LAWS ON NATURAL RESOURCES REVIEWER

GENERAL PRINCIPLES

TORRENS SYSTEM: Torrens title is a system of land title in which a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register. Land ownership is transferred through registration of title instead of using deeds.

Short history: A boom in land speculation and a haphazard grant system resulted in the loss of over 75% of the 40,000 land grants issued in the colony (now state) of South Australia in the early 1800s. To resolve the deficiencies of the common law and deeds registration system, Robert Torrens, a member of the colony's House of Assembly, proposed a new title system in 1858, and it was quickly adopted.

ORIGINAL REGISTRATION OF LAND UNDER THE TORRENS SYSTEM

Private lands may be brought under the operation of the Torrens System Land Registration thru: (1) Ordinary or voluntary land registration proceedings (2) Compulsory proceedings and (3) Cadastral proceedings

Public lands granted by way of homestead, sales or free patent under the Public Land Act are likewise brought under the Torrens System upon registration of the patent and issuance of the corresponding certificate of title by the Register of Deeds. Registration of such lands under the Torrens System is automatic and compulsory.

The use of Spanish titles as evidence in land registration proceedings is proscribed by P. D. No. 892 as February 16, 1976. Spanish titles are now hard to find and if there is any it would probably be of doubtful genuineness or validity.

Most, if not all, ordinary applications for land registration is based on possession and occupation, tax declaration and tax realty receipts, and nothing more. Tax declaration and realty tax receipts are not evidence of a grant of land from the State.

The Supreme Court has repeatedly held that they are not conclusive evidence of ownership. Nevertheless the Supreme Court has also consistently held that they are good indicia of possession in the concept of an owner.

REMEDIES INVOLVING THE REGISTRATION OF LAND TITLES (Questioning the registration of title)

1. New trial or reconsideration under Rule 372. Relief of judgment under Rule 383. Appeal to the CA or SC in the manner as ordinary actions pursuant to Section 33 of PD 15294. Review of Decree, Section 325. Claim under Assurance Fund, Section 956. Reversion under Section 101 of CA 1417. Cancellation of title8. Annulment of judgment under Rule 379. Quieting of Title - The settled rule is that an action for quieting of title is imprescriptible, as in the instant case, where the person seeking relief is in the possession of the disputed property. A person in actual possession of a piece of land under claim of ownership may wait until his possession is disturbed or his title is attacked before taking any step to vindicate his right, and that the undisturbed possession gives him the continuing right to seek the aid of the Court of Equity to ascertain and determine the nature of the adverse claim of a third party and its effect on his title.10. Action for Reconveyance - Legal and equitable remedy granted to the rightful owner of the land which has been wrongfully or erroneously registered in the name of another for the purpose of compelling the latter to transfer or reconvey the land to him> After one year from the issuance of the decree, may bring action for reconveyance of the property> Only to show that the person who secured the registration of the questioned property is not the real owner thereof> Seeks to transfer or reconvey the land from the registered owner to the rightful owner> Property is deemed to be held in trust for the real owner by the person in whose name it is registered11. Criminal prosecution under the Revised Penal Code

Note: Actions in this font colour pertains to the remedies discussed by Atty Morta (#s 6,7, 9 and 10)

Doctrine of primary jurisdiction

The doctrine of primary jurisdiction holds that if a case is such that its determination requires the expertise, specialized training and knowledge of the proper administrative bodies, relief must first be obtained in an administrative proceeding before a remedy is supplied by the courts even if the matter may well be within their proper jurisdiction. It applies where a claim is originally cognizable in the courts, and comes into play whenever enforcement of the claim requires the resolution of issues which, under a regulatory scheme, have been placed within the special competence of an administrative agency. In such a case, the court in which the claim is sought to be enforced may suspend the judicial process pending referral of such issues to the administrative body for its view or, if the parties would not be unfairly disadvantaged, dismiss the case without prejudice.

The objective of the doctrine of primary jurisdiction is to guide the court in determining whether it should refrain from exercising its jurisdiction until after an administrative agency has determined some question or some aspect of some question arising in the proceeding before the court.

XPTs: (a) where there is estoppel on the part of the party invoking the doctrine; (b) where the challenged administrative act is patently illegal, amounting to lack of jurisdiction; (c) where there is unreasonable delay or official inaction that will irretrievably prejudice the complainant; (d) where the amount involved is relatively small so as to make the rule impractical and oppressive; (e) where the question involved is purely legal and will ultimately have to be decided by the courts of justice; (f) where judicial intervention is urgent; (g) when its application may cause great and irreparable damage; (h) where the controverted acts violate due process; (i) when the issue of non-exhaustion of administrative remedies has been rendered moot;(j) when there is no other plain, speedy and adequateremedy; (k) when strong public interest is involved; and, (l) in quo warranto proceedings.

