Didipio Earth Savers v.

Gozun - petitioners filed a letter to

DENR Secretary Alvarez for
Facts: cancellation of the FTAA with
- President Corazon Aquino CAMC because RA 7942 and
promulgated EO 279 authorizing implementing regulations DAO
DENR secretary to accept, 96-40 are unconstitutional.
consider, and evaluate - MGB rejected the demand of
proposals from foreign-owned counsel for petitioners for the
corporation or foreign cancellation of the CAMC FTAA
investors for contracts of
agreements involving technical Issues:
or financial assistance for WoN the issue of eminent domain
large-scale exploration, is a justiciable controversy?
development, and utilization of - Yes. In this case there is a
minerals, which upon live controversy involving the
recommendation of the clash of legal rights. CAMC
Secretary, the President may operates in Nueva Vizacaya and
execute with the foreign Quirino where individuals, like
proponent the petitioners, are in danger
- President Fidel Ramos signed of being ousted from their
RA 7942 Philippine Mining Act of landholdings. Actual eviction
1995. DENR Secretary Ramos of land owners and occupants
issues DENR Administrative need not happen for the Court to
Order No. 23 containing the intervene. Petitioners assert
implementing guidelines of RA an interest adverse to those of
7942 which was superseded by DAO the respondents who claim the
96-40 validity of the FTAA
- previously, President Ramos - Dipidio Earth-Savers is an
executed an FTAA with AMC over organization of farmers and
37,000 hectares covering Nueva indigenous peopled representing
Vizcaya and Quirino, including a community affected by mining
Barangay Dipidio, Kasibu, Nueva activities of CAMC. They have
Vizcaya. standing because they are under
- AMC consolidated with Climax threat of being displaced from
Mining Limited and became the landholdings
Climax-Arimco Mining - issues are of transcendental
Corporation (CAMC), where the importance and involve the
controlling 99% of stockholders public interest since the
are Australian nationals mining industry has an effect in
- The CAMC FTAA grants in favor the country’s economy
of CAMC the right of possession
of the Exploration Contract Substantive:
Area, the full right of ingress WoN Sec. 76 of RA 7942 and Sec.
and egress and the right to 107 DAO 96-40 are valid: YES
occupy the same. It also
bestows CAMC the right not to be Petitioners:
prevented from entry into  RA 7942 and DAO 96-40
private lands by surface owners allow the unlawful and
or occupants thereof when unjust taking of private
prospecting, exploring and property for private
exploiting minerals therein. purpose. They question the
exercise of eminent domain
 because respondents
failed to prove that entry - eminent domain is the inherent
into private property is right of the state to condemn
for public use. It private property to public use
deprives them of upon payment of just
beneficial enjoyment and compensation
use of property even if - when property interest
there is no physical is appropriated and applied
taking to some public purpose, there is
compensable taking.
Respondents: - in the regulation of the
- valid exercise of police use of the property, somebody
power, the state may prescribe else acquires the use or
regulations to promote the interest thereof, such
health, morals, peace, restriction constitutes
education, good order, safety compensable taking
and general welfare of the
people - eminent domain need not always
- FTAA do not oust the result in appropriation if
owners nor deprive them of title or possession of
enjoyment of properties. property, taking may include
trespass without actual
eviction of owner. material
police power and eminent impairment of the value of the
domain: property or prevention of the
- police power is the power of ordinary uses for which the
the state to promote public property was intended such as
welfare by restraining and the establishment of an
regulating the use of liberty easement.
and property - requisites of taking in
- Property condemned under eminent domain:
police power is usually - enter private property
noxious or intended for a - entry for more than
noxious purpose, no momentary period
compensation shall be paid. - entry under warrant or
- property rights of color of legal authority
private individuals are - devoted to public use
subjected to restraints - utilization of the
and burdens in order to property for public use
secure the general must be in such a way as
comfort, health, and to oust the owner and
prosperity of the state deprive him of beneficial
