VILLAFUERTE, Abygail June R.

LAW 121 D / 2011-78090

October 10, 2011
1
Outline of the Natural Resources
A12/S1
Goals of the national economy
1. More equitable distribution
a. Opportunities
b. Income
c. Wealth
2. Increase in the amount of goods and
services produced
3. Expanding productivity as key to raising
quality of life
State shall promote industrialization and
employment based on agricultural development
and agrarian reform through industries
- Full and efficient use of human and
natural resources
- Competitive in both domestic, foreign
markets
- State shall protect Filipino enterprises
against unfair foreign competition, trade
practices
- All sectors of the economy, regions of the
country shall be given opportunity to
develop
- Private enterprises shall be encouraged to
broaden the base of their ownership
JURA REGALIA AND LIMITS ON DOMINIUM
A12/S2
Owned by the State
1. All lands of the public domain
2. Waters
3. Minerals
4. Coal
5. Petroleum
6. Other mineral oils
7. All forces of potential energy
8. Fisheries
9. Forests or timber
10. Wildlife
11. Flora and fauna
12. Other natural resources
All natural resources shall not be alienated
EXCEPT agricultural lands

Legend: Ax/Sx/Px A: article; S: section; P: paragraph; x:

number

Carino v. Insular Government (1909)

The presumption is that land is held in
private ownership and not part of public
land when from before the Spanish
conquest, the land has been held by
individuals from time immemorial in a
claim of such ownership.
Lee Hong Hok v. David (1972)
Property is considered public domain
when there is no evidence that said
property was acquired by the applicants or
their ancestors either by composition title
or by any other means for the acquisition
of public lands.
Santa Rosa Mining Co. v. Leido (1987)
The State, as owner of minerals and other
natural resources, may promulgate laws
and rules that modify contracts regarding
EDU of minerals, especially with regard to
unpatented mining claims.
Republic v. CA (1988)
Natural resources found beneath the
earth, even if said land is private, is
reserved to the State.
Director of Lands v. Kalahi Investments (1989)
Location should be understood as
segregating the land located from the
public domain in the sense that it is no
longer open to location or susceptible of
appropriation by another, while the locator
has not lost his right to or abandoned the
mining claim.
EDU OF INALIENABLE RESOURCES
A12/S2
Exploration, development, and utilization (EDU) of
natural resources under full control and
supervision of the State
EDU
-

State
Agreements with Filipino citizens or
corporations (60% capital of which is
owned by Filipinos)
o Co-production
o Joint venture
o Production-sharing

Period of EDU agreements

- 25 years maximum
- Renewable for 25 more years (max)
Beneficial use as measure and limit of grant
- Water rights for irrigation
- Water supply fisheries
- Industrial uses other than development of
water power
Marine wealth
- Protected by the State in its
o Archipelagic waters
o Territorial sea
o Exclusive economic zone
- Use and enjoyment reserved to Filipinos
Small-scale utilization
- Congress may allow small-scale utilization
o Filipino citizens
o Cooperative fish farming (priority
to subsistence fishermen and fishworkers)

La Bugal Tribal Association v. Ramos (2004)

A12/S2 which allows the President to
enter into FTAAs with foreign-owned
corporations is an exception to the rule
that participation in the EDU of PH's
natural resources is reserved for Filipinos.
Republic
v.
Rosemoor
Mining
and
Development Corporation (2004)
Timber licenses, permits, and license
agreements are subject to amendment,
modification,
replacement,
and/or
rescission by the Chief Executive when
national interest requires.
Didipio Earthsavers Association v. Secretary
(2006)
"Agreements involving either technical or
financial assistance" shall mean service
contracts entered into by foreign
corporations acting as contractors, while
the government acts as principal.
Classification of lands of the public domain

FTAA for large-scale EDU

- President may enter into FTAAs
- With foreign-owned corporations
- EDU of minerals, petroleum, and other
mineral oils
- Based on real contribution to economic
growth and general welfare of the country
- State shall promote development and use
of local scientific and technical resources
- President shall notify Congress of every
contract entered into in accordance with
A12/S2 within 30 days from execution
Miners Association of the Philippines v.
Factoran, Jr. (1995)
A12/S2 shall not apply retroactively to
"license, concession or lease" granted by
the government before the 1987
Constitution took effect.
Southeast Mindanao Gold Mining v. Balite
Portal Mining (2002)
State may not be precluded from
considering a direct takeover of a natural
resource, if it is the only plausible remedy
in sight of complexities of certain
circumstances such as the gold rush in the
case of mining.

