LAW ON ENVIRONMENT AND NATURAL RESOURCES

College of Law
New Era University
Atty. Analiza Rebuelta-Teh
1st semester 2017-2018

INTRODUCTION

A. Concept of Natural Resources

Prof. Narciso Pena, Law on Natural Resources

1. refer to material objects of economic value and utility to men produced by

nature; constitute patrimony of the nation
2. refer to all species, elements, compounds and substances that exist in their
nature, unprocessed state and found in situ regardless of their economic value
whether this be perceived, existing or actual economic value
3. consist of: all lands of the public domain, waters, minerals, coal, petroleum,
forests or timber, wildlife, flora and fauna and other natural resources
(intended to make the enumeration all inclusive)

(note: ejusdem generis rule where general terms follow the designation
of particular things or classes of persons or subject, the general term will
be constructed to include things and persons of the same nature as
those specifically enumerated)

1987 Constitution, Article XII, sec. 2

B. Constitutional Provisions relevant to Environment and Natural Resources

Management

Article I. National Territory

Suggested Readings:

Baselines of Territorial Sea Act, RA 9522 (2009)

Magallona et al. vs. Executive Secretary Ermita, et al. GR No. 187167, July 16,
2011

ARTICLE I NATIONAL TERRITORY

The national territory comprises the Philippine archipelago, with all the islands and waters embraced therein,
and all other territories over which the Philippines has sovereignty or jurisdiction, consisting of its terrestrial,
fluvial and aerial domains, including its territorial sea, the seabed, the subsoil, the insular shelves, and other
submarine areas. The waters around, between, and connecting the islands of the archipelago, regardless of their
breadth and dimensions, form part of the internal waters of the Philippines.

Article II. Declaration of State Principles and Policies, Secs. 15, 16, 22, 25

Minors Oposa et al. vs. DENR Sec. Factoran, et al., G.R. No. 101083 July 30, 1993
Suggested Readings:

Province of North Cotabato vs. Republic, Oct 14, 2008

SJS vs. Atienza, G.R. No. 156052, Mar 7, 2007

Section 15. The State shall protect and promote the right to health of the people and instill health consciousness
among them.

Section 16. The State shall protect and advance the right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature.

Section 22. The State recognizes and promotes the rights of indigenous cultural communities within the
framework of national unity and development.

Section 25. The State shall ensure the autonomy of local governments.

Article III. Bill of Rights, Sec. 7

Suggested Readings:

Chavez vs. PEA, G.R. No. 133250, July 9, 2002

Valmonte vs. Belmonte, G.R. No. 74930, Feb 13, 1989
Legaspi vs. CSC, G. R. No. L-72119, May 29, 1987
Section 7. The right of the people to information on matters of public concern shall be recognized. Access to
official records, and to documents and papers pertaining to official acts, transactions, or decisions, as well as to
government research data used as basis for policy development, shall be afforded the citizen, subject to such
limitations as may be provided by law.

Article X. Local Government, Secs. 4, 5, 7, 15

Section 4. The President of the Philippines shall exercise general supervision over local governments.
Provinces with respect to component cities and municipalities, and cities and municipalities with respect to
component barangays, shall ensure that the acts of their component units are within the scope of their prescribed
powers and functions.

Section 5. Each local government unit shall have the power to create its own sources of revenues and to levy
taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent with
the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local
governments.

Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and
development of the national wealth within their respective areas, in the manner provided by law, including sharing
the same with the inhabitants by way of direct benefits.

Section 15. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras consisting
of provinces, cities, municipalities, and geographical areas sharing common and distinctive historical and cultural
heritage, economic and social structures, and other relevant characteristics within the framework of this
Constitution and the national sovereignty as well as territorial integrity of the Republic of the Philippines.

Article XII. National Economy and Patrimony, Secs. 1, 2, 3, 4, 5, 7

Manila Prince Hotel vs. GSIS, G.R. No. 122156, Feb 3, 1997

ARTICLE XII NATIONAL ECONOMY AND PATRIMONY

Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and
wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the
people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development and
agrarian reform, through industries that make full of efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against
unfair foreign competition and trade practices.

In the pursuit of these goals, all sectors of the economy and all region s of the country shall be given optimum
opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective
organizations, shall be encouraged to broaden the base of their ownership.

Section 2. 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 60 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 provided by law. In
cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of
waterpower, beneficial use may be the measure and limit of the grant.

The State shall protect the nations marine wealth in its archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.

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.

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.

