods imported by the concessionaire for his personal use or that of
any others; nor for sale or for re-export; and if any goods on which exemption has been allowed be thus used or
disposed of, the concessionaire is obliged to make a report to the Secretary of Agriculture and Natural Resources
to that effect and to pay such import duty as is due.
What is the purpose of tax exemption?
RA No. 387 was intended to encourage the exploitation, exploration and development of the petroleum
resources of the country by giving it the necessary incentive in the form of tax exmeptions. This is the reason for
the generous grant of tax exemption to those who would invest financial resources towards the achievement of
this national economic goal.
In Commissioner of Customs v. Caltex (Phil.) Inc., the respondent was granted by Secretary of
Agriculture and National Resources a petroleum refining concession with the right to establish and operate a
petroleum refinery in the municipalities of Bauan and Batangas, province of Batangas. The concession made the
provisions of RA No. 387 as integral part.
In its operation, Caltex (Phil.) Inc. used as basic material crude oil imported from abroad. Customs
duties were imposed on this imported crude oil and so, Caltex sought refund. The Cpurt of Tax Appeals ordered
a refund.
On petition for review, the SC held that under ART. 103 of the Act, the petroleum products imported by
respondent for its use during construction of the refinery are exempt from the customs duties and that gasoline
and oil furnished its drivers during the construction job come within the import of the words “material” or
“supplies”.
QUIZ SUGGESTED ANSWERS

Group 1: PD 705 and the Indigenous Peoples Rights Act
1. What is the classification of mangroves or manglares? Explain the juridical history of such
classification and its effects on acquisition.
Mangrove or manglares are classified as public forests, by virtue of a positive act of the
congress through the Administrative Code of 1917. The Administrative Code took effect in October 1,
1917. Prior to the enactment of the Administrative Code, mangroves or manglares are classified as
public lands, as determined by the Court in Montano vs Insular. In the said case, mangroves are defined
as mud flats, alternately washed and exposed by the tide, in which grows various kindred plants which
will not live except when watered by the sea, extending their roots deep into the mud and casting seeds,
which also germinate there. The waters flowing over them are not available for purposes of navigation,
and they may be disposed of without impairment to public interest in what remains. Mangrove swamps
were thus considered agricultural lands susceptible of private appropriation.
The Administrative Code expressly classified mangroves as forest lands, thus not capable of
private appropriation. However, vested rights acquired prior to its enactment could no longer be
disturbed.
2. X was the owner of two cows. One day, X grazed them in Forest Y where Z, a forest ranger
caught him. In his defense, he said that he had legal authorization from the DENR Secretary in
the form of license agreement. Since X does not have such license with him during that time, Z
verified it and found that it was indeed existing. Nonetheless, the prosecutor filed a case insisting
that his failure to bring the document with him makes him liable for Pasturing of Livestock,
under PD 705. Will the criminal action prosper?
No, it will not prosper. In pasturing livestock, lack of actual document while grazing is not a
punishable act. What is required is that the grazing is unauthorized. Whether or not X brought the
document is beside the point. The existence of a valid license agreement is enough to justify the
pasturing.
3. What are the requisites for the transfer of ownership of ancestral lands.
a. The transfer must be made only to members of the same ICCs/IPs
b. It must be in accordance to the customs and traditions of such ICCs/IPs
c. If it is transferred to a non-member, the transfer is subject to a right of redemption for a period of 15
years.
4. A is a holder of a lease grant from the government over a land which was utilized as an
industrial plantation. A constructed roads and other infrastructures over the land. After the end
of the lease term, he went to the Bureau of Forestry and told the Director that he is willing to sell
to the government the improvements he has made on the land. Is his contention correct?
His contention is incorrect because he no longer has rights over the said improvements. PD 705
provides that at the end of the lease term, all roads and constructions by holders of license, permit and
lease shall immediately be transferred to the government immediately. The government is already the
lawful owner of the improvements and A is divested of his right to sell such land, having no ownership
over it.
5. In an action to claim for damages caused by road closures due to illegal logging, who has the
jurisdiction to try the case over the issue of damages? Explain.
It is the civil courts which has jurisdiction to try the case, pursuant to the law on damages
provided in the Civil Code. In the case of Lagua vs Cusi, whether or not the such closure was illegal is
a matter to be established on the part of the aggrieved party, and the determination of such is a
prerequisites before an action for damages may be maintained.
Group 2
Mining
1. How is the Regalian Doctrine applied in establishing ownership in mineral resources?
The Regalian doctrine is intended for the benefit of the State, not of pri vate persons. The rule
simply reserves to the State all minerals that may be found in public and even private land devoted to
agriculture, industrial, commercial, residential or for other purpose other than mining (Republic v.
Court of Appeals and De la Rosa).
Thus, if a person is the owner of the agricultural land in which minerals are discovered, his
ownership of the land does not give him the right to extract or utilize the said minerals without the
permission of the State. Once minerals are discovered in the land, whatever the use to which it is being
devoted at the time, such use may be discontinued by the State to enable it to extract the minerals in the
exercise of its sovereign prerogative (Republic v. Court of Appeals and De la Rosa).
2. Will You Be Mine Company (WYBM),a qualified person in accordance with the law, is a
mining corporation wholly owned by Filipinos. In 2000, WYMB entered into a joint venture
agreement (JVA) with the government for the exploration, development and utilization of
mineral resources in Sitio Kanyangaba, Brgy. Perosakin, Coron, Palawan. The corporation has
been engaged in the industry for five years and has shown proof of their operations. However,
WYBM has not possessed any satisfactory environmental track record issued by the Mines and
Geoscience Bureau. Is the corporation qualified to enter into a joint venture agreement?
No, because the law provides that a qualified person may only enter into any of the three modes
of mineral agreement with the government if the person is engaged in the mining industry for any
length time and if the person possess a satisfactory environmental track record as determined by the
Mines and Geosciences Bureau. As such, WYMB is not qualified to enter into a joint venture
agreement because it failed to possess a satisfactory environmental record.
3. In 1930 A acquired mining right under Philippine Bill of 1902. In 1974 A suffered financial
losses which cause his failure to register his mining right. Due to continuous financial losses A
transfer his right through l absolute sale. In 1978 the government opened the said area for
exploration and issue a permit in favor of X. Upon hearing of the incident B file a case in the
DENR, contending that he has acquired the mining right through absolute sale and that he is the
only one entitled to explore in the said area. Is B correct?
Yes, Mining rights acquired under the Philippine Bill of 1902 and prior to the affectivity of the
1935 Constitution were vested right that could not be impaired even by the government [Republic vs.
Court of Appeals, Nos. L-43938, L-44081, L-44092, April 15, 1988, 160 SCRA 228.] In the case of
Yinlu Bicol Mining Corporation vs. Trans-Asia Oil and energy Development Corporation [GR No.
207942, Jan 12, 2015.] this principle was reiterated, the court held that the mining patents of Yinlu
were issued pursuant to the Philippine Bill of 1902 and were subsisting prior to the effectivity of the
1935 Constitution. Consequently, Yinlu and its predecessors-in-interest had acqui red vested rights in
the disputed mineral lands that could not and should not be impaired even in light of their past failure
to comply with the requirement of registration and annual work obligations . Relevantly, the court
advert to the DENR’s finding that PIMI’s failure to register the patents in 1974 pursuant to PD No. 463
was excusable because of its suffering financial losses at that time. Also, the DENR itself declared that
it had not issued any specific order cancelling the mining patents.
4. Vicente mines a parcel of land in Antamok with gold reserves underneath. He is known as a
pocket miner who employs his neighbors in his mining operations since 1985, although he has no
permit from DENR. In 1986, he mined 51,000 metric tons of gold, which increases every year.
Upon knowing that the People’s Small scale Mining Act was passed, he immediately applied for a
mining contract with the DENR and Mining Regulatory Board but his application was denied.
He filed a case against DENR arguing that under Sec.23 of the law, small scale miners who have
been in actual operation of mineral lands on or before Aug. 1,1987 as determined by the Board,
shall not be dispossessed, ejected or removed from said area provided they comply with the law.
Did the DENR and Mining Regulatory Board act correctly?
Yes. Vicente is not considered a small scale miner. In the case or SR Metals, Inc vs. DENR, the
annual production limit of small scale mining contracts is 50000 metric tons. He is in fact considered a
large scale miner who has been operating without a valid permit since 1985.
5. Enumerate the authority of MGB.