A12/S3
Classification of public domain lands
1. Agricultural
2. Forest or timber
3. Mineral lands
4. National parks
Krivenko v. Register of Deeds (1947)
"Public agricultural lands" refer to lands
that are not timber or mineral, and
includes residential lands.
Republic v. CA (1988)
The land itself cannot be partly agricultural
and mineral. The classification must be
categorical; the land must be either
mineral or agricultural. Once the mining
claims are perfected, the land shall
become
mineral,
and
no
longer
agricultural.
Director of Lands v. Aquino (1990)
"With the exception of agricultural lands,
all other natural resources shall not be
alienated" means that only agricultural
lands are alienable. Forest lands or forest
reserves are incapable of private
appropriation. Possession cannot convert
them into private properties.

DISPOSITION OF LANDS OF THE PUBLIC

DOMAIN

property by the lapse or completion of said

period.

A12/S3
Alienable lands of the public domain
- Limited to agricultural lands
- Private corporations or associations may
not hold such lands except by lease
o 25 years maximum
o Renewable for another 25 years
(max)
o Not exceeding 1,000ha
o Filipinos may
Lease 500ha maximum
Acquire 12ha maximum
Purchase
Homestead
Grant

Atok Big Wedge Mining v. CA (1991)

Mineral land could not be transferred by
acquisitive prescription, nor could its use
be shared simultaneously for agricultural
and mining purposes.

Congress shall determine size of public domain

lands which may be acquired, developed, held, or
leased and conditions, taking into account
- Requirements of conservation
- Ecology
- Development
- Agrarian reform requirements
Laurel v. Garcia (1990)
A property of public dominion is outside
the commerce of man and as such, it
cannot be alienated. Its ownership is a
special collective ownership for general
use and enjoyment, an application to the
satisfaction of collective needs.
Chavez v. Public Estates Authority and Amari
Coastal Bay Corporation (2002)
Public land is inalienable until classified
otherwise. There must be a law or
presidential
proclamation
officially
classifying
lands
as
alienable or
disposable and open to disposition or
concession and cannot be made alienable
or disposable if the law has reserved them
for some public or quasi-public use.
FROM PUBLIC AGRICULTURAL LAND TO
PRIVATE LAND

FOREST LAND AND NATIONAL PARK

A12/S4
- Congress shall determine specific limits of
forest lands and national parks
- Boundary marks should be made
- Forest lands and national parks shall be
conserved and may not be increased nor
diminished, except by law
- Congress shall provide measures to
prohibit logging in endangered forests and
watershed areas
Tan v. Director of Forestry (1983)
The date of release of timber license
agreements and not the alleged date of
signing is the date to be considered. A
timber license agreement covering a
watershed area is void ab initio.
ANCESTRAL
DOMAIN

LANDS

AND

ANCESTRAL

A12/S5
State shall protect the rights of indigenous cultural
communities to their ancestral lands subject to
- Constitution
- National
development
policies
and
programs
- Congress may provide for applicability of
customary laws re: property rights or
relations in determining ownership and
extent of ancestral domain
Cruz v. Secretary (2000)
The grant of ancestral domain and
ancestral lands to indigenous people does
not deprive the State of the ownership of
natural resources situated therein.