The President shall notify the Congress of every contract entered into in accordance with this provision, within
thirty days from its execution.

Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national
parks. Agricultural lands of the public domain may be further classified by law according to the uses to which
they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private
corporations or associations may not hold such alienable lands of the public domain except by lease, for a
period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one
thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire
not more than twelve hectares thereof, by purchase, homestead, or grant.

Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public
domain which may be acquired, developed, held, or leased and the conditions therefor.

Section 4. The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and
national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks
shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide
for such period as it may determine, measures to prohibit logging in endangered forests and watershed areas.

Section 5. The State, subject to the provisions of this Constitution and national development policies and
programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their
economic, social, and cultural well-being.

The Congress may provide for the applicability of customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain.

Section 7. Save in cases of hereditary succession, no private lands shall be transferred or

conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public
domain.

Article XIII. Social Justice and Human Rights, Secs. 6, 7, 16

Section 6. The State shall apply the principles of agrarian reform or stewardship, whenever applicable in
accordance with law, in the disposition or utilization of other natural resources, including lands of the public
domain under lease or concession suitable to agriculture, subject to prior rights, homestead rights of small
settlers, and the rights of indigenous communities to their ancestral lands. The State may resettle landless
farmers and farmworkers in its own agricultural estates which shall be distributed to them in the manner
provided by law.

Section 7. The State shall protect the rights of subsistence fishermen, especially of local communities, to the
preferential use of the communal marine and fishing resources, both inland and offshore. It shall provide
support to such fishermen through appropriate technology and research, adequate financial, production, and
marketing assistance, and other services. The State shall also protect, develop, and conserve such resources.
The protection shall extend to offshore fishing grounds of subsistence fishermen against foreign intrusion.
Fishworkers shall receive a just share from their labor in the utilization of marine and fishing resources.

Section 16. The right of the people and their organizations to effective and reasonable participation at all levels
of social, political, and economic decision-making shall not be abridged. The State shall, by law, facilitate the
establishment of adequate consultation mechanisms.

C. Constitutional Bases for the Exploration, Development and Utilization of Natural

Resources

1. Regalian Doctrine

a. All natural resources are owned by the State;

b. All natural resources are inalienable;
c. The exploration, development and utilization of NR shall be under the full
control and supervision of the State.

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 60 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 provided by law. In
cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of
waterpower, beneficial use may be the measure and limit of the grant.

>Land Rights, Land Law and Land Usurpation: The Spanish Era (1565-1898), Prof. Owen Lynch, 63,
Philippine Law Journal

Initially, the colonial regime recognized 2 types of private property rights:

(1) those held pursuant to customary criteria predicated on usage and possession
(2) those held by the Crown comprised of all areas not used or occupied by the natives.
Customary property rights:

(1) communal } equated with titles - illegal if alienated

(2) individual } held in fee simple - alienable

Most common method for proving territorial property is by :

(1) tradition
(2) deposition of witnesses

Modes for granting rights to royal lands

(1) royal grant or titulo real

(2) titulos de concesion especial or extraordinario made on behalf of soldiers and other
colonial officials in return for meritorious service

(3) composicion con el estado or adjustment title once rights where documentarily
confirmed , any subsequent encroachment on adjustment areas could be sanctioned
through this title

(4) titulos de compra lands purchased from the colonial regime

(5) titulos de gratuito free grants awarded to settlers and some indigenous occupants

(6) newly established pueblos were granted land called terreno communal (common
land) or dehesa communal or common pasture

(7) royal lands used by municipality/basis for payment of public expenses

Crown retained residuary interest in lands which at one time comprised part of the royal
domain

- grantees held usufructuary rights

- rights can be transferred only to legitimate heirs
- sale should be with consent of a Spanish official
- abandoned crown lands revert to crown if not cultivated for 2 years

Most of the lands covered by royal grants were located in or near Manila and Pampanga.

Acquisition of Chruch of lands through

(1) purchase and donation transacted illegally by native chiefs and datus/traditional
leaders
(2) illegal encroachments onto adjoining areas.

