LAW ON NATURAL RESOURCES
Part IPublic Land Act (Commonwealth Act. No. 141)
Governing Law
CA No. 141, otherwise known as The Public Land
Act, was enacted on November 07, 1936.
Its provisions apply to lands of the public domain; but
timber and mineral lands are governed by special laws.
Policy Considerations
The Department of Environment and Natural Resources
(DENR) shall be in charge in carrying out the States
constitutional mandate to control and supervise the
exploration, development, utilization, and conservation of
the countrys natural resources.
Regalian Doctrine
Under Section 2, Article XII of the Constitution embodies
the Regalian Doctrine all lands of the public domain
belong to the State the source of any asserted right to
ownership of land.
With the exception of agricultural lands, all other natural
resources shall not be alienated.
The Regalian Doctrine reserves to the State all natural
wealth that may be found in the bowels of the earth even
if the land where the discovery is made be private.
Imperium and Dominium
Imperium the governments concept of sovereignty
over public land;
Dominium the governments capacity to own or
acquire property.
The Indigenous Peoples Rights Act (IPRA) of 1997
Under RA No. 8371 (IPRA), indigenous peoples may
obtain the recognition of their right of ownership over
ancestral lands and ancestral domains by virtue of native
title.
Organizational Structure
The Public Land Act provides that the Secretary of the
DENR is the executive officer charged with carrying out
the provisions of the Public Land Act, through the
Director of Lands.
The decision of the Director of Lands may be annulled or
reviewed when issue involves the question of law or
based upon a misconstruction of the law. However, a
question of fact is conclusive and not subject to be
reviewed by the courts.
Under EO No. 192, the newly created Lands
Management Bureau (LMB) as headed by a Director,
shall advise the DENR Secretary on matters pertaining
to rational land classification management and
disposition
Doctrine of Primary Jurisdiction
Courts cannot and will not resolve a controversy
involving a question which is within the jurisdiction of
an administrative tribunal, especially where the question
demand 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.
Exhaustion of Administrative Remedies
As a general rule, recourse through court action cannot
prosper until all remedies have been exhausted at the
administrative level.
Classification of Lands
Government lands are classified into two:
1. Lands of the public domain either alienable or
inalienable.
2. Lands of private domain lands belonging to and
owned by the State as a private individual, without being
devoted for public use.
Under the Civil Code, government lands can either
be:
1. Properties of the public dominion those intended for
public use.
2. Patrimonial properties of the State not or no longer
intended for public use.
Under the 1987 Constitution, lands of public domain are
classified into four (4) categories:
1. Agricultural
2. Forest or timber
3.Mineral
4. National parks
Of the four, it is only the agricultural lands may be
disposed in accordance with law.
Classification of Lands Under the Public Land Act
1. Alienable or disposable lands
2. Timber lands
3. Mineral lands
The President may at any time and in a like manner
transfer such lands from one class to another, for the
purposes of their administration and disposition.
Classification of Public Lands Open to Disposition
1.Agricultural
2.Residential, commercial, industrial, or for similar
productive purposes
3.educational, charitable, or other similar purposes
4. Reservations for town sites for public and quasi-public
uses.
Classification of Lands an Executive Prerogative
Before the government could alienate or dispose of
lands of the public domain, the President (thru the
DENR) must first officially classify these lands as
alienable or disposable.
Government Land and Public Land Homestead patent granted has the force and effect
Distinguished
The two are not synonymous terms; the first includes not
only the second, but also other lands of the government
already reserved or devoted to public use or subject to
private right.
Modes of Disposition
No Public Land can be Acquired Except by a Grant from
the State
It is indispensable that there be a showing of Title from
the State that may come in the form of a homestead,
sales or free patent or grant.
Only Alienable and Disposable (A&D) may be the
Subject of Disposition
Occupation thereof in the concept of owner, no matter
how long, cannot ripen into ownership and be registered
as a title.
The applicants remedy lies in the release of the property
from its present classification.
Specific Modes of Disposition
Public lands suitable for agricultural purposes can
be disposed of only as follows:
1. For homestead settlement
2. By sale
3.By lease, and
4. By confirmation of imperfect or incomplete titles:
a. by judicial legalization may apply to the Regional
Trial Court where the land is located for the confirmation
of their claims and the issuance of a certificate therefore,
under the Property Registrration Decree.
b. by administrative legalization (free patent) any
natural-born citizen of the Philippines who is not the
owner of more than 12 hectares, and who, for at least 30
years prior to the effectivity of the amendatory act, has
continuously occupied and cultivated a tract or tracts of
land for disposition, who shall have paid the real estate
tax land subject to disposition.
For homestead settlement
Any citizen of the Philippines
Over the age of 18 or head of the family
A homestead of the not exceeding 12 hectares
Applicant must have cultivated and improved at least
one fifth of the land continuously
Resided at least one year in the municipality
of a Torrens title.
Sale of public agricultural lands
Any citizen of the Philippines
Of lawful age or head of the family
Applicant may purchase not to exceed 12 hectares
which shall be sold thru sealed bidding
The purchase price may be paid in full or in not more
then 10 annual equal installments from the date of
the award.
Lease
Any citizen of the Philippines
Of lawful age; and
Any corporation of which at least 60% of the capital
stock belong wholly to the citizens of the Philippines
Non-registrable Properties
1. Property of public dominion
Intended for public use
Intended for some public service
2. Forest lands
3.Watersheds
4. Mangrove swamps
5. Mineral lands
6. National parks
7.Military or naval reservation
8.Foreshore and reclaimed lands
9.Submerged areas
10.Lakes
11.Navigable rivers
12.Creeks
13. Reservations for public and semi-public purposes
Classification and Disposition of Lands for
Residential, Commercial or Industrial Purposes
1. Lands reclaimed by the government by dredging,
filling, or other means
2. Foreshore;
3. Marshy lands or lands covered with water bordering
upon the shores or banks of navigable lakes or rivers;
4. Lands not included in any of the foregoing classes.
The lands comprised in classes 1,2, and 3 shall be
disposed of to private parties by lease only.
Conditions of the Lease
The lessee shall construct permanent improvements
appropriate for the purpose, shall commence the
construction within 6 months from the date of the award.
At the expiration of the lease, all improvements made by
the lessee shall become the property of the Government.
Lands for Residential, Commercial or Industrial
Purposes Shall be Disposed of through Oral Bidding
(Except direct sale)
Sale of Lands Within Military Reservations
Priority shall be given to bona fide occupants and then to
war veterans.
Cadastral Registration Proceedings
The cadastral system of registration constitutes another
means of bringing lands under the operation of the
Torrens system. The purpose is to serve public interests
by requiring that the titles to such lands be settled and
adjudicated.
Friar Lands
The so-called friar lands were purchased by the
government for sale to actual occupants. These lands
are not public lands but private or patrimonial property of
the government and their acquisition is not governed by
the provisions of CA 141 (Public Land Act).
Action for Reversion
Director of Lands has Continuing Authority to Investigate
Fraudulent Issuance of Patents
Government Initiates an Action for Cancellation of Title
and Reversion
Lands of the public domain fraudulently awarded to the
applicant may be recovered or reverted back to its
original owner, the government. An action for reversion
has to be instituted by the Solicitor General.
Action for Nullity of Land Titles Distinguished from
Reversion
Nullity of land is based on the fact that the land is
beyond the jurisdiction of Director of Lands to bestow
Reversion of land is based on fraudulent claim
Prohibited Alienations
No alienation, transfer, or conveyance of any homestead
after 5 years and before 25 years after issuance of title
shall be valid without the approval of the Secretary of
DENR.
Procedure, Legal Restrictions and Encumbrances
1.The full name of applicant, his age, place of birth,
citizenship, civil status, and post-office address.
2. That the applicant has all the qualifications.
3. That he has none of the disqualifications.
4. That the application is made in good faith.
5. That the application is made for the exclusive benefit
of the applicant
6. Accurate description of the land.
7. Whether all or part of the land is occupied or
cultivated or improved.
8. That the land applied for is neither timber or mineral.
In case of death of applicant or grantee before the
issuance of the patent or final grant of the land, he shall
be succeeded by his heirs in law.
All other natural resources shall remain with the State.
Land is subject of public servitudes, right of way not
exceeding 20 meters in width.
Private corporations disqualified from acquiring
lands of the public domain except by lease for a
period not exceeding 25 years, renewable for not
more than 20 years and not to exceed one thousand
hectares in area.
Part II Revised Forestry Code (Presidential Decree
No. 705)
Governing Law
PD 705, otherwise known as the Revised Forestry Code
of the Philippines, is the law governing the management
and utilization of forest lands.
