LAW ON NATURAL RESOURCES REVIEWER

Blacks
Resources

Law

Definition

of

Natural

Blacks first definition in his 7th ed. is any material

from nature having potential economic value or
providing for the sustenance of life, such as timber,
minerals, oil, water and wildlife. The second
definition is environmental features that serve a
communitys well-being or recreational interests,
such as parks.
Blacks (Sixth edition, 1990), defined natural
resources as any material in its native state which
when extracted has economic value. Basically it
states that for a substance or feature to be
classified as a natural resource, it must offer
potential or actual economic value, creating wealth.
Definition
Websites

of

Natural

Resources

Art XII, Sec. 2 of the 1987 Constitution

Other

Natural resource is any naturally occurring

substance or feature of the environment (physical
or biological) that, while not created by human
effort, can be exploited by humans to satisfy their
needs or wants. Many of such resources are our life
line such as water, air and solar radiation, which
are essential elements for the existence of all the
flora and fauna.

All lands of the public domain, waters, minerals,

coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural
resources are owned by the State. With the
exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources
shall be under the full control and supervision of
the State. 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 sixty per centum of whose capital is owned by
such citizens. Such agreements may be for a 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. In cases
of water rights for irrigation, water supply fisheries,
or industrial uses other than the development of
water power, beneficial use may be the measure
and limit of the grant.

Two basic conditions for a substance or feature to

be classified as a natural resource: First, the
resource must exist naturally in the environment;
that is, not synthetically produced by human
beings, such as in a laboratory or factory. Second,
the resource must be able to be exploited by
humans to directly satisfy a need or want.

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 exclusively to Filipino citizens.

Natural resources may either be:

a) Biotic resources which are derived from
biosphere such as the forests, marine
organism, animals, birds and their products
including mineral fuels come in this
category, or
b) Abiotic which includes water, air, land and
elemental ores such as gold, silver, copper,
iron etc.

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 fish- workers in rivers,
lakes, bays, and lagoons.

It may also be either be renewable and nonrenewable resources. A renewable resource grows
again or comes back again after we use it. For
example, sunlight, water, and trees are renewable
resources. A non-renewable resource is a resource
that does not grow or come back, or a resource
that would take a very long time to come back. For
example, coal is a non-renewable resource.

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.

Regalian Doctrine

to the fact that the person named is the

owner of the property described.
B
The Concept
Doctrine)

of

Jure

Regalia

(Regalian

This principle means that all natural wealth agricultural, forest or timber, and mineral lands of
the public domain and all other natural resources
belong to the State. Thus, even if the private
person owns the property where minerals are
discovered, his ownership for such does not give
him the right to extract or utilize said minerals
without permission from the state to which such
minerals belong.

The Regalian Doctrine was enshrined in the

1935, 1973 and 1987 Constitutions which
basically states that all lands of the public
domain as well as natural resources,
whether on public or private land, belong to
the State. It is this concept of state
ownership that petitioners claim is being
violated by the IPRA.
I

The Indigenous Peoples Rights Act

The IPRA recognizes the existence of the
indigenous cultural communities or indigenous
peoples as a distinct sector. It grants these
people the ownership and possession of their
ancestral domains and ancestral lands, and
defines the extent of these lands and domains.
Within their ancestral domains and lands the
ICCs/IPs are given the right to self-governance
and right to preserve their culture. To carry out
the policies of the ACT, the law created the
National Commission on Indigenous Peoples
(NCIP)

The abovementioned provision provides that except

for agricultural lands for public domain which alone
may be alienated, forest or timber, and mineral
lands, as well as all other natural resources must
remain
with
the
State,
the
exploration,
development and utilization of which shall be
subject to its full control and supervision albeit
allowing it to enter into coproduction, joint venture
or
production-sharing
agreements,
or
into
agreements
with
foreign-owned
corporations
involving technical or financial assistance for largescale exploration, development, and utilization
A
A

Public Land
System

Acts

and

the

Torrens

Act No. 926, the first Public Land Act, was

passed in pursuance with the Philippine Bill
of 1902, governing the disposition of land
of public domain. It prescribe rules for the
homesteading, selling and leasing of
portions of the public domain, and to
enable persons to perfect their titles to
public lands. It also provided for the
issuance of patents to certain native
settlers upon public lands.
Act No. 926 was superseded by the Act
2874, the second Public Land Act, passed
under the Jones Law. it limited the
exploitation of agricultural lands to Filipinos
and Americans and citizens of other
countries which gave the Filipinos the same
privileges.
It was amended by Commonwealth Act No.
141which remains the present Public Land
Law.
Grants of public land were brought under
the operation of the Torrens System under
Act 496 which placed all public and private
lands in the Philippines under the Torrens
system, requiring that the government
issue an official certificate of title attesting

The Philippine Constitutions

Indigenous Peoples
Indigenous Cultural Communities or Indigenous
Peoples (ICCs/ IPs) refer to a group of people
who have continuously lived as an organized
community on communally bounded and
defined territory. These groups of peoples have
actually occupied, possessed and utilized their
territories under claim of ownership since time
immemorial.
Their unit of government is the barangay. In a
baranganic society, the chiefs administered the
lands in the name of the barangay, there was
no private property in land. When Islam was
introduced in the country in the archipelago of
Maguindanao, the Sultanate of Sulu claimed
jurisdiction over territorial areas.
When Spaniards settled in the Philippines,
Spanish missionaries were ordered to establish
pueblos where church would be constructed. All
the new Christian converts were required to
construct their house around the church. All
lands lost by the old barangays in the process
of pueblo organization and all lands not
assigned to the pueblos were declared to be
lands of the Crown., and the natives were
stripped of their ancestral rights to the lands.
The American government classified the
Filipinos into two: Christian Filipinos and nonChristian Filipinos, not to religious belief, but to
geographical area, the latter referring to
natives of the Philippines of a low grade of

civilization, usually living in tribal relationship.

The Americans pursued a policy of assimilation.
They passed Act No. 253 creating the bureau of
Non-Christian Tribes to determine the most
practicable means for bring about their
advancement.
The 1935 Constitution did not carry any policy
on the non-Christian Filipinos. It was in the
1973 Constitution that the State recognized the
customs and interest of national cultural
communities in the formulation of state
policies.
In 1974, President Marcos promulgated PD 410
or the Ancestral Lands Decree, providing for
the issuance of land occupancy certificates to
members of the national cultural communities.
The Aquino government shifted from the policy
of integration to one of preservation. She
created the Office of Muslim Affairs, Office of
Northern Cultural Communities and the Office
for Southern Cultural Communities all under the
OP.
The 1987 Constitution expressly guaranteed
the rights of tribal Filipinos to their ancestral
domain and ancestral lands.
Sustainable Development
Sustainable Development is development that
meets the needs of the present without
compromising the ability of future generations to
meet their own needs (Brundtland Report). It is a
pattern of resource use that aims to meet human
needs while preserving the environment so that
these needs can be met not only in the present, but
also for generations to come.
It contains within it two key concepts:

the concept of 'needs', in particular the

essential needs of the world's poor, to which
overriding priority should be given; and

the idea of limitations imposed by the state

of technology and social organization on the
environment's ability to meet present and
future needs
The
Brundtland
Reports
targets
were
multilateralism and interdependence of nations in
the search for a sustainable development path. The
report sought to recapture the spirit of the United
Nations Conference on the Human Environment the Stockholm Conference - which had introduced
environmental concerns to the formal political
development sphere. Our Common Future placed
environmental issues firmly on the political agenda;
it
aimed
to
discuss
the
environment
and development as one single issue.
The publication of Our Common Future and the
work of the World Commission on Environment and

Development laid
the
groundwork
for
the
convening of the 1992 Earth Summit and the
adoption of Agenda 21, the Rio Declaration and to
the
establishment
of
the Commission
on
Sustainable Development.
In addition, key contributions of Our Common
Future to the concept of sustainable development
include the recognition that the many crises facing
the planet are interlocking crises that are elements
of a single crisis of the whole and of the vital need
for the active participation of all sectors of society
in consultation and decisions relating to sustainable
development.
Sustainable development ensures the well-being of
the
human
person
by
integrating
social
development,
economic
development,
and
environmental conservation and protection. It
refers to the "interdependent and mutually
reinforcing pillars of sustainable development as
economic development, social development, and
environmental protection.
As the goal of
sustainable development is to permanently
improve the living conditions of human beings,
social and economic developments must be carried
out in a way that is environmentally and
ecologically
sound;
ensuring
the
continual
rejuvenation and availability of natural resources
for future generations.
Seven
Dimensions
of
Sustainable
Development : From the Philippine Agenda 21
From the Philippine perspective sustainable
development is a multidimensional concept,
involving no less than seven dimensions.
Sustainable development is viewed as the mutually
beneficial interaction between the legitimate
interests of business and the economy, government
and the polity, and civil society and culture.
From this perspective, five dimensions of
sustainable development are clearly visible. These
arethe human being, culture, polity, economy,
and Nature.

REPUBLIC ACT NO. 9729: CLIMATE CHANGE

ACT OF 2009
Section 2. Declaration of Policy. It is the policy of
the State to afford full protection and the
advancement of the right of the people to a
healthful ecology in accord with the rhythm and
harmony of nature. In this light, the State has
adopted the Philippine Agenda 21 framework which
espouses sustainable development, to fulfill human
needs while maintaining the quality of the natural
environment for current and future generations.
Towards this end, the State adopts the principle of
protecting the climate system for the benefit of
humankind, on the basis of climate justice or
common but differentiated responsibilities and the
Precautionary Principle to guide decision-making in
climate risk management. As a party to the United
Nations Framework Convention on Climate Change,
the State adopts the ultimate objective of the
Convention which is the stabilization of greenhouse
gas concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic
interference with the climate system which should
be achieved within a time frame sufficient to allow
ecosystems to adapt naturally to climate change,
to ensure that food production is not threatened
and to enable economic development to proceed in
a sustainable manner.1awphil As a party to the
Hyogo Framework for Action, the State likewise
adopts the strategic goals in order to build national
and local resilience to climate change-related
disasters.
Recognizing the vulnerability of the Philippine
archipelago and its local communities, particularly
the poor, women, and children, to potential
dangerous consequences of climate change such

as rising seas, changing landscapes, increasing

frequency and/or severity of droughts, fires, floods
and storms, climate-related illnesses and diseases,
damage to ecosystems, biodiversity loss that affect
the countrys environment, culture, and economy,
the State shall cooperate with the global
community in the resolution of climate change
issues, including disaster risk reduction. It shall be
the policy of the State to enjoin the participation of
national and local governments, businesses,
nongovernment organizations, local communities
and the public to prevent and reduce the adverse
impacts of climate change and, at the same time,
maximize the benefits of climate change. It shall
also be the policy of the State to incorporate a
gender-sensitive,
pro-children
and
pro-poor
perspective in all climate change and renewable
energy efforts, plans and programs. In view thereof,
the State shall strengthen, integrate, consolidate
and institutionalize government initiatives to
achieve coordination in the implementation of
plans and programs to address climate change in
the context of sustainable development.
Further recognizing that climate change and
disaster risk reduction are closely interrelated and
effective disaster risk reduction will enhance
climate change adaptive capacity, the State shall
integrate disaster risk reduction into climate
change programs and initiatives.
Cognizant of the need to ensure that national and
subnational government policies, plans, programs
and
projects
are
founded
upon
sound
environmental considerations and the principle of
sustainable development, it is hereby declared the
policy of the State to systematically integrate the
concept of climate change in various phases of
policy formulation, development plans, poverty
reduction strategies and other development tools
and
techniques
by
all
agencies
and
instrumentalities of the government.
Section 3. Definition of Terms. For purposes of
this Act, the following shall have the corresponding
meanings:
(a) Adaptation refers to the adjustment
in natural or human systems in response to
actual or expected climatic stimuli or their
effects, which moderates harm or exploits
beneficial opportunities.
(b) Adaptive capacity refers to the
ability of ecological, social or economic
systems to adjust to climate change

including climate variability and extremes,

to moderate or offset potential damages
and to take advantage of associated
opportunities with changes in climate or to
cope with the consequences thereof.

inequality is not perpetuated. It is the

process of assessing the implications for
women and men of any planned action,
including legislation, policies, or programs
in all areas and at all levels.

(c) Anthropogenic
causes refer
to
causes resulting from human activities or
produced by human beings.

(j) Global
Warming refers
to
the
increase in the average temperature of the
Earths near-surface air and oceans that is
associated
with
the
increased
concentration of greenhouse gases in the
atmosphere.

(d) Climate Change refers to a change

in climate that can be identified by changes
in the mean and/or variability of its
properties and that persists for an
extended period typically decades or
longer, whether due to natural variability or
as a result of human activity.
(e) Climate Variability refers to the
variations in the average state and in other
statistics of the climate on all temporal and
spatial scales beyond that of individual
weather events.
(f) Climate Risk refers to the product of
climate and related hazards working over
the vulnerability of human and natural
ecosystems.
(g) Disaster refers
to
a
serious
disruption of the functioning of a
community
or
a
society
involving
widespread human, material, economic or
environmental losses and impacts which
exceed the ability of the affected
community or society to cope using its own
resources.
(h) Disaster risk reduction refers to
the concept and practice of reducing
disaster risks through systematic efforts to
analyze and manage the causal factors of
disasters,
including
through
reduced
exposure to hazards, lessened vulnerability
of people and property, wise management
of land and the environment, and improved
preparedness for adverse events.
(i) Gender mainstreaming refers to
the strategy for making womens as well as
mens concerns and experiences an
integral
dimension
of
the
design,
implementation, monitoring, and evaluation
of policies and programs in all political,
economic, and societal spheres so that
women and men benefit equally and

(k) Greenhouse effect refers to the

process by which the absorption of infrared
radiation by the atmosphere warms the
Earth.
(l) Greenhouse gases (GHG) refers to
constituents of the atmosphere that
contribute to the greenhouse effect
including, but not limited to, carbon
dioxide,
methane,
nitrous
oxide,
hydrofluorocarbons, perfluorocarbons and
sulfur hexafluoride.
(m) Mainstreaming refers
to
the
integration of policies and measures that
address climate change into development
planning and sectoral decision-making.
(n) Mitigation in the context of climate
change, refers to human intervention to
address
anthropogenic
emissions
by
sources and removals by sinks of all GHG,
including ozone- depleting substances and
their substitutes.
(o) Mitigation potential shall refer to
the scale of GHG reductions that could be
made, relative to emission baselines, for a
given level of carbon price (expressed in
cost per unit of carbon dioxide equivalent
emissions avoided or reduced).
(p) Sea level rise refers to an increase
in sea level which may be influenced by
factors like global warming through
expansion of sea water as the oceans warm
and melting of ice over land and local
factors such as land subsidence.
(q) Vulnerability refers to the degree to
which a system is susceptible to, or unable
to cope with, adverse effects of climate
change, including climate variability and

extremes. Vulnerability is a function of the

character, magnitude, and rate of climate
change and variation to which a system is
exposed, its sensitivity, and its adaptive
capacity.
Section 4. Creation of the Climate Change
Commission. There is hereby established a
Climate Change Commission, hereinafter referred
to as the Commission.
The Commission shall be an independent and
autonomous body and shall have the same status
as that of a national government agency. It shall be
attached to the Office of the President.
The Commission shall be the sole policy-making
body of the government which shall be tasked to
coordinate, monitor and evaluate the programs and
action plans of the government relating to climate
change pursuant to the provisions of this Act.
The Commission shall be organized within sixty
(60) days from the effectivity of this Act.
Section 5. Composition of the Commission. The
Commission shall be composed of the President of
the Republic of the Philippines who shall serve as
the Chairperson, and three (3) Commissioners to be
appointed by the President, one of whom shall
serve as the Vice Chairperson of the Commission.
The Commission shall have an advisory board
composed of the following:
(a) Secretary
Agriculture;

of

the

Department

of

(h) Secretary of the Department of National

Defense, in his capacity as Chair of the
National Disaster Coordinating Council;
(i) Secretary of the Department of Public
Works and Highways;
(j) Secretary of the Department of Science
and Technology;
(k) Secretary of the Department of Social
Welfare and Development;
(l) Secretary of the Department of Trade
and Industry;
(m) Secretary of the Department
Transportation and Communications;

of

(n) Director-General of the National

Economic and Development Authority, in
his capacity as Chair of the Philippine
Council for Sustainable Development;
(o) Director-General
Security Council;

of

the

National

(p) Chairperson of the National Commission

on the Role of Filipino Women;
(q) President of the League of Provinces;
(r) President of the League of Cities;
(s)
President
Municipalities;

of

the

League

of

(b) Secretary of the Department of Energy;

(t) President of the Liga ng mga Barangay;

(c) Secretary of the Department

Environment and Natural Resources;

of

(u) Representative from the academe;

(d) Secretary
Education;

of

(v) Representative
sector; and

of

the

Department

(e) Secretary of the Department of Foreign

Affairs;
(f) Secretary of the Department of Health;
(g) Secretary of the Department of the
Interior and Local Government;

from

the

business

(w) Representative from nongovernmental

organizations.
At least one (1) of the sectoral representatives shall
come from the disaster risk reduction community.
The representatives shall be appointed by the
President from a list of nominees submitted by their
respective groups. They shall serve for a term of six
(6) years without reappointment unless their

representation is withdrawn by the sector they

represent. Appointment to any vacancy shall be
only for the unexpired term of the predecessor.
Only the ex officio members of the advisory board
shall appoint a qualified representative who shall
hold a rank of no less than an Undersecretary.
Section 6. Meetings of the Commission. The
Commission shall meet once every three (3)
months, or as often as may be deemed necessary
by the Chairperson. The Chairperson may likewise
call upon other government agencies for the proper
implementation of this Act.
Section 7. Qualifications, Tenure, Compensation of
Commissioners. The Commissioners must be
Filipino citizens, residents of the Philippines, at
least thirty (30) years of age at the time of
appointment, with at least ten (10) years of
experience on climate change and of proven
honesty and ntegrity. The Commissioners shall be
experts in climate change by virtue of their
educational background, training and experience:
Provided, That at least one (1) Commissioner shall
be female: Provided, further, That in no case shall
the Commissioners come from the same sector:
Provided, finally, That in no case shall any of the
Commissioners appoint representatives to act on
their behalf.
The Commissioners shall hold office for a period of
six (6) years, and may be subjected to
reappointment: Provided, That no person shall
serve for more than two (2) consecutive terms:
Provided, further, That in case of a vacancy, the
new appointee shall fully meet the qualifications of
a Commissioner and shall hold office for the
unexpired portion of the term only: Provided,
finally, That in no case shall a Commissioner be
designated in a temporary or acting capacity.
The Vice Chairperson and the Commissioners shall
have the rank and privileges of a Department
Secretary and Undersecretary, respectively. They
shall be entitled to corresponding compensation
and other emoluments and shall be subject to the
same disqualifications.
Section 8. Climate Change Office. There is
hereby created a Climate Change Office that shall
assist the Commission. It shall be headed by a Vice
Chairperson of the Commission who shall act as the
Executive Director of the Office. The Commission
shall have the authority to determine the number
of staff and create corresponding positions

necessary to facilitate the proper implementation

of this Act, subject to civil service laws, rules and
regulations. The officers and employees of the
Commission shall be appointed by the Executive
Director.
Section
9. Powers
and
Functions
of
the
Commission. The Commission shall have the
following powers and functions:
(a) Ensure the mainstreaming of climate
change, in synergy with disaster risk
reduction, into the national, sectoral and
local development plans and programs;
(b) Coordinate and synchronize climate
change programs of national government
agencies;
(c) Formulate a Framework Strategy on
Climate Change to serve as the basis for a
program for climate change planning,
research and development, extension, and
monitoring of activities on climate change;
(d) Exercise policy coordination to ensure
the attainment of goals set in the
framework strategy and program on
climate change;
(e)
Recommend
legislation,
policies,
strategies, programs on and appropriations
for
climate
change
adaptation
and
mitigation and other related activities;
(f)
Recommend
key
development
investments in climate- sensitive sectors
such as water resources, agriculture,
forestry, coastal and marine resources,
health, and infrastructure to ensure the
achievement
of
national
sustainable
development goals;
(g) Create an enabling environment for the
design of relevant and appropriate risksharing and risk-transfer instruments;
(h) Create an enabling environment that
shall promote broader multi-stakeholder
participation and integrate climate change
mitigation and adaptation;
(i) Formulate strategies on mitigating GHG
and other anthropogenic causes of climate
change;

(j) Coordinate and establish a close

partnership with the National Disaster
Coordinating Council in order to increase
efficiency and effectiveness in reducing the
peoples vulnerability to climate-related
disasters;
(k) In coordination with the Department of
Foreign Affairs, represent the Philippines in
the climate change negotiations;
(l) Formulate and update guidelines for
determining vulnerability to climate change
impacts and adaptation assessments and
facilitate
the
provision
of
technical
assistance for their implementation and
monitoring;
(m) Coordinate with local government units
(LGUs) and private entities to address
vulnerability to climate change impacts of
regions,
provinces,
cities
and
municipalities;
(n) Facilitate capacity building for local
adaptation planning, implementation and
monitoring of climate change initiatives in
vulnerable communities and areas;
(o) Promote and provide technical and
financial support to local research and
development programs and projects in
vulnerable communities and areas; and
(p)
Oversee
the
dissemination
of
information on climate change, local
vulnerabilities and risks, relevant laws and
protocols and adaptation and mitigation
measures.
Section 10. Panel of Technical Experts. The
Commission shall constitute a national panel of
technical experts consisting of practitioners in
disciplines that are related to climate change,
including disaster risk reduction.
The Panel shall provide technical advice to the
Commission in climate science, technologies, and
best
practices
for
risk
assessment
and
enhancement of adaptive capacity of vulnerable
human settlements to potential impacts of climate
change.
The Commission shall set the qualifications and
compensation for the technical experts. It shall

provide resources for the operations and activities

of the Panel.
Section 11. Framework Strategy and Program on
Climate Change. The Commission shall, within six
(6) months from the effectivity of this Act,
formulate a Framework Strategy on Climate
Change. The Framework shall serve as the basis for
a program for climate change planning, research
and development, extension, and monitoring of
activities to protect vulnerable communities from
the adverse effects of climate change.
The Framework shall be formulated based on
climate change vulnerabilities, specific adaptation
needs, and mitigation potential, and in accordance
with the international agreements.
The Framework shall be reviewed every three (3)
years, or as may be deemed necessary.
Section 12. Components of the Framework
Strategy and Program on Climate Change. The
Framework shall include, but not limited to, the
following components:
(a) National priorities;
(b) Impact, vulnerability and adaptation
assessments;
(c) Policy formulation;
(d)
Compliance
commitments;

with

international

(e) Research and development;

(f)
Database
management;

development

and

(g) Academic programs, capability building

and mainstreaming;
(h)
Advocacy
dissemination;

and

information

(i) Monitoring and evaluation; and

(j) Gender mainstreaming.
Section 13. National Climate Change Action
Plan. The Commission shall formulate a National
Climate Change Action Plan in accordance with the

Framework within one (1) year after the formulation

of the latter.
The National Climate Change Action Plan shall
include, but not limited to, the following
components:

modifications and revisions thereof, within one (1)

month from their adoption. The LGUs shall mobilize
and allocate necessary personnel, resources and
logistics to effectively implement their respective
action plans.

(a) Assessment of the national impact of

climate change;

The local chief executive shall appoint the person

responsible for the formulation and implementation
of the local action plan.

(b) The identification of the most

vulnerable communities/areas, including
ecosystems to the impacts of climate
change, variability and extremes;

It shall be the responsibility of the national

government to extend technical and financial
assistance to LGUs for the accomplishment of their
Local Climate Change Action Plans.

(c) The identification of differential impacts

of climate change on men, women and
children;

The LGU is hereby expressly authorized to

appropriate and use the amount from its Internal
Revenue Allotment necessary to implement said
local plan effectively, any provision in the Local
Government Code to the contrary notwithstanding.

(d) The assessment and management of

risk and vulnerability;
(e) The identification of GHG mitigation
potentials; and
(f)
The
identification
of
options,
prioritization of appropriate adaptation
measures for joint projects of national and
local governments.
Section 14. Local Climate Change Action Plan.
The LGUs shall be the frontline agencies in the
formulation, planning and implementation of
climate change action plans in their respective
areas, consistent with the provisions of the Local
Government Code, the Framework, and the
National Climate Change Action Plan.
Barangays shall be directly involved with municipal
and city governments in prioritizing climate change
issues and in identifying and implementing best
practices and other solutions. Municipal and city
governments shall consider climate change
adaptation, as one of their regular functions.
Provincial governments shall provide technical
assistance,
enforcement
and
information
management in support of municipal and city
climate change action plans. Inter-local government
unit collaboration shall be maximized in the
conduct of climate- related activities.
LGUs shall regularly update their respective action
plans to reflect changing social, economic, and
environmental conditions and emerging issues. The
LGUs shall furnish the Commission with copies of
their action plans and all subsequent amendments,

Section 15. Role of Government Agencies. To

ensure the effective implementation of the
framework strategy and program on climate
change, concerned agencies shall perform the
following functions:
(a) The Department of Education (DepED)
shall integrate climate change into the
primary and secondary education curricula
and/or subjects, such as, but not limited to,
science, biology, sibika, history, including
textbooks, primers and other educational
materials, basic climate change principles
and concepts;
(b) The Department of the Interior and
Local Government (DILG) and Local
Government Academy shall facilitate the
development and provision of a training
program for LGUs in climate change. The
training
program
shall
include
socioeconomic, geophysical, policy, and
other content necessary to address the
prevailing and forecasted conditions and
risks of particular LGUs. It shall likewise
focus on women and children, especially in
the rural areas, since they are the most
vulnerable;
(c) The Department of Environment and
Natural Resources (DENR) shall oversee the
establishment and maintenance of a
climate change information management
system and network, including on climate
change risks, activities and investments, in

collaboration with other concerned national

government agencies, institutions and
LGUs;
(d) The Department of Foreign Affairs (DFA)
shall review international agreements
related to climate change and make the
necessary recommendation for ratification
and compliance by the government on
matters pertaining thereto;
(e) The Philippine Information Agency (PIA)
shall disseminate information on climate
change, local vulnerabilities and risk,
relevant laws and protocols and adaptation
and mitigation measures; and
(f) Government financial institutions, shall,
any provision in their respective charters to
the contrary notwithstanding, provide
preferential financial packages for climate
change- related projects. In consultation
with the Bangko Sentral ng Pilipinas (BSP),
they shall, within thirty (30) days from the
effectivity of this Act, issue and promulgate
the implementing guidelines therefor.
The Commission shall evaluate, recommend the
approval of loans and monitor the use of said funds
of LGUs.
Section 16. Coordination with Various Sectors. In
the development and implementation of the
National Climate Change Action Plan, and the local
action plans, the Commission shall coordinate with
the nongovernment organizations (NGOs), civic
organizations, academe, peoples organizations,
the private and corporate sectors and other
concerned stakeholder groups.
Section 17. Authority to Receive Donations and/or
Grants. The Commission is hereby authorized to
accept
grants,
contributions,
donations,
endowments, bequests, or gifts in cash, or in kind
from local and foreign sources in support of the
development and implementation of climate
change programs and plans: Provided, That in case
of donations from foreign governments, acceptance
thereof shall be subject to prior clearance and
approval of the President of the Philippines upon
recommendation of the Secretary of Foreign Affairs:
Provided, further, That such donations shall not be
used to fund personal services expenditures and
other operating expenses of the Commission.
The proceeds shall be used to finance:

(a) Research, development, demonstration

and promotion of technologies;
(b) Conduct of assessment of vulnerabilities
to climate change impacts, resource
inventory,
and
adaptation
capability
building;
(c)
Advocacy,
networking
and
communication activities in the conduct of
information campaign; and
(d) Conduct of such other activities
reasonably necessary to carry out the
objectives of this Act, as may be defined by
the Commission.
Section 18. Funding Allocation for Climate
Change. All relevant government agencies and
LGUs shall allocate from their annual appropriations
adequate funds for the formulation, development
and implementation, including training, capacity
building and direct intervention, of their respective
climate change programs and plans. It shall also
include public awareness campaigns on the effects
of climate change and energy-saving solutions to
mitigate these effects, and initiatives, through
educational and training programs and micro-credit
schemes, especially for women in rural areas. In
subsequent budget proposals, the concerned
offices and units shall appropriate funds for
program/project development and implementation
including continuing training and education in
climate change.1avvphi1
Section
19. Joint
Congressional
Oversight
Committee. There is hereby created a Joint
Congressional Oversight Committee to monitor the
implementation of this Act. The Oversight
Committee shall be composed of five (5) Senators
and five (5) Representatives to be appointed by the
Senate President and the Speaker of the House of
Representatives,
respectively.
The
Oversight
Committee shall be co-chaired by a Senator and a
Representative to be designated by the Senate
President and the Speaker of the House of
Representatives,
respectively.
Its
funding
requirement shall be charged against the
appropriations of Congress.
Section 20. Annual Report. The Commission
shall submit to the President and to both Houses of
Congress, not later than March 30 of every year
following the effectivity of this Act, or upon the
request of the Congressional Oversight Committee,
a report giving a detailed account of the status of

the implementation of this Act, a progress report on

the implementation of the National Climate Change
Action Plan and recommend legislation, where
applicable and necessary. LGUs shall submit annual
progress reports on the implementation of their
respective local action plan to the Commission
within the first quarter of the following year.
Section 21. Appropriations. The sum of Fifty
million pesos (Php50,000,000.00) is hereby
appropriated as initial operating fund in addition to
the unutilized fund of the Presidential Task Force on
Climate Change and the Office of the Presidential
Adviser on Global Warming and Climate Change.
The sum shall be sourced from the Presidents
contingent fund.
Thereafter, the amount necessary to effectively
carry out the provisions of this Act shall be included
in the annual General Appropriations Act.
Section
22. Implementing
Rules
and
Regulations. Within ninety (90) days after the
approval of this Act, the Commission shall, upon
consultation with government agencies, LGUs,
private sector, NGOs and civil society, promulgate
the implementing rules and regulations of this Act:
Provided, That failure to issue rules and regulations
shall not in any manner affect the executory nature
of the provisions of this Act.
Section 23. Transitory Provisions. Upon the
organization of the Commission, the Presidential
Task Force on Climate Change created under
Administrative Order No. 171 and the Inter-Agency
Committee on Climate Change created by virtue of
Administrative Order No. 220, shall be abolished:
Provided, That their powers and functions shall be
absorbed by the Commission: Provided, further,
That the officers and employees thereof shall
continue in a holdover capacity until such time as
the new officers and employees of the Commission
shall have been duly appointed pursuant to the
provisions of this Act. All qualified regular or
permanent employees who may be transferred to
the Commission shall not suffer any loss in
seniority or rank or decrease in emoluments. Any
employee who cannot be absorbed by the
Commission shall be entitled to a separation pay
under existing retirement laws

Laguna Lake Development Authority vs CA

RA 4850 was enacted creating the "Laguna Lake
Development Authority." This agency was supposed to
accelerate the development and balanced growth of the

Laguna Lake area and the surrounding provinces, cities

and towns, in the act, within the context of the national
and regional plans and policies for social and economic
development.
PD 813 amended certain sections RA 4850 because of the
concern for the rapid expansion of Metropolitan Manila,
the suburbs and the lakeshore towns of Laguna de Bay,
combined with current and prospective uses of the lake
for municipal-industrial water supply, irrigation, fisheries,
and the like.
To effectively perform the role of the Authority under RA
4850, the Chief Executive issued EO 927 further defined
and enlarged the functions and powers of the Authority
and named and enumerated the towns, cities and
provinces encompassed by the term "Laguna de Bay
Region".

DENR Administrative Order No. 2003- 30

SUBJECT: Implementing Rules and Regulations
(IRR) for the Philippine Environmental Impact
Statement (EIS) System
Consistent with the continuing effort of the Department of
Environment and Natural Resources (DENR) to rationalize
and streamline the implementation of the Philippine
Environmental Impact Statement (EIS) System established
under Presidential Decree (PD) No. 1586, Presidential
Proclamation No. 2146 defining the scope of the EIS
System and pursuant to Administrative Order No. 42
issued by tile Office of the President on November 2,
2002, the following rules and regulations are hereby
promulgated;
ARTICLE I
BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES AND
DEFINITION OF TERMS
Section 1. Basic Policy and Operating Principles
Consistent
with
the
principles
of
sustainable
development, it is the policy of the DENR to implement a
systems-oriented and integrated approach to the LIS
system to ensure a rational balance between socioeconomic development and environmental protection for
the benefit of present and future generations.
The following are the key operating principles in the
implementation of the Philippine EIS System:
a. The EIS System is concerned primarily with assessing
the direct and indirect impacts of a project on the
biophysical and human environment and ensuring that
these impacts addressed by appropriate environmental
protection and enhancement measures.
b. The EIS System aids proponents in incorporating
environmental considerations in planning their projects as
well as in determining the environment's impact on their
project.
c. Project proponents are responsible for determining and
disclosing all relevant information necessary for a
methodical ' assessment of the environmental impacts of
their projects;

d. The review of the EIS by EMB shall be guided by three

general criteria: (1) that environmental considerations are
integrated into the overall project planning, (2) that the
assessment
is
technically
sound
and
proposed
environmental mitigation, measures are effective, and (3)
that , social acceptability is based on informed public
participation;
e. Effective regulatory review of the EIS depends largely
on timely full; and accurate disclosure of relevant:
information by project proponents and, other stakeholders
in the EIA process
f. The social acceptability of a project is a result of
meaningful public participation, which shall be assessed
as part of the Environmental Compliance Certificate (ECC)
application, based on concerns related to the project's
environmental impacts;
g. The timelines prescribed by this Order, within which an
Environmental - Compliance Certificate must be issued, or
denied, apply only to processes and actions within the
Environmental Management Bureau's (EMB) control and
do not include actions or activities that are the
responsibility of the proponent.
Section 2. Objective
The objective of this Administrative Order is to rationalize
and streamline the EIS System to make it more effective
as a project planning and management tool by:
a. Making the System more responsive to the demands
and needs of the project proponents and the various
stakeholders;
b. Clarifying the, coverage of the System and updating it
to take into consideration industrial and technological
innovations and trends
c. Standardizing requirements to ensure focus on critical
environment parameters;
d. Simplifying procedures for processing ECC applications,
and establishing measures to ensure adherence to ECC
conditions by project proponents, and
e. Assuring that critical environmental concerns are
addressed
during
project
development
and
implementation
Section 3. Definition of Terms
For the purpose of this Order, the following definitions
shall be applied;
a. Certificate, of Non-Coverage - a certification issued by
the EMB certifying that, based on the submitted project
description, the project is not covered by the EIS System
and is not required to secure an ECC
b. Co-located projects / undertakings- projects, or series
of similar projects or a project subdivided to several
phases and/or stages by the same proponent, located in
contiguous areas.
c Environment - Surrounding air, water (both ground and
surface), land, flora, fauna, humans and their
interrelations.
d. Environmental Compliance Certificate (ECC)- document
issued by the DENR/EMB after a positive review of an ECC
application, certifying that based on the representations
of the proponent, the proposed project or undertaking will
not cause significant negative: environmental impact. The

ECC also certifies that the proponent has complied with all
the requirements of the EIS System and has committed to
implement its approved Environmental Management Plan.
The ECC contains specific measures and conditions that
the project proponent has to undertake before and during
the operation of a project, and in some cases, during the
project's abandonment phase to mitigate identified
environmental impacts.
e. Environmentally Critical Area (ECA) - area delineated as
environmentally
sensitive
such
that
significant
environmental impacts are expected if certain types of
proposed projects or programs are located, developed or,
implemented in it.
f. Environmentally Critical Project (ECP) - project or
program that has high potential for significant negative
environmental impact.
g. Environmental Guarantee Fund (EGF) - fund to be set
up by a project proponent which shall be readily
accessible and disbursable for the immediate clean-up or
rehabilitation of areas affected by damages in the
environment
and
the
resulting
deterioration
of
environmental quality as a direct consequence of a
project's construction, operation or abandonment. It shall
likewise be used to compensate parties and communities
affected by the negative impacts of the project, and to
fund community-based environment related projects
including, but not limited to, information and education
and emergency preparedness programs.
h. Environmental Impact Assessment (EIA) - process that
involves evaluating and predicting the likely impacts of a
project
(including
cumulative
impacts)
on
the
environment
during
construction,
commissioning,
operation and abandonment. It also includes designing
appropriate preventive, mitigating and enhancement
measures addressing these consequences to protect the
environment and the community's welfare. The process is
undertaken by, among others, the project proponent
and/or EIA Consultant, EMB, a Review Committee,
affected communities and other stakeholders.
i. Environmental Impact Assessment Consultant - a
professional or group of professionals commissioned by
the proponent to prepare the EIS/IEE and other related
documents. In some cases, the person or group referred
to may be the proponent's technical staff.
j. Environmental Impact Assessment Review Committee
(EIARC) - a body of independent technical experts and
professionals of known probity from various fields
organized by the EMB to evaluate the EIS and other
related
documents
and
to
make
appropriate
recommendations regarding the issuance or non-issuance
of an ECC.
k. Environmental Impact Statement (EIS) - document,
prepared and submitted by the project proponent and/or
EIA Consultant that serves as an application for an ECC. It
is a comprehensive study of the significant impacts of a
project on the environment. It includes an Environmental
Management Plan/Program that the
proponent will fund and implement to protect the
environment
l. Environmental Management Plan/Program (EMP) section in the EIS that details the prevention, mitigation,
compensation, contingency and monitoring measures to
enhance positive impacts and minimize negative impacts
and risks of a proposed project or undertaking. For
operating projects, the EMP can also be derived from an
EMS,

m. Environmental Management Systems (EMS) - refers to

the EMB PEPP EMS as provided for under DAO 2003-14,
which is a part of the overall management system of a
project or organization that includes environmental policy,
organizational
structure,
planning
activities,
responsibilities, practices, procedures, processes and
resources for developing, implementing, achieving,
reviewing and maintaining an improved overall
environmental performance.
n. Environmental Monitoring Fund (EMF) -fund that a
proponent shall set up after an ECC is issued for its
project or undertaking, to be used to support the activities
of the multi-partite monitoring team. It shall be
immediately accessible and easily disbursable.
o. Environmental Performance - capability of proponents
to mitigate environmental impacts of projects or
programs.
p. Environmental Performance Report and Management
Plan (EPRMP) - documentation of the actual cumulative
environmental impacts and effectiveness of current
measures for single projects that are already operating
but without ECC's, i.e., Category A-3. For Category B-3
projects, a checklist form of the EPRMP would suffice.
q. Environmental Risk Assessment (ERA) - assessment,
through the use of universally accepted and scientific
methods, of risks associated with a project. It focuses on
determining the probability of occurrence of accidents
and their magnitude (e.g. failure, of containment or
exposure to hazardous materials or situations.)
r. EMS-based EMP - environmental management plan
based on the environmental management system (EMS)
standard as defined in the DAO 2003-14.
s. Initial Environmental Examination (IEE) Report
document similar to an EIS, but with reduced details and
depth of assessment and discussion
t. Initial Environmental Examination (IEE) Checklist Report
- simplified checklist version of an IEE Report, prescribed
by the DENR, to be filled up by a proponent to identify
and assess a project's environmental impacts and the
mitigation/enhancement measures to address such
impacts.
u. Multipartite Monitoring Team (MMT) - community-based
multi-sectoral team organized for the purpose of
monitoring the proponent's compliance with ECC
conditions, EMP and applicable laws, rules and
regulations.
v. Programmatic Environmental Impact Statement (PEIS) documentation
of
comprehensive
studies
on
environmental baseline conditions of a contiguous area. It
also includes an assessment of the carrying capacity of
the area to absorb impacts from co-located projects such
as those in industrial estates or economic zones
(ecozones),
w. Programmatic Environmental Performance Report and
Management Plan (PEPRMP) - documentation of actual
cumulative environmental impacts of collocated projects
with proposals for expansion. The PEPRMP should also
describe the effectiveness of current environmental
mitigation measures and plans for performance
improvement.
x. Project Description (PD) - document, which may also be
a chapter in an EIS, that describes the nature,

configuration, use of raw materials and natural resources,

production system, waste or pollution generation and
control and the activities of a proposed project. It includes
a description of the use of human resources as well as
activity
timelines,
during
the
pre-construction,
construction, operation and abandonment phases. It is to
be used for reviewing co-located and single projects
under Category C, as well as for Category D projects.
Y. Project or Undertaking - any activity, regardless of scale
or magnitude, which may have significant impact on the
environment.
z. Proponent - any natural or juridical person intending to
implement a project or undertaking.
aa. Public Participation - open, transparent, gendersensitive, and community based process aimed at
ensuring the social acceptability of a project or
undertaking,
involving
the
broadest
range
of
stakeholders, commencing at the earliest possible stage,
of project design and development and continuing until
post-assessment monitoring.
bb. Procedural Review - phase in the ECC application
review process to check for the completeness the
required documents, conducted by EIAM Division at the
EMB Central Office or Regional Office.
cc. Process Industry - an industry whose project operation
stage involves chemical, mechanical or other processes.
dd. Scoping - the stage in the EIS System where
information and project impact assessment requirements
are established to provide the proponent and the
stakeholders the scope of work and terms of reference for
the EIS.
ee. Secretary - the Secretary of the DENR.
ff. Social Acceptability - acceptability of a project by
affected communities based on timely and informed
participation in the EIA process particularly with regard to
environmental impacts that are of concern to them.
gg. Stakeholders - entities who may be directly and
significantly affected by the project or undertaking.
hh. Substantive Review - the phase in the EIA process
whereby the document submitted is subjected to
technical evaluation by the EIARC.
ii. Technology - all the knowledge, products, processes,
tools, methods and systems employed in the creation of
goods or providing services.
ARTICLE II
ECC APPLICATION
PROCEDURES

PROCESSING

AND

APPROVAL

Section 4. Scope of the EIS System

4.1 In general, only projects that pose potential significant
impact to the environment shall be required to secure
ECC's. In coordination with the Department of Trade and
Industry (DTI) and other concerned government agencies,
the EMB is authorized to
update or make appropriate revisions to the technical
guidelines for EIS System implementation.
4.2 The issuance of ECC or CNC for a project under the EIS
System does not exempt the proponent from securing
other government permits and clearances as required by
other laws.

