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On Natural
Resources
It is the universal feudal theory that all lands were held from
the Crown. (Carino v. Insular Govt, 41 Phil. 935)
It is the foundation of the 1st sentence of Sec. 2, Art. XII, 1987
Constitution.
As adopted in the Republican system, the medieval concept of
jura regalia has been stripped of its regalian overtones. (Lee
Hong Kok v. David, 48 SCRA 372)
CONSTITUTIONAL PROVISIONS ON JURA
REGALIA
1st Sentence, Sec. 2, Art. XII, 1987 Constitution: ALL LANDS OF
THE PUBLIC DOMAIN, WATERS, MINERALS, COAL, PETROLEUM
AND OTHER MINERAL OIL, ALL FORCES OF POTENTIAL ENERGY,
FISHERIES, FORESTS OR TIMBER, WILDLIFE, FLORA AND FAUNA,
AND OTHER NATURAL RESOURCES ARE OWNED BY THE STATE.
2nd Sentence, Sec. 2, Art. XII: WITH THE EXCEPTION OF
AGRICULTURAL LANDS, ALL OTHER NATURAL RESOURCES SHALL
NOT BE ALIENATED
3rd Sentence (Ibid): THE EXPLORATION, DEVELOPMENT, AND
UTILIZATION OF NATURAL RESOURCES SHALL BE UNDER THE
FULL CONTROL AND SUPERVISION OF THE STATE
4th Sentence (Ibid): THE STATE MAY DIRECTLY UNDERTAKE SUCH
ACTIVITIES, OR IT MAY ENTER INTO CO-PRODUCTION, JOINT
VENTURE, OR PRODUCTION-SHARING AGREEMENTS WITH
FILIPINO CITIZENS, OR CORPORATIONS OR ASSOCIATIONS AT
LEAST 60% OF WHOSE CAPITAL IS OWNE BY SUCH CITIZENS.
5th Sentence (Ibid): SUCH AGREEMENTS MAY BE FOR PERIOD NOT
EXCEEDING TWENTY-FIVE YEARS, RENEWABLE FOR NOT MORE
THAN TWENTY-FIVE YEARS, AND UNDER SUCH TERMS AND
CONDITIONS AS MAY BE PROVIDED BY LAW
6th Sentence (Ibid): IN CASE OF WATER RIGHTS FOR IRRIGATION,
WATER SUPPLY, FISHERIES, OR INDUSTRIAL USES OTHER THAN
THE DEVELOPMENT OF WATER POWER, BENEFICIAL USE MAY BE
THE MEASURE AND LIMIT OF THE GRANT
2nd Par. (Ibid): THE STATE SHALL PROTECT THE NATION’S
MARINE WEALTH IN ITS ARCHIPELAGIC WATERS, TERRITORIAL
SEA, AND EXCLUSIVE ECONOMIC ZONE, AND RESERVE ITS USE
AND ENJOYMENT EXCLUSIVE TO FILIPINO CITIZENS.
3rd Par. (Ibid): THE CONGRESS MAY, BY LAW, ALLOW SMALL-
SCALE UTILIZATION OF NATURAL RESOURCES BY FILIPINO
CITIZENS, AS WELL AS COOPERATIVE FISH FARMING, WITH
PRIORITY TO SUBSISTENCE FISHERMEN AND FISHWORKERS IN
RIVERS, LAKES, BAYS, AND LAGOONS
4th Par. (Ibid): THE PRESIDENT MAY ENTER INTO AGREEMENTS
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.
IN SUCH AGREEMENTS, THE STATE SHALL PROMOTE THE
DEVELOPMENT, AND USE OF LOCAL SCIENTIFIC AND TECHNICAL
RESOURCES
Last par. (Ibid): THE PRESIDENT SHALL NOTIFY THE CONGRESS
OF EVERY CONTRACT ENTERED INTO IN ACCORDANCE WITH THIS
PROVISION, WITHIN THRITY DAYS FROM ITS EXECUTION.