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.
Definition of Terms
(a) Public forest is the mass of lands of the public
domain which has not been the subject of present
system of classification.
(b) 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.
(c) 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.
(d) Forest lands include the public forest, permanent or
forest reserves, and forest reservations.
(e) Grazing land refers to that portion of the public
domain which had been set aside for the raising of
livestock.
(f) 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.
(g) Forest reservations refer to forest lands which have
been reserved by the President of the Philippines for any
specific purpose or purposes.
(h) National park refers to a forest land reservation
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
plants and animals therein, and to provide enjoyment of
these features in such a manner as will leave them
unimpaired for future generations.
(i) 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.
(j) Marine parks refer to any off-shore area inhabited
by rare and unique species of marine flora and fauna.
(k) Seashore park refers to any public shore area
delimited for outdoor recreation, sports fishing,
waterskiing and related healthful activities.
(l) Watershed reservation is a forest land reservation
established to protect or improve the conditions of the
water yield thereof or reduce sedimentation.
(m) 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.
(n) 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.
(o) Mangrove is a term applied to the type of forest
occurring on tidal flat along the seacost.
(p) Kaingin is a portion of the forest land which is
subjected to shifting and/or permanent slash-and-burn
cultivation having little or no provision to prevent soil
erosion.
(q) Forest product means timber, pulpwood, firewood,
bark, tree top, resin, gum, wood, oil, beeswax, honey,
rattan, or other forest growth, the associated water, fish,
game, scenic, historical, recreational and geologic
resources in forest lands.
(r) 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.
(s) 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.
(t) Selective logging means the systematic removal of
the mature, over-mature and defective trees in such a
manner as to leave adequate number and volume of
healthy residual trees of the desired species for the
protection and conservation of soil and water.
(u) Lease privilege granted by the State to a person to
occupy and possess, in consideration of specified rental,
any forest land of the public domain in order to
undertake any authorized activity therein.
(v) License is a privilege granted by the State to a
person to utilize forest resources, without any right of
occupation and possession over the same.
(w) License agreement is a privilege granted by the
State to a person to utilize forest resources, without any
right of occupation and possession over the same, but
with the obligation to develop, protect, and rehabilitate
the same in accordance with the terms and conditions
set forth in said agreement.
(x) Permit is a short-term privilege or authority granted
by the State to a person to utilize any limited forest
resources without any right of occupation and
possession therein.
(y) Ecosystem means the ecological community
considered together with non-living factors and its
environment as a unit.
(z) Silviculture is the establishment, development
reproduction and care of forest trees.
(aa) Private right refers to titled rights of ownership
under existing laws, which possession may include
places of abode and worship, burial grounds, and old
clearings, but excludes production forest inclusive of
logged-over areas, commercial forests and established
plantations of forest trees and trees of economic value.
Organizational Structure
The Department of Environment and Natural
Resources; Mandate
It is DENR shall be primarily responsible for the
implementation of the policy of the State to 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 countrys forest
Policy determination by the executive branch on the
proper management of forest resources cannot as a rule
be inferred with by the courts. It is addressed to the
sound duiscretion of government agencies entrusted
with the regulation of activities coming under the special
technical knowledge and training of such agencies.
Forest Management Bureau is implementing the
provisions of the Code. It shall have jurisdiction and
authority over all forest land, grazing lands, and all forest
reservations including watershed reservations.
The Bureau is directly under the control and
supervision of the DENR Secretary.
The Bureau shall regulate the establishment and
operation of sawmills, veneer and plywood mills and
other wood processing plants.
All actions and decisions of the Bureau Director are
subject to review, motuproprio or upon appeal of any
person aggrieved thereby, by the DENR Secretary
whose decisions shall be final and executory after the
lapse of thirty (30) days from receipt of the aggrieved
party of said decision., unless appealed to the President
in accordance with EO No. 19, s. 1966.
Exhaustion of administrative remedies it calls for
resort first to the 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.
It is an established doctrine that the decisions and
orders of administrative agencies have, upon their
finality, the force and binding effect of final judgment
within the purview of res judicata.
Res judicata the rule forbids the reopening of a matter
once determined by competent authority acting within
their exclusive jurisdiction.
Laches the failure or neglect for an unreasonable and
unexplained length of time to do that which by exercising
due diligence, could or should have been done earlier, or
to assert a right within a reasonable time, warranting a
presumption that the party entitled thereto has either
abandoned it or declined to assert it.