Director of Lands v. IAC (1986)

Alienation of land includes acquisitive
prescription. Alienable land held by a
possessor openly, continuously, and
exclusively for the prescribed statutory
period (30 years) is converted to private

WHO MAY ACQUIRE PRIVATE LAND

A12/S7
No private lands shall be transferred or conveyed
except to those qualified to acquire or hold lands
of the public domain
- Individuals
- Corporations
- Associations
Exception: Cases of hereditary succession
Republic v. Quasha (1972)
Under the Parity Amendment, US citizens
and corporations and business enterprises
owned or controlled by them cannot
acquire and own private agricultural lands
in the Philippines, save in cases of
hereditary succession.
Ramirez v. Vda de Ramirez (1982)
The constitutional provision that allows
aliens to acquire lands by succession
does
not
apply
to
testamentary
succession. The exception specified in
A12/S7
applies
only
to
intestate
succession.
Republic v. CA (1994)
Transferees of private land who were
formerly natural-born Filipino citizens can
apply for registration. It is not important
WON they were no longer Filipino citizens
at the time they purchased or registered
the parcels of land.
FILIPINIZATION OF AREAS OF INVESTMENT
A12/S10
- Congress shall reserve to Filipinos or to
corporations or associations (60%+ capital
of which is owned by Filipinos) certain
areas of investments
o Upon recommendation of the
economic and planning agency
o When national interest dictates
- Congress shall enact measures to
encourage the formation, operation of
enterprises with 100% Filipino-owned
capital
- State shall give preference to qualified
Filipinos in the grant of rights, privileges,
concessions covering national economy
and patrimony
- State shall regulate, exercise authority
over foreign investments within national

jurisdiction and in accordance with its

goals and priorities
Manila Prince Hotel v. GSIS (1997)
A12/S10/P2 is a self-executory. "National
patrimony" includes historic and cultural
institutions such as the Manila Hotel.
PUBLIC UTILITIES
A12/S11
- Franchise, certificate, authorization for the
operation of a public utility granted only
o To Filipinos
o To corporations or associations
organized under PH laws (60%
capital of which is owned by
Filipinos)
Participation of foreign
investors in the governing
body of any public utility
limited
to
their
proportionate share in its
capital
All executive, managing
officers must be Filipino
citizens
o Under the condition that it shall be
subject to amendment, alteration,
or repeal by Congress when
common good requires
- Franchise, certificate, or authorization
cannot be
o Exclusive in character
o Longer than 50 years
- State shall encourage equity participation
in public utilities by the general public
Bagatsing v. Committee on Privatization (1995)
The activities considered as public utility
under RA 387/S7 refers only to petroleum
which is locally sourced. Refining of
petroleum products sourced abroad is not
the one contemplated by the law.
JG Summit Holdings v. CA (2003)
A public utility is a business or service
engaged in regularly supplying the public
with a commodity or service of public
consequence (i.e. electricity, gas, water,
transportation, telephone or telegraph
service).

Freedom from Debt Coalition v. MERALCO

(2004)
A corporation is deemed a public utility
even if it is privately owned when it
renders public service to the State,
fulfilling its role as a public servant.
FILIPINO FIRST POLICY
A12/S12
State shall promote preferential use of Filipino
- Labor
- Domestic materials
- Locally produced goods
It shall also adopt measures to make them
competitive

AGRARIAN
REFORM
RESOURCES

AND

NATURAL

A13/S6
State shall apply principles of agrarian reform or
stewardship in the disposition or utilization of other
natural resources, including
- Public domain lands under lease or
concession suitable to agriculture
- Homestead rights of small settlers
- Indigenous communities right to ancestral
lands
State may resettle landless farmers and
farmworkers in own agricultural estates to be
distributed to them according to law

CARE FOR FILIPINO PROFESSIONALS AND

SKILLED WORKERS
A12/S14
- Sustained development of a reservoir of
national talents shall be promoted by the
state
o Filipino scientists
o Entrepreneurs
o Professionals
o Managers
o High-level technical manpower
o Skilled workers
o Craftsmen
- State
shall
encourage
appropriate
technology and regulate its transfer for
national benefit
- Practice of all professions in PH limited to
Filipino citizens, save in cases prescribed
by law
MONOPOLIES AND COMBINATIONS
A12/S19
- State shall regulate or prohibit monopolies
when public interest requires
- No combinations in restraint of trade or
unfair competition are allowed
Energy Regulatory Board v. CA (2001)
Absent a clear showing of destructive
competition, a competitive petroleum
market, in line with deregulation, shall be
promoted.