JURE IMPERII vis-à-vis JURE GESTIONIS
Forests land,
Pasture land,
Residential lands
Narrower in concept;
Refers to those land held under the same
conditions of ancestral domain
BUT LIMITED TO LANDS THAT ARE NOT MERELY
OCCUPIED AND POSSESSED BUT ARE ALSO UTILIZED
BY CULTURAL COMMUNITIES UNDER THE CLAIM OF
INDIVIDUAL OR TRADITIONAL GROUP OWNERSHIP.
Includes [but not limited to]: Residential lots, Rice
terraces or paddies, private forests, farms and tree
lots.
CONVERSION TO ALP: EXECUTIVE
PREROGATIVE
In Republic v. Reg. of Deeds of Q.C., 244 SCRA 537:
The classification of public lands is, thus, an
exclusive prerogative of the Executive Department
through the Office of the President.
Courts have no authority to convert lands of public
domain into alienable and disposable lands.
TITLE OVER LAND PART
OF FOREST IS VOID
In Sunbeam v. CA, 181 SCRA 443: Before any land
may be converted into alienable or disposable land
for agricultural or other purposes, there must be
positive act from the govt.
The mere fact that a title was issued by the Dir. Of
Lands does not confer owner-ship where it is part
of the public forest.
See also Ituralde v. Falcasantos, G.R. No. 128017,
Jan. 20, 1999.
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 1
General Rule: All natural resources shall not be
alienated.
Exception: Only agricultural lands of the public
domain may be alienated.
GOVERNMENT LANDS NOT ALL PUBLIC LANDS
Agricultural
Forest or Timber
Mineral
National Parks
CAN THERE BE MIXED CLASSIFICATION?
Forest Lands
In Director of Forestry v.
Villareal, G.R. 32266, Feb.
27, 1989: “The
classification by the
Administrative Code of the
Phil. manglares as forest
lands has not been
changed”
RULES ON THE DISPOSITION OF ALP
Exploration, Development
and Utilization of Natural
Resources must be under
Full Control and
Supervision of the State
under the constitutionally
allowed modes
ALLOWED MODES IN EDU
OF NATURAL RESOURCES
Direct Undertaking
Co-Production Agreement
Joint-Venture Agreement
Production-Sharing Agreement
Financial or Technical Assistance Agreement
MEANING OF FULL CONTROL
(La Bugal-B’laan Tribal Assn. vs. Ramos, G.R. 127882,
Dec. 1, 2004)
Full control is not anathematic to day-to-day management by
the contractor, provided that the State retains the power to
direct overall strategy; and to set aside, reverse or modify
plans and actions of the contractor. The idea of full control is
similar to that which is exercised by the board of directors of a
private corporation: the performance of managerial,
operational, financial, marketing and other functions may be
delegated to subordinate officers or given to contractual
entities, but the board retains full residual control of the
business.
“full control and supervision” cannot be taken
literally to mean that the State controls and
supervises everything down to the minutest details
and makes all required actions, as this would
render impossible the legitimate exercise by the
contractor of a reasonable degree of management
prerogative and authority, indispensable to the
proper functioning of the mining enterprise.
Control, as utilized in Section 2 of Article XII, must
be taken to mean a degree of control sufficient to
enable the State to direct, restrain, regulate and
govern the affairs of the extractive enterprises.
Control by the State may be on a macro level,
through the establishment of policies, guidelines,
regulations, industry standards and similar
measures that would enable government to
regulate the conduct of affairs in various
enterprises, and restrain activities deemed not
desirable or beneficial, with the end in view of
ensuring that these enterprises contribute to the
economic development and general welfare of the
country, conserve the environment, and uplift the
well-being of the local affected communities.
Such a degree of control would be compatible with
permitting the foreign contractor sufficient and
reasonable management authority over the
enterprise it has invested in, to ensure efficient
and profitable operation.
In fine, the FTAA provisions do not reduce or
abdicate State control.