Jurisdiction
The Bureau has jurisdiction and authority over all forest
lands, grazing lands, and all forest reservations,
including watershed reservations presently administered
by other government agencies or instrumentalities.
Forest lands are within the exclusive jurisdiction of the
Bureau and beyond the power and jurisdiction of the
courts to register under the Torrens system.
Legality of the closure of a logging road is a judicial
question. It is beyond the power and authority of the
Bureau to determine the unlawful closure of a passage
way. Not every activity inside a forest area is subject to
the jurisdiction of the Bureau.
Classification of Surveys
Classification
The DENR Secretary shall study, devise, determine and
prescribe the criteria, guidelines and methods for the
proper and accurate classification and survey of all lands
of the public domain into agricultural, industrial or
commercial, residential, resettlement, mineral, timber or
forest, and grazing lands, and into such other classes as
now or may hereafter be provided by law, rules and
regulations.
Concept of Forests and Forest Lands
There is a big difference between forest as defined
in a dictionary and forest or timberland as a
classification of lands of the public domain in the
Constitution. One is descriptive of what appears on the
land while the other is a legal status, a classification for
legal purposes. Forests, in the context of both the Public
Land Act and the Constitution classifying lands of the
public domain do not necessarily refer to a large tract of
wooded land or an expanse covered by dense growth of
trees and underbrush.
Public forests or forests reserves are not capable of
private appropriation.
Unclassified land cannot be acquired by adverse
occupation or possession; occupation thereof in the
concept of owner, however long, cannot ripen ownership
and be registered as title.
Topography
No land of the public domain eighteen percent (18%) in
slope or over shall be classified as alienable and
disposable, nor any forest land fifty percent (50%) in
slope or over as grazing land.
Lands eighteen percent (18%) in slope or over which
have already been declared as alienable and disposable
shall be reverted to the classification of forest lands by
the DENR Secretary, to form part of the forest reserves,
unless they are 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 thirty (30) years of the effectivity of the
Code, where occupant is qualified for a free patent under
the Public Land Act (CA No. 141, as amended).
Areas Needed for Forest Purposes
The following lands, even if they are below 18 percent in
slope, are needed for forest purposes:
(a) areas less than 250 hectares which are far from, or
not contiguous with, any certified alienable and
disposable land;
(b) isolated patches of forest of at least five (5) hectares
with rocky terrain, or which protect a spring for
communal use;
(c) areas which have already been reforested;
(d) areas within forest concessions;
(e) ridge tops and plateaus found within, or surrounded
wholly or partly by, forest lands where headwaters
emanate;
(f) appropriately located road-rights-or-way;
(g) 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;
(h) 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 (2) meters wide facing lakes;
(i) areas needed for other purposes, such as national
parks, etc.;
(j) areas previously proclaimed by the President as
forest reserves, national parks, etc.
The maximum period of any privilege to harvest timber is
25 years, renewable for a period, not exceeding
25years.
Timber utilization shall be limited to that which a person
may effectively utilize and develop for a period of 50
years.
Mangrove swamps are in the category of forest lands
and the Bureau of Fisheries and Aquatic Resources has
no jurisdiction to administer or dispose them.
Forest lands are not registrable until they are released
as disposable and alienable.
Any title issued on non-disposable lots even in the hands
of an alleged innocent purchaser for value, shall be
cancelled.
All roads and infrastructure constructed by holders of
license agreements, licenses, leases and permits belong
to the State.
Regalian Doctrine
Under Section 2, Article XII of the Constitution embodies
the Regalian Doctrine all lands of the public domain
belong to the State the source of any asserted right to
ownership of land. All lands not appearing to be clearly
of private dominion presumptively belong to the State.
Reservation of land, covered by a timber concession, for
experiment station vests in the grantee full ownership
thereof.
Utilization and Management
Preservation and protection of forests is in adherence to
public policy.
Principle of inter-generational responsibility. the
right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature. (Sec.
16, Article II of the Constitution. Every generation has a
responsibility to the next to preserve that rhythm and
harmony for the full enjoyment of a balanced and
healthful ecology.
A timber license is not a contract but a mere privilege
which does not create irrevocable rights.