EXHAUTION OF ADMINISTRATIVE REMEDIESBefore a party is allowed to seek the intervention of the court, it is a pre-condition that he should have availed of all the means of administrative processes afforded him. Hence, if a remedy within the administrative machinery can still be resorted to by giving the administrative officer concerned every opportunity to decide on a matter that comes within his jurisdiction, then such remedy should be exhausted first before the courts judicial power can be sought.

I. PUBLIC LAND ACT (COMMONWEALTH ACT NO. 141)

HISTORICAL BACKGROUNDACT NO. 926 The first Public Land Act, Prescribed rules and regulation of the homesteading, selling and leasing of portions of the public domain, and prescribed the terms and conditions to enable persons to perfect their titles to public lands in the islandsAlso provided for the issuance of patents to certain native settlers upon public lands for the establishment of town sites and sale of lots therein, for the completion of imperfect titles and for the cancellation or confirmation of Spanish concessions and grants in the islands

ACT NO. 2874 - The second Public Land Act was more comprehensive in scope but limited the exploitation of agricultural lands to Filipinos and Americans and citizens of other countries which gave Filipinos same privileges.

PUBLIC LAND ACT (COMMONWEALTH ACT NO. 141) Enacted on November 7, 1936 Grants of public lands are brought under the operation of the Torrens system of registration. Its provisions govern the classification and disposition of lands of the public domain other that timber and mineral lands.

Note: Public land patents when duly registered are veritable Torrens titles, they become private property which can no longer be subject of subsequent disposition by the Director of Lands.

POLICY CONSIDERATIONS

STATE Shall ensure, for the benefit of the Filipino people, the full exploration and development as well as the judicious disposition, utilization, management, renewal and conservation of the countrys forest, mineral, land, waters and other natural resources, consistent with the objective of making the exploration, development and utilization of such natural resources equitably accessible to the different segments of the present as well as future generations.

Shall recognize and apply a true value system that takes into account social and environmental cost implications relative to the utilization, development and conservation of our natural resources

DEPARTMENT OF ENVIRONMENT AND NATURAL REOURCES (DENR)

Shall be primarily responsible for the implementation of the foregoing policy. Shall be incharge of carrying out the States constitutional mandate to control and supervise the exploration, development, utilization, and conversion of the countrys natural resources.

PUBLIC LANDS: ALIENABLE AND DISPOSABLE LANDS IN GENERAL

Public Lands refers to such lands of the public domain as are subject to alienation and disposal of the State in accordance with the Public Land Act.

REGALIAN DOCTRINE (Section 2, Article XII) All lands and other natural resources are owned by the State. All lands not appearing to be clearly of private dominion presumptively belong to the State. Public lands not shown to have been reclassified or released as alienable agricultural land or alienated to a private person by the State remain part of the inalienable public domain. It reserves to the State all natural wealth that may be found in the bowels of the earth even if the land where the discovery is made private.

ALIENATION OF NATURAL RESOURCESGeneral Rule: All natural resources CANNOT be alienated XPT: Agricultural lands

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 the state may enter into CO-PRODUCTION, JOINT VENTURE OR PRODUCTION-SHARING arrangements.

DISTINCTION BETWEEN IMPERIUM AND DOMINIUM.

Imperium - Government authority possessed by the State which is appropriately embraced in sovereignty.

Dominium - The capacity of the State to own and acquire property.- It refers to lands held by the government in a proprietary character: can provide for the exploitation and use of lands and other natural resources.

Note: No public land can be acquired by private person without any grant, express or implied, from the government.

THE IPRA AND NATIVE TITLE OVER ANCESTRAL LANDS AND ANCESTRAL DOMAINS

Indigenous people may obtain the recognition of ownership over ancestral lands and ancestral domains by virtue of native title; this is an exception to the theory of jura regalia.

ANCESTRAL LANDS It refers to lands occupied by individuals, families and clans who are members of indigenous cultural communities including residential lots, rice terraces or paddies, private forest, swidden farms and tree lots.

- These lands required to have been occupied, possessed and utilized by them or through their ancestors since time immemorial, continuously to present.

ANCESTRAL DOMAIN areas generally beloning to indigenous cultural communities, including ancestral lands, forest, pasture, residential and agricultural lands, hunting grounds, worship areas, and lands no longer occupied exclusively by indigenous cultural communities but to which they had traditional access, particularly the home ranges of indigenous cultural communities who are still nomadic or shifting cultivators.

- Also include inland waters, coastal areas and natural resources therein.

Note: State policy recognition and protection of the rights of idigenous peoples to preserve abd develop their cultures, tradtions, and institutions are the vital concerns of the State. (RA 8371, IPRA)

RESERVATION OF LANDS OF THE PUBLIC DOMAIN ARE VALID ASSERTION OF REGALIAN RIGHT

Presidential proclamations reserving certain lands of the public domain for specific purposes have the character of official assertion of ownership, and the presumption is that they have been issued by right of sovereignty and in the exercise of the States dominical authority. These proclamations are matters not only judicial notice but are accepted as in the nature of a valid asservation of Regalian right right over the property.