There were resistance vs. land usurpation, hence decrees were issued but proved to be
futile (including inquiries re friar estates._

Spanish pursued plan to stimulate and encourage the involvement of private enterprise
--- agricultural intensification projects through issuance of monopoly licenses for the
cultivation of coffee, tobacco and other crops --- contributed to prosperity but few
natives benefitted (in fact even considered as obstacles to their economic objectives

- led to increase in the concentration of land ownership to native and mestizo elites and
friar orders

- since need outside help to manage and cultivate land, tenants/sharecroppers were
hired but later marginalized through intermediaries (more advantageous for estate
owners who will have to deal with few people)

19th century - classes of estate proprietors:

1. Religious orders
2. 12 Spanish enterepreneurs
3. principal Mestizos and Indians farming proprietors > cacique >
municipal/provincial landowners including Chinese mestizos

- Caciques secure documented land ownership rights and played important role as non
cultivating tenants, particularly on the friar estates

Rise of these intermediaries led to:

 1. incidence of absentee ownership
2. Landless laborers (particularly in Negros)

Opening up for cultivation of large forested plains in Central Luzon and Western Visayas
- many of these were occupied by small tenant-cultivators but taken over by large
haciendas thru people familiar with Spanish Legal procedures

Pacto de Retroventa another tool that evolved during Spanish era by which owner
cultivator lost their lands (sanglang bili)

- privately owned, documented rights were used as collateral for loans of less value by
a money lender

Despite a law declaring this illegal, the practice continued. Hence, within few years,
considerable part of Pampanga, Bataan, Manila, Laguna, Batangas and other provinces
changed owners as a direct result of the pacto.

Later, this was legalized in the Civil Code as a contract of conventional redemption.

>The Regalian Doctrine: Whither the Vested Rights?, Atty. Antoinette G. Royo,
Philippine Natural Resources Law Journal

Land Registration (i.e. official documentation)

- considered to be a prerequisite for capital investment and the rapid expansion
of agricultural production esp. for common export.
(1) Spanish mortgage law (July 14, 1983)

- provided for a comprehensive registration of a ll existing rights and possessory

claims
- those who lacked recorded title of ownership could register during an
informacion possessoria proceeding

(2) Maura Law of 1894 (Feb 13, 1894)

- declared forfeited to the State all title that were capable of adjustment under
the 1880 decree but which adjustment has not been sought
- imposed a registration deadline

American era

American government recognized native title as an exception to the rule

of state ownership of the public domain

- native title > evolved in common law

2 theories:

(1) Extinguishment for Consideration Theory

Due process dictates that native title prevail over the governments claim
for reversion of private property due to the failure of their claimants to comply with the
requirements of subsequently promulgated land registration laws when said claimants could not for
justifiable reasons, comply with such laws.

(2) Trust Relations Doctrine

- to require the federal govt as fiduciary to act in the tribes best interest and to
be accountable for failure to do so.

Classification of public lands

(1) Philippine Bill of 1902

(2) CA 141

- for the first time, status of native lands was clarified, it is subserved to the
states claim of ownership of all the islands in the territory

Comments:

Regalian Doctrine

(1) introduced concept concerning legal rights to natural resources, not that
the state owned the land, but that the land could be exclusively owned by individuals
 - gradual adoption of the principle of individual ownership

(2) Royal grants prompted change in native perception of natural resource

allocation
- commoditization of land rights (vs. stewardship) which led to oppressive
practices (ex. Sangla bili, absentee landlord, tenancy) resulting to
- noncultivatation of agricultural lands affecting food sufficiency
- displacement of subsistence farming
- dispossession of village populations

The premise upon which the regalian doctrine as it is understood today is

founded is patently unjust and legally and historically flawed.

(3) Land registration proceeding

- empowered the colonial regime to deny legal recognition of customary

proprietary rights disenfranchising million of rural farmers
- mainly because of inherent defects of the system:
* no systematic recording of agricultural lands
* delay
* extortions
* shortage of licensed surveyors
* abuses by colonial officials
* illiteracy
* lack of money to pay for transportation fares and legal
prerequisites kept most people unaware of and without access to
the registration documentation processes

Natives could only show their title by actual possession and never knew about
colonial legislation pertaining to registration of land rights.

Conclusion:

1. Regalian doctrine appears to destroy the strong foundation of the native

title.

It was used to sustain the colonial regime.

It was a by-product of an unjust exercise of pontifical mandate by the

Catholic Church.

2. Given the legal ambiguity of its origin and application and unjust
historical flaws, runs the risk of misuse by the powers.

3. Should therefore be properly assessed, particularly its purpose at the

present time.

*Carino vs. Insular Government, 41 Phil 935 (1909)

Carino v. Insular Government, 212 U.S. 449 (1909)

Decided February 23, 1909

212 U.S. 449

Syllabus

Writ of error is the general, and appeal the exceptional, method of bringing Cases to this Court.
The latter method is in the main confined to equity cases, and the former is proper to bring up a
judgment of the Supreme Court of the Philippine Islands affirming a judgment of the Court of Land
Registration dismissing an application for registration of land.