1. To have direct charge in the administration and disposition of mineral lands resources; and mineral
2. To undertake geological, mining, metallurgical, chemical and other researches, as well as mineral
exploration surveys: Provided, that areas closed to mining applications as provided for in Section 15
hereof, the Bureau can undertake studies for purposes of research and development;
3. To confiscate, after due process, surety, performance and guaranty bonds after notice of violation;
4. To recommend to the Secr etary the granting of Mineral Agreements or to endorse to the Secretary
for action by the President the grant of FTAAs, in favor of qualified persons and to monitor compliance
by the contractor with the terms and conditions of .the Mineral Agreements and FTAAs. For this
purpose, an efficient and effective monitoring system shall be established to ascertain periodically
whether or not these objectives are realized;
5. To cancel or to recommend cancellation, after due process, mining rights, mining applications and
mining claims for non-compliance with pertinent laws, rules and regulations;
6. To deputize, when necessary, any member or unit of the Philippine National Police (PNP) and
barangay, duly registered and Department-accredited Non-governmental Organizations (NGO) or any
qualified person to police all mining activities;
7. To assist the Environmental Management Bureau (EMB) under the Department and/or the
Department Regional Office in the processing or conduct of environmental impact assessment in
mining projects; and
8. To exercise such other authority vested by the Act and as provided for in these implementing rules
and regulations.
Group 3
Water, Energy, Fish
1. Kimberly Dimakulangan filed an application for a water permit with the NWRB for the use of
two deep wells located in her land which will be solely devoted as a source of water for her farm
animals. Kimberly submitted proofs that she is a Filipino citizen of legal age as well as other
documents that establish her qualifications.
Since no protest was filed, the application was granted by NWRB and a water permit was
issued in favor of Kimberly.
After the issuance of the permit, Ana Mapanghimasok filed a protest before the NWRB
alleging that the water permit iss ued in favor of kimberly should be invalidated the NWRB erred
in issuing a permit in favor of Kimberly since the application was not made in public. According
to Ana, Kimberly never acquired the right to use the wells. Is Ana's contention correct?
Ana’s contention is incorrect. Kimberly need not secure a water permit since under the law,
when the use of water is solely devoted for watering or dipping of domestic or farm animals, water
permit is not required. Consequently, since no water permit is required in this case, the right to the use
of water is deemed acquired by Kimberly as of the date of actual use.
2. Is the regulation of rates to be charged by public utilities a valid exercise of police power?
Why? Why not?
Yes. In the case of Surigao del Norte Electric Cooperative, Inc vs Energy regulatory board, the
Supreme Court stated that the regulation of rates to be charged by public utilities is founded upon the
police powers of the State and statutes prescribing rules for the control and regulation of public utilities
are a valid exercise of police power. When private property is used for a public purpose and is affected
with public interest, it ceases to be juris privati only and becomes subject to regulation. The regulation
is to promote the common good. Submission to regulation may be withdrawn by the owner by
discontinuing use; but as long as use of the property is continued, the same is subject to public
regulation.
3. What is the thrust of the Philippine energy program under RA 7638 otherwise known as the
DOE Act of 1992?
The thrust of the Philippine energy program under the law is toward privatization of
government agencies related to energy, deregulation of the power and energy industry and reduction of
dependency on oil-fired plants and to encourage free and active participation and investment by the
private sector in all energy activities.
4. Lastikbeks Gasoline Station is situated in San Vicente, Baguio City. Lastikbeks, the owner of
the establishment, refused to comply with the order of the DOE Secretary requiring them to
submit reportorial requirements in relation to their business. The DOE-DOJ Task Force then
directed the city prosecutor to institute an action against Lastikbeks with the RTC in Baguio for
their noncompliance. Will the case prosper?
No, the case will not prosper because the remedy of government action is only available for
violation of Section 11 of RA 8497. Non-compliance with the order of the DOE Secretary, specifically
the non-submission of reportorial requirements in relation to their business is a prohibited act under
Section 12.
5. The commercial fishing vessel "Malia Torralba" was apprehended by authorities and was
found using dynamite and cyanide for fishing in Municipal Waters. As the Secretary of DA, how
should you rule the case?
As the Sec of Dept of Agriculture, I should dismiss the case since the Sec of Dept of
Agriculture has no power to decide on the case. It should be filed before the adjudication committee of
the BFAR.
Group 4
PETROLEUM ACT
1. Define refining under R.A. 387 or the Petroleum Act of 1949?
The term "Refining" means the processing or treating of petroleum by chemical or physical
means for the purpose of making or separating marketable products; not including, however, such
operations, separate from the foregoing, as gas compression, removal of noxious gases, crude oil
stabilization or treatment for emulsion, or any other operation which has as its principal aim the
avoidance of hazard or loss, or which is incidental to production or to transportation. (Art. 72)
2. Give the limitation for allowable exploration areas.

All lands within the territorial limits of the Philippines can be explored, EXCEPT National
Reserve areas, and places with already valid and existing exploration or exploitation concession, or
petroleum drilling leases. These are also only allowed only to qualified persons, which is discretionary
granted by the government. (Art. 6) No person shall be entitled to more than 500,000 hectares of
exploration areas in any one petroleum region nor more than 1,000,000 hecatares in the whole territory
of the Philippines
3. What are the benefits derived from the establishment of oil refineries?
The establishment of a petroleum refinery in the Philippines will undoubtedly contribute much
to the economic welfare of the nation, such as: 1. Additional source of taxes for government, 2. Afford
more opportunities for employment of our people, and 3. May reduce the cost of petroleum products as
the basic needs and essential in progressive industrialization of the economy The operation of such
refinery may also induce the intensification of the search for oil in the Philippines, as there will be a
refinery available to turn into manufactured products the crude petroleums that may be found and
produced locally.
4. B engaged the services of XYZ to transport Cyanide Compounds from Manila to Marawi via
MV Serena. During the voyage, the Philippine Coast Guard conducted a random inspection.
Upon inspection, the Philippine Coast Guard discovered that the MV Serena is loaded with
prohibited hazardous chemical substances. As a result, a fine of P150, 000 were imposed. B
contends that the Philippine Coast Guard has no authority to conduct an inspection, and that the
fine imposed is excessive. If you were the judge, how would you decide the case?
The law specifically provides that the Philippine Coast Guard in coordination with DA and the
Department shall enforce for the enforcement of water quality standards in marine waters, set pursuant
to this Act, specifically from offshore sources. Hence, the authority of the PCG cannot go beyond what
the law provides. As to the excessiveness of the fine, the law states that, the violator shall be fined by
the Secretary, upon the recommendation of the PAB in the amount of not less than Ten thousand pesos
(P10,000.00) nor more than Two hundred thousand pesos (P200,000.00) for every day of violation.
Since, the amount imposed did not exceed the maximum amount of two hundred thousand, it cannot be
considered as excessive, but subject to the discretion of the secretary or PAB.
5. What is the role of the Department of Science and Technology (DOST) in the implementation
of the Philippine Clean Water Act?
DOST, in coordination with the Department and other concerned agencies, shall prepare a
program for the evaluation, verification, development and public dissemination of pollution prevention
and cleaner production technologies.
6. What are the rights of the citizens recognized under Philippine Clean Air Act? Give at least 3.
Section 4 of the Clean Air Act of the Philippines: Recognition of Rights. - Pursuant to the
above-declared principles, the following rights of citizens are hereby sought to be recognized and the
State shall seek to guarantee their enjoyment: (a) The right to breathe clean air; (b) The right to utilize
and enjoy all natural resources according to the principles of sustainable development; (c) The right to
participate in the formulation, planning, implementation and monitoring of environmental policies and
programs and in the decision-making process; (d) The right to participate in the decision-making
process concerning development policies, plans and programs projects or activities that may have
adverse impact on the environment and public health; (e) The right to be informed of the nature and
extent of the potential hazard of any activity, undertaking or project and to be served timely notice of
any significant rise in the level of pollution and the accidental or deliberate release into the atmosphere
of harmful or hazardous substances; (f) The right of access to public records which a citizen may need
to exercise his or her rights effectively under this Act; (g) The right to bring action in court or quasi-
judicial bodies to enjoin all activities in violation of environmental laws and regulations, to compel the
rehabilitation and cleanup of affected area, and to seek the imposition of penal sanctions against
violators of environmental laws; and (h) The right to bring action in court for compensation of personal
damages resulting from the adverse environmental and public health impact of a project or activity.
RULES OF PROCEDURE FOR ENVIRONMENTAL CASES

Based on two constitutional provisions:
 Art II, Sec 15 – right to health, instill health consciousness
 Art II, Sec 16 – balanced & healthful ecology
Covers three actions:
 civil action (Rules 1-6)
Courts with jurisdiction: RTC & MTCs (includes MeTC, MTCC, MCTC)
 special civil action (7-8)
 criminal action (9-22)
Background:
 End-product of valuable inputs from the Forum on environmental justice held through simultaneous
video-conferencing in Baguio City, Iloilo City and Davao City in 2009
 Approved on April 13, 2010 by SC under the leadership of CJ Puno; took effect April 29, 2010
 Landmark rules of procedure on environmental cases pertaining to the protection, preservation and
rehabilitation of natural resources
PART I
RULE 1: GENERAL PROVISIONS
Section 1. Title. — These Rules shall be known as "The Rules of Procedure for Environmental Cases."
Section 2. Scope. — These Rules shall govern the procedure in civil, criminal and special civil actions before the Regional
Trial Courts, Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial
Courts involving enforcement or violations of environmental and other related laws, rules and regulations such as but not
limited to the following:
(a) Act No. 3572, Prohibition Against Cutting of Tindalo, Akli, and Molave Trees;
(b) P.D. No. 705, Revised Forestry Code;
(c) P.D. No. 856, Sanitation Code;
(d) P.D. No. 979, Marine Pollution Decree;
(e) P.D. No. 1067, Water Code;
(f) P.D. No. 1151, Philippine Environmental Policy of 1977;
(g) P.D. No. 1433, Plant Quarantine Law of 1978;
(h) P.D. No. 1586, Establishing an Environmental Impact Statement System Including Other Environmental Management
Related Measures and for Other Purposes;
(i) R.A. No. 3571, Prohibition Against the Cutting, Destroying or Injuring of Planted or Growing Trees, Flowering Plants
and Shrubs or Plants of Scenic Value along Public Roads, in Plazas, Parks, School Premises or in any Other Public Ground;
(j) R.A. No. 4850, Laguna Lake Development Authority Act;
(k) R.A. No. 6969, Toxic Substances and Hazardous Waste Act;
(l) R.A. No. 7076, People’s Small-Scale Mining Act;
(m) R.A. No. 7586, National Integrated Protected Areas System Act including all laws, decrees, orders, proclamations and
issuances establishing protected areas;
(n) R.A. No. 7611, Strategic Environmental Plan for Palawan Act;
(o) R.A. No. 7942, Philippine Mining Act;
(p) R.A. No. 8371, Indigenous Peoples Rights Act;
(q) R.A. No. 8550, Philippine Fisheries Code;
(r) R.A. No. 8749, Clean Air Act;
(s) R.A. No. 9003, Ecological Solid Waste Management Act;
(t) R.A. No. 9072, National Caves and Cave Resource Management Act;
(u) R.A. No. 9147, Wildlife Conservation and Protection Act;
(v) R.A. No. 9175, Chainsaw Act;
(w) R.A. No. 9275, Clean Water Act;
(x) R.A. No. 9483, Oil Spill Compensation Act of 2007; and
(y) Provisions in C.A. No. 141, The Public Land Act; R.A. No. 6657, Comprehensive Agrarian Reform Law of 1988; R.A.
No. 7160, Local Government Code of 1991; R.A. No. 7161, Tax Laws Incorporated in the Revised Forestry Code and Other
Environmental Laws (Amending the NIRC); R.A. No. 7308, Seed Industry Development Act of 1992; R.A. No. 7900,
High-Value Crops Development
Rules of Procedure for Environmental Cases Act; R.A. No. 8048, Coconut Preservation Act; R.A. No. 8435, Agriculture
and Fisheries Modernization Act of 1997; R.A. No. 9522, The Philippine Archipelagic Baselines Law; R.A. No. 9593,
Renewable Energy Act of 2008; R.A. No. 9637, Philippine Biofuels Act; and other existing laws that relate to the
conservation, development, preservation, protection and utilization of the environment and natural resources.
Section 3. Objectives. - The objectives of these Rules are:
(a) To protect and advance the constitutional right of the people to a balanced and healthful ecology;
(b) To provide a simplified, speedy and inexpensive procedure for the enforcement of environmental rights and duties
recognized under the Constitution, existing laws, rules and regulations, and international agreements;
(c) To introduce and adopt innovations and best practices ensuring the effective enforcement of remedies and redress for
violation of environmental laws; and
(d) To enable the courts to monitor and exact compliance with orders and judgments in environmental cases.
OBJECTIVES (P-P-I-E)
a. protect & advance right to BHE
b. provide a SSI procedure
c. introduce & adopt innovations & best practices
d. monitor & exact compliance
Section 4. Definition of Terms. -
(a) By-product or derivatives means any part taken or substance extracted from wildlife, in raw or in processed form
including stuffed animals and herbarium specimens.
(b) Consent decree refers to a judicially-approved settlement between concerned parties based on public interest and public
policy to protect and preserve the environment.
(c) Continuing mandamus is a writ issued by a court in an environmental case directing any agency or instrumentality of the
government or officer thereof to perform an act or series of acts decreed by final judgment which shall remain effective
until judgment is fully satisfied.
(d) Environmental protection order (EPO) refers to an order issued by the court directing or enjoining any person or
government agency to perform or desist from performing an act in order to protect, preserve or rehabilitate the environment.
(e) Mineral refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding
energy materials such as coal, petroleum, natural gas, radioactive materials and geothermal energy.
(f) Precautionary principle states that when human activities may lead to threats of serious and irreversible damage to the
environment that is scientifically plausible but uncertain, actions shall be taken to avoid or diminish that threat.
(g) Strategic lawsuit against public participation (SLAPP) refers to an action whether civil, criminal or administrative,
brought against any person, institution or any government agency or local government unit or its officials and employees,
with the intent to harass, vex, exert undue pressure or stifle any legal recourse that such person, institution or government
agency has taken or may take in the enforcement of environmental laws, protection of the environment or assertion of
environmental rights.
(h) Wildlife means wild forms and varieties of flora and fauna, in all developmental stages including those which are in
captivity or are being bred or propagated.
TERMS
By-product – it is any part taken or substance extracted from wildlife, in raw or in processed form, including
stuffed animals and herbarium specimens.
Mineral – all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding
energy materials such as coal, petroleum, natural gas, radioactive materials and geothermal energy.
Wildlife – wild forms and varieties of flora and fauna, in all developmental stages including those which are in
captivity or are being bred or propagated.
Remedies, etc
Consent decree – judicially-approved settlement between concerned parties based on public interest and
public policy to protect and preserve the environment.
Continuing mandamus – writ issued by a court in an environmental case directing any:
(a) agency or instrumentality of the government;or
(b) or officer of any agency/instrumentality
to perform an act or series of acts decreed by final judgment which shall remain effective until judgment is fully
satisfied.
EPO – an order issued by the court directing or enjoining any: (a) person; or (b) government agency to perform
or desist from performing an act in order to protect, preserve or rehabilitate the environment.
 It performs a similar function as a prohibitory or mandatory injunction, but an EPO specifically applies to
environmental cases
SLAPP – an action whether civil, criminal or administrative, brought against any PIGLO:
(a) person;
(b) institution;
(c) government agency;
(d) local government unit; or
(e) officials and employees of (c) or (d)
with the intent to HVEUS harass, vex, exert undue pressure or stifle any legal recourse that such person,
institution or government agency has taken or may take in the enforcement of environmental laws, protection of
the environment or assertion of environmental rights.
Precautionary principle – when human activities may lead to threats of serious and irreversible damage to
the environment that is scientifically plausible but uncertain, actions shall be taken to avoid or diminish that
threat.
PART II: CIVIL PROCEDURE

RULE 2: PLEADINGS AND PARTIES
Section 1. Pleadings and motions allowed. — The pleadings and motions that may be filed are complaint, answer which
may include compulsory counterclaim and cross-claim, motion for intervention, motion for discovery and motion for
reconsideration of the judgment.
Motion for postponement, motion for new trial and petition for relief from judgment shall be allowed in highly meritorious
cases or to prevent a manifest miscarriage of justice.
Section 2. Prohibited pleadings or motions. — The following pleadings or motions shall not be allowed:
(a) Motion to dismiss the complaint;
(b) Motion for a bill of particulars;
(c) Motion for extension of time to file pleadings, except to file answer, the extension not to exceed fifteen (15) days;
(d) Motion to declare the defendant in default;
(e) Reply and rejoinder; and
(f) Third party complaint.
Pleadings/motions
A. Allowed (C-A-MI-MD-MR)
 complaint – a pleading alleging the plaintiff's cause of action or causes of action
It must contain a concise statement of the ultimate facts constituting the:
a. cause of action of plaintiff; and
b. reliefs prayed for
 answer which may include compulsory counterclaim and cross-claim
answer – a pleading in which a defending party sets forth his defenses
counterclaim – any claim which a defending party may have against an opposing party; alleged in the answer
but is not part of the answer; it is a distinct and independent cause of action; it may be :
a. compulsory – arises out of ir in connection with the transaction or occurrence constituting the subject matter of
the opposing party's claim and doesn't require the presence of third parties for its adjudication; may not be
answered)
b. permissive – must be answered; doesn't arise from the same transaction or occurence of the subject matter
cross-claim – any claim by one party against a co-party arising out of the transaction or occurrence that is the
subject matter either of the original action or of a counterclaim.
 motion for intervention - only a stranger can intervene; allowed to broaden public participation in the
enforcement of environment laws
A person, not party to the case who has legal interest on the litigation or so situated as to be adversely affected;
must be with leave of court; must be filed before rendition of judgment
 motion for discovery – under the Roc:
a. despositions pending action (Rule 23)
b. depositions before action or pending appeal (Rule 24)
c. interrogatories to parties (Rule 25)
d. admission by adverse party (Rule 26)
e. production or inspection of documents or things (Rule 27)
f. physical and mental examination of persons (Rule 28)
B. Allowed in highly meritorious cases, to prevent a manifest miscarriage of justice: (MP-MN-PR)

 motion for postponement
Usual ground: acts of God (e.g. during pretrial where the schedule of hearings is fixed; the lawyer cannot attend
by reason of a landslide, etc)
 motion for new trial
When: within the period of taking the appeal; where the party doesn't agree with the judgment or partially
disagrees
Grounds:
a. fraud, accident, mistake, excusable negligence which ordinary prudence could not have guarded against
b. newly discovered evidence which could probably alter the result; requisites:
(i) evidence was discovered after trial
(ii) such evidence couldn't have have discovered and produced, with reasonable prudence and diligence
(iii) material, not merely corrobative; such that if admitted, it would probably change the judgment
 motion for reconsideration of the judgment
When: within the period of taking an appeal
Grounds:
a. award of damages is exessive
b. insuffiency of evidence to justify decision/final order
c. decision/final order is contrary to law
 petition for relief from judgment
Ground: judgment was entered through fraud, accident or damage
When: Must be filed before 60 days from knowledge, not to exceed 6 months from finality of judgment
C. Prohibited: (MD-MB-MDD-RR-3PC)
Rationale: to comply with the objective of the Rules to speedy and expedient disposition of cases
 Motion to dismiss the complaint
What then is a party's remedy when he wants the civil caseagainst him to be dismissed?
-Make it a part of his affirimative defense
 Motion for a bill of particulars
 Motion for extension of time to file pleadings, except to file answer, the extension not to exceed fifteen
(15) days
 Motion to declare the defendant in default
-available when the defendant fails to file an answer; but this is prohibited in environmental cases because this is
not a function of the complainant; it is the function of the court to declare defendant in default
 Reply and rejoinder
 Third party complaint
Section 3. Verified complaint. — The verified complaint shall contain the names of the parties, their addresses, the cause of
action and the reliefs prayed for.
The plaintiff shall attach to the verified complaint all evidence proving or supporting the cause of action consisting of the
affidavits of witnesses, documentary evidence and if possible, object evidence. The affidavits shall be in question and
answer form and shall comply with the rules of admissibility of evidence.
The complaint shall state that it is an environmental case and the law involved. The complaint shall also include a
certification against forum shopping. If the complaint is not an environmental complaint, the presiding judge shall refer it to
the executive judge for re-raffle.
Verified Complaint
Contents of complaint
 personal circumstances (names of the parties, their addresses)
 law violated
 affidavits of witnesses
 cert against forum shopping
 cause of action
 reliefs prayed for
Attachments
 affidavits of witnesses – in Q&A form
 documentary evidence
 object evidence if possible
Section 4. Who may file. — Any real party in interest, including the government and juridical entities authorized by law,
may file a civil action involving the enforcement or violation of any environmental law.
Section 5. Citizen suit. — Any Filipino citizen in representation of others, including minors or generations yet unborn, may
file an action to enforce rights or obligations under environmental laws. Upon the filing of a citizen suit, the court shall
issue an order which shall contain a brief description of the cause of action and the reliefs prayed for, requiring all interested
parties to manifest their interest to intervene in the case within fifteen (15) days from notice thereof. The plaintiff may
publish the order once in a newspaper of a general circulation in the Philippines or furnish all affected barangays copies of
said order.
Citizen suits filed under R.A. No. 8749 and R.A. No. 9003 shall be governed by their respective provisions.
Locus standi
Civil actions (involving the enforcement or violation of any environmental law) – filed by any person
(natural or juridical) with real interest including the government and jurididcal entities
Who is a real party?
 a party who stands to be benefitted by the judgment in the suit; or
 a party entitled to the avails of the suit.
Who is a “necessary party”?
 One who is not indispensable, but who ought to be joined as a party if complete relief is to be accorded
to those already parties, or for the complete determination or settlement of the claim subject of the action
Citizen suits – filed by Filipino citizen (individual or corporation) in representation of others, including minors or
generations yet unborn; filed for all types of environmental cases
 It is filed in public interest, so no proof of personal injury is required.
Section 6. Service of the complaint on the government or its agencies. - Upon the filing of the complaint, the plaintiff is
required to furnish the government or the appropriate agency, although not a party, a copy of the complaint. Proof of service
upon the government or the appropriate agency shall be attached to the complaint.
Service of copy of complaint to gov't agency
It is mandatory for the plaintiff to notify the proper agency of the government.
 The DENR is the primary agency charged with the enforcement of environmental laws.
 The OSG, being the law office/legal representative of the government, should also be served
with a copy of the complaint.
Section 7. Assignment by raffle. - If there is only one (1) designated branch in a multiple-sala court, the executive judge
shall immediately refer the case to said branch. If there are two (2) or more designated branches, the executive judge shall
conduct a special raffle on the day the complaint is filed.
Section 8. Issuance of Temporary Environmental Protection Order (TEPO). - If it appears from the verified complaint with
a prayer for the issuance of an Environmental Protection Order (EPO) that the matter is of extreme urgency and the
applicant will suffer grave injustice and irreparable injury, the executive judge of the multiple-sala court before raffle or the
presiding judge of a single-sala court as the case may be, may issue ex parte a TEPO effective for only seventy-two (72)
hours from date of the receipt of the TEPO by the party or person enjoined. Within said period, the court where the case is
assigned, shall conduct a summary hearing to determine whether the TEPO may be extended until the termination of the
case.
The court where the case is assigned, shall periodically monitor the existence of acts that are the subject matter of the TEPO
even if issued by the executive judge, and may lift the same at any time as circumstances may warrant.
The applicant shall be exempted from the posting of a bond for the issuance of a TEPO.
Section 9. Action on motion for dissolution of TEPO. - The grounds for motion to dissolve a TEPO shall be supported by
affidavits of the party or person enjoined which the applicant may oppose, also by affidavits.
The TEPO may be dissolved if it appears after hearing that its issuance or continuance would cause irreparable damage to
the party or person enjoined while the applicant may be fully compensated for such damages as he may suffer and subject to
the posting of a sufficient bond by the party or person enjoined. (if TEPO was issued with grave abuse of discretion)
EPO
It is an order issued by the court directing or enjoining any person or government agency to perform or desist
from performing an act in order to protect, preserve or rehabilitate the environment.
 It performs a similar function as a prohibitory or mandatory injunction, but an EPO specifically
applies to environmental cases
TEPO
The procedure for its issuance stems from the same procedure for the issuance of a TRO.
 A TEPO integrates both prohibitive and mandatory reliefs in order ro appropriately address the
factual circumstances surrounding the case.
 It is a remedy availble in both civil and criminal actions. It is also available under the writ of
kalikasan or of continuing mandamus as a relief or means of expediting the proceedings and preserving rights.
Who issues it?
 Executive judge of a multi-sala court before raffle; or presiding judge of a single-sala court
Requisites:
 It must be alleged in the complaint and included in the prayer.
 The matter is of extreme urgency.
 The applicant will suffer grave injustice or irreparable injury from the violation complained of.
Effectivity: A TEPO is effective only for 72 hours from date of receipt of the TEPO by the party enjoined.
Hearing
 Within the 72-hour period, the court where the case is assigned will conduct a summary
hearing to determine whether to extend to TEPO until the termination of the case
 This requirement is fundamental. Failure to comply is not only gross ignorance of rules and
procedure, but also an outright denial of due process to the party/ies.
 Dissolution
 If, after hearing, it would appear that the TEPO would instead cause irreparable damage to the
adverse party (enjoined by the TEPO) while the applicant may be fully compensated for such damages he may
suffer, then the party enjoined may post a bond and the TEPO may be dissolved.
Section 10. Prohibition against temporary restraining order (TRO) and preliminary injunction. - Except the Supreme
Court, no court can issue a TRO or writ of preliminary injunction against lawful actions of government agencies that
enforce environmental laws or prevent violations thereof.
TRO & Writ of Preliminary Injuction
 Only the Supreme Court may issue these
Rationale: The practice of issuing these in environmental cases (involving disputes in license, permits, etc for the
exploration, development, etc of natural resources) was found undesirable because:
 It disrupts or hampers the smooth functioning of the administrative machinery having charge of the
natural resources or the pursuit of essential gov't projects; and
 It is a contributory deterrent to the development and exploitation of our natural resources.
Section 11. Report on TEPO, EPO, TRO or preliminary injunction. - The judge shall report any action taken on a TEPO,
EPO, TRO or a preliminary injunction, including its modification and dissolution, to the Supreme Court, through the Office
of the Court Administrator, within ten (10) days from the action taken.
Section 12. Payment of filing and other legal fees. - The payment of filing and other legal fees by the plaintiff shall be
deferred until after judgment unless the plaintiff is allowed to litigate as an indigent. It shall constitute a first lien on the
judgment award.
For a citizen suit, the court shall defer the payment of filing and other legal fees that shall serve as first lien on the judgment
award.
Section 13. Service of summons, orders and other court processes. - The summons, orders and other court processes may be
served by the sheriff, his deputy or other proper court officer or for justifiable reasons, by the counsel or representative of
the plaintiff or any suitable person authorized or deputized by the court issuing the summons.
Any private person who is authorized or deputized by the court to serve summons, orders and other court processes shall for
that purpose be considered an officer of the court.
The summons shall be served on the defendant, together with a copy of an order informing all parties that they have fifteen
(15) days from the filing of an answer, within which to avail of interrogatories to parties under Rule 25 of the Rules of
Court and request for admission by adverse party under Rule 26, or at their discretion, make use of depositions under Rule
23 or other measures under Rules 27 and 28.
Should personal and substituted service fail, summons by publication shall be allowed. In the case of juridical entities,
summons by publication shall be done by indicating the names of the officers or their duly authorized representatives.
Section 14. Verified answer. - Within fifteen (15) days from receipt of summons, the defendant shall file a verified answer to
the complaint and serve a copy thereof on the plaintiff. The defendant shall attach affidavits of witnesses, reports, studies of
experts and all evidence in support of the defense.
Affirmative and special defenses not pleaded shall be deemed waived, except lack of jurisdiction.
Cross-claims and compulsory counterclaims not asserted shall be considered barred. The answer to counterclaims or cross-
claims shall be filed and served within ten (10) days from service of the answer in which they are pleaded.
Section 15. Effect of failure to answer. - Should the defendant fail to answer the complaint within the period provided, the
court shall declare defendant in default and upon motion of the plaintiff, shall receive evidence ex parte and render
judgment based thereon and the reliefs prayed for.
RULE 3: PRE-TRIAL
Section 1. Notice of pre-trial. - Within two (2) days from the filing of the answer to the counterclaim or cross-claim, if any,
the branch clerk of court shall issue a notice of the pre-trial to be held not later than one (1) month from the filing of the last
pleading.
The court shall schedule the pre-trial and set as many pre-trial conferences as may be necessary within a period of two (2)
months counted from the date of the first pre-trial conference.
Section 2. Pre-trial brief. - At least three (3) days before the pretrial, the parties shall submit pre-trial briefs containing the
following:
(a) A statement of their willingness to enter into an amicable settlement indicating the desired terms thereof or to submit the
case to any of the alternative modes of dispute resolution;
(b) A summary of admitted facts and proposed stipulation of facts;
(c) The legal and factual issues to be tried or resolved. For each factual issue, the parties shall state all evidence to support
their positions thereon. For each legal issue, parties shall state the applicable law and jurisprudence supporting their
respective positions thereon;
(d) The documents or exhibits to be presented, including depositions, answers to interrogatories and answers to written
request for admission by adverse party, stating the purpose thereof;
(e) A manifestation of their having availed of discovery procedures or their intention to avail themselves of referral to a
commissioner or panel of experts;
(f) The number and names of the witnesses and the substance of their affidavits;
(g) Clarificatory questions from the parties; and
(h) List of cases arising out of the same facts pending before other courts or administrative agencies. Failure to comply with
the required contents of a pre-trial brief may be a ground for contempt.
Failure to file the pre-trial brief shall have the same effect as failure to appear at the pre-trial.
Section 3. Referral to mediation. - At the start of the pre-trial conference, the court shall inquire from the parties if they
have settled the dispute; otherwise, the court shall immediately refer the parties or their counsel, if authorized by their
clients, to the Philippine Mediation Center (PMC) unit for purposes of mediation. If not available, the court shall refer the
case to the clerk of court or legal researcher for mediation.
Mediation must be conducted within a non-extendible period of thirty (30) days from receipt of notice of referral to
mediation.
The mediation report must be submitted within ten (10) days from the expiration of the 30-day period.
Section 4. Preliminary conference. - If mediation fails, the court will schedule the continuance of the pre-trial. Before the
scheduled date of continuance, the court may refer the case to the branch clerk of court for a preliminary conference for the
following purposes:
(a) To assist the parties in reaching a settlement;
(b) To mark the documents or exhibits to be presented by the parties and copies thereof to be attached to the records after
comparison with the originals;
(c) To ascertain from the parties the undisputed facts and admissions on the genuineness and due execution of the
documents marked as exhibits;
(d) To require the parties to submit the depositions taken under Rule 23 of the Rules of Court, the answers to written
interrogatories under Rule 25, and the answers to request for admissions by the adverse party under Rule 26;
(e) To require the production of documents or things requested by a party under Rule 27 and the results of the physical and
mental examination of persons under Rule 28;
(f) To consider such other matters as may aid in its prompt disposition;
(g) To record the proceedings in the "Minutes of Preliminary Conference" to be signed by both parties or their counsels;
(h) To mark the affidavits of witnesses which shall be in question and answer form and shall constitute the direct
examination of the witnesses; and
(i) To attach the minutes together with the marked exhibits before the pre-trial proper.
The parties or their counsel must submit to the branch clerk of court the names, addresses and contact numbers of the
affiants.
During the preliminary conference, the branch clerk of court shall also require the parties to submit the depositions taken
under Rule 23 of the Rules of Court, the answers to written interrogatories under Rule 25 and the answers to request for
admissions by the adverse party under Rule 26. The branch clerk of court may also require the production of documents or
things requested by a party under Rule 27 and the results of the physical and mental examination of persons under Rule 28.
Section 5. Pre-trial conference; consent decree. - The judge shall put the parties and their counsels under oath, and they
shall remain under oath in all pre-trial conferences.
The judge shall exert best efforts to persuade the parties to arrive at a settlement of the dispute. The judge may issue a
consent decree approving the agreement between the parties in accordance with law, morals, public order and public policy
to protect the right of the people to a balanced and healthful ecology.
Evidence not presented during the pre-trial, except newly-discovered evidence, shall be deemed waived.
Section 6. Failure to settle. - If there is no full settlement, the judge shall:
(a) Adopt the minutes of the preliminary conference as part of the pre-trial proceedings and confirm the markings of
exhibits or substituted photocopies and admissions on the genuineness and due execution of documents;
(b) Determine if there are cases arising out of the same facts pending before other courts and order its consolidation if
warranted;
(c) Determine if the pleadings are in order and if not, order the amendments if necessary;
(d) Determine if interlocutory issues are involved and resolve the same;
(e) Consider the adding or dropping of parties;
(f) Scrutinize every single allegation of the complaint, answer and other pleadings and attachments thereto, and the contents
of documents and all other evidence identified and pre-marked during pre-trial in determining further admissions;
(g) Obtain admissions based on the affidavits of witnesses and evidence attached to the pleadings or submitted during pre-
trial;
(h) Define and simplify the factual and legal issues arising from the pleadings and evidence. Uncontroverted issues and
frivolous claims or defenses should be eliminated;
(i) Discuss the propriety of rendering a summary judgment or a judgment based on the pleadings, evidence and admissions
made during pre-trial;
(j) Observe the Most Important Witness Rule in limiting the number of witnesses, determining the facts to be proved by
each witness and fixing the approximate number of hours per witness;
(k) Encourage referral of the case to a trial by commissioner under Rule 32 of the Rules of Court or to a mediator or
arbitrator under any of the alternative modes of dispute resolution governed by the Special Rules of Court on Alternative
Dispute Resolution;
(l) Determine the necessity of engaging the services of a qualified expert as a friend of the court (amicus curiae); and
(m) Ask parties to agree on the specific trial dates for continuous trial, comply with the one-day examination of witness
rule, adhere to the case flow chart determined by the court which shall contain the different stages of the proceedings up to
the promulgation of the decision and use the time frame for each stage in setting the trial dates.
Section 7. Effect of failure to appear at pre-trial. - The court shall not dismiss the complaint, except upon repeated and
unjustified failure of the plaintiff to appear. The dismissal shall be without prejudice, and the court may proceed with the
counterclaim.
If the defendant fails to appear at the pre-trial, the court shall receive evidence ex parte.
Section 8. Minutes of pre-trial. - The minutes of each pre-trial conference shall contain matters taken up therein, more
particularly admissions of facts and exhibits, and shall be signed by the parties and their counsel.
Section 9. Pre-trial order. - Within ten (10) days after the termination of the pre-trial, the court shall issue a pre-trial order
setting forth the actions taken during the pre-trial conference, the facts stipulated, the admissions made, the evidence
marked, the number of witnesses to be presented and the schedule of trial. Said order shall bind the parties, limit the trial to
matters not disposed of and control the course of action during the trial.
Section 10. Efforts to settle. - The court shall endeavor to make the parties agree to compromise or settle in accordance with
law at any stage of the proceedings before rendition of judgment.
RULE 4: TRIAL
Section 1. Continuous trial. - The judge shall conduct continuous trial which shall not exceed two (2) months from the date
of the issuance of the pre-trial order.
Before the expiration of the two-month period, the judge may ask the Supreme Court for the extension of the trial period for
justifiable cause.
Section 2. Affidavits in lieu of direct examination. - In lieu of direct examination, affidavits marked during the pre-trial shall
be presented as direct examination of affiants subject to cross-examination by the adverse party.
Section 3. One-day examination of witness rule. - The court shall strictly adhere to the rule that a witness has to be fully
examined in one (1) day, subject to the court’s discretion of extending the examination for justifiable reason. After the
presentation of the last witness, only oral offer of evidence shall be allowed, and the opposing party shall immediately
interpose his objections. The judge shall forthwith rule on the offer of evidence in open court.
Section 4. Submission of case for decision; filing of memoranda. - After the last party has rested its case, the court shall
issue an order submitting the case for decision.
The court may require the parties to submit their respective memoranda, if possible in electronic form, within a non-
extendible period of thirty (30) days from the date the case is submitted for decision.
The court shall have a period of sixty (60) days to decide the case from the date the case is submitted for decision.
Section 5. Period to try and decide. - The court shall have a period of one (1) year from the filing of the complaint to try
and decide the case. Before the expiration of the one-year period, the court may petition the Supreme Court for the
extension of the period for justifiable cause.
The court shall prioritize the adjudication of environmental cases.
Chronology
 Filing of complaint, etc by plaintiff
 Service (furnishing) of copy of complaint to the government or appropriate agenct although not a party
 Assignment by raffle (exec judge)
 If the matter is of extreme urgency + applicant will suffer grave injustice or irreparable injury, and the
complaint has prayer for EPO, court will issue a Temporary EPO effective for 72 hours upon notice to the other
party
 Summary hearing on whether to extend TEPO, which shall not exceed 20 days or until the termination
of the case
 If it is found that the TEPO will cause irreparable damage to the party enjoined by it, and the plaintiff may
be fully compensated, TEPO will be dissolved
 Judge will report to SC through the OCA within 10 days from the action taken on a TEPO, EPO, etc
 Court will decide if it will issue a permanent EPO
 Service of summons to defendant
 Within 15 days from receipt of summons, filing of answer by defendant, which must be verified, and he
must attach evidences and give copy to complainant
 Defenses not pleadedare deemed waived
 Cross-claims and compulsory counterclaims not asserted are barred
 Failure to answer = defendant will be declared in default by the court and upon plaintiff's motion (to
present evidence ex parte, which means without the defendant's participation; note: he is still entitled to all
notices coming from the court), court will receive evidence ex parte and render judgment based on them
 Preliminary conference
- before office of clerk of court
- set dates, mark evidences, name witnesses
 Pretrial
- adopt the minutes of preliminary conference
 Within 2 days from filing of answer to CC or CCC, clerk will issue a notice of pretrial
 Pretrial should be held not later than 1 month from filing of last pleading
 At the start of the pretrial conference, the court will ask the parties if they have settled the dispute.
 If not, the court will refer them to the PMC unit for mediation.
 Mediation must be conducted within 30 days from notice. The report must be submitted within 10 days
from the expiration of the 30-day period (on the 20 th day)
 If the mediation fails, the pretrial will continue
 The judge should exert best efforts in persuading the parties to settle the dispute. He may issue a
Consent Decree approving the agreement between the parties.
 10 days after the pretrial, the court shall issue a Pre-trial Order, which binds the parties and limits the
trial to matters not disposed of and control the course of action during the trial. It sets forth:
 the actions taken during the pre-trial conference
 the facts stipulated
 the admissions made
 the evidence marked
 the number of witnesses to be presented
 the schedule of trial
Most Important Witness Rule - limit the number of witnesses, determine the facts to be proved by each
witness and fix the approximate number of hours per witness
 Trial Proper
 It must be continuous and not exceed 2 months from issuance of Pretrial Order. (This means the parties
have 2 months to finish with their witnesses.)
 Before the expiration of the 2-month period, however, the judge may ask the SC for extension if there is
a justifiable cause.
 1-day rule: a witness must be fully examined in one day (cross-examination right after direct
examination. The court may exercise discretion in extending the examination but only for a justifiable reason.
 After the last witness, only oral evidence is allowed and the opposing party must immediately interpose
objections. The judge will rule on the evidence in open court.
 After the last party rests its case, the court will issue an order submitting the case for decision.
 The parties may be required to submit memoranda (electronic form if possible) within 30 days from the
aforementioned order.
 The court must decide the case within 60 days from the order submitting it for decision.
 Decision
The entire case must be decided within 1 year from the filing of the complaint but the judge may petition the SC
for extension for a justifiable cause.
 The court should prioritze the adjudication of environmental cases.
 Inclusions: everything alleged in complaint and proven during trial will be granted (issuance of PEPO,
attoryney's fees, etc); Decision is final and executory.
RULE 5
JUDGMENT AND EXECUTION
Section 1. Reliefs in a citizen suit. - If warranted, the court may grant to the plaintiff proper reliefs which shall include the
protection, preservation or rehabilitation of the environment and the payment of attorney’s fees, costs of suit and other
litigation expenses. It may also require the violator to submit a program of rehabilitation or restoration of the environment,
the costs of which shall be borne by the violator, or to contribute to a special trust fund for that purpose subject to the
control of the court.
Section 2. Judgment not stayed by appeal. - Any judgment directing the performance of acts for the protection, preservation
or rehabilitation of the environment shall be executory pending appeal unless restrained by the appellate court.
Section 3. Permanent EPO; writ of continuing mandamus. - In the judgment, the court may convert the TEPO to a
permanent EPO or issue a writ of continuing mandamus directing the performance of acts which shall be effective until the
judgment is fully satisfied.
The court may, by itself or through the appropriate government agency, monitor the execution of the judgment and require
the party concerned to submit written reports on a quarterly basis or sooner as may be necessary, detailing the progress of
the execution and satisfaction of the judgment. The other party may, at its option, submit its comments or observations on
the execution of the judgment.
Section 4. Monitoring of compliance with judgment and orders of the court by a commissioner. - The court may motu
proprio, or upon motion of the prevailing party, order that the enforcement of the judgment or order be referred to a
commissioner to be appointed by the court. The commissioner shall file with the court written progress reports on a
quarterly basis or more frequently when necessary.
Section 5. Return of writ of execution. - The process of execution shall terminate upon a sufficient showing that the decision
or order has been implemented to the satisfaction of the court in accordance with Section 14, Rule 39 of the Rules of Court.
Judgment & Execution
Reliefs:
 for protection, preservation or rehabilitation of the environment
 payment of attorney’s fees, costs of suit and other litigation expenses
 Court may also require violator to submit a program of rehabilitation or restoration of the
environment, the costs either:
 borne by the violator; or
 violator may contribute to a special trust fund
Effect of appeal – the judgment is executory even if there is an appeal filed, unless the appellate court restrains
the judgment
Permanent EPO / Continuing Mandamus – the court may convert the TEPO or issue a writ of continuing
mandamus directing performance of acts, effective until judgment is satisfied, that is, upon sufficient showing
that the order has been implemented to the court's satisfaction
Return of writ of execution
RoC, Section 14. The writ of execution shall be returnable to the court issuing it immediately after the judgment
has been satisfied in part or in full. If the judgment cannot be satisfied in full within thirty (30) days after his
receipt of the writ, the officer shall report to the court and state the reason therefor. Such writ shall continue in
effect during the period within which the judgment may be enforced by motion.
The officer shall make a report to the court every thirty (30) days on the proceedings taken thereon until the
judgment is satisfied in full, or its effectivity expires. The returns or periodic reports shall set forth the whole of
the proceedings taken, and shall be filed with the court and copies thereof promptly furnished the parties.
RULE 6
STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION
Section 1. Strategic lawsuit against public participation (SLAPP). - A legal action filed to harass, vex, exert undue pressure
or stifle any legal recourse that any person, institution or the government has taken or may take in the enforcement of
environmental laws, protection of the environment or assertion of environmental rights shall be treated as a SLAPP and
shall be governed by these Rules.
Section 2. SLAPP as a defense; how alleged. - In a SLAPP filed against a person involved in the enforcement of
environmental laws, protection of the environment, or assertion of environmental rights, the defendant may file an answer
interposing as a defense that the case is a SLAPP and shall be supported by documents, affidavits, papers and other
evidence; and, by way of counterclaim, pray for damages, attorney’s fees and costs of suit.
The court shall direct the plaintiff or adverse party to file an opposition showing the suit is not a SLAPP, attaching evidence
in support thereof, within a non-extendible period of five (5) days from receipt of notice that an answer has been filed.
The defense of a SLAPP shall be set for hearing by the court after issuance of the order to file an opposition within fifteen
(15) days from filing of the comment or the lapse of the period.
Section 3. Summary hearing. - The hearing on the defense of a SLAPP shall be summary in nature. The parties must submit
all available evidence in support of their respective positions. The party seeking the dismissal of the case must prove by
substantial evidence that his act for the enforcement of environmental law is a legitimate action for the protection,
preservation and rehabilitation of the environment. The party filing the action assailed as a SLAPP shall prove by
preponderance of evidence that the action is not a SLAPP and is a valid claim.
Section 4. Resolution of the defense of a SLAPP. - The affirmative defense of a SLAPP shall be resolved within thirty (30)
days after the summary hearing. If the court dismisses the action, the court may award damages, attorney’s fees and costs of
suit under a counterclaim if such has been filed. The dismissal shall be with prejudice.
If the court rejects the defense of a SLAPP, the evidence adduced during the summary hearing shall be treated as evidence
of the parties on the merits of the case. The action shall proceed in accordance with the Rules of Court.
SLAPP
Definition: It is a legal action filed to harass, vex, exert undue pressure or stifle any legal recourse that any
person, institution or the government has taken or may take in the enforcement of environmental laws, protection
of the environment or assertion of environmental rights.
 In his Answer, the defendant may interpose the defense that the case against him is a SLAPP. (A bit
similar to a justifying circumstance. Ish.)
 Within 5 days from notice, the plaintiff will be directed to file an opposition, showing that the suit is not a
SLAPP.
 Within 15 days, the court will hear the defense. Such hearing is summary in nature – parties must
submit all available evidence.
 Defendant invoking SLAPP defense must prove by substantial evidence that his act was legitimate.
 Plaintiff shall prove by preponderance of evidence that what he filed is not a SLAPP and is a valid
claim.
 Within 30 days after the summary hearing, the defense shall be resolved:
 If the court accepts the defense, case will be dismissed and damages awarded, etc. Res judicata will
apply.
 If court rejects the defense, the case will proceed, and evidence presented during the summary hearing
will be used as evidence on the merits of the case.
PART III: SPECIAL CIVIL ACTIONS
RULE 7
WRIT OF KALIKASAN
Section 1. Nature of the writ. - The writ is a remedy available to a natural or juridical person, entity authorized by law,
people’s organization, non-governmental organization, or any public interest group accredited by or registered with any
government agency, on behalf of persons whose constitutional right to a balanced and healthful ecology is violated, or
threatened with violation by an unlawful act or omission of a public official or employee, or private individual or entity,
involving environmental damage of such magnitude as to prejudice the life, health or property of inhabitants in two or more
cities or provinces.
Section 2. Contents of the petition. - The verified petition shall contain the following:
(a) The personal circumstances of the petitioner;
(b) The name and personal circumstances of the respondent or if the name and personal circumstances are unknown and
uncertain, the respondent may be described by an assumed appellation;
(c) The environmental law, rule or regulation violated or threatened to be violated, the act or omission complained of, and
the environmental damage of such magnitude as to prejudice the life, health or property of inhabitants in two or more cities
or provinces.
(d) All relevant and material evidence consisting of the affidavits of witnesses, documentary evidence, scientific or other
expert studies, and if possible, object evidence;
(e) The certification of petitioner under oath that: (1) petitioner has not commenced any action or filed any claim involving
the same issues in any court, tribunal or quasi-judicial agency, and no such other action or claim is pending therein; (2) if
there is such other pending action or claim, a complete statement of its present status; (3) if petitioner should learn that the
same or similar action or claim has been filed or is pending, petitioner shall report to the court that fact within five (5) days
therefrom; and
(f) The reliefs prayed for which may include a prayer for the issuance of a TEPO.
Section 3. Where to file. - The petition shall be filed with the Supreme Court or with any of the stations of the Court of
Appeals.
Section 4. No docket fees. - The petitioner shall be exempt from the payment of docket fees.
Section 5. Issuance of the writ. - Within three (3) days from the date of filing of the petition, if the petition is sufficient in
form and substance, the court shall give an order: (a) issuing the writ; and (b) requiring the respondent to file a verified
return as provided in Section 8 of this Rule. The clerk of court shall forthwith issue the writ under the seal of the court
including the issuance of a cease and desist order and other temporary reliefs effective until further order.
Section 6. How the writ is served. - The writ shall be served upon the respondent by a court officer or any person deputized
by the court, who shall retain a copy on which to make a return of service. In case the writ cannot be served personally, the
rule on substituted service shall apply.
Section 7. Penalty for refusing to issue or serve the writ. - A clerk of court who unduly delays or refuses to issue the writ
after its allowance or a court officer or deputized person who unduly delays or refuses to serve the same shall be punished
by the court for contempt without prejudice to other civil, criminal or administrative actions.
Section 8. Return of respondent; contents. - Within a non-extendible period of ten (10) days after service of the writ, the
respondent shall file a verified return which shall contain all defenses to show that respondent did not violate or threaten to
violate, or allow the violation of any environmental law, rule or regulation or commit any act resulting to environmental
damage of such magnitude as to prejudice the life, health or property of inhabitants in two or more cities or provinces.
All defenses not raised in the return shall be deemed waived.
The return shall include affidavits of witnesses, documentary evidence, scientific or other expert studies, and if possible,
object evidence, in support of the defense of the respondent.
A general denial of allegations in the petition shall be considered as an admission thereof.
Section 9. Prohibited pleadings and motions. - The following pleadings and motions are prohibited:
(a) Motion to dismiss;
(b) Motion for extension of time to file return;
(c) Motion for postponement;
(d) Motion for a bill of particulars;
(e) Counterclaim or cross-claim;
(f) Third-party complaint;
(g) Reply; and
(h) Motion to declare respondent in default.
Section 10. Effect of failure to file return. - In case the respondent fails to file a return, the court shall proceed to hear the
petition ex parte.
Section 11. Hearing. - Upon receipt of the return of the respondent, the court may call a preliminary conference to simplify
the issues, determine the possibility of obtaining stipulations or admissions from the parties, and set the petition for hearing.
The hearing including the preliminary conference shall not extend beyond sixty (60) days and shall be given the same
priority as petitions for the writs of habeas corpus, amparo and habeas data.
Section 12. Discovery Measures. - A party may file a verified motion for the following reliefs:
(a) Ocular Inspection; order — The motion must show that an ocular inspection order is necessary to establish the
magnitude of the violation or the threat as to prejudice the life, health or property of inhabitants in two or more cities or
provinces. It shall state in detail the place or places to be inspected. It shall be supported by affidavits of witnesses having
personal knowledge of the violation or threatened violation of environmental law.
After hearing, the court may order any person in possession or control of a designated land or other property to permit entry
for the purpose of inspecting or
photographing the property or any relevant object or operation thereon.
The order shall specify the person or persons authorized to make the inspection and the date, time, place and manner of
making the inspection and may prescribe other conditions to protect the constitutional rights of all parties.
(b) Production or inspection of documents or things; order – The motion must show that a production order is necessary to
establish the magnitude of the violation or the threat as to prejudice the life, health or property of inhabitants in two or more
cities or provinces.
After hearing, the court may order any person in possession, custody or control of any designated documents, papers, books,
accounts, letters, photographs, objects or tangible things, or objects in digitized or electronic form, which constitute or
contain evidence relevant to the petition or the return, to produce and permit their inspection, copying or photographing by
or on behalf of the movant.
The production order shall specify the person or person authorized to make the production and the date, time, place and
manner of making the inspection or production and may prescribe other conditions to protect the constitutional rights of all
parties.
Section 13. Contempt. - The court may after hearing punish the respondent who refuses or unduly delays the filing of a
return, or who makes a false return, or any person who disobeys or resists a lawful process or order of the court for indirect
contempt under Rule 71 of the Rules of Court.
Section 14. Submission of case for decision; filing of memoranda. - After hearing, the court shall issue an order submitting
the case for decision. The court may require the filing of memoranda and if possible, in its electronic form, within a non-
extendible period of thirty (30) days from the date the petition is submitted for decision.
Section 15. Judgment. - Within sixty (60) days from the time the petition is submitted for decision, the court shall render
judgment granting or denying the privilege of the writ of kalikasan.
The reliefs that may be granted under the writ are the following:
(a) Directing respondent to permanently cease and desist from committing acts or neglecting the performance of a duty in
violation of environmental laws resulting in environmental destruction or damage;
(b) Directing the respondent public official, government agency, private person or entity to protect, preserve, rehabilitate or
restore the environment;
(c) Directing the respondent public official, government agency, private person or entity to monitor strict compliance with
the decision and orders of the court;
(d) Directing the respondent public official, government agency, or private person or entity to make periodic reports on the
execution of the final judgment; and
(e) Such other reliefs which relate to the right of the people to a balanced and healthful ecology or to the protection,
preservation, rehabilitation or restoration of the environment, except the award of damages to individual petitioners.
Section 16. Appeal. - Within fifteen (15) days from the date of notice of the adverse judgment or denial of motion for
reconsideration, any party may appeal to the Supreme Court under Rule 45 of the Rules of Court. The appeal may raise
questions of fact.
Section 17. Institution of separate actions. - The filing of a petition for the issuance of the writ of kalikasan shall not
preclude the filing of separate civil, criminal or administrative actions.
WRIT OF KALIKASAN
It is an extraordinary remedy which may be issued depending on the magnitude of environmental damage.
Who may file – It is a remedy available to:
 a natural or juridical person;
 entity authorized by law;
 people’s organization;
 non-governmental organization; or
 any public interest group accredited by or registered with any government agency
on behalf of persons whose constitutional right to a balanced and healthful ecology is violated, or threatened
with violation (Ground:) by an unlawful act or omission of a public official or employee, or private individual or
entity, involving environmental damage of such magnitude as to prejudice the life, health or property of
inhabitants in two or more cities or provinces.
Goal: to address the potentially exponential nature of large-scale ecological threats.
Contents: (PR LAE ECR)
 petitioner's personal circumstances
 respondent's name and personal circumstances (if unknown and uncertain, respondent may be
described by an assumed appellation, e.g., John Doe)
 law, rule or regulation violated or threatened to be violated
 Note: in order to determine whether the case is an environmental one, and as such, be given priority
 the act or omission complained of
 environmental damage of such magnitude so as to prejudice LHP of inhabitants in 2 or more cities or
provinces
 Note: the Rule doesn't specify that the cities must be contiguous to one another. What is essential is that
the inhabitants of 2 or more cities/provinces suffer or are threatened to suffer damage of SMP-LHP
 all relevant and material evidence
 Note: unlike ordinary civil actions, where only ultimate facts are required; the purpose of such standard
is to convince the court to issue the writ within 3 days
 petitioner's certification under oath
 he has not commenced any action or filed any claim involving the same issues in any court, tribunal or
quasi-judicial agency, and that no such action or claim is pending
 if there is a pending action or claim, a complete statement of its present status
 if he learns that a similar action or claim has been filed or is pending, he will report to the court within 5
days
 reliefs prayed for (e.g., issuance of TEPO, which means the petitioner must likewise show that the
matter is of extreme urgency or that he'll suffer irreparable injury and grave injustice, huntyyyy)
 This petition must be verified, meaning, the affiant must attest that he has read the pleading and that
the allegations are true to the best of his/her knowledge.
 certification of non-forum shopping
Venue
 SC; or
 any of the stations of CA
This is in line with the magnitude standard for this kind of suit; the SC and CA's jurisdiction is national in scope
What if the damage/threat only affects inhabitants of just 1 city or province?
 The suit may be filed before the RTC which has territorial jurisdiction over the case.
Exemption from docket fees
 This is to encourage public participation.
 Also a necessary consequence of the fact that no award of damages to individuals can be made
under this writ (reason: this would require reception of evidence which would delay the immediate resolution of
the petition; petitioner can always file a separate action for claim for damages anyway, as stated in Sec 17)
 The filing fees shall be subtracted from the award of damages after judgment
Issuance: within 3 days from the filing, if the petition is sufficient in substance and form, the court shall:
 issue writ of kalikasan
 require respondents to file a verified return
 may include other temporary reliefs that the court deems proper (e.g. cease and desist)
Service of writ: it shall be served to the respondent:
 personally; or
 through subsituted service, if it cannot be done personally.
The court may punish the following for contempt (without prejudice to other admin/civil/crim actions that may be
set up against them):
 clerk of court who unduly refuses/delays to issue writ
 court officer or deputized person who unduly delays/refuses to serve writ
Respondent's Return
 It must be filed within a non-extendible 10 days from service of writ
 Contents:
 all defenses showing he did not violate or threaten to violate or allow the violation of any environmental
law, rule, regulation (if not raised here, they are deemed waived)
 affidavits of witnesses, documentary evidence, scientific or other expert studies, object evidence
If he fails to specifically deny an allegation stated in the petition, he is presumed to have admitted to such
allegation; a general denial = admission.
If he fails to file altogether, the court shall proceed to hear the petition without him (ex parte)
Prohibited motions: (DEP BC 3RD)
 (a) Motion to dismiss;
 (b) Motion for extension of time to file return;
 (c) Motion for postponement;
 (d) Motion for a bill of particulars;
 (e) Counterclaim or cross-claim;
 (f) Third-party complaint;
 (g) Reply; and
 (h) Motion to declare respondent in default.
Preliminary conference & Hearing
 The hearing is not summary in nature on account of the complex character of the issues involved.
 The prelim conference takes the place of trial.
 Everything must be done in 60 days (prelim to hearing, including other motions like ocular inspection,
production or inspection of documents, etc) and this petition should be given the same priority as those for
habeas corpus, habeas data and amparo.
 Discovery measures:
 Ocular Inspection – the motion shall state that the inspection is necessary to establish the magnitude
of violation/threat
 If substantiated, the court may order the person in possession or control of property to permit entry for
photographing or inspecting
 Production or Inspection of Documents or Things
 the Rule doesn't state that the motion must specify the doc/thing in detail, only that the production order
is necessary to establish the magnitude of violation/threat
Contempt proceedings
 The court may punish the following for indirect contempt:
 a respondent who refuses or unduly delays the filing of a return
 a respondent who makes a false return; or
 any person who disobeys or resists lawful process/order of the court
Decision/Judgment
 After hearing, the court will issue an order submitting case for decision.
 Within 30 days (non-extendible) from the date of the petition is submitted for decision, the court may
require the filing of memoranda (in electronic form if possible)
 Within 60 days from the date the petition is submitted for decision, the court must render judgment.
(This 60-day period includes the abovestated 30-day period of filing a memoranda)
 If the court finds the petition meritorious, it shall grant the privilege of the writ of kalikasan, as well as
other reliefs prayed for:
(a) Directing respondent to permanently cease and desist from committing acts or neglecting the performance
of a duty in violation of environmental laws resulting in environmental destruction or damage;
(b) Directing the respondent public official, government agency, private person or entity to protect, preserve,
rehabilitate or restore the environment;
(c) Directing the respondent public official, government agency, private person or entity to monitor strict
compliance with the decision and orders of the court;
(d) Directing the respondent public official, government agency, or private person or entity to make periodic
reports on the execution of the final judgment; and
(e) Such other reliefs which relate to the right of the people to a balanced and healthful ecology or to the
protection, preservation, rehabilitation or restoration of the environment, except the award of damages to
individual petitioners.
 Within 15 days from date of notice of judgment or denial of the motion for reconsideration, any party
may appeal to the SC (under Rule 45) and may raise questions of fact therein.
West Tower vs FPIC case
 This is where the first writ of kalikasan was issued (Nov 29, 2010)
 Petitioners: West Tower Condominium on behalf of its unit owners and residents of Brgy. Bangkal,
Makati City
 Respondents: First Philippine Industrial Corporation, owned by the Lopez clan, which has two pipelines
that control 60% of the petroleum requirements of Manila, Bulacan Laguna and Rizal:
1. the White Oil Pipieline System, 117km, that runs from Batangas to Pandacan in Manila transporting diesel,
gasoline, jet fuel and kerosene (7km of such pipeline is in Makati; the leakage/smell/fumes complained of was
traced to this pipeline, 100m southeast of WT Condominium)
2. the Black Oil Pipeline System, 105kim, Batangas to Sucat, Paranaque, transporting bunker fuel
 Petitoners claim to have suffered health and environmental hazards, alleging that:
 the continuous use of the pipeline would not only be hazardous to the LHP of the inhabitants in the
areas where the pipeline is laid, but would also affect the “rights of generations yet unborn to live in a balanced
and healthful ecology”
 to allow its continuous operation and its imminent environmental damage would violate the Clean Water
Act of 2004, the Clean Air Act of 1999, and the Phil. Environmental Code (PD 1152)
 They pray that the court prohibit FPIC from opening and operating the pipeline, and allowing its use,
until the pipeline has been thoroughly checked and replaced
Court's actions:
 The SC first issed a writ of kalikasan with TEPO ordering FPIC to:
 cease and desist from operating the leaking pipeline until further orders (this only applied to the WOPL)
 check the structural integrity of the 117km pipeline, implement sufficient measures to prevent and avert
incidents from possible leaks
 make a report within 60 days
 The SC later on converted the writ to a continuing mandamus.
Issues & Held:
 Locus Standi
Yes. The residents of West Tower were directly affected by the leakage, and as such, they fit the laid-down
defintiion of a real party in interest.
 Court actions
The petitioners prayed that the TEPO be converted to a permanent EPO. The respondents averred that they
have been conducting regular tests and inspections. The CA ruled that these were insufficient and
recommended that FPIC secure a certification from the Department of Energy. The SC agreed with this, and
directed FPIC to get the certififcation, since it is the DOE that has special knowledge and expertise on the issues
of the case. The DOE issued a resolution, which the SC adopted, imposing conditions for the resumption of the
WOPL operations. If the DOE be satisfied with FPIC's compliance, it will issue an order allowing FPIC to resume
operations. If not, and if it is shown that the pipeline is no longer safe and remediable, then the DOE can also
order for its closure.
The SC therefore held that the issue of the viability of the WOPL and the resumption of its operations would still
depend on the DOE's resolution.
 Special Trust fund
The creation of such cannot be granted by the court. A trust fund is solely for the purpose of rehabilitating or
restoring the environment from a damage that it has already presumably suffered. The grant of a special trust
fund in this case is outside the limited purpose of a special trust fund.
 Liability of the individual officers of FPIC
The Court refrained from ruling on the liability of the directors of the company. This can be properly resolved in
the separate civil and criminal cases already pending.
RULE 8
WRIT OF CONTINUING MANDAMUS
Section 1. Petition for continuing mandamus. - When any agency or instrumentality of the government or officer thereof
unlawfully neglects the performance of an act which the law specifically enjoins as a duty resulting from an office, trust or
station in connection with the enforcement or violation of an environmental law rule or regulation or a right therein, or
unlawfully excludes another from the use or enjoyment of such right and there is no other plain, speedy and adequate
remedy in the ordinary course of law, the person aggrieved thereby may file a verified petition in the proper court, alleging
the facts with certainty, attaching thereto supporting evidence, specifying that the petition concerns an environmental law,
rule or regulation, and praying that judgment be rendered commanding the respondent to do an act or series of acts until the
judgment is fully satisfied, and to pay damages sustained by the petitioner by reason of the malicious neglect to perform the
duties of the respondent, under the law, rules or regulations. The petition shall also contain a sworn certification of non-
forum shopping.
Section 2. Where to file the petition. - The petition shall be filed with the Regional Trial Court exercising jurisdiction over
the territory where the actionable neglect or omission occurred or with the Court of Appeals or the Supreme Court.
Section 3. No docket fees. - The petitioner shall be exempt from the payment of docket fees.
Section 4. Order to comment. - If the petition is sufficient in form and substance, the court shall issue the writ and require
the respondent to comment on the petition within ten (10) days from receipt of a copy thereof. Such order shall be served on
the respondents in such manner as the court may direct, together with a copy of the petition and any annexes thereto.
Section 5. Expediting proceedings; TEPO. - The court in which the petition is filed may issue such orders to expedite the
proceedings, and it may also grant a TEPO for the preservation of the rights of the parties pending such proceedings.
Section 6. Proceedings after comment is filed. - After the comment is filed or the time for the filing thereof has expired, the
court may hear the case which shall be summary in nature or require the parties to submit memoranda. The petition shall be
resolved without delay within sixty (60) days from the date of the submission of the petition for resolution.
Section 7. Judgment. - If warranted, the court shall grant the privilege of the writ of continuing mandamus requiring
respondent to perform an act or series of acts until the judgment is fully satisfied and to grant such other reliefs as may be
warranted resulting from the wrongful or illegal acts of the respondent. The court shall require the respondent to submit
periodic reports detailing the progress and execution of the judgment, and the court may, by itself or through a
commissioner or the appropriate government agency, evaluate and monitor compliance. The petitioner may submit its
comments or observations on the execution of the judgment.
Section 8. Return of the writ. - The periodic reports submitted by the respondent detailing compliance with the judgment
shall be contained in partial returns of the writ.
Upon full satisfaction of the judgment, a final return of the writ shall be made to the court by the respondent. If the court
finds that the judgment has been fully implemented, the satisfaction of judgment shall be entered in the court docket.
WRIT OF CONTINUING MANDAMUS

Definition: It is generally an order employed to compel performance of a ministerial duty which was
neglected/omitted by the person given said duty.
 Its function is to set an action in motion. (to legally push someone to do something he is supposed to do
by reason of existing laws)
 It commands the doing of what ought to be done, not the undoing of something that has already been
done.
 It is not a preventive remedy.
A writ of CM commands the respondent to do an act/series of acts until the judgment is fully satisfied.
Venue
 RTC exercising jurisdiction over territory where the actionable neglect/omission occurred;
 CA; or
 SC
Issuance and Judgment
 If petition is sufficient in F&S, court will issue writ and require respondent to comment on the petition
within 10 days from receipt of the copy of the writ.
 Service of writ + copy of petition + annexes will be done in the manner that the court may direct.
 TEPO while the petition is pending, and other orders for expediting the proceedings may be issued by
the court.
 Judgment: If warranted, the court will:
 grant the privilege of the writ of CM which will require the respondent to perdorm an act/series of acts
until satisfaction of judgment
 grant other reliefs warranted, to repair/compensate for the damage that the respondent's wrongful/illegal
act has done
 require respondent to submit periodic reports detailing progress and execution of Judgment – partial
returns of the writ
 evaluate and monitor respondent's compliance (through a commissioner or the apt government agency,
or by itself)
 Respondent may submit comments or observations on the execution of judgment
 Upon full satisfaction of the judgment, the respondent will submit a final return of the writ
MMDA vs Manila Bay case
 The concerned citizens of Manila Bay complained that the water quality of Manila Bay had fallen way
below the allowable standards prescribed by the law. They averred that such quality would constitute a violation
of PD 1152 (Phil. Environmental Code).
 They prayed that the public officers/agencies involved, including the Metro Manila Development
Authority (MMDA), be held jointly and/or severally liable for the substandard quality, and that they be collectively
ordered to clean up the Bay, and to restore the water quality to Class B, fit for swimming, diving or other
recreations.
 Sec 17 of PD 1152 specifically states that the governement agencies concerned shall take necessary
measures to upgrade the water quallity (when it has deteriorated to a degree where its state will adversely affect
its usage) to meet the prescribed standards.
 Sec 20 states that it shall be the polluter's responsibility to clean up pollution incidents at his own
expense. If the polluter does not, the government agencies will, and the expenses shall be charged against the
persons/entities responsible.
ISSUES:
 Is the MMDA responsible for the clean up?
 Is a continuing mandamus proper?
HELD:
 Contrary to MMDA's argument (that PD 1152 limits their duty to the containment, removal and cleaning
operations of specific pollution incidents), the law actually requires them to act even in the absence of a pollution
incident, as long as the water quality has deteriorated to a degree where its state will adversely affect its best
usage. The aforementioned provisions are of general application and not for specific incidents only.
 The cleaning and rehabilitation of Manila Bay can be compelled by mandamus. The duty of the
government to enforce the mandates of PD 1152 is ministerial in nature, hence its performance may be
compelled by mandamus.
DIFFERENCES between CM and K
1. SUBJECT MATTER
A writ of CM is issued when there is no other speedy, plain, and adequate remedy in the ordinary course of law.
It is directed against: (a) unlawful neglect in the performance of an act specifically enjoined by the law as a duty
resulting from an office, trust or station in connection with the enforcement or violation of an envi law, or a right;
or (b) unlawful exclusion of another from the use or enjoyment of a right.(It commands a person who the law
entrusted a duty to do his job.)
A writ of K is issued when there is an enironmental damage of such magnitude as to prejudice the LHP of
inhabitants in 2 or more cities or provinces. It is available against an unlawful act or omission of a public
officer/employee or private individual/entity. (It orders that certain acts be stopped in order to prevent an
exponential damage.)
2. VENUE
A petition for the issuance of a writ of a CM may be filed before the RTC exercising jurisdiction over the territory
where the neglectful act or omission occurred, or the CA, or the SC.
A petition for the issuance of a writ of K may only be filed before the SC or any of the stations of the CA, on
account of the national scope of the alleged damage (2 or more cities/provinces are affected). When only one
city/province is affected, the petition will be filed with the RTC exercising territorial jurisdiction over the case.
3. PETITIONER
A writ of CM is available to someone personally aggrieved by the unlawful neglect. A writ of K is available to any
person, natural or juridical, or any organization or group, on behalf of persons whose right to a balanced and
healthful ecology is violated or threatened to be violated.
4. RESPONDENT
A writ of CM is directed against government agencies or officers who have neglected their duties.
A writ of K may be directed against a public officer or employee, or private individual or entity.
5. DOCKET FEES
In both petitions, payment of docket fees is exempted.
6. DISCOVERY MEASURES
Only the Rule on the writ of K mentions the inclusion of discovery measures.
7. DAMAGES FOR PERSONAL INJURY

Only the writ of CM allows the payment of damages for the malicious neglect of duty of respondent/s.
The writ of K, being a public-interest suit, does not allow for individual payment of damages. However, the
petitioner is not precluded from filing a separate civil action to recover damages.
Paje vs Casino case

 The Subic Bay Metropolitan Authority (SBMA) issued an Environmental Compliance Certificate (ECC)
after the Taipei Cogeneration Corp (TCC) expressed its intention to build a coal-fired powerplant in Subic Bay.
 The SBMA entered into a Lease & Devt Agreement with Redondo Peninsula Energy (RP), the
Philippine-based company to which TCC assigned its rights and interests.
 The Sanggunian Panlalawigan of Zambales (Hon. Casino, et al.)opposed the establishment of such
powerplant. They filed a petition for a writ of K against RP Energy and Sec. Paje of the DENR:
 (1) alleging environmental damage such as:
 thermal pollution of coastal waters
 air pollution from the combustion
 acid deposition in the ecosystem
 (2) assailing the validity of the ECC for failing to include the signature of Mr. Aboitiz, the director of RP
Energy in the Sworn Statement of Full Responsibility.
 The CA denied the petition for writ of K, finding that Casino, et al., failed to prove the environmental
allegations.
ISSUES:
1. Was there a causal link or reasonable connection with the environmental damage of the magnitude
contemplated under the Rules on Environmental Cases?
2. Can the validity of an ECC be challenged via a writ of K?
HELD:
1. There was no causal link shown between the potential environmental damage and the construction and
operation of the powerplant.
2. A writ of K is not proper, as the issuance of the ECC, and the violation of the related laws (IPRA, LGC) are not
within the coverage of the writ of K.
The witnesses that the Casino group presented were not experts on environmental matters. Nor did they
expound on the allegations.
The Court held that the defect (lack of signature of Aboitiz) was not a sufficient ground to invalidate the ECC.
The testimonies did not indicate that there was a deliberate/malicious intent to not sign the Statement. Moreover,
the implementation of the project is not subject to the prior approval of the Sanggunian.

I. PD 705: Revised Forestry Code of The Philippines A. Preliminary 1. History of The Law

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I. PD 705: Revised Forestry Code of The Philippines A. Preliminary 1. History of The Law

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Report on PD 705 Revised Forestry Code & RA 8371: IPRA Group 1

Natural Resources & Environmental Laws JD-2

I. PD 705: REVISED FORESTRY CODE OF THE PHILIPPINES

1. History of the law

2. Purpose and functions of the law

(d) allow a greater number of beneficiaries to receive forest benefits.

6. Why is forestion important?

A.2. Definition of terms

Name Area Established Location

Name Area Established Location

Name Area Established Location

The following are the national parks in the Philippines4:

4 Wikipedia: https://en.wikipedia.org/wiki/List_of_national_parks_of_the_Philippines (citing Establishing and

Name Area Established Location Coordinates

Name Area Established Location Coordinates

(e) Olango Island in Cebu, established in 1992.

Case digest: Semirara Corporation vs HGL Development Co.

FACTS: Petitioner Semirara Mining Corporation is a grantee by the Department of Energy of a

8 GR No. 79538; Oct. 18, 1990.

B.2. The Forest Management Bureau

1. Jurisdiction and Functions

Case digest: Lagua vs Cusi

(a) natural born citizen of the Philippines;

3. Supervision and Review

4. Exhaustion of Administrative Remedies

(f) where judicial intervention is urgent;

C. Classification and Survey

1. What are the functions of the DENR Secretary?

ii. industrial or commercial;

2. Definition of Forest Lands

Lexical definition Legal definition

Complexities in setting the legal definition:

C.2. Characteristics of Forest Lands

1. Forest lands are not capable of private appropriation.

Republic vs Court of Appeals and Lastimado:

Case digest: Republic vs Court of Appeals and Lastimado

Yngson vs Secretary of Agriculture and Natural Resources:

Case digest: Yngson vs Secretary of Agriculture and Natural Resources

2. Forest lands are not registrable.

Republic vs. Court of Appeals and Bernabe:

Case digest: Republic vs Court of Appeals and Bernabe

Contentions of the Republic:

Contention of the Applicants:

CA: Affirmed the grant of title to the applicants

ISSUE: Whether the grant of title is proper

Forest lands 50% in slope or over cannot be classified as grazing land.

C.4. Areas Needed for Forest Purposes

Mangrove swamps or manglares

Director of Forestry vs Villareal:

Case digest: Director of Forestry vs Villareal

C.5. Establishment of Boundaries

C.6. Reservations in forest lands and off-shore areas

Powers of the President:

Off-shore areas may be established as marine parks, provided that:

Effect of reservation: Grantee acquires full ownership of the land.

International Hardwood and Veneer Co. vs University of the Philippines:

Trial Court: UP has no legal basis to demand from Hardwood.

D. Utilization & Management

1. What is allowed under PD 705?

2. What is not allowed?

3. Preservation and protection of forests

4. The principle of inter-generational responsibility

Case digest: Oposa vs Factoran