Industrial tree plantations and tree farms
A lease for a period of twenty-five (25) years, renewable
for another period not exceeding twenty-five (25) years,
for the establishment of an industrial tree plantation or a
tree farm may be granted by the DENR, upon
recommendation of the Director with minimum area of
1,000 hectares for industrial tree plantation and 100
hectares for tree farm.
No lease shall be granted within critical watersheds.
Forest Protection
Control of Concession Area
Regulation of Timber Utilization in All Other Classes of
Lands and of Wood-processing Plants
Swamplands and Mangrove Forests
Visitorial Power
The DENR Secretary, by himself or through the Director
or any qualified representative, may investigate, inspect
and examine records and other documents relating to
the operation of a license agreement, license, lease or
permit, and its subsidiary or affiliated companies, to
determine compliance with the terms and conditions
thereof.
Authority of Forest Officers
When in performance of their official duties, forest
officers shall have free entry into areas covered by
license agreement.
Mining Operations
Location, prospecting, exploration, utilization or
exploitation of mineral resources in forest reservations
shall be governed by mining laws.
Mineral Reservations
Mineral reservations which are not the subject of mining
operations or where operations have been suspended
for more than five (5) years shall be placed under forest
management by the Bureau.
Special Uses
1. Pasture in Forest Lands
No forest land 50% in slope or over may be utilized for
pasture purposes.
2. Wildlife
The Director may regulate the killing and destruction of
wildlife in forest lands in order to maintain an ecological
balance of flora and fauna.
3. Recreation
4. Other Special Uses of Forest Lands Qualifications
Diffusion of Benefits
The privilege to utilize, exploit, occupy, or possess forest
lands, or to conduct any activity therein shall be diffused
to as many qualified and deserving applicants as
possible.
Criminal Offenses and Penalties
1. Cutting, Gathering and/or Collecting Timber or Other
Products Without License
Punishment with penalties is imposed under Arts.
309 and 310.
If officers in a corporation is alien, in addition to penalty,
he may be deported without further proceedings on the
part of the Commission on Immigration and deportation.
A timber license is not a contract in the purview of the
due process clause; it is only a license or privilege,
which can be validly withdrawn whenever dictated by
public interest or public welfare. The granting of license
does not create irrevocable rights, neither is it property
or property rights.
2. Unlawful Occupation or Destruction of Forest Lands
3. Pasturing Livestock
4.Illegal Occupation of National Parks System and
Creation Areas and Vandalism Therein
5.Destruction of Wildlife Resources
6.Survey by Unauthorized Person
7.Misclassification and Survey by Government Official or
Employee
8.Issuance of Tax Declaration on Real Property without
Certification from the Director of Forest Development
and the Director of Lands
9.Coercion and Influence to Commit of the Acts
10.Unlawful Possession of Implements and Devices
Used by Forest Officers
11.Failure to Pay the Amount Due and Demandable
Under This Code
12. Sale of Wood products Without Grading Rules
Timber
Duration of license agreement or license to harvest
timber in forest lands has a maximum period twenty-five
years, renewable for a period, not exceeding twenty-five
years.
Size of forest concessions shall be limited to that which
a person may effectively utilize and develop for a period
of fifty (5) years.
Reforestation
Forest Lands to be Reforested
Sec. 68-A. Administrative Authority of the Department
Head or His Duly Authorized Representative to Order
Confiscation.
Authority also contains the disposal of the confiscated
forest products.
Offenses Punished Under Sec. 68, PD No. 705, as
Amended
1) cutting, gathering, collecting and removing timber or
other forest products from any forest land, or timber from
alienable or disposable public and, or from private land
without any authority; and,
2) possession of timber or other forest products without
the legal documents required under existing forest laws
and regulations.
Difference Timber and Lumber:
Timber is a raw log or forest product; Lumber is the
processed log or timber.
DENR Has Jurisdiction Over the Confiscation of
Forest Products and Conveyances Used in the
Commission of the Offense
Under Sec. 68 of PD No. 705, as amended, the regional
trial court has jurisdiction to order 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 of forest products are found.
However, the DENR Secretary or his duly authorized
representative under Sec. 68-A of PD No. 705, as
amended by EO No. 277, has jurisdiction to order the
confiscation and disposition of all
Conveyances by land, water, or air used in illegally
cutting, gathering, removing, possessing or abandoning
forest products.