MEANING OF CO-PRODUCTION
AGREEMENT
All agreements in
respect to EDU of
Natural Resources
should not exceed 25
years
Renewable for another
25 years
WATER RIGHTS NOT COVERED BY THE
25-YR LIMIT
Last sentence, 1st par.,
Sec. 2, Art. XII
IN CASES OF WATER
RIGHTS FOR IRRIGATION,
WATER SUPPLY, FISHERIES,
OR INDUSTRIAL USES
OTHER THAN
DEVELOPMENT OF WATER
POWER
MEASURE AND LIMIT OF
THE GRANT: BENEFICIAL
USE
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 4
The use and enjoyment
of the MARINE WEALTH
of the archipelagic
waters, territorial sea
and EEZ reserved for
FILIPINO CITIZENS
ONLY.
MEANING OF ARCHIPELAGIC WATERS
Homestead
By Sale
By Lease; and
By confirmation of imperfect or incomplete titles
through:
a) Judicial legalization
b) Administrative legalization or free patent
MATERIAL ALLEGATIONS IN APPLICATIONS FOR
GRANT OF PUBLIC LAND
Filipino
18 yrs old or head of the family
Must not own more than (12) has. of land
nor has had the benefit of any gratuitous
allotment of more than (12) has. of land
If applicant is a married woman:
She must be living separately from her husband
and not dependent on him for support; or
Her husband is insane or physically incapacitated
to work;
When her husband is in prison, serving a term of
such duration as would prevent him from
complying with the requirements of the law
regarding residence of land.
Mandatory Conditions/Requirements in
Homestead Application
Within 6 months after Continuous residency in the
approval, homesteader same municipality where
must start to improve and homestead is located or in
cultivate the land; an adjacent municipality
Within a period of not less for at least 1 year; and
than 1 year or more than 5 Non- abandonment
years from date of approval (voluntary) for more than 6
of application – months at any one time
homesteader must have during period of required
cultivated at least 1/5 of residency and occupation.
the land;
When vested right in homestead fixed
and
Private corporation or association registered
In addition:
No bid will be considered if the proposed rent is less than 3%
of the appraised value of the land or the bidder did not
deposit rental equivalent to at least the first 3 months of the
lease.
If the land applied for is for grazing, annual rental must not
be less than 2%.
OTHER CONDITIONS IN LEASE OF ALP
I. BY JUDICIAL LEGALIZATION
- When application is filed with the proper RTC
in the province or city where the land lies; or
I. BY FREE PATENT – When the application is
filed with the Bureau of Lands.
JUDICIAL LEGALIZATION
“In the case where the applicant was able to establish that he
and his predecessors-in-interest had been in actual, peaceful,
public, open and continuous possession of certain public land
under claim of ownership for more than 65 years, he is deemed
to have been conferred effective title and the subject land had
ceased to a part of the public domain and had become a
private property.”
Note: Generally, 30 years possession without title and in bad faith
is enough in acquisitive prescription. However, in ALP,
possession must be traced since June 12, 1945.
ACQUISITION BY ADMIN LEGALIZATION OR
FREE PATENT
Persons entitled:
- Natural-born Filipino;
- Not owner of more than 24 hectares (now 12 hectares;
- Since July 4, 1945 or prior thereto, has continuously occupied
and cultivated, either by himself or through his predecessors-
in-interest, such public lands as may be subject of disposition;
- In lieu of continuous cultivation, applicant may show that he
has paid real estate taxes on the property for the same period
and the land has not been occupied by other persons.
LIMITATIONS IN AREA
Republic v. C.A. & Republic Real Estate Corp, G.R. No. 105276,
November 25, 1998.
Chavez v. PEA & Amari, G.R. No. 133250, July 9, 2002, en banc
decision;
REPUBLIC V. CA & REPUBLIC REAL ESTATE
CORP., G.R. No. 105276, November 25, 1998
Submerged lands, like the waters (sea or bay) above them, are
part of the State’s inalienable natural resources. Submerged
lands are property of public dominion, absolutely inalienable
and outside the commerce of man. This is also true with
respect to foreshore lands. Any sale of submerged or foreshore
lands is void being contrary to the Constitution.
Commonwealth Act No. 141, "foreshore and lands under water
were not to be alienated and sold to private parties,"
PEA is the central implementing agency tasked to
undertake reclamation projects nationwide
PEA took the place of the Department of
Environment and Natural Resources ("DENR" for
brevity) as the government agency charged with
leasing or selling all reclaimed lands of the public
domain.
In the hands of PEA, which took over the leasing
and selling functions of DENR, reclaimed foreshore
(or submerged lands) lands are public lands in the
same manner that these same lands would have
been public lands in the hands of DENR
To allow vast areas of reclaimed lands of the
public domain to be transferred to PEA as private
lands will sanction a gross violation of the
constitutional ban on private corporations from
acquiring any kind of alienable land of the public
domain.
PEA will simply turn around, as PEA has now
done under the Amended JVA, and transfer
several hundreds of hectares of these reclaimed
and still to be reclaimed lands to a single private
corporation in only one transaction.
This scheme will effectively nullify the constitutional ban in
Section 3, Article XII of the 1987 Constitution which was
intended to diffuse equitably the ownership of alienable lands
of the public domain among Filipinos, now numbering over 80
million strong.
As we held in our 9 July 2002 Decision, the Amended JVA
"violates glaringly Sections 2 and 3, Article XII of the 1987
Constitution.“
In our 6 May 2003 Resolution, we DENIED with FINALITY
respondents’ Motions for Reconsideration. Litigations must
end some time. It is now time to write finis to this
"Grandmother of All Scams."
SURVEY OF RECLAMATION LAWS
AND REGULATIONS
The Spanish Law of Waters of 1866
Civil Code of 1889
Act No. 1654
Act No. 2874 ;
Commonwealth Act No. 141;
R.A. 1899
PD No. 1084
R.A. 7160
Executive Order 525, February 14, 1979 (Designating PEA as
the Agency primarily responsible for all reclamation projects)
Executive Order 543, June 24, 2006 (Delegating to PRA the
power to approve reclamation projects)
Executive Order No. 380, Oct. 26, 2004 (Transforming PEA
into PRA)
Executive Order No. 586
Executive Order No. 654
Presidential Decree No. 1085
THE SPANISH LAW OF WATERS OF 1866
A later law than either PD No. 1084 or EO No. 525, vests in the
Department of Environment and Natural Resources ("DENR" for
brevity) the following powers and functions:
"Sec. 4. Powers and Functions. The Department shall:
(1) x x x
xxx
(4) Exercise supervision and control over forest lands,
alienable and disposable public lands, mineral resources and,
in the process of exercising such control, impose appropriate
taxes, fees, charges, rentals and any such form of levy and
collect such revenues for the exploration, development,
utilization or gathering of such resources;
xxx
(14) Promulgate rules, regulations and guidelines
on the issuance of licenses, permits, concessions,
lease agreements and such other privileges
concerning the development, exploration and
utilization of the country's marine, freshwater, and
brackish water and over all aquatic resources of
the country and shall continue to oversee,
supervise and police our natural resources; cancel
or cause to cancel such privileges upon failure,
non-compliance or violations of any regulation,
order, and for all other causes which are in
furtherance of the conservation of natural
resources and supportive of the national interest;
(15) Exercise exclusive jurisdiction on the
management and disposition of all lands of the
public domain and serve as the sole agency
responsible for classification, sub-classification,
surveying and titling of lands in consultation
with appropriate agencies."
DENR is vested with the power to authorize the
reclamation of areas under water.
PEA is vested with the power to undertake the
physical reclamation of areas under water,
whether directly or through private contractors.
DENR is empowered to classify lands of the public
domain into alienable or disposable lands subject
to the approval of the President.
PEA is tasked to develop, sell or lease the
reclaimed alienable lands of the public domain.
PEA's Authority to Sell Reclaimed Lands