In determining the scope of the EIS System, two factors

are considered: (i) the nature of the project and its
potential to cause significant negative environmental
impacts, and (ii) the sensitivity or vulnerability of
environmental resources in the project area. 4.3 The
specific criteria for, determining projects or undertakings
to be covered by the EIS System are as follows:
a. Characteristics of the project or undertaking
Size of the project
Cumulative nature of impacts vis-a-vis: other
projects
Use of natural resources
Generation of waste and environment-related
nuisance
Environment-related hazards and risk of accidents
b. Location of the Project
Vulnerability of the project area to disturbances due
to its ecological importance, endangered or protected
status
Conformity of the proposed project to existing land
use, based on approved zoning or on national laws
and regulations
Relative abundance, quality and regenerative
capacity of natural resources in the area, including
the impact absorptive capacity of the environment
c. Nature of the potential impact
Geographic extent of the impact and size of
affected population
Magnitude and complexity of the impact
Likelihood, duration, frequency, and reversibility of
the impact
The following are the categories of projects/undertakings
under the EIS system:
Category A. Environmentally Critical Projects (ECPs) with
significant potential to cause negative environmental
impacts
Category B. Projects that are not categorized as ECPs, but
which may cause negative environmental impacts
because they are located in Environmentally Critical Areas
(ECA's)
Category C. Projects intended to directly enhance
environmental quality or address existing environmental
problems not falling under Category A or B.
Category D. Projects
environmental impacts.

unlikely

to

cause

adverse

4.4 Proponents of co-located or single projects that fall

under Category A and B are required to secure ECC. For
co-located projects, the proponent has the option to
secure a Programmatic ECC. For ecozones, ECC
application may be programmatic based on submission of
a programmatic EIS, or locator-specific based on
submission of project EIS by each locator.
4.5 Projects under Category C are required submit Project
Description.
4.6 Projects classified under Category D may secure a
CNC. The EMB-DENR, however, may require such, projects
or undertakings to provide additional environmental
safeguards as it may deem necessary. ,
4.7 Projects/undertakings introducing new technologies or
construction technique but which may cause significant
negative environmental impacts shall be required to

submit a Project Description Which will be used as basis

by EMB for screening the project and
determining its category.
Section
5.
Requirements
for
Securing
Environmental Compliance Certificate (ECC) and
Certificate of Non-Coverage (CNC)
5.1 Documentary Requirements for Proponents ECC
processing requirements shall focus on information
needed to assess critical
environmental
impacts
of
projects.
Processing
requirements shall be customized based on the project
categories.
The total maximum processing time reckons from the
acceptance of the ECC/CNC application for substantive
review up to the issuance of the decision
5.2 Forms and Contents of EIA Study Reports and
Other Documents Required Under the EIS System
The following are the different forms of EIA study reports
and documents required under the EIS System. DENR
employees are prohibited from taking part in the
preparation of such documents.
The DENR/EMB shall limit to a maximum of two (2) official
requests (in writing) to the project proponent for
additional information, which shall be made within the
first 75% of the processing timeframe shown in Section
5.1.1.
5.2.1. Environmental Impact Statement (EIS).
The EIS should contain at least the following:
a. EIS Executive Summary;
b. Project Description;
c. Matrix of the scoping agreement identifying critical
issues and concerns, as validated by EMB;
d. Baseline environmental conditions focusing on the
sectors (and resources) most significantly affected by the
proposed action;
e.
Impact
assessment
focused
on
significant
environmental
impacts
(in
relation
to
project
construction/commissioning,
operation
and
decommissioning), taking into account cumulative
impacts;
f. Environmental Risk Assessment if determined by EMB
as necessary during scoping;
g. Environmental Management Program/Plan;
h. Supporting documents; including technical/socioeconomic data used/generated; certificate of zoning
viability and municipal land use plan; and proof of
consultation with stakeholders;
i. Proposals for Environmental Monitoring and Guarantee
Funds including justification of amount, when required;
j. Accountability statement of EIA consultants and the
project proponent; and
k. Other clearances and documents that may be
determined and agreed upon during scoping.
5.2.2. Initial Environmental Examination (IEE)
Report
IEE Report is similar to an EIS, but with reduced details of
data and depth of assessment and discussion. It may be
customized for different types of projects under Category
B. The EMB shall coordinate with relevant government
agencies and the private sector to customize and update
IEE Checklists to further streamline ECC processing,
especially for small and medium enterprises.
5.2.3.
Programmatic
Statement (PEIS)

Environmental

Impact

The PEIS shall contain the following:

a. Executive Summary;
b. Project Description;
c. Summary matrix of scoping agreements as validated by
EMB;
d. [-co-profiling of air, land, water, and relevant people
aspects;
e. Environmental carrying capacity analysis;
f. Environmental Risk Assessment (if found necessary
during scoping);
g. Environmental Management Plan to include allocation
scheme for discharge of pollutants; criteria for acceptance
of locators, environmental management guidebook for
locators, and environmental liability scheme;
h. Duties of the Environmental Management Unit to be
created;
i. Proposals for Environmental Monitoring & Guarantee
Funds and terms of reference for the Multi-partite
Monitoring Team, and
j. Other supporting documents and clearances that may
be agreed during the scoping.
5.2.4. Programmatic Environmental Performance
Report and Management Plan (PEPRMP).
The PEPRMP shall contain the following:
a. Project Description of the co-located projects;
b.
Documentation
of
the
actual
environmental
performance based on current/past environmental
management measures implemented, and
c. An EMP based on an environmental management
system framework and standard set by EMB.
5.2.5. Environmental
Management Plan

Performance

Report

and

The EPRMP shall contain the following:

a. Project Description;
b. Baseline conditions for critical environmental
parameters;
c. Documentation of the environmental performance
based on the current/past environmental management
measures implemented;
d. Detailed comparative, description of the proposed
project expansion and/or process modification with
corresponding material and energy balances in the case
of process industries,
e. EMP based on an environmental management system
framework and standard set by EMB.
5.2.6. Project Description (PD)
The PD shall be guided by the definition of terms and shall
contain the following: and update IEE Checklists to further
streamline ECC processing, especially for small and
medium enterprises.
5.2.3.
Programmatic
Environmental
Impact
Statement (PEIS)
The PEIS shall contain the following:
a. Executive Summary;
b. Project Description;
c. Summary matrix of scoping agreements as validated by
EMB;
d. [-co-profiling of air, land, water, and relevant people
aspects;
e. Environmental carrying capacity analysis;
f. Environmental Risk Assessment (if found necessary
during scoping);
g. Environmental Management Plan to include allocation
scheme for discharge of pollutants; criteria for acceptance

of locators, environmental management guidebook for

locators, and environmental liability scheme;
h. Duties of the Environmental Management Unit to be
created;
i. Proposals for Environmental Monitoring & Guarantee
Funds and terms of reference for the Multi-partite
Monitoring Team, and
j. Other supporting documents and clearances that may
be agreed during the
scoping.
5.2.4. Programmatic Environmental Performance
Report and Management Plan (PEPRMP).
The PEPRMP shall contain the following:
a. Project Description of the co-located projects;
b.
Documentation
of
the
actual
environmental
performance based on current/past environmental
management measures implemented, and
c. An EMP based on the environmental management
system framework and standard set by EMB.
5.2.5. Environmental Performance
Management Plan (EPRMP)

Report

and

The EPRMP shall contain the following:

a. Project Description;
b. Baseline conditions for critical environmental
parameters;
c. Documentation of the environmental performance
based on the current/past environmental management
measures implemented;
d. Detailed comparative, description of the proposed
project expansion and/or process modification with
corresponding material and energy balances in the case
of process industries,
e. EMP based on an environmental management system
framework and standard set by EMB.
5.2.6. Project Description (PD)
The PD shall be guided by the definition of terms and shall
contain the following:
a. Description of the project;
b. Location and area covered;
c. Capitalization and manpower requirement;
d. For process industries, a listing of raw materials to be
used, description of the process or manufacturing
technology, type and volume of products and discharges:
e. For Category C projects, a detailed description on how
environmental efficiency and overall performance
improvement will be attained, or how an existing
environmental problem will be effectively solved or
mitigated by the project, and
f. A detailed location map of the impacted site showing
relevant features (e.g. slope, topography, human
settlements).
g. Timelines for construction and commissioning .
5.2.7. EMS-based EMP.
The EMS-based EMP is an option that proponents may
undertake in lieu of the EPRMP for single projects applying
for ECC under Category A-3 and B-3.
5.3 Public Hearing 1 Consultation Requirements
For projects under Category A-1, the conduct of public
hearing as part of the EIS review is mandatory unless
otherwise determined by EMB. For all other undertakings,
a public hearing is not mandatory unless specifically
required by EMB.
Proponents should initiate - public consultations early in
order to ensure that environmentally relevant concerns of

stakeholders are taken into consideration in the EIA study

and the formulation of the management plan, All public
consultations and public hearings conducted during the
EIA process are to be documented. The public hearing/
consultation Process report shall be validated by the
EMB/EMB RD and shall constitute part of the records of
the EIA process.
5.4 Documentation Requirements for DENR-EMB
and EIA Reviewers
The EMB Central Office as well as the EMB Regional
Offices shall document the proceedings of the ECC
application process and shall set up and maintain relevant
information management systems. The documentation
shall, at a minimum, include the following:
5.4.1. Review Process Report
This is to be prepared by the EMB Central or EMB RO. It is
to be forwarded to the DENR Secretary or RD as reference
for decision-making and maintained as part of the records
on the ECC application. The report should contain at least
the following:
a. Summary of the environmental impacts of the
undertaking, along with the proposed mitigation and
enhancement measures;
b. Key issues/concerns and the proponent's response to
these;
c. Documentation of compliance with procedural
requirements;
d. Acceptability of proposed EMP including the
corresponding cost of mitigation, EGF and EMF if required;
e. Key bases for the decision on the ECC application.
5.4.2. EIARC Report
This report, to be prepared by the EIA Review Committee,
forms part of the EIS review documentation. The EIARC
Report shall be written by the designated member of the
EIARC and signed by all the members within five days
after the final review meeting. If an EIARC member
dissents, he or she must submit a memorandum to the
EMB Director through the EIARC Chairman his or her
reasons for dissenting.
At a minimum the EIARC report should contain;
a. Detailed assessment of the proposed mitigation and
enhancement measures for the identified environmental
impacts and risks;
b. Description of residual or unavoidable environmental
impacts despite proposed mitigation measures;
c.
Documentation
of
compliance
with
technical/substantive review criteria;
d. Key issues/concerns and the proponent's response to
these, including social acceptability measures;
e. Assessment of the proposed EMP (including risk
reduction/management plan) and amounts proposed for
the Environmental Guarantee Fund and the Environmental
Monitoring Fund, and
f. Recommended decision regarding the ECC application
as well as proposed ECC conditions.
5.4.3. Decision Document
This is an official letter regarding the decision on the
application. It may be in the form of an Environmental
Compliance Certificate or a Denial Letter. The ECC shall
contain the scope and limitations of the approved
activities, as well as conditions to ensure compliance with
the Environmental Management Plan. The ECC shall also
specify the setting up of an EMF and EGF, if applicable. No
ECC shall be released until the proponent has settled all
liabilities, fines and other obligations with DENR.