Although a province may be excepted from the operation of Act No. 926 of 1903 of the Philippine
Commission which provides for the registration and perfecting of new titles, one who actually owns
property in such province is entitled to registration under Act No. 496 of 1902, which applies to
the whole archipelago.

While, in legal theory and as against foreign nations, sovereignty is absolute, practically it is a
question of strength and of varying degree, and it is for a new sovereign to decide how far it will
insist upon theoretical relations of the subject to the former sovereign and how far it will recognize
actual facts. chanroblesvirtualawlibrary
Page 212 U. S. 450

The acquisition of the Philippines was not for the purpose of acquiring the lands occupied by the
inhabitants, and under the Organic Act of July 1, 1902, c. 1369, 32 Stat. 691, providing that
property rights are to be administered for the benefit of the inhabitants, one who actually owned
land for many years cannot be deprived of it for failure to comply with certain ceremonies
prescribed either by the acts of the Philippine Commission or by Spanish law.

The Organic Act of the Philippines made a bill of rights embodying safeguards of the Constitution,
and, like the Constitution, extends those safeguards to all.

Every presumption of ownership is in favor of one actually occupying land for many years, and
against the government which seeks to deprive him of it, for failure to comply with provisions of
a subsequently enacted registration act.

Title by prescription against the crown existed under Spanish law in force in the Philippine Islands
prior to their acquisition by the United States, and one occupying land in the Province of Benguet
for more than fifty years before the Treaty of Paris is entitled to the continued possession thereof.

7 Phil. 132 reversed.

The facts are stated in the opinion. chanroblesvirtualawlibrary

Page 212 U. S. 455

>Confusion in the Courts: The Misinterpretation of Carino, Atty. Dante

Gatmaytan, Philippine Natural Resources Law Journal

(1) US to settle land disputes between non-Christians IPs and US how?

- maintain tribal org. and government
- but subjected to law without abuses
- use of reservations and the allotment of lands to control Indians
> North America expansion policy
(2) Carino
- Spain had title to all lands except as it saw fit to permit private
titles to be acquired
- no prescription can be claimed vs. Spanish regime
- not registered Carino has no title
(3) US SC
- cases involving land claims of Native Americans inapplicable
- US to administer Philippines for benefit of inhabitants and not
to exploit it for profit
- Phil. Bill of 1902 bill of rights for Filipinos
(4) misinterpretations
(a) lands held since immemorial are recognized as private and the
subsequent reclassification cannot impair rights of the
inhabitants/occupants
(b) Public Agricultural lands become Private Agricultural lands
and could therefore be titled continuous possession for at least 30
years

2. Modes of exploration, development and utilization of natural resources

a. EDU maybe done:

(i) directly by the State;

(ii) by co-production;
(iii) joint venture;
(iv) production sharing agreements

with Filipinos or corporations at least 60% of capital is

owned by Filipinos.

3. Water rights

In cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of
waterpower, beneficial use may be the measure and limit of the grant.

4. Small-scale utilization of natural resources

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.
 5. Marine wealth

The State shall protect the nations marine wealth in its archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.

6. Lands of public domain

Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national parks.
Agricultural lands of the public domain may be further classified by law according to the uses to which they may
be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or
associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in
area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve
hectares thereof, by purchase, homestead, or grant.

Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain
which may be acquired, developed, held, or leased and the conditions therefor.

7. Large-scale exploration, development, and utilization of minerals, petroleum, and

other mineral oils

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.

The President shall notify the Congress of every contract entered into in accordance with this provision, within
thirty days from its execution.

8. Specific limits of forest lands and national parks

The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and national parks,
marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks shall be
conserved and may not be increased nor diminished, except by law. The Congress shall provide for such period
as it may determine, measures to prohibit logging in endangered forests and watershed areas.

9. Rights of indigenous cultural communities to their ancestral lands

The State, subject to the provisions of this Constitution and national development policies and programs, shall
protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social,
and cultural well-being.

The Congress may provide for the applicability of customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain.

D. Basic Principles on the Right to the Environment

Declaration of the UN Conference on the Human Environment, June 16, 1972

Report of the World Commission on Environment and Development, Dec 11, 1987

1. Sovereignty over Natural Resources and the Obligation Not to cause Harm
2. Principle of Prevention
3. Precautionary Principle
4. Sustainable Development
5. Intergenerational Equity