ORGANIZATIONAL STRUCTURE - OFFICERS CHARGED WITH THE ADMINISTRATION OF PUBLIC LANDS

Secretary of Natural Resources chief executive officer charged to carry out the provisions of the Public Land ActDirector of Lands- under the immediate supervision of the DENR Secretary

Duties:

a. Direct executive control over surveys, classifications, leases, sales and other forms of concession or disposition and management of public lands;b. Preparation and issuance of forms, instructions, rules and regulations as may be necessary and proper to carry into effect the provisions of the Public Land Act, and for the conduct of proceedings arising thereunder, subject to the approval of the Secretary( Commonwealth Act No. 141, sections 3,4, and 5)c. Quasi-judicial officer- he makes findings of fact and even passes upon questions of mixed fact and law, and considers and decides the qualifications of applicantsfor the purchase of public lands.

Note: The decision on the construction of the Public Land Act are entitled a great respect by the courts. The decisions of the Director of Lands as to question of facts are conclusive when approved by the Secretary (Doctrine of Primary Jurisdiction)

d. He represent the state in a reversion proceedings and may file an action for the cancellation of patent and title acquired through fraude. Regulate the occupation or provisional use of public lands

Note: For administration purposes, land districts have been established throughout the Philippines, each district is headed by a local land officer embracing one province

CLASSIFICATION OF LANDS

Lands of public domain - either alienable or inalienable

Lands of private domain - refers to land belonging to and owned by the State as a private individual, without being devoted of national wealth similar to patriomonial properties of the State

CLASSIFICATION OF LANDS OF THE PUBLIC DOMAIN UNDER THE CONSTITUTION

SECTION 3. LANDS OF THE PUBLIC DOMAIN ARE CLASSIFIED INTO: Agricultural Forest/timber Mineral lands & National Parks

Note: Classification of public lands is an exclusive prerogative of the Executive Department through the Office of the President, upon recommendation by the DENR and not to the court.

- Classification is descriptive of the legal nature of the land and NOT what it looks like. Thus, the fact that forest land is denuded does not mean it is no longer forest land.

CLASSIFICATION OF ALIENABLE AND DISPOSABLE LANDSFor the administration and disposition of alienable and disposable lands, they are classified under the Public Land Law according to the use and purposes to which such lands may be destined, as follows: Agricultural ( farm land) Residential, commercial, industrial, or for similar productive purposes; Educational, charitable, or other similar purposes; and Reservations for town sites and for public and quasi-public uses

The President upon recommendation of the Secretary of DENR is authorized to make the above classification as well as to transfer lands from one class to another from time to time as circumstances may warrant ( CA No. 141., Sec. 9) Under the Revised Administrative Code, alienable lands of the public domain may be ordered reserved by the President for specific purpose or service Old Constitution: they all form under the category of agricultural lands, they not being forest nor mineral lands. Under Public Land Act term agricultural is used in a limited sense, and is meant distinctly as a farmland.

CLASSIFICATION OR RECLASSIFICATION OF PUBLIC LANDS AN EXECUTIVE PREROGATIVE not the courts. (Section 6 of CA No. 141)

Before the government could alienate or dispose lands of the public domain, the President must first officially classify these lands as alienable and disposable, and declare them open to disposition or concession.

GOVERNMENT LAND AND PUBLIC LANDS DISTINGUISHED (PL = PD) (GL PL)

Public Land - is equivalent to Public Domain, includes lands open to private appropriation and settlement by homestead and other like general laws.

Government Land more extensive and embraces not only the public land but also other lands of the government already reserved or devoted to public use or subject to private right.

PREREQUISITE FOR DISPOSITION

Before any public land may be alienated or disposed of, it is indispensable that there be a formal declaration by the President upon recommendation of the Secretary of DENR to the effect that such lands are open to disposition or concession, and whenever practicable the lands should have been previously surveyed. Alienation or disposition or concession as used in Public Land Act is meant any of the methods authorized by the said law for the acquisition, lease, use or benefit of the lands of the public domain other than timber or mineral land.

Modes of Disposition1. For homestead settlement2. Sale3. Lease4. Confirmation of imperfect or incomplete titlea. Judicial legalizationb. Administrative legalization ( free patent)

HOMESTEAD SETTLEMENTEntitled to Patent: Any citizen of the Philippines over 18 or head of the family may enter a homestead of not exceeding 12 hectares of agricultural land of public domain. The applicant must, cultivate or improved at least 1/5 of the land continuously since the approval of the application. Must resided for at least 1 year in the municipality or municipality adjacent in which the land is located. Payment of required fee EFFECT OF COMPLIANCE WITH LEGAL REQUIREMENTS

When a homesteader has complied with all the terms and conditions which entitle him to a patent for a particular tract of public land, he acquires a vested interest therein, and is to be regarded as the equitable owner thereof The execution and delivery of the patent, after the right to a particular piece of land has become complete, are the mere ministerial acts of the officer charged with that duty Even without the patent, a perfected homestead is a property right in the fullest sense, unaffected by the fact that the paramount title to the land is still in the government

TRANSFER OF RIGHTS The applicant must prove to the Director of Lands that he has already complied with all the requirements of the law and can no longer continue with this homestead, and there is a bona fide purchaser for the rights and improvements of the applicant on the land. Upon the approval of the Director of Lands, may transfer his rights to the land and improvements to any person legally qualified to apply for a homestead. Immediately after such transfer, the purchaser shall file a homestead application to the land.