- property interest is enjoyment of the property.
merely restricted because the
continued use would be - The entry referred to in
injurious to public Section 76 is not just a simple
welfare, or where property is right-of-way which is
destroyed because its ordinarily allowed under the
continued existence would be provisions of the Civil Code.
injurious to public Here, the holders of mining
interest, there is no rights enter private lands for
compensable taking purposes of conducting mining
activities such as exploration,
extraction and processing of
minerals. These will oust the
owners or occupants of the
affected areas the beneficial
ownership of their lands
History of mining laws:
- Commonwealth Act No. 137 Sec.
27 and PD No. 463: eminent
domain may only be exercised in
order that the mining claimants
can build, construct or install
roads, railroads, mills,
warehouses and other facilities
- PD 512 was passed to achieve
full and accelerated mineral
resources development. power of
eminent domain may now be
invoked by mining operators for
the entry, acquisition and use
of private lands
- Section 1 of Presidential
Decree No. 512 granted the
qualified mining operators the
authority to exercise eminent
domain, this grant of authority
is deemed incorporated in
Section 76 of Rep. Act No. 7942
- Sec. 76 of RA 7942 is a taking
provision. For it to be valid
the taking must be for public
use -> Mining industry plays a
pivotal role in the economic
development of the country and
is a vital tool in the
government's thrust of
accelerated recovery. The
importance of the mining
industry for national
development is expressed in
Presidential Decree No. 463.
Petitioners:
 Government is reduced to a
sub-contractor upon the
request of respondent,
contractor can compel the
government to exercise its
power of eminent domain
- The provision of the FTAA in
question lays down the ways and
means by which the foreign-
owned contractor, disqualified
to own land, identifies to the
government the specific surface
areas within the FTAA contract
area to be acquired for the mine
infrastructure. The government
then acquires ownership of the
surface land areas on behalf of
the contractor, through a
voluntary transaction in order
to enable the latter to proceed
to fully implement the
FTAA. Eminent domain is not yet
called for at this stage since
there are still various avenues
by which surface rights can be
acquired other than
expropriation. The FTAA
provision under attack merely
facilitates the implementation
of the FTAA given to CAMC and
shields it from violating the
Anti-Dummy Law
- There is no basis for the
claim that the Mining Law and
implementing rules and
regulations do not provide for
just compensation in
expropriating private
properties. Section 76 of Rep.
Act No. 7942 and Section 107 of
DAO 96-40 provide for the
payment of just compensation
WoN RA 7942 and DAO 96-40
encroach on the power of the
trial courts to determine just
compensation in eminent domain
cases: NO
Questioned provisions give no
indication that courts are
excluded from taking cognizance
of the expropriation cases
under the mining law. Nothing in
the law and implementing rules
and regulations exclude courts
from their jurisdiction to
determine just compensation.
 Petition is DISMISSED. Sec. 76
WoN RA 7942 and DAO 96-40 allows of RA 7942 and Sec. 107 of DAO
fully foreign-owned corporation 96-40 is CONSTITUTIONAL.
full control and management of
mining enterprises: NO
- FTAA contractor is not free
to do whatever it pleases, it
will have to follow the
government if it wants to stay
in the enterprise. RA 7942 and
DAO 96-40 vest in the government
more than sufficient degree of
control and supervision over
mining enterprises
- The State may compel the
contractor's compliance with
mandatory requirements on mine
safety, health and
environmental protection, and
the use of anti-pollution
technology and facilities
- cancellation of FTAA may be
the penalty for violation of
terms and conditions

WoN phrase agreements involving

either technical or financial
assistance simply means
technical assistance or
financial assistance
agreements: NO
the use of the word “involving”
signifies the possibility of
the inclusion of other forms of
assistance or activities having
to do with, related to, or
compatible with financial or
technical assistance.

WoN service contracts are

prohibited under the 1987
Constitution: NO
1987 Constitution allows the
continued use of service
contracts with foreign
corporation as contractors,
this time, safety measures were
put in place to prevent abuses
of past regime.

Ruling: