RESIDENT MARINE MAMMALS OF THE PROTECTED SEASCAPE TAÑON STRAIT V.

REYES
(DOE)
[GR. No. 180771; April 21, 2015]
Facts:
• On June 13, 2002, the GRP, acting through the DOE, entered into a Geophysical Survey and
Exploration Contract 102 (GSEC-102) with Japan Petroleum Exploration Co. (JAPEX).
o JAPEX (100% Japanese owned) was allowed to drill one exploration well along the
Tañon straight.
• The petitioners in this case filed a petition for injunction, certiorari and prohibition to prevent the
implementation of Service Contract-46 (drilling) for being violative of the Constitution due to JAPEX being
100% Japanese-owned.
o Petitioners claim that the fish catch in the area was reduced by 50-70% (as per a study)
due to the destruction of the artificial reef by the seismic survey.
o Petitioners also claim no public consultation and non-compliance with the Environmental
Imapct Assessment system, the Fisheries Code and their IRR’s.
Issue:
WON the service contract (SC-46) with JAPEX is valid.
Held: NO. The contract is null and void. The prohibition in the constitution as to service contract have
safeguards as established in the La Bugal case, to wit,
• Service contracts shall be crafted in accordance with a general law not disadvantageous to the country.
• The president shall be the signatory for the government.
• Within 30 days, the President shall report it to Congress to give opportunity for objections.
SC-46 meets the first requirement. According to the transitory provision in the 1987 Constitution, all existing
laws are deemed valid until repealed. This includes PD 87 (Oil Exploration and Development Act of 1972),
which has not been repealed expressly.
However, SC-46 fails the second and third requirements. The president was not signatory to SC-46 and the
same was not submitted to Congress. Thus, it violates not only PD 87, but also the 1987 Constitution for being
contrary to law.
SC-46 was entered into and signed only by the DOE (not the president). The alter ego doctrince cannot apply
since this doctrine has the exception that says “except in cases where the Chief executive is required by the
constitution or law to act in person.” Neither was the DOE expressly authorized by the president to enter into
such a contract.
SC-46 likewise violates laws like Proclamation 1234, declaring the Tañon straight a protected area. Without a
new law changing this, no energy exploration may be done in said protected seascape.