Note: Any person who has transferred his right may not again apply for a new homestead. Every transfer without the approval of the Director of Lands shall be null and void and shall result in the cancellation of the entry and the refusal of patent.

SALE OF PUBLIC AGRICULTURAL LANDS

Any citizen of lawful age or the head of the family may purchase any tract of public agricultural land not to exceed 12 hectares which shall be sold through sealed bidding

The land shall be awarded to the highest bidder, but the applicant may equal the highest bid The purchase price may be paid in full upon the making of the award or in not more than 10 equal annual installments from the date of the award It is required that the purchaser shall have not less than 1/5 of the land cultivated within 5 years from the date of the award, and before any patent is issued, he must show actual occupancy, cultivation and improvement of at least 1/5 of the land until the date of final payment

LEASE

Any corporations or associations at least 60% of capital stock belong wholly to Filipino citizens, may lease any tract of agricultural public land available for lease.

FOR PRIVATE CORPORATIONS OR ASSOCIATIONS They can only hold alienable lands of the public domain BY LEASE Cannot exceed 25 years, renewable for not more than 25 years Lease cannot exceed 1,000 hectares

FOR FILIPINO CITIZENS Can lease up to 500 hectares Can ACQUIRE not more than 12 hectares by purchase, homestead or grant. Taking into account the requirements of conservation, ecology and development, and subject to the requirements of agrarian reform, Congress shall determine by law the size of the lands of the public domain which may be acquired, developed, held or lease and the conditions therefore.

CONFIRMATION OF IMPERFECT OR INCOMPLETE TITLE - JUDICIAL LEGALIZATION

REQUISITES FOR AVAILMENT:1. The applicant must be a Filipino citizen2. He must have, by himself or through his predecessors in interest, possessed and occupied an alienable and disposable agricultural portion of public domain.3. Such possession and occupation must have been open, continuous, exclusive, notorious and in the concept of owner, since June 12, 19454. The application must be filed with the proper court

Period of possession: June 12, 1945Additional requirement: (Class Discussion)Witness: At least 10 years old in the year of 1945. Tax declaration

Note: Limiting the are applied for to 12 hectares, lands must be occupied by himself or through his predecessors in interest, possessed and occupied an alienable and disposable agricultural portion of public domain. Land must be alienable and disposable at the time of the application for confirmation is filed. Land not registrable as when it forms part of the public forest. ONLY AGRICULTURE LANDS MAY BE SUBJECT OF ALIENATION.

CONFIRMATION OF IMPERFECT OR INCOMPLETE TITLE - ADMINISTRATIVE LEGALIZATION ( FREE PATENT)Qualifications: 1. Any natural born citizen of the Philippines 2. Owns not more than 12 hectares; and3. Has continuously occupied and cultivated, either by himself or through his predecessors-in interest a tract or tracts of agricultural public lands subject to disposition for at least 30 years prior to the effectivity of this amendatory Act,, 4. Have paid the real estate tax thereon while the same hasnt been occupied by any person

CLASSIFICATION AND DISPOSITION OF LANDS FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL PURPOSES - is governed by Chapter 9 of the Public Land Act

Lands are classified as: Lands reclaimed by the government by dredging, filling or other means; ForeshoreNote: The first two shall be disposed of by lease only

Marshy lands or lands covered with water bordering on the shores or banks of navigable lakes or rivers Lands not included in any of the foregoing classesNote: The last two may be sold with the condition that the purchaser shall make improvements of a permanent character appropriate for the purpose for which the land is purchased within 18 months from the date of the award.

LANDS FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL PURPOSES SHALL BE DISPOSED OF THROUGH ORAL BIDDING (SECTION 67, CA 141) XPT: DIRECT SALE Miscellaneous Sale PatentRepublic Act 730 allows the direct sale of public lands for residential purposes to qualified applicants under certain conditions:1. Filipino citizen of legal age2. Must not be the owner of a home lot in the municipality or city in which he resides3. Have established in good faith his residence on a parcel of public land which is not needed for public service4. Have constructed his house and actually resided therein5. If the applicant complies with the above, he is given preference to purchase at a private sale not more than 1000 sq.m. of land at a price to be fixed by the Director of Lands. SALE OF LANDS WITHIN MILITARY RESERVATIONS

- Pursuant to Republic Act 274, lands within military reservations when declared by the President as no longer needed for military purposes may be subdivided by the Director of Lands and thereafter sold to persons qualified to acquire agricultural public lands under the Public Land Act, with priority given to bona fide occupants and then to war veterans

- The area shall be determined by the Director of Lands according to the nature of the land, the number of prospective applicants, and the purposes for which it will be utilized.

LANDS FOR EDUCATIONAL, CHARITABLE, AND OTHER SIMILAR PURPOSES

The President upon recommendation of the Secretary of Environment and Natural Resources may execute contract for sale or lease a portion of public land when needed by any province, municipality, or other branch or subdivision of the government, for the purpose of founding a cemetery, church, college, school, university, or other institutions for educational, charitable, or philanthropical purposes or scientific research, the area to be such as may actually and reasonably be necessary to carry out such purposes- The Secretary of DENR may order the sale to be made without public auction, at a price fixed by him.

RESERVATIONSTOWNSITE RESERVATION- Whenever it shall be considered to be in the public interest to found a new town. The Secretary of Environment and Natural Resources shall direct the Director of Lands to have a survey of the exterior boundaries of the site on which such town is to be established, and upon the completion of the survey he shall send the same to said Secretary, with his recommendations.- The Secretary, if he approves the recommendations of the Director of Lands, shall submit the matter to the President to the end that the latter may issue a proclamation reserving the land surveyed, or such part thereof as he may deem proper, as a town site.

RESERVATIONS OF LAND FOR PUBLIC AND SEMI-PUBLIC PURPOSES

- Upon the recommendation of the Secretary of DENR, the President may designate by proclamation any tract/s of land of the public domain as reservations for the use of the RP or any of its branches, or of the inhabitants thereof, in accordance with the regulations prescribed for this purpose, or for quasi-public uses or purposes when the public interest requires it- A certified copy of this proclamation shall be forwarded to the Register of Deeds of the province or city where the land lies- Upon receipt of such copy, the Director of Lands shall order the immediate survey of the proposed reservation if the land has not been yet surveyed, and as soon as the plat has been completed, he shall proceed in accordance with the next following section- The tract/s reserved shall be non-alienable and shall not be subject to any occupation, entry, sale, lease, or other disposition until again declared as alienable and disposable

SPECIAL PATENTSPatent to grant, cede, and convey full ownership of alienable and disposable lands formerly covered by a reservation of lands of the public domain and is issued upon the promulgation of a special law or act of Congress or by the DENR Secretary as authorized by the President.

REGISTRATION OF PATENTS AND ISSUANCE OF CERTIFICATES OF TITLES

The patent or grant shall not take effecr as a conveyance or bind the land but shall operate only as a contract between the government and the grantee. It is the act of registration that conveys or affects the lands, and binds third person.

CERTIFICATE OF TITLE ISSUED PURSUANT TO A PATENT INDEFEASIBLE Registered owners under Torrens System, gives security over the ownership of the land, it becomes private property and it is no longer subject to the disposition of the Director of Lands. It has in its favor the presumption of regularity It becomes incontrovertible upon the expiration of 1 year from the date of the order for issuance of the patent, hence, prescription cannot operate against the registered owner.

TITLE NOT DEFEATED BY ADVERSE, OPEN AND NOTORIOUS POSSESSION. NEITHER CAN IT BE DEFEATED BY PRESCRIPTION. A CERTIFICATE TITLE CANNOT BE COLLATERALLY ATTACKED.

CADASTRAL REGISTRATION PROCEEDINGSPANG MALAWAKAN TO!

Upon the initiative of the government To have titles to all lands in the stated area adjudicated Public interest demands that titles to any unregistered land settled and adjudicatedThe principal aim is to settle as much as possible all disputes over the land and to remove all clouds over the land titles as far as practicable, in a community Nature of a proceeding in rem

FRIAR LANDS

Private lands purchased by the government for sale to actual occupants under the provisions of Act 1120 or the Friar Lands Act These lands are not public lands but private and patrimonial lands of the government The Land Management Bureau shall first issue a certificate stating therein that the government has agreed to sell the land to such settler or occupant The latter shall then accept the certificate and agree to pay the purchase price so fixed, in installments and at the rate of interest specified in the certificate The conveyance or certificate of sale executed in favor of a buyer is a conveyance of ownership of the property, subject only to the resolutory condition that the sale may be cancelled if the price agreed upon is not paid in full

REVERSION fraud had been committed in securing such title.

Reversion of land acquired through fraudThe uncontroverted rule is that, the doctrine of indefeasibility of Torrens Title does not bar the filing of an action for cancellation of title and reversion of land even if more than one year has elapsed from the issuance of the free patent in case of fraud in obtaining it.

DIRECTOR OF LANDS HAS CONTINUING AUTHORITY TO INVESTIGATE FRAUDULENT ISSUANCE OF PATENTS- It is not only the right but also the duty of the Director of Lands to conduct the investigation of any alleged fraud in securing the free patent and the corresponding title to a public land and to file the corresponding court action for the reversion of the same to the State, if the facts disclosed in the course of such investigation should so warrant.

- The indefeasibility of title over land previously public is not a bar to an investigation by the Director of Lands as to how such title has been acquired, if the purpose of such investigation is to determine whether or not fraud had been committed in securing such title in order that that the appropriate action for reversion may be filed by the government.

GOVERNMENT MAY INITIATE ACTION FOR CANCELLATION OF TITLE AND REVERSION

Section 101 of Public Land Act provides for a remedy whereby lands of the public domain fraudulently awarded to the applicant may be recovered or reverted back to its original owner, the government Office of Solicitor General shall represent the government in all land registration and related proceedings and institute actions for the reversion to the government of lands of the public domain and improvements thereon as well as lands held in violation of the Constitution It is improper for the government to file an action for reversion of land titled to defendant pursuant to a free patent where the alleged fraud consists in the fact that said land, at the time of issuance of the free patent was no longer a part of the public domain, having been adjudicated as private property of another person in a previous registration case An action for reversion on the ground that defendant obtained patent through fraud would also fail where the land had successively been sold by the heirs of the patentee to third parties who are holding Torrens titles and enjoying the presumption of good faith Private parties cannot challenge the validity of the patent and title when they are not registered owners thereof nor had they been declared the owners as owners in the cadastral proceedings whether the grant was in conformity with the law or not is a question which the government may raise, but until it is raised by the government and set aside, the defendant cannot question it. The legality of the grant is a question between the grantee and the government.

ACTION FOR NULLITY OF LAND TITLES DISTINGUISHED FROM REVERSION

The difference between them lies in the allegations as to the character of the ownership of realty whose title is sought to be nullified.

Action for Reversion Action for declaration of nullity of free patent and certificate title

Pertinent allegations in the complaint would admit State ownership of the disputed land. The portion affected by the amendment would revert back to the public domain.

The land is beyond the jurisdiction of the Director of Lands to bestow and whatever patent or certificate title therefore is consequently void ab initio. The real party in interest is not the State but the plaintiff who alleges pre existing right of ownership over the parcel of land in question even the grant of title to the defendant.

Note: Beyond the jurisdiction of Director of Lands because the land is private owned already.

WHERE REVERSION IS IMPROPERIn the case of Republic v. Umali, the government sought for the reversion of parcel of land on the ground that the original sale thereof from the government was based on a forgery and therefore void ab initio. However, the respondents are transferees, claiming to be innocent purchasers. Since the respondents are transferees in good faith and for value and for value and that the original acquisition thereof, although fraudulent, did not affect their own titles.Note: Reversion does not apply to transferees, who are innocent purchasers. It only applies to applicant who committed fraud in securing such title.

PRIVATE PARTY CANNOT BRING ACTION FOR REVERSIONIf there has been any fraud or misrepresentation in obtaining the title, an action for reversion instituted by the Solicitor General would be the proper remedy

ACTION FOR REVERSION NOT BARRED BY PRESCRIPTION, LACHES

Statute of limitations doesnt run against the State

ACTION FOR CANCELLATION OF TITLE

Proper when a private party claims ownership of the land as private property by virtue of a long period of possession and hence, no longer deemed a part of the public domain which could be disposed of under the provisions of the Public Land Act, or when the land is already covered by a previously issued certificate of title.

ACTION FOR RECONVEYANCE BRING THE LAND BACK TO THE OWNER. Legal and equitable remedy granted to the rightful owner of the land which has been wrongfully or erroneously registered in the name of another for the purpose of compelling the latter to transfer or reconvey the land to him After one year from the issuance of the decree, may bring action for reconveyance of the propertyOnly to show that the person who secured the registration of the questioned property is not the real owner thereof Seeks to transfer or reconvey the land from the registered owner to the rightful owner

DECREE BECOMES INCONTROVERTIBLE AFTER 1 YEAR FROM THE ISSUANCE OF DECREE Action for reconveyance still available as remedy Action in personam that it is always as long as the property has not passed to an innocent purchaser for value

RELEVANT ALLEGATIONS That the plaintiff is the owner of the land That the defendant has illegally disposed him of the same

NOTE: The nullification of defendants land would not result in the reversion of the land to State but remains private property, the plaintiff-claimant may seeks direct reconveyance.

COURTS HAVE JURISDICTION OVER POSSESSORY ACTIONS INVOLVING PUBLIC LANDS

Even pending the investigation of, and resolution on, an application by a bona fide occupant, by the priority of his application and record of his duty, he acquires a right to the possession of the public land he applied for against any other public land applicant, which right may be protected by the possessory action of forcible entry or by any other suitable remedy that our rules provide

The grant of power and duty to alienate and dispose of the land doesnt divest the courts of their duty or power to take cognizance of actions instituted by settlers or occupants or applicants against others to protect their respective possessions and occupations, more especially the actions of trespass, forcible entry and unlawful detainer

PROHIBITED ALIENATIONS

1. Under Section 118: Land acquired under free patent or homestead provisions shall not be subject to encumbrance or alienation from the date of approval of application and for a term of five (5) years and after the date of issuance of the patent or grant.-In short, SALE within the prohibition date (from date of approval up to the fifth year from issuance of patent) is VOID.

XPT: HEREDITARY SUCCESSIONSXPT TO XPT: Agreements which are considered a circumvention of the law. Example: The prohibition applies to homesteaders son or daughter as a clever homesteader who wants to circumvent the ban may simply sell the lot to his descendant and the latter after registering the same in his name would sell it to a third person.

The OLD RULE: The alienation, transfer, or conveyance of any homestead AFTER five (5) years and before twenty-five (25) years shall NOT BE VALID EXCEPT upon approval of the DENR Secretary. -> OVERTURNED by a RECENT JURISPRUDENCE: May secure anytime in the future. The DENR Secretarys approval is merely directory.

2. Section 122: The landholdings should not exceed a total of 144 hectares.EXCEPT: Hereditary succession, much less involving private land

REPURCHASE BY APPLICANT OR HIS HEIRS: There is RIGHT OF REDEMPTION OR REPURCHASE impliedly instituted to the applicant, his widow or legal heirs, within a period of five (5) years from the date of the sale of the land.

It has been ruled that it is well-known that the homestead laws were designed to distribute disposable agricultural lots of the state to land destitute (poor) citizens for their home and cultivation.

JUDICIAL PROCEDURE, LEGAL RESTIRCTIONS AND ENCUMBRANCES

**There must be an application made under oath on the land applied in order to obtain a permit. In all cases, the Director of Lands shall conduct necessary investigations for the purposes of ascertaining the material facts set out in the applications.

PETITION FOR REVIEW

Petition for review, on the ground of fraud, involving public land grants or patents, the one-year period commences from the issuance of the patent by the government.

Fraud is two kinds: actual or constructive. 1. Actual or positive fraud proceeds from an intentional deception practiced by means of the misrepresentation or concealment of a material fact. 2. Constructive fraud is construed as a fraud because of its detrimental effect on public interests and public or private confidence, even though the act is not done with an actual design to commit positive fraud or injury upon other persons.

XPT: Government can still file an action for reversion even after the lapse of one (1) year in cases of fraud.

II. REVISED FORESTRY CODE (PD 705)

The governing law here is PD 705 (Revised Forestry Code) It emphasizes not only the utilization of forest resources but more on the protection, rehabilitation and development of forest lands, in order to ensure the continuity of their productive condition. Institutes proper classification and delimitation of the lands of the public domain, and the management, utilization, protection, rehabilitation, and development of forest lands.

IMPORTANT DEFINITION OF TERMS:a) Public forest is the mass of lands of the public domain which has not been the subject of the present system of classification for the determination of which lands are needed for forest purposes and which are not.b) Permanent forest or forest reserves refers to those lands of the public domain which have been the subject of the present system of classification and declared as not needed for forest purposes.xxxxe) Grazing land refers to that portion of the public domain which has been set aside, in view of the suitability of its topography and vegetation, for the raising of livestock.f) Mineral lands refer to those lands of the public domain which have been classified as such by the Secretary of Natural Resources in accordance with prescribed and approved criteria, guidelines and procedure.g) Forest reservations refer to forest lands which have been reserved by the President of the Philippines for any specific purpose or purposes.xxxxo) Mangrove is a term implied to the type of forest occurring on tidal flat along the sea coast, extending along stream where the water is brackish.p) Kaingin refers to a portion of the forest land which is subjected to shifting and/or permanent slash-and-burn cultivation.

Forest a large tract of land covered with natural growth of trees; it is a tract of land covered with trees, usually of considerable extent. It includes public forest, permanent forest or forest reserves and forest reservation for any purpose.

** The classification of forest is DESCRIPTIVE of its legal nature or status and DOES NOT have to be descriptive of what the land actually looks like. Unless and until the land classified as forest is released in an OFFICIAL PROCLAMATION to that effect so that it may form part of the disposable agricultural lands of public domain, the rules on confirmation of imperfect title do not apply.

- Forest lands are subject to multiple land use under PD 705 (as stated below) for the development and progress requirement of the country advancement of science and technology and public welfare.

WHEREAS, proper classification, management and utilization of the lands of the public domain to maximize their productivity to meet the demands of our increasing population is urgently needed;

WHEREAS, to achieve the above purpose, it is necessary to reassess the multiple uses of forest lands and resources before allowing any utilization thereof to optimize the benefits that can be derived therefrom;

PRESUMPTION: In the absence of a proof declaring or any proclamation or order classifying the land as a FOREST LAND, the land is presumed as an AGRICULTURAL LAND.

STRICT RULE: FOREST LANDS CANNOT BE CONVERTED INTO PRIVATE PROPERTY.