A Denial Letter on the other hand shall specify the bases

for the decision. The ECC or Denial Letter shall be issued
directly to the project proponent or its duly authorized
representative, and receipt of the letter shall be properly
documented. The ECC of a project not implemented
within five years from its date of issuance is deemed
expired. The Proponent shall have to apply for a new ECC
if it intends to pursue the project. The reckoning date of
project implementation is the date of ground breaking,
based on the proponent's work plan as submitted to the
EMB.
Section 6. Appeal
Any party aggrieved by the final decision on the ECC /
CNC applications may, within 15 days from receipt of such
decision, file an appeal on the following grounds:
a. Grave abuse of discretion on the part of the deciding
authority, or
b. Serious errors in the review findings.
The DENR may adopt alternative conflict/dispute
resolution procedures as a means to settle grievances
between proponents and aggrieved parties to avert
unnecessary legal action. Frivolous appeals shall not be
countenanced.
The proponent or any stakeholder may file an appeal to
the following:
Deciding Authority Where to file the appeal
EMB Regional Office Director Office of the EMB Director
EMB Central Office Office of the DENR Secretary
DENR Secretary Office of the President
Section 7. The EIA Process in Relation to the
Project Planning Cycle
Proponents are directed under AO 42 to conduct
simultaneously the environmental impact study and the
project planning or feasibility study. EMB may validate
whether or not the EIS was integrated with project
planning by requiring relevant documentary proofs, such
as the terms of reference for the feasibility study and
copies of the feasibility study report.
The EMB shall study the potential application of EIA to
policy-based undertakings as a further step toward
integrating and streamlining the EIS system.
Section 8. EIS System Procedures
8.1 Manual of Procedures
8.1.1. The procedures to enable the processing of
ECCICNC applications within the timeframes, specified in
AO 42 shall be prescribed in a Procedural Manual to be
issued by the EMB Central Office within ninety (90) days
from the date of this Order.
8.1.2. The Manual of Procedures shall be updated as the
need arises to continually shorten the review and
approval/denial timeframes where feasible. Formulation of
said procedures shall conform to the following guidelines;
8.2 Processing Timeframe
8.2.1. If no decision is made within the specified
timeframe, the ECC/CNC application is deemed
automatically approved and the approving authority shall
issue the ECC or CNC within five (5) working days after
the prescribed processing timeframe has lapsed.
However, the EMB may deny issuance of ECC if the
proponent fails to submit required additional information
critical to deciding on the ECC/CNC application, despite
written request from EMB and despite an adequate period
for the proponent to comply with the said requirement;

8.2.2. In cases where ECC issuance cannot be decided

due to the proponent's inability to submit required
additional information within the prescribed period, the
EMB shall return the application to the proponent. The
project proponent may resubmit its application, including
the required additional information, within one (1) year for
Category A projects and six (6) months for Category B
projects without having to pay processing and other fees.
Otherwise, the matter shall be treated as a new
application.
8.2.3. In cases where EMB and the project proponent have
exhausted all reasonable efforts to generate the
information needed for deciding on the ECC/CNC
application, the responsible authority (Secretary or EMB
Director/ Regional Director), shall make a decision based
on the available information so as to comply with the
prescribed timeframe. The decision shall nonetheless
reflect a thorough assessment of impacts taking into
consideration (i) the significance of environmental
impacts and risks; (ii) the carrying capacity of the
environment; (iii) equity issues with respect to use of
natural resources, (iv) and the proponent's commitment,
to institute effective environmental management
measures.
8.3 Amending an ECC
Requirements for processing ECC amendments shall
depend on the nature of the request but shall be focused
on the information necessary to assess the environmental
impact of such changes.
8.3.1. Requests for minor changes to ECCs such as
extension of deadlines for submission of post-ECC
requirements shall be decided upon by the endorsing
authority.
8.3.2. Requests for major changes to ECCs shall be
decided upon by the deciding authority.
8.3.3. For ECCs issued pursuant to an IEE or IEE checklist,
the processing of the amendment application shall not
exceed thirty (30) working days; and for ECCs issued
pursuant to an EIS, the processing shall not exceed sixty
(60) working days. Provisions on automatic approval
related to prescribed timeframes under AO 42 shall also
apply for the processing of applications to amend ECCs.
Section 9. Monitoring of Projects with ECCs
Post ECC monitoring of projects shall follow these
guidelines. Other details on requirements for monitoring
of projects with ECCs shall be stipulated in a procedural
manual to be formulated by EMB.
9.1 Multipartite Monitoring Team
For projects under Category A, a multi-partite monitoring
team (MMT) shall be formed immediately after the
issuance of an ECC. Proponents required to establish an
MMT shall put up an Environmental Monitoring Fund (EMF)
not later than the initial construction phase of the project.
The MMT shall be composed of representatives of the
proponent and of stakeholder groups, including
representatives from concerned LGU's, locally accredited
NGOs/POs, the community, concerned EMB Regional
Office, relevant government agencies, and other sectors
that may be identified during the negotiations.

responsibilities to other relevant government agencies as

may be deemed necessary. For projects whose significant
environmental impacts do not persist after the
construction phase or whose impacts could be addressed
through other regulatory means or through the mandates
of other government agencies, the operations of MMT
may be terminated immediately after construction or
after a reasonable period during implementation.
9.2 Self-monitoring and Third Party Audit
The proponent shall also conduct regular self-monitoring
of specific parameters indicated in the EMP through its
environmental unit. The proponent's environmental unit
shall submit a semi-annual monitoring report within
January and July of each year.
For projects with ECCs issued based on a PEPRMP, EPRMP,
or an EMS-based EMP, a third party audit may be
undertaken by a qualified environmental or EMS auditor
upon the initiative of the proponent and in lieu of forming
an MMT. The said proponent shall submit to EMB a copy of
the audit findings and shall be held accountable for the
veracity of the report. The EMB may opt to validate the
said report.
9.3 Environmental Guarantee Fund
An Environmental Guarantee Fund (EGF) shall be
established for all co-located or single projects that have
been determined by DENR to pose a significant public risk
or where the project requires rehabilitation or restoration.
An EGF Committee shall be formed to manage the fund. It
shall be composed of representatives from the EMB
Central
Office,
EMB
Regional
Office,
affected
communities, concerned LGUs, and relevant government
agencies identified by EMB.
An integrated MOA on the MMT-EMF-EGF shall be entered
into among the EMB Central Office, EMB Regional Office,
the proponent, and representatives of concerned
stakeholders.
9.4 Abandonment
For projects that shall no longer be pursued, the
proponent should inform EMB to relieve the former from
the requirement for continued compliance with the ECC
conditions. For projects that have already commenced
implementation, an abandonment/decommissioning plan
shall be submitted for approval by EMB at least six (6)
months
before
the
planned
abandonment/decommissioning. The implementation of
the plan shall be verified by EMB.
ARTICLE Ill
STRENGTHENING THE IMPLEMENTATION OF THE
PHILIPPINE EIS
SYSTEM
Section 10. Coordination with other Government
Agencies and other Organizations
The DENR-EMB shall conduct regular consultations with
DTI and other pertinent government agencies, affected
industry groups and other stakeholders on continually
streamlining the processing of ECC applications and post
ECC implementation to fulfill the policy and objectives of
this administrative order.

The team shall be tasked to undertake monitoring of

compliance with ECC conditions as well as the EMP. The
MMT shall submit a semi-annual monitoring report within
January and July of each year.

The President shall be apprised of the issues raised as

well as the actions taken by DENR to address these issues
whenever necessary.

The EMB shall formulate guidelines for operationalizing

area-based or cluster-based MMT. The Bureau may also
develop
guidelines
for
delegating,
monitoring

Section 11. Information Systems Improvement

The
information
system
on
the
EIS
System
implementation shall be improved for the effective

dissemination of information to the public. The

information system shall include regular updating of the
status of ECC applications through a website and through
other means.
Section 12. Accreditation System
To enhance the quality of the EIS submitted to the
DENR/EMB, the EMB shall establish an accreditation
system for individual professionals, academic and
professional organizations that can be tapped to train
professionals in conducting EIA using training modules
approved by EMB.
The EMB shall also work with DTI-BPS for an accreditation
system for environmental and EMS auditors, consistent
with provisions of DAO 2003-14 on the Philippine
Environmental Partnership Program.
Section 13. Creation of an HAM Division and
Strengthening of Review and Monitoring Capability
In order to effectively implement the provisions of this
administrative order, the current EIA ad hoc division at
the EMB Central Office and the EMB Regional Offices that
are primarily in-charge of processing ECC applications and
post-ECC monitoring shall be converted to a full-pledged
Environmental Impact Assessment and Management
Division (EIAMD). The Division shall have the following
structure and functions:
13.1 The EIA Evaluation Section shall be in charge of
screening projects for coverage under the EIS System, EIS
Scoping, and evaluation of EIS's and IEE's submitted for
ECC issuance. It shall have three units responsible,
respectively, for screening for coverage, EIS Scoping, and
evaluation of ECC applications. The EMB may commission
independent professionals, experts from the academe and
representatives from relevant government agencies as
members of the EIA Review Committee as may be deer
31d necessary. Further, continual improvement of the
technical capability of the Staff of the EIA Division shall be
undertaken.
13.2 The Impact Monitoring and Validation Section shall
be in charge of monitoring compliance to ECC conditions
and implementation of the Environmental Management
Program (EMP): The unit shall also validate actual impacts
as a basis for evaluating environmental performance and
effectiveness of the EMP.
13.3 In the EMB Central Office, there shall be a Systems
Planning and Management Section. It shall ensure that a
continually improving systems-oriented and integrated
approach is followed in implementing the Philippine EIS
System vis-a-vis national development programs. The
section shall have two units responsible for specific
systems level concerns: (1) Project Level Systems
Planning and Management Unit; and (2) Program and
Policy Level Systems Planning and Management Unit. This
section shall also be responsible for technical coordination
with the EIA Division in the different EMB Regional Offices.
The organizational structure of the EMB Central Office is
in Annex 1.
ARTICLE 1V
MISCELLANEOUS PROVISIONS
Section 14. Budget Allocation
For the effective implementation of this order, adequate
funding should be provided under the annual General
Appropriations Act.
Per AU 42, the new position items for the EIA Division
shall be created out of the existing budget and vacant

position items within the government service, which shall

be reclassified accordingly.
Section 15. Fees
All proponents, upon submission of the IEEIEIS and
application for amendment, shall pay filing fees and other
charges in accordance with prescribed standard costs and
fees set by EMB in relation to the implementation of the
Philippine EIS System, as shown in Annex 2.
The proponent shall shoulder the cost of reviewing the
EIS.
Section 16. Fines, Penalties And Sanctions
The EMB Central Office or Regional Office Directors shall
impose penalties upon persons or entities found violating
provisions of P.D. 1586, and its Implementing Rules and
Regulations. Details of the Fines and Penalty Structure
shall be covered by a separate order.
The EMB Director or the EMB-RD may issue a Cease and
Desist Order (CDO) based on violations under the
Philippine EIS System to prevent grave or irreparable
damage to the environment. Such CDO shall be effective
immediately. An appeal or any motion seeking to lift the
CDO shall not stay its effectivity. However, the DENR shall
act on such appeal or motion within ten (10) working days
from filing.
The EMB may publish the identities of firms that are in
violation of the EIA Law and its Implementing Rules and
Regulations despite repeated Notices of Violation and/or
Cease and Desist Orders.
Section 17. Transitory Provisions
The DENR may extend reprieve to proponents of projects
operating without ECC (Categories A-3 and B-3) from
penalties specified in PD 1586 upon registration with the
EMB Central Office. An Environmental Performance Report
and Management Plan (EPRMP) shall be submitted as a
requirement for such ECC application within six months
from the signing of this Administrative order.
During the period that that the Procedural Manual and
other necessary guidelines are being prepared, existing
guidelines which are consistent with the provisions of this
Order shall remain in effect. Adequate resources shall be
provided for the formulation of the Procedural Manual and
for the effective implementation of this Order.
Section 18. Repealing Clause
This Order hereby supersedes Department Administrative
Order No. 96-37, Department Administrative Order No.
2000-37, DAO 2000-05 and other related orders, which
are inconsistent herewith.

Republic Act No. 7942: Philippine Mining Act of

1995
Sec. 2 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. 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
communities.

protect

the

rights

of

affected

Sec. 3 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.

(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.
(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.).

(l) "Ecological profile or eco-profile" refers to geographicbased instruments for planners and decision-makers
which presents an evaluation of the environmental quality
and carrying capacity of an area.

(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 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.

(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/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.

languages, customs, traditions, and other distinctive

cultural traits, and as may be defined and delineated by
law.

(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.

(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.

(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.

(y) "Mineral processing" means the milling, benefaction 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.
(u) "Government" means the government of the Republic
of the Philippines.
(ad) "Mineral resource" means any concentration of
minerals/rocks with potential economic value.
(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

(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) "Nongovernmental 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 by products
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 mining, with
technical and financial capability to undertake mineral
resources development and duly registered in accordance
with law at least sixty per cent (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, bullquartz,

quartz or silica, sand and pebbles, bentonite, talc,
asbestos, barite, gypsum, bauxite, magnesite, dolomite,
mica, precious and semi-precious stones, and other nonmetallic 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) "Region 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 claimowners 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.

CHAPTER II
GOVERNMENT MANAGEMENT

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.
Sec. 5 Mineral Reservations. 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 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.

Sec. 6 Other Reservations. 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.

Sec. 7 Periodic Review of Existing Mineral Reservations.

The Secretary shall periodically review existing mineral
reservations for the purpose of determining whether their
continued existence is consistent with the national
interest, and upon the recommendation, the President
may, by proclamation, alter or modify the boundaries

thereof or revert the same to the public domain without

prejudice to prior existing rights.

Sec. 8 Authority of the Department. The Department shall

be the primary government 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.

Sec. 9 Authority of the Bureau. The Bureau shall have

direct charge in the administration and disposition of
mineral lands and mineral resources and shall undertake
geological, mining, metallurgical, chemical, and other
researches as well as geological and mineral exploration
surveys. The Director shall recommend to the Secretary
the granting of mineral agreements to duly qualified
persons and shall monitor the compliance by the
contractor of the terms and conditions of the mineral
agreements. The Bureau may confiscate surety,
performance and guaranty bonds posted through an order
to be promulgated by the Director. The Director may
deputize, when necessary, any member or unit of the
Philippine National Police, barangay, duly registered
nongovernmental organization (NGO) or any qualified
person to police all mining activities.

Sec. 10 Regional Offices. There shall be as many regional

offices in the country as may be established by the
Secretary, upon the recommendation of the Director.

Sec. 11 Processing of Applications. The system of

processing applications for mining rights shall be
prescribed in the rules and regulations of this Act.

Sec. 12 Survey, Charting and Delineation of Mining Areas.

A sketch plan or map of the contract or mining area
prepared by a deputized geodetic engineer suitable for
publication purposes shall be required during the filing of
a mineral agreement or financial or technical assistance
agreement application. Thereafter, the contract or mining
area shall be surveyed and monumented by a deputized
geodetic engineer or bureau geodetic engineer and the
survey plan shall be approved by the Director before the
approval of the mining feasibility.

Sec. 13 Meridional Blocks. For purposes of the delineation

of the contract of mining areas under this Act, the
Philippine territory and its exclusive economic zone shall
be divided into meridional blocks of one-half (1/2) minute
of latitude and one-half (1/2) minute of longitude.

Sec. 14 Recording System. There shall be established a

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

CHAPTER III
SCOPE OF APPLICATION

Sec. 15 Scope of Application. This Act shall govern the

exploration, development, utilization and processing of all
mineral resources.

Sec. 16 Opening of Ancestral Lands for Mining Operations.

No ancestral land shall be opened for mining operations
without the prior consent of the indigenous cultural
community concerned.

Sec. 17 Royalty Payments for Indigenous Cultural

Communities. In the event of an agreement with an
indigenous cultural community pursuant to the preceding
section, the royalty payment, upon utilization of the
minerals 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.

Sec. 18 Areas Open to Mining Operations. 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.

Sec. 19 Areas Closed to Mining Applications. 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;

Sec. 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.

Sec. 21 Terms and Conditions of the Exploration Permit.

An exploration permit shall be for a period of two (2)
years, subject to annual review and relinquishment or
renewal upon the recommendation of the Director.

Sec. 22 Maximum Areas for Exploration Permit. The

maximum area that a qualified person may hold at any
one time shall be:

(a) Onshore, in any one province -

(1) For individuals, twenty (20) blocks; and

(2) (2) For partnerships, corporations, cooperatives, or

associations, two hundred (200) blocks.

(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

(b) Onshore, in the entire Philippines -

(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 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.

(2) For partnerships, corporations, cooperatives,

associations, four hundred (400) blocks.

(1) For individuals, forty (40) blocks; and

(c) Onshore, beyond five hundred meters (500m) from the

mean low tide level -

(1) For individuals, one hundred (100) blocks; and

CHAPTER IV
EXPLORATION PERMIT

or

(2) For partnerships, corporations, cooperatives,

associations, one thousand (1,000) blocks.

or

Sec. 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.

Sec. 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.

CHAPTER V
MINERAL AGREEMENTS

Sec. 26 Modes of Mineral Agreement. For purposes of

mining operations, a mineral agreement may take the
following forms as herein defined:
The permittee shall undertake an exploration work on the
area specified by its permit based on an approved work
program.

Any expenditure in excess of the yearly budget of the

approved work program may be carried forward and
credited to the succeeding years covering the duration of
the permit. The Secretary, through the Director, shall
promulgate rules and regulations governing the terms and
conditions of the permit.

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.

Sec. 24 Declaration of Mining Project Feasibility. A holder

of an exploration permit who determines the commercial
viability of a project covering a mining area may, within
the term of the permit, file with the Bureau a declaration
of mining project feasibility accompanied by a work
program for development. The approval of the mining
project feasibility and compliance with other requirements
provided in this Act shall entitle the holder to an exclusive
right to a mineral production sharing agreement or other
mineral agreements or financial or technical assistance
agreement.

(a) Mineral production sharing agreement - is an

agreement where the Government grants to the
contractor the exclusive right to conduct mining
operations within a contract area and shares in the gross
output. The contractor shall provide the financing,
technology, management and personnel necessary for the
implementation of this agreement.

(b) Co-production agreement - is an agreement between

the Government and the contractor wherein the
Government shall provide inputs to the mining operations
other than the mineral resource.

(c) Joint venture agreement - is an agreement where a

joint-venture company is organized by the Government
and the contractor with both parties having equity shares.
Aside from earnings in equity, the Government shall be
entitled to a share in the gross output.

A mineral agreement shall grant to the contractor the

exclusive right to conduct mining operations and to
extract all mineral resources found in the contract area. In
addition, the contractor may be allowed to convert his
agreement into any of the modes of mineral agreements
or financial or technical assistance agreement covering
the remaining period of the original agreement subject to
the approval of the Secretary.

Sec. 27 Eligibility. A qualified person may enter into any of

the three (3) modes of mineral agreement with the
government for the exploration, development and
utilization of mineral resources: Provided, That in case the
applicant has been in the mining industry for any length

of time, he should possess a satisfactory environmental

track record as determined by the Mines and Geosciences
Bureau and in consultation with the Environment
Management Bureau of the Department.

Sec. 28 Maximum Areas for Mineral Agreement. The

maximum area that a qualified person may hold at any
time under a mineral agreement shall be:

The maximum areas mentioned above that a contractor

may hold under a mineral agreement shall not include
mining/quarry areas under operating agreements
between
the
contractor
and
a
claimowner/lessee/permittee/licensee entered into under
Presidential Decree No. 463.

Sec. 29 Filing and Approval of Mineral Agreements. All

proposed mineral agreements shall be filed in the region
where the areas of interest are located, except in mineral
reservations which shall be filed with the Bureau.

(a) Onshore, in any one province -

(1) For individuals, ten (10) blocks; and

(2) For partnerships, cooperatives, associations,

corporations, one hundred (100) blocks.

or

Sec. 30 Assignment/Transfer. Any assignment or transfer

of rights and obligations under any mineral agreement
except a financial or technical assistance agreement shall
be subject to the prior approval of the Secretary. Such
assignment or transfer shall be deemed automatically
approved if not acted upon by the Secretary within thirty
(30) working days from official receipt thereof, unless
patently unconstitutional or illegal.

(b) Onshore, in the entire Philippines -

(1) For individuals, twenty (20) blocks; and

(2) For partnerships, cooperatives, associations,

corporations, two hundred (200) blocks.

The filing of a proposal for a mineral agreement shall give

the proponent the prior right to areas covered by the
same. The proposed mineral agreement will be approved
by the Secretary and copies thereof shall be submitted to
the President. Thereafter, the President shall provide a list
to Congress of every approved mineral agreement within
thirty (30) days from its approval by the Secretary.

or
Sec. 31 Withdrawal from Mineral Agreements. The
contractor may, by giving due notice at any time during
the terms of the agreement, apply for the cancellation of
the mineral agreement due to causes which, in the
opinion of the contractor, make continued mining
operations no longer feasible or viable. The Secretary
shall consider the notice and issue its decision within a
period of thirty (30) days: Provided, That the contractor
has met all its financial, fiscal and legal obligations.

(c) Offshore, in the entire Philippines -

(1) For individuals, fifty (50) blocks;

(2) For partnerships, cooperatives, associations,

corporations, five hundred (500) blocks; and

or

(3) For the exclusive economic zone, a larger area to be

determined by the Secretary.

Sec. 32 Terms. Mineral agreements shall have a term not

exceeding twenty-five (25) years to start from the date of
execution thereof, and renewable for another term not
exceeding twenty-five (25) years under the same terms
and conditions thereof, without prejudice to charges
mutually agreed upon by the parties. After the renewal
period, the operation of the mine may be undertaken by
the Government or through a contractor. The contract for
the operation of a mine shall be awarded to the highest
bidder in a public bidding after due publication of the
notice thereof: Provided, That the contractor shall have

the right to equal the highest bid upon reimbursement of

all reasonable expenses of the highest bidder.

exploration, development, and utilization; details of

technology to be employed in the proposed operation;
and details of technical personnel to undertake the
operations;

CHAPTER VI
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT

Sec. 33 Eligibility. Any qualified person with technical and

financial capability to undertake large-scale exploration,
development, and utilization of mineral resources in the
Philippines may enter into a financial or technical
assistance agreement directly with the Government
through the Department.

Sec. 34 Maximum Contract Area. The maximum contract

area that may be granted per qualified person, subject to
relinquishment shall be:

(d) Representations and warranties that the applicant has

all the qualifications and none of the disqualifications for
entering into the agreement;

(e) Representations and warranties that the contractor

has or has access to all the financing, managerial and
technical expertise and, if circumstances demand, the
technology required to promptly and effectively carry out
the objectives of the agreement with the understanding to
timely deploy these resources under its supervision
pursuant to the periodic work programs and related
budgets, when proper, providing an exploration period up
to two (2) years, extendible for another two (2) years but
subject to annual review by the Secretary in accordance
with the implementing rules and regulations of this Act,
and further, subject to the relinquishment obligations;

(a) 1,000 meridional blocks onshore;

(b) 4,000 meridional blocks offshore; or
(c) Combinations of (a) and (b) provided that it shall not
exceed the maximum limits for onshore and offshore
areas.

(f) Representations and warranties that, except for

payments for dispositions for its equity, foreign
investments in local enterprises which are qualified for
repartriation, and local supplier's credits and such other
generally accepted and permissible financial schemes for
raising funds for valid business purposes, the contractor
shall not raise any form of financing from domestic
sources of funds, whether in Philippine or foreign
currency, for conducting its mining operations for and in
the contract area;

Sec. 35 Terms and Conditions. The following terms,

conditions, and warranties shall be incorporated in the
financial or technical assistance agreement, to wit:
(g) The mining operations shall be conducted in
accordance with the provisions of this Act and its
implementing rules and regulations;
(a) A firm commitment in the form of a sworn statement,
of an amount corresponding to the expenditure obligation
that will be invested in the contract area: Provided, That
such amount shall be subject to changes as may be
provided for in the rules and regulations of this act;

(b) A financial guarantee bond shall be posted in favor of

the Government in an amount equivalent to the
expenditure obligation of the applicant for any year.

(c) Submission of proof of technical competence, such as,

but not limited to, its track record in mineral resource

(h) Work programs

commitments;

and

minimum

expenditures

(i) Preferential use of local goods and services to the

maximum extent practicable;

(j) A stipulation that the contractors are obligated to give

preference to Filipinos in all types of mining employment

for which they are qualified and that technology shall be

transferred to the same;

mining rights are not impaired or prejudiced thereby. The

Secretary shall recommend its approval to the President.

(k) Requiring the prominent 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;

Sec. 38 Terms of Financial or Technical Assistance

Agreement. A financial or technical assistance agreement
shall have a term not exceeding twenty-five (25) years to
start from the execution thereof, renewable for not more
than twenty-five (25) years under such terms and
conditions as may be provided by law.

(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 by products produced under a financial or technical
assistance agreement at the highest price and more
advantageous terms and conditions as provided for under
the rules and regulations of this 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.

Sec. 36 Negotiations. 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 thirty (30) days from
execution and approval thereof.

Sec. 37 Filing and Evaluation of Financial or Technical

Assistance Agreement Proposals. All financial or technical
assistance agreement proposals shall be filed with the
Bureau after payment of the required processing fees. If
the proposal is found to be sufficient and meritorious in
form and substance after evaluation, it shall be recorded
with the appropriate government agency to give the
proponent the prior right to the area covered by such
proposal: Provided, That existing mineral agreements,
financial or technical assistance agreements and other

Sec. 39 Option to Convert into a Mineral Agreement. The

contractor has the option to convert the financial or
technical assistance agreement to a mineral agreement
at any time during the term of the agreement, if the
economic viability of the contract area is found to be
inadequate to justify large-scale mining operations, after
proper notice to the Secretary as provided for under the
implementing rules and regulations: Provided, That the
mineral agreement shall only be for the remaining period
of the original agreement.

In the case of a foreign contractor, it shall reduce its

equity to forty percent (40%) in the corporation,
partnership, association, or cooperative. Upon compliance
with this requirement by the contractor, the Secretary
shall approve the conversion and execute the mineral
production-sharing agreement.

Sec. 40 Assignment/Transfer. A financial or technical

assistance agreement may be assigned or transferred, in
whole or in part, to a qualified person subject to the prior
approval of the President: Provided, That the President
shall notify Congress of every financial or technical
assistance agreement assigned or converted in
accordance with this provision within thirty (30) days from
the date of the approval thereof.

Sec. 41 Withdrawal from Financial or Technical Assistance

Agreement. The contractor shall manifest in writing to the
Secretary his intention to withdraw from the agreement, if
in his judgement the mining project is no longer
economically feasible, even after he has exerted
reasonable diligence to remedy the cause or the situation.
The Secretary may accept the withdrawal: Provided, That
the contractor has complied or satisfied all his financial,
fiscal or legal obligations.

CHAPTER VII

SMALL-SCALE MINING

Sec. 42 Small-scale Mining. Small-scale mining shall

continue to be governed by Republic Act No. 7076 and
other pertinent laws.

CHAPTER VIII

Provided, That before the cancellation of such permit, the

holder thereof shall be given the opportunity to be heard
in an investigation conducted for the purpose.

Sec. 46 Commercial Sand and Gravel Permit. Any qualified

person may be granted a permit by the provincial
governor to extract and remove sand and gravel or other
loose or unconsolidated materials which are used in their
natural state, without undergoing processing from an area
of not more than five hectares (5 has.) and in such
quantities as may be specified in the permit.

QUARRY RESOURCES

Sec. 43 Quarry Permit. Any qualified person may apply to

the provincial/city mining regulatory board for a quarry
permit on privately-owned lands and/or public lands for
building and construction materials such as marble,
basalt, andesite, conglomerate, tuff, adobe, granite,
gabbro, serpentine, inset filing materials, clay for ceramic
tiles and building bricks, pumice, perlite and other similar
materials that are extracted by quarrying from the
ground. The provincial governor shall grant the permit
after the applicant has complied with all the requirements
as prescribed by the rules and regulations.

The maximum area which a qualified person may hold at

any one time shall be five hectares (5 has.): Provided,
That in large-scale quarry operations involving cement
raw materials, marble, granite, sand and gravel and
construction agreements, a qualified person and the
government may enter into a mineral agreement as
defined herein.

A quarry permit shall have a term of five (5) years,

renewable for like periods but not to exceed a total term
of twenty-five (25) years, No quarry permit shall be issued
or granted on any area covered by a mineral agreement,
or financial or technical assistance agreement.

Sec. 44 Quarry Fee and Taxes. A permittee shall, during

the term of his permit, pay a quarry fee as provided for
under the implementing rules and regulations. The
permittee shall also pay the excise tax as provided by
pertinent laws.

Sec. 45 Cancellation of Quarry Permit. A quarry permit

may be cancelled by the provincial governor for violations
of the provisions of this Act or its implementing rules and
regulations or the terms and conditions of said permit:

Sec. 47 Industrial Sand and Gravel Permit. Any qualified

person may be granted an industrial sand and gravel
permit by the Bureau for the extraction of sand and gravel
and other loose or unconsolidated materials that
necessitate the use of mechanical processing covering an
area of more than five hectares (5 has.) at any one time.
The permit shall have a term of five (5) years, renewable
for a like period but not to exceed a total term of twentyfive (25) years.

Sec. 48 Exclusive Sand and Gravel Permit. Any qualified

person may be granted an exclusive sand and gravel
permit by the provincial governor to quarry and utilize
sand and gravel or other loose or unconsolidated
materials from public lands for his own use, provided that
there will be no commercial disposition thereof.

A mineral agreement or a financial technical assistance

agreement contractor shall, however, have the right to
extract and remove sand and gravel and other loose
unconsolidated materials without need of a permit within
the area covered by the mining agreement for the
exclusive use in the mining operations: Provided, That
monthly reports of the quantity of materials extracted
therefrom shall be submitted to the mines regional office
concerned: Provided, further, That said right shall be
coterminous with the expiration of the agreement.

Holders of existing mining leases shall likewise have the

same rights as that of a contractor: Provided, That said
right shall be coterminous with the expiry dates of the
lease.

Sec. 49 Government Gratuitous Permit. Any government

entity or instrumentality may be granted a gratuitous
permit by the provincial governor to extract sand and

gravel, quarry or loose unconsolidated materials needed

in the construction of building and/or infrastructure for
public use or other purposes over an area of not more
than two hectares (2 has.) for a period coterminous with
said construction.

Sec. 54 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.

Sec. 50 Private Gratuitous Permit. Any owner of land may

be granted a private gratuitous permit by the provincial
governor.

Sec. 55 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.

Sec. 51 Guano Permit. Any qualified person may be

granted a guano permit by the provincial governor to
extract and utilize loose unconsolidated guano and other
organic fertilizer materials in any portion of a municipality
where he has established domicile. The permit shall be for
specific caves and/or for confined sites with locations
verified by the Department's field officer in accordance
with existing rules and regulations.

Sec. 52 Gemstone Gathering Permit. Any qualified person

may be granted a non-exclusive gemstone gathering
permit by the provincial governor to gather loose stones
useful as gemstones in rivers and other locations.

Sec.
56
Eligibility
of
Foreign-owned/-controlled
Corporation. A foreign-owned/-controlled corporation may
be granted a mineral processing permit.

CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE
AND MINING TECHNOLOGY

CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS

Sec. 53 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.

Sec. 57 Expenditure for Community Development and

Science and Mining Technology. A contractor shall assist in
the development of its mining community, the promotion
of the general welfare of its inhabitants, and the
development of science and mining technology.

Sec. 58 Credited Activities. Activities that may be credited

as expenditures for development of mining communities,
and science and mining technology are the following:

(a) Any activity or expenditure intended to enhance the

development of the mining and neighboring communities
of a mining operation other than those required or
provided for under existing laws, or collective bargaining
agreements, and the like: and

(b) Any activity or expenditure directed towards the

development of geosciences and mining technology such
as, but not limited to, institutional and manpower
development, and basic and applied researches.

Appropriate supervision and control mechanisms shall be

prescribed in the implementing rules and regulations of
this Act.

Sec. 59 Training and Development. A contractor shall

maintain an effective program of manpower training and
development throughout the term of the mineral
agreement and shall encourage and train Filipinos to
participate in all aspects of the mining operations,
including the management thereof. For highly-technical
and specialized mining operations, the contractor may,
subject to the necessary government clearances, employ
qualified foreigners.

Sec. 60 Use of Indigenous Goods, Services and

Technologies. A contractor shall give preference to the
use of local goods, services and scientific and technical
resources in the mining operations, where the same are of
equivalent quality, and are available on equivalent terms
as their imported counterparts.

Sec. 61 Donations/Turn Over of Facilities. Prior to

cessation
of
mining
operations
occasioned
by
abandonment or withdrawal of operations, on public lands
by the contractor, the latter shall have a period of one (1)
year therefrom within which to remove his improvements;
otherwise, all the social infrastructure and facilities shall
be turned over or donated tax-free to the proper
government authorities, national or local, to ensure that
said infrastructure and facilities are continuously
maintained and utilized by the host and neighboring
communities.

Sec. 62 Employment of Filipinos. A contractor shall give

preference to Filipino citizens in all types of mining
employment within the country insofar as such citizens
are qualified to perform the corresponding work with
reasonable efficiency and without hazard to the safety of
the operations. The contractor, however, shall not be
hindered from hiring employees of his own selection,
subject to the provision of Commonwealth Act No. 613, as
amended, for technical and specialized work which in his
judgement and with the approval of the Director, required
highly-specialized training or long experience in
exploration, development or utilization of mineral
resources: Provided, That in no case shall each
employment exceed five (5) years or the payback period
as represented in original project study, whichever is
longer: Provided, further, That each foreigner employed
as mine manager, vice-president for operations or in an
equivalent managerial position in charge of mining,
milling, quarrying or drilling operation shall:

(a) Present evidence of his qualification and work

experience; or

(b) Shall pass the appropriate government licensure

examination; or

(c) In special cases, may be permitted to work by the

Director for a period not exceeding one (1) year: Provided,
however, That if reciprocal privileges are extended to
Filipino nationals in the country of domicile, the Director
may grant waivers or exemptions.

CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION

Sec. 63 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.

Sec. 64 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.

Sec. 65 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.

Sec. 66 Mine Inspection. The regional director shall have

exclusive jurisdiction over the safety inspection of all
installations, surface or underground, in mining
operations at reasonable hours of the day or night and as
much as possible in a manner that will not impede or
obstruct work in progress of a contractor or permittee.

contractors/permittees shall observe all the requirements

of environmental protection.
Sec. 67 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, 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.

Sec. 68 Report of Accidents. In case of any incident or

accident, causing or creating the danger of loss of life or
serious physical injuries, the person in charge of
operations shall immediately report the same to the
regional office where the operations are situated. Failure
to report the same without justifiable reason shall be a
cause for the imposition of administrative sanctions
prescribed in the rules and regulations implementing this
Act.

Sec. 69 Environmental Protection. Every contractor shall

undertake an environmental protection and enhancement
program covering the period of the mineral agreement or
permit.
Such
environmental
program
shall
be
incorporated in the work program which the contractor or
permittee shall submit as an accompanying document to
the application for a mineral agreement or permit. The
work program shall include not only plans relative to
mining operations but also to rehabilitation, regeneration,
revegetation and reforestation of mineralized areas, slope
stabilization of mined-out and tailings covered areas,
aquaculture,
watershed
development
and
water
conservation; and socioeconomic development.

Sec. 70 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, nongovernmental 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 encourage to participate in ensuring that

Sec. 71 Rehabilitation. Contractors and permittees shall

technically and biologically rehabilitate the excavated
mined-out, tailings covered and disturbed areas to the
condition of environmental safety, as may be provided in
the implementing rules and regulations of this Act. A mine
rehabilitation fund shall be created, based on the
contractor's approved work program, and shall be
deposited as a trust fund in a government depository
bank and used for physical and social rehabilitation of
areas and communities affected by mining activities and
for research on the social, technical and preventive
aspects of rehabilitation. Failure to fulfill the above
obligation shall mean immediate suspension or closure of
the mining activities of the contractor/permittee
concerned.

CHAPTER XII
AUXILIARY MINING RIGHTS

Sec. 72 Timber Rights. Any provision of law to the

contrary notwithstanding, a contractor may be ranged a
right to cut trees or timber within his mining area as may
be necessary for his mining operations subject to forestry
laws, rules and regulations: Provided, That if the land
covered by the mining area is already covered by existing
timber concessions, the volume of timber needed and the
manner of cutting and removal thereof shall be
determined by the mines regional director, upon
consultation
with
the
contractor,
the
timber
concessionaire/permittee and the Forest Management
Bureau of the Department: Provided, further, That in case
of disagreement between the contractor and the timber
concessionaire, the matter shall be submitted to the
Secretary whose decision shall be final. The contractor
shall perform reforestation work within his mining area in
accordance with forestry laws, rules and regulations.

Sec. 73 Water Rights. A contractor shall have water rights

for mining operations upon approval of application with
the appropriate government agency in accordance with
existing water laws, rules and regulations promulgated
thereunder: Provided, That water rights already granted
or vested through long use, recognized and acknowledged
by local customs, laws, and decisions of courts shall not
thereby be impaired: Provided further, That the
Government reserves the right to regulate water rights
and the reasonable and equitable distribution of water
supply so as to prevent the monopoly of the use thereof.

Sec. 74 Right to Possess Explosives. A contractor/

exploration permittee shall have the right to possess and
use explosives within his contract/permit area as may be
necessary for his mining operations upon approval of an
application with the appropriate government agency in
accordance with existing laws, rules and regulations
promulgated thereunder: Provided, That the Government
reserves the right to regulate and control the explosive
accessories to ensure safe mining operations.

Sec. 75 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.

Sec. 76 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.

CHAPTER XIII

related field, and duly designated by the Secretary as

recommended by the Mines and Geosciences Bureau
Director. Those designated as members of the panel shall
serve as such in addition to their work in the Department
without receiving any additional compensation. As much
as practicable, said members shall come from the
different bureaus of the Department in the region. The
presiding officer shall be on a yearly basis. The members
of the panel shall perform their duties and obligations in
hearing and deciding cases until their designation is
withdrawn or revoked by the Secretary. Within thirty (30)
working days, after the submission of the case by the
parties for decision, the panel shall 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

claimholders/concessionaires; and

(d) Disputes pending before the Bureau and

Department at the date of the effectivity of this Act.

the

Sec. 78 Appellate Jurisdiction. The decision or order of the

panel of arbitrators may be appealed by the party not
satisfied thereto to the mines Adjudication Board within
fifteen (15) days from receipt thereof which must decide
the case within thirty (30) days from submission thereof
for decision.

Sec. 79 Mines Adjudication Board. The Mines Adjudication

Board shall be composed of three (3) members. The
Secretary shall be the chairman with the Director of the
Mines and Geosciences Bureau and the Undersecretary
for Operations of the Department as member thereof. The
Board shall have the following powers and functions:

SETTLEMENT OF CONFLICTS

Sec. 77 Panel of Arbitrators. There shall be a panel of

arbitraters in the regional office of the Department
composed of three (3) members, two (2) of whom must
be members of the Philippine Bar in good standing and
one licensed mining engineer or a professional in a

(a) To promulgate rules and regulations governing the

hearing and disposition of cases before it, as well as those
pertaining to its internal functions, and such rules and
regulations as may be necessary to carry out its
functions;

(b) To administer oaths, summon the parties to a

controversy, issue subpoenas requiring the attendance
and testimony of witnesses or the production of such
books, paper, contracts, records, statement of accounts,
agreements, and other documents as may be material to
a just determination of the matter under investigation,
and to testify in any investigation or hearing conducted in
pursuance of this Act;

(c) To conduct hearings on all matters within its

jurisdiction, proceed to hear and determine the disputes
in the absence of any party thereto who has been
summoned or served with notice to appear, conduct its
proceedings or any part thereof in public or in private,
adjourn its hearings at any time and place, refer technical
matters or accounts to an expert and to accept his report
as evidence after hearing of the parties upon due notice,
direct parties to be joined in or excluded from the
proceedings, correct, amend, or waive any error, defect or
irregularity, whether in substance or in form, give all such
directions at it may deem necessary or expedient in the
determination of the dispute before it and dismiss the
mining dispute as part thereof, where it is trivial or where
further proceedings by the Board are not necessary or
desirable;

(1) to hold any person in contempt, directly or indirectly,

and impose appropriate penalties therefor; and

(2) To enjoin any or all acts involving or arising from any

case pending before it which, if not restrained forthwith,
may cause grave or irreparable damage to any of the
parties to the case or seriously affect social and economic
stability.

In any proceeding before the Board, the rules of evidence

prevailing in courts of law or equity shall not be
controlling and it is the spirit and intention of this Act that
shall govern. The Board shall use every and all reasonable
means to ascertain the facts in each case speedily and
objectively and without regard to technicalities of law or
procedure, all in the interest of due process. In any
proceeding before the Board, the parties may be
represented by legal counsel. the findings of fact of the
Board shall be conclusive and binding on the parties and
its decision or order shall be final and executory.

A petition for review by certiorari and question of law may

be filed by the aggrieved party with the Supreme Court
within thirty (30) days from receipt of the order or
decision of the Board.

CHAPTER XIV
GOVERNMENT SHARE

Sec. 80 Government Share in Mineral Production Sharing

Agreement. The total government share in a mineral
production sharing agreement shall be the excise tax on
mineral products as provided in Republic Act No. 7729,
amending Section 151(a) of the National Internal Revenue
Code, as amended.

Sec. 81 Government Share in Other Mineral Agreements.

The share of the Government in co-production and jointventure agreements shall be negotiated by the
Government and the contractor taking into consideration
the: (a) capital investment of the project, (b) risks
involved, (c) contribution of the project to the economy,
and (d) other factors that will provide for a fair and
equitable sharing between the Government and the
contractor. The Government shall also be entitled to
compensations for its other contributions which shall be
agreed upon by the parties, and shall consist, among
other things, the contractor's income tax, excise tax,
special allowance, withholding tax due from the
contractor's foreign stockholders arising from dividend or
interest payments to the said foreign stockholders, in
case of a foreign national, and all such other taxes, duties
and fees as provided for under existing laws.

The Government share in financial or technical assistance

agreement shall consist of, among other things, the
contractor's corporate income tax, excise tax, special
allowance, withholding tax due from the contractor's
foreign stockholders arising from dividend or interest
payments to the said foreign stockholder in case of a
foreign national and all such other taxes, duties and fees
as provided for under existing laws.

The collection of government share in financial or

technical assistance agreement shall commence after the
financial or technical assistance agreement contractor has
fully recovered its pre-operating expenses, exploration,
and development expenditures, inclusive.

Sec. 82 Allocation of Government Share. The Government

share as referred to in the preceding sections shall be
shared and allocated in accordance with Sections 290 and
292 of Republic Act No. 7160 otherwise known as the

Local Government Code of 1991. In case the development

and utilization of mineral resources is undertaken by a
government-owned or controlled corporation, the sharing
and allocation shall be in accordance with Sections 291
and 292 of the said Code.

CHAPTER XV
TAXES AND FEES

Sec. 83 Income Taxes. After the lapse of the income tax

holiday as provided for in the Omnibus Investments Code,
the contractor shall be liable to pay income tax as
provided in the National Internal Revenue Code, as
amended.

The Secretary is authorized to increase mine wastes and

tailings fees, when public interest so requires, upon the
recommendation of the Director.

Sec. 86 Occupation Fees. There shall be collected from

any holder of a mineral agreement, financial or technical
assistance agreement or exploration permit on public or
private lands, an annual occupation fee in accordance
with the following schedule;

(a) For exploration permit - Five pesos (P5.00) per hectare

or fraction thereof per annum;

(b) For mineral agreements and financial or technical

assistance agreements - Fifty pesos (P50.00) per hectare
or fraction thereof per annum; and
Sec. 84 Excise Tax on Mineral Products. The contractor
shall be liable to pay the excise tax on mineral products
as provided for under Section 151 of the National Internal
Revenue Code: Provided, however, That with respect to a
mineral production sharing agreement, the excise tax on
mineral products shall be the government share under
said agreement.

Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee

to be known as mine wastes and tailings fee is hereby
imposed on all operating mining companies in accordance
with the implementing rules and regulations. The mine
wastes and tailings fee shall accrue to a reserve fund to
be used exclusively for payment for damages to:

(a) Lives and personal safety;

(b) Lands, agricultural crops and forest products, marine
life and aquatic resources, cultural resources; and
(c) Infrastructure and the revegetation and rehabilitation
of silted farm lands and other areas devoted to agriculture
and fishing caused by mining pollution.

This is in addition to the suspension or closure of the

activities of the contractor at any time and the penal
sanctions imposed upon the same.

(c) For mineral reservation - One hundred pesos (P100.00)

per hectare or fraction thereof per annum.

The Secretary is authorized to increase the occupation

fees provided herein when the public interest so requires,
upon recommendation of the Bureau Director.

Sec. 87 Manner of payment of Fees. The fees shall be paid

on the date the mining agreement is registered with the
appropriate office and on the same date every year
thereafter. It shall be paid to the treasurer of the
municipality or city where the onshore mining areas are
located, or to the Director in case of offshore mining
areas. For this purpose, the appropriate officer shall
submit to the treasurer of the municipality or city where
the onshore mining area is located, a complete list of all
onshore mining rights registered with his office, indicating
therein the names of the holders, area in hectares,
location, and date registered. If the fee is not paid on the
date specified, it shall be increased by twenty-five per
centum (25%).

Sec. 88 Allocation of Occupation Fees. Thirty per centum

(30%) of all occupational fees collected from holders of
mining rights in onshore mining areas shall accrue to the
province and seventy per centum (70%) to the
municipality in which the onshore mining areas are
located. In a chartered city, the full amount shall accrue
to the city concerned.

Sec. 89 Filing Fees and Other Charges. The Secretary is

authorized to charge reasonable filing fees and other
charges as he may prescribe in accordance with the
implementing rules and regulations.

CHAPTER XVI
INCENTIVES

Sec. 90 Incentives. The contractors in mineral

agreements, and financial or technical assistance
agreements shall be entitled to the applicable fiscal and
non-fiscal incentives as provided for under Executive
Order No. 226, otherwise known as the Omnibus
Investments Code of 1987: Provided, That holders of
exploration permits may register with the Board of
Investments and be entitled to the fiscal incentives
granted under the said Code for the duration of the
permits or extensions thereof: Provided, further, That
mining activities shall always be included in the
investment priorities plan.

Sec. 91 Incentives for Pollution Control Devices. Pollution

control devices acquired, constructed or installed by
contractors shall not be considered as improvements on
the land or building where they are placed, and shall not
be subject to real property and other taxes or
assessments: Provided, however, That payment of mine
wastes and tailings fees is not exempted.

Sec. 92 Income Tax-Carry Forward of Losses. A net

operating loss without the benefit of incentives incurred in
any of the first ten (10) years of operations may be
carried over as a deduction from taxable income for the
next five (5) years immediately following the year of such
loss. The entire amount of the loss shall be carried over to
the first of the five (5) taxable years following the loss,
and any portion of such loss which exceeds the taxable
income of such first year shall be deducted in like manner
from the taxable income of the next remaining four (4)
years.

Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets

may be depreciated as follows:

(a) To the extent of not more than twice as fast as the

normal rate of depreciation or depreciated at normal rate
of depreciation if the expected life is ten (10) years or
less; or

(b) Depreciated over any number of years between five

(5) years and the expected life if the latter is more than
ten (10) years, and the depreciation thereon allowed as
deduction from taxable income: Provided, That the
contractor notifies the Bureau of Internal Revenue at the
beginning of the depreciation period which depreciation
rate allowed by this section will be used.

In computing for taxable income, unless otherwise

provided in this Act, the contractor may, at his option,
deduct exploration and development expenditures
accumulated at cost as of the date of the prospecting or
exploration and development expenditures paid or
incurred during the taxable year: Provided, That the total
amount deductible for exploration and development
expenditures shall not exceed twenty-five per centum
(25%) of the net income from mining operations. The
actual exploration and development expenditures minus
the twenty-five per centum (25%) net income from mining
shall be carried forward to the succeeding years until fully
deducted.

Net income from mining operation is defined as gross

income from operations less allowable deductions which
are necessary or related to mining operations. Allowable
deductions shall include mining, milling and marketing
expenses, depreciation or properties directly used in the
mining operations. This paragraph shall not apply to
expenditures for the acquisition or improvement of
property of a character which is subject to the allowances
for depreciation.

Sec. 94 Investment Guarantees. The contractor shall be

entitled to the basic rights and guarantees provided in
the Constitution and such other rights recognized by the
government as enumerated hereunder.

(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 the exchange rate
prevailing at the time of remittance.

requirements provided in this Act or in its implementing

rules and regulations, without a valid reason, shall be
sufficient ground from the suspension of any permit or
agreement provided under this Act.

(c) Foreign loans and contracts. The right to remit at the

exchange rate prevailing at the time of remittance such
sums as may be necessary to meet the payments of
interest and principal on foreign loans and foreign
obligations arising from financial or technical assistance
contracts.

Sec. 96 Violation of the Terms and Conditions of Permits or

Agreements. Violations of the terms and conditions of the
permits or agreements shall be a sufficient ground for
cancellation of the same.

(d) Freedom from expropriation. The right to be free from

expropriation by the government of the property
represented by investments or loans, or of the property of
the enterprise except for public use or in the interest of
national welfare or defense and upon payment of just
compensation. In such cases, foreign investors or
enterprises shall have the right to remit sums received as
compensation for the expropriated property in the
currency in which the investment was originally made and
at the exchange rate prevailing at the time of remittance.

(e) Requisition of investment. The right to be free from

requisition of the property represented by the investment
or of the property of the enterprises except in case of war
or national emergency and only for the duration thereof.
Just compensation shall be determined and paid either at
the time or immediately after cessation of the state of war
or
national
emergency.
Payments
received
as
compensation for the requisitioned property may be
remitted in the currency in which the investments were
originally made and at the exchange rate prevailing at the
time of remittance.

(f) Confidentiality. Any confidential information supplied

by the contractor pursuant to this Act and its
implementing rules and regulations shall be treated as
such by the department and the Government, and during
the term of the project to which it relates.

Sec. 97 Non-payment of taxes and Fees. Failure to pay the

taxes and fees due the Government for two (2)
consecutive years shall cause the cancellation of the
exploration permit, mineral agreement, financial or
technical assistance agreement and other agreements
and the re-opening of the area subject thereof to new
applicants.

Sec. 98 Suspension or Cancellation of Tax Incentives and

Credits. Failure to abide by the terms and conditions of
tax incentives and credits shall cause the suspension or
cancellation of said incentives and credits.

Sec. 99 Falsehood or Omission of Facts in the Statement.

All statements made in the exploration permit, mining
agreement and financial or technical assistance shall be
considered as conditions and essential parts thereof and
any falsehood in said statements or omission of facts
therein which may alter, change or affect substantially
the facts set forth in said statements may cause the
revocation and termination of the exploration permit,
mining agreement and financial or technical assistance
agreement.

CHAPTER XVIII
ORGANIZATIONAL
ARRANGEMENT

AND

INSTITUTIONAL

CHAPTER XVII
GROUND FOR CANCELLATION, REVOCATION, AND
TERMINATION

Sec. 95 Late or Non-filing of Requirements. Failure of the

permittee or contractor to comply with any of the

Sec. 100 From Staff Bureau to Line Bureau. The Mines and
Geosciences Bureau is hereby transformed into a line
bureau consistent with Section 9 of this Act: Provided,
That under the Mines and Geosciences Bureau shall be
the necessary mines regional, district and other pertinent
offices - the number and specific functions of which shall
be provided in the implementing rules and regulations of
this Act.

CHAPTER XIX
PENAL PROVISIONS

Sec. 101 False Statements. Any person who knowingly

presents any false application, declaration, or evidence to
the Government or publishes or causes to be published
any prospectus or other information containing any false
statement relating to mines, mining operations or mineral
agreements, financial or technical assistance agreements
and permits shall, upon conviction, be penalized by a fine
of not exceeding Ten Thousand Pesos (P10,000.00).

Sec. 102 Illegal Exploration. Any person undertaking

exploration work without the necessary exploration permit
shall, upon conviction, be penalized by a fine of not
exceeding Fifty thousand pesos (P50,000.00).

Sec. 103 Theft of Minerals. Any person extracting

minerals and disposing the same without a mining
agreement, lease, permit, license, or steals minerals or
ores or the products thereof from mines or mills or
processing plants shall, upon conviction, be imprisoned
from six (6) months to six (6) years or pay a fine from Ten
thousand pesos (P10,000.00) to Twenty thousand pesos
(P20,000.00), or both, at the discretion of the appropriate
court. In addition, he shall be liable to pay damages and
compensation for the minerals removed, extracted, and
disposed of. In the case of associations, partnerships, or
corporations, the president and each of the directors
thereof shall be responsible for the acts committed by
such association, corporation, or partnership.

Sec. 104 Destruction of Mining Structures. Any person

who willfully destroys or damages structures in or on the
mining area or on the mill sites shall, upon conviction, be
imprisoned for a period not to exceed five (5) years and
shall, in addition, pay compensation for the damages
which may have been caused thereby.

Sec. 105 Mines Arson. Any person who willfully sets fire to
any mineral stockpile, mine or workings, fittings or a
mine, shall be guilty of arson and shall be punished, upon
conviction, by the appropriate court in accordance with
the provisions of the Revised Penal Code and shall, in
addition, pay compensation for the damages caused
thereby.

Sec. 106 Willful Damage to a Mine. Any person who

willfully damages a mine, unlawfully causes water to run
into a mine, or obstructs any shaft or passage to a mine,
or renders useless, damages or destroys any machine,
appliance, apparatus; rope, chain, tackle, or any other
things used in a mine, shall be punished, upon conviction,
by the appropriate court, by imprisonment not exceeding
a period of five (5) years and shall, in addition, pay
compensation for the damages caused thereby.

Sec. 107 Illegal Obstruction to Permittees or Contractors.

Any person who, without justifiable cause, prevents or
obstructs the holder of any permit, agreement or lease
from undertaking his mining operations shall be punished,
upon conviction by the appropriate court, by a fine not
exceeding
Five
thousand
pesos
(P5,000.00)
or
imprisonment not exceeding one (1) year, or both, at the
discretion of the court.

Sec. 108 Violation of the Terms and Conditions of the

Environmental Compliance Certificate. Any person who
willfully violates or grossly neglects to abide by the terms
and conditions of the environmental compliance
certificate issued to said person and which causes
environmental damage through pollution shall suffer the
penalty of imprisonment of six (6) months to six (6) years
or a fine of Fifty thousand pesos (P50,000.00) to Two
Hundered Thousand Pesos (P200,000.00), or both at the
discretion of the court.

Sec. 109 Illegal Obstruction to Government Officials. Any

person who illegally prevents or obstructs the Secretary,
the Director or any of their representatives in the
performance of their duties under the provisions of this
Act and of the regulations promulgated hereunder shall
be punished, upon conviction, by the appropriate court,
by a fine not exceeding Five thousand pesos (P5,000.00)
or by imprisonment not exceeding one (1) year, or both,
at the discretion of the court.

Sec. 110 Other Violations. Any other violation of this Act

and its implementing rules and regulations shall
constitute an offense punishable with a fine not exceeding
five thousand pesos (P5,000.00).

Sec. 111 Fines. The Secretary is authorized to charge

fines for late or nonsubmission of reports in accordance
with the implementing rules and regulations of this Act