A person guilty of unlawful occupation or destruction of
forest lands shall be fined an amount of not less than
five hundred pesos (P500.00) nor more than twenty
thousand pesos (P20,000) and imprisoned for not less
than 6 months nor more than 2 years for each such
offense, and be liable to the payment of 10 times the
rental fees and other charges which would have been
accrued had the occupation and use of the land been
authorized under a license agreement, lease, license or
permit.
In the case of an offender found guilty of making kaingin,
the penalty shall be imprisoned for not less than 2 nor
more than 4 years and a fine equal to 8 times the regular
forest charges due on forest products destroyed, without
prejudice to the payment of the full cost of restoration of
the occupied area as determined by the Bureau.
In pasturing livestock without authority in forest lands,
the guilty person shall be imprisoned for not less than 6
months nor more than 2 years for each such offense,
and a fine equal to 10 times the regular rentals due, in
addition to the confiscation of such livestock and all
improvement introduced in the area.
Any person who is guilty of illegal occupation of national
parks system and recreation areas and vandalism
therein shall be fined not less than P200 or more than
P500 exclusive of the value of the thing damaged. If the
area requires rehabilitation or restoration, the offender
shall also be required to restore or compensate for the
restoration of the damage.
Survey by unauthorized person is punishable by
imprisonment for not less than 2 nor more than 4 years,
in addition to confiscation of the implements used.
Misclassification and survey by government official or
employee shall be dismissed from the service with
prejudice to re-employment, and upon conviction by a
court of competent jurisdiction, suffer an imprisonment of
not less than 1 year and a fine of not less than P1000.
The survey, classification or release of forest lands shall
be null and void.
A forest Officer or employee of the Bureau shall arrest
even without warrant of arrest any person who has
committed or is committing in his presence any of the
offenses defined in the Code. He shall also seize and
confiscate, in favor of the government, the tools and
equipment used in committing the offense, and the forest
products.
The arresting officer or employee shall thereafter deliver
within 6 hours from the time of arrest and seizure, the
offender and the confiscated forest products, tools and
equipment to, and file the proper complaint with, the
appropriate official designated by law to conduct
preliminary investigations and file information in court.
Part IIIPhilippine Mining Act of 1995(Republic Act.
No. 7942)
Governing Law
RA 7942 was enacted of March 03, 1995, instituting a
new system of mineral resources exploration,
development, utilization and conservation in the country.
Evolution of Pertinent Mining Laws
Royal Decree of May 18667 Spanish Mining Law
Act of Congress of July 1, 1902
Act No. 624 passed by the United States Philippine
Commission and approved on Feb. 07, 1903.
The 1935 Constitution
CA No. 137, the Mining Act
EO No. 141 of then Pres. Marcos
The 1973 Constitution
PD 463, revising CA 137 stipulating the conditional
application of Regalian Doctrine
The 1987 Constitution
The Philippine Mining Act of 1995.
Declaration of Policy
All mineral resources in public and private lands within
the territory and exclusive economic zone of the
Republic of the Philippines are owned by the State.
(Regalian Doctrine)
Ownership of Mineral Resources
Ownership of mineral deposits by the State is also
dominant principle expressed in PD No. 463, otherwise
known as the Mineral Resources Decree of 1974).
Minerals excluded from other rights to land
Mineral deposits open to location and lease
Full control and supervision by the State in the
exploration, development and utilization of the countrys
natural resources is the adoption of the concept of
jura regalia.
The old system of exploration, development and
utilization of natural resources through licenses,
concessions or leases has been omitted under the 1987
Constitution.
Nonetheless, RA 7942 respects previously issued valid
and existing licenses.
RA No. 7942 reiterates ownership of natural
resources by the State
Activities which may be undertaken by the State in
connection with its full control and supervision
enter into co-production, joint venture or production
sharing agreements with Filipino citizens or qualified
corporations;
may allow small-scale utilization of natural resources by
Filipino citizens;
The President may enter into agreements with foreign-
owned corporations involving technical or financial
assistance for the large-scale exploration, development
and utilization of minerals, petroleum and other mineral
oils.
A 10% share of all royalties and revenues to be derived
by the government from the development and utilization
of the mineral resources.
Rights of a Locator to a Perfected Claim
Mere recording of a mining claim, without performing
annual work obligation, does not convert land into
mineral land.
Abandonment the act which constitutes actual,
absolute and irrevocable desertion of one's right or
property.
Classification of minerals (5)
First group metals or metalliferous ores
Second group precious stones
Third group fuels
Fourth group salines and mineral waters
Fifth group building stone in place, clays, fertilizers
and other non-metals
Mineral land means any area where mineral
resources are found.
Mineral resource any concentration of minerals/rocks
with potential economic value.
Organizational Structure
Pursuant to Section 8 of PD No. 7942, the Department
of Environment and Natural resources (DENR) shall be
the primary agency responsible for the conservation,
management, development, and proper use of the
State's mineral resources.
The Secretary shall have the authority to enter into
mineral agreements on behalf of the government upon
the recommendation of the Director, and promulgate
such rules and regulations as may be necessary to
implement the intent and provisions of the Act.
Role of local governments
a. to ensure that relevant laws on public notice;
b. in coordination with the Bureau/Regional Office(s) to
approve applications for small-scale mining, sand and
gravel quarry... not exceeding five (5) hectares;
c. to receive their share;
d. to facilitate the process by which the community shall
reach an informed decision on the social acceptability;
e. to participate in the monitoring of any mining activity;
f. to participate as member of the Mine Rehabilitation
Fund Committee;
g. to be the recipient of social infrastructure;
h. to act as mediator between the indigenous cultural
communities and the contractors;
i. to coordinate with the Department and Bureau in the
implementation of the Act;
j. to perform such powers and functions as may be
provided.
Authority of the Bureau
The Mines and Geosciences Bureau, headed by a
Director and assisted by Assistant Director shall advise
the secretary on matters pertaining to geology and
mineral resources exploration, development, utilization
and conservation.
The Bureau is conferred with quasi-judicial powers
There is an application of Doctrine of Primary
Jurisdiction.
Doctrine of Primary Jurisdiction - Courts cannot and
will not resolve a controversy involving a question
which is within the jurisdiction of an administrative
tribunal, especially where the question demand 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.
Non-interference by the courts on purely
administrative matters.
Scope of Application
No ancestral land shall be opened for mining operations
without the prior consent of the indigenous cultural
community concerned. In the event of agreement, the
royalty payment shall be agreed upon by the parties.
The said royalty shall form part of a trust fund for the
socioeconomic well-being of the indigenous cultural
community.
Areas Open to Mining Operations
All mineral resources in public or private lands, including
timber or forestlands as defined in existing laws, shall be
open to mineral agreements. Any conflict that may arise
shall be heard and resolved by the panel of arbitrators.
Areas Closed to Mining Operations
a. in military and other government reservations;
b. near or under public or private buildings, cemeteries,
archeological and historic sites, bridges xxx and other
infrastructure projectsxxx;
c. in areas covered by valid and existing mining rights;
d. in areas expressly prohibited by law;
e. in areas covered by small-scale miners;
f. old growth or virgin forest, proclaimed watershed forest
reserves xxx
Exploration Permit
Exploration Permit grants the right to conduct
exploration for all minerals in specified areas.
Section 3 (aq) of RA No. 7942 is not unconstitutional. An
observation has been made that Sec. 3 (aq) of RA 7942
which allows a foreign contractor to apply for and hold
an exploration permit is unconstitutional. The reasoning
is that Sec. 2 of Art. XII of the Constitution does not
allow foreign-owned corporations to undertake mining
operations directly. However, in La BugalB'laan Tribal
Association v. Ramos, the Court ruled that while the
Constitution mandates the State to exercise full control
and supervision over the exploitation of mineral
resources, nowhere does it require the government to
hold all exploration permits and similar authorizations
xxx. Such a permit does not amount to authorization to
extract and carry off the mineral resources that may be
discovered.
The exploration permit serves a practical and legitimate
purpose in that it protects the interest and preserves the
rights of the exploration permit grantee (the would-be
contractor) 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.
An exploration permit holder may, within the term of the
permit, file with the Bureau declaration of mining project
feasibility accompanied by a work program for
development for the Bureau's approval.
Term of Exploration
The term of an exploration permit shall be for the period
of two (2) years from date of issuance thereof,
renewable for like periods but not to exceed a total term
of foour (4) years for non-metallic mineral exploration or
six (6) years for metallic mineral exploration.
Exploration permit may be transferred but subject to the
approval of the Secretary of the DENR.
Registration of Exploration Permit
Upon approval and issuance of exploration permit, the
permitee shall cause the registration of the same with
the Bureau/Regional Office concerned within fifteen (15)
working days from receipt of written notice and upon
payment of of the required fees.
Exploration shall be revocable when demanded by
police power. The State, under its all-encompassing
police power, may alter, modify or amend permits in
accordance with the demands of the general welfare.
Mineral Agreements
Forms of General Agreements:
a. mineral production sharing agreement
b. co-production agreement
c. joint-venture agreement
Eligibility
a. in case of individual must be Filipino citizen, of legal
age and with a capacity to contract;
b. in case of corporation, partnership, association, or
cooperative at least sixty percent (60%) of capital of
which is owned by Filipino citizens.
Filing of mineral agreements shall be filed in the region
where the areas of interest are located. They will be
approved by the Secretary and copies shall be submitted
to the President.
Term of a Mineral Agreement
The term must not exceed twenty five (25) years to
start from the date of execution, and renewable for
another term not exceeding twenty five (25) years.
Publication, Posting, radio Announcement
It shall be done within (15) working days from receipt of
the notice.
Quarry Resources
Themaximum area which a qualified person may hold at
any one time shall be 5 hectares.
A quarry permit shall have a term of 5 years, renewable
for like periods but not to exceed a total term of 25
years.
A quarry permit may be canceled by the provincial
governor for violations of the provisions of this Act.
Transport, Sale, and processing of Minerals
In transporting non-processed mineral ores or minerals,
there must be an Ore Transport permit.
No person shall engage in trading of mineral products
unless registered with Department of Trade and
Industry.
No person shall engage in the processing of minerals
without a processing permit from the Secretary. Permit
shall be for a period of 5 years renewable for like years
but not to exceed a total term of 25 years.
A foreign-owned/controlled corporation may be granted
a mineral processing permit.
Development of Mining Communities, Science and
Mining Technology
A contractor shall:
a. Allot expenditure for community development and
science and mining technology
b. Maintain manpower training and development
program
c. Use indigenous goods, services, and technologies
d. prior to cessation have 1 year to remove
improvements, otherwise all shall be turned over or
donated tax-free to the proper government authorities
e. employ preferably Filipino citizens
Safety and Environmental Protection
No person under 16 years of age shall be employed in
any phase of mining operations, and no person under 18
years of age shall be employed underground in the
mine.
All mining and quarrying operations that employ 50
workers shall have at least 1 licensed mining engineer
with 5 year experience, and 1 registered foreman.
The regional director shall have exclusive jurisdiction
over the safety inspection of all installations.
The regional director shall, in consultation with the
Environmental Management Bureau have the power to
issue orders.
Auxiliary Mining Rights
Timber rights (subject to forestry laws, rules, and
regulations)
Water rights (subject to the existing water laws, rules,
and regulations)
Right to possess explosives
Easement right
Entry into private lands and concession areas
Settlement of Conflicts
There shall be panel of arbitrators in the regional office
of the department composed of 3 members, 2 of whom
must be member of the Philippine Bar and 1 licensed
mining engineer and duly designated by the Secretary.
The panel shall settle the following:
disputes involving rights to mining areas
disputes involving mineral agreements or permit
disputes involving surface owners, occupants and claim
holder/concessionaires
disputes pending before the Bureau and the Department
at the date of the effectivity of this Act.
The decision or order of the panel of arbitrators may be
appealed by the party to the Mines Adjudication Board
within 15 days from receipt.
The Mines Adjudication Board is composed of the
Secretary as Chairman with the Director of Mines and
Geosciences Bureau and the Undersecretary for
Operations of the Department as members.
Government Share
The total government share in a mineral production
sharing agreement shall be the excise tax on mineral
products.
The share of the Government in co-production and joint
venture agreements shall be negotiated by the
Government and the contractor.
Ground for Cancellation, revocation, and
Termination

Late or non-filing of requirements

Violation of the terms and conditions of permits or
agreements
Non-payment of taxes and fees
Suspension or cancellation of tax incentives and credits
Falsehood or omission of facts in the statement

Penal Provisions

1.False statements
2.illegal exploration
3. Theft of minerals
4. Destruction of mining structures
5. Mines arson
6.Willful damage to mine
7.Illegal obstruction to permitees or contractors
8. Violation of the terms and conditions of the
Environmental Compliance Certificate (ECC)
9. Obstruction of government officials
10.Other violations
11. Fines