Public forests are NOT capable of private appropriation unless declassified and released by positive act of the government.

**The Indigenous Peoples Rights Act (IPRA) converts ancestral lands as public agricultural lands for registration purposes.

***Deforested lands may be subject to reforestation.

OFFICE CHARGED WITH THE AUTHORITY OVER FOREST LANDS (Organizational Structure)

FOREST MANAGEMENT BUREAU (Bureau of Forest Development) It has jurisdiction and authority over all forest lands, grazing lands and all forest reservations ad previously administered by other government agencies or instrumentalities. Under the control of the DENR Secretary The Director of Forest Management Bureau recommends rules and regulations for the implementation of the Forestry Code. It has the authority to determine whether forest land is more valuable for agricultural rather than forestry uses, as a basis for its declaration as agricultural land and release for private ownership.

1. As to JUDICIAL FUNCTIONS

** The decision of the Director is SUBJECT to REVIEW by the DENR Secretary. After thirty (30) days it will become final and executory. Except upon APPEAL Court of Appeals (before Office of the President)

Exhaustion of Administrative Remedies is a MUST! The non-exhaustion of administrative remedies will DISREGARD the pertinent laws vesting the DENR the power and function to regulate the development, disposition, extraction, exploitation, extraction, exploration and use of countrys forests and to exercise EXCLUSIVE JURISDICTION.

This comprehensive conferment clearly implies at the very least that the DENR should be allowed to rule in the first instance on any controversy coming under its express power before the courts.

If, for instance, the DENRs decision became final and executory, the case that will be filed again would be barred by the principle of RES JUDICATA[footnoteRef:2]. [2: A matter that has been adjudicated by a competent court and may not be pursued further by the same parties. Elements: 1) the former judgment or order must be final; 2) the judgment or order must be on the merits; 3) it must have been rendered by a court having jurisdiction over the subject matter and the parties; 4) there must be, between the first and the second action, identity of parties, of subject matter and cause of action.]

OR by LACHES[footnoteRef:3] upon the lapse of thirty (30) days. [3: failure or neglect for an unreasonable time to act or assert on such right]

2. As to POWER TO CLASSIFY AND SURVEY

The DENR Secretary upon study and survey:(1) Shall determine which of the unclassified lands of public domain are needed for forest purposes and declare them as permanent forest to form part of the forest reserves(2) Shall decree those classified and determined not to be needed for forest purposes as alienable and disposable which shall be transferred to Land Management Bureau(3) If the forest land called MANGROVE SWAMPS is suitable for fishpond purposes it shall be released (reclassified) to and places under the administrative jurisdiction of the Bureau of Fisheries and Aquatic Resources.

OTHER RULES AND REGULATIONS:

Topography (Terrain)NO land of the public domain (18%) in slope or over shall be classified as alienable and disposable nor any forest land (50%) in slope or over, as grazing land.

Lands 18% in slope which have already been declared alienable and disposable shall be reverted to the classification of forest lands by DENR Secretary unless there be existing titles or approved public land applications.

Hence, it is safe to say that LANDS 18% in slope are considered FOREST LANDS.

Areas needed for forest purposes1) Areas less than 250 hectares which are far from, or are not contiguous with, any certified alienable and disposable land;

2) Isolated patches of forest of at least five (5) hectares with rocky terrain, or which protect a spring for communal use;

3) Areas which have already been reforested;

4) Areas within forest concessions which are timbered or have good residual stocking to support an existing, or approved to be established, wood processing plant;

5) Ridge tops and plateaus regardless of size found within, or surrounded wholly or partly by, forest lands where headwaters emanate;

6) Appropriately located road-rights-or-way;

7) Twenty-meter strips of land along the edge of the normal high waterline of rivers and streams with channels of at least five (5) meters wide;

8) Strips of mangrove or swamplands at least twenty (20) meters wide, along shorelines facing oceans, lakes, and other bodies of water, and strips of land at least twenty (20) meters wide facing lakes;

9) Areas needed for other purposes, such as national parks, national historical sites, game refuges and wildlife sanctuaries, forest station sites, and others of public interest; and

10) Areas previously proclaimed by the President as forest reserves, national parks, game refuge, bird sanctuaries, national shrines, national historic sites:

Provided, That in case an area falling under any of the foregoing categories shall have been titled in favor of any person, steps shall be taken, if public interest so requires, to have said title cancelled or amended, or the titled area expropriated.

General Rule: Forest lands are not registrableA person cannot enter forest land simply by cultivating it. Even if a private person in good faith resides in such forest lands, in effect it will be NULL and VOID. Since it will still be considered as part of public domain, it may be cancelled.

XPT: In the case of MALABANAN vs REPUBLIC it was decided that the land is registrable IF at the time of the application for registration is filed, the land is DECLARED ALIENABLE AND DISPOSABLE by positive act of the government. The law does not require that the land subject of registration should have been alienable and disposable during the entire period of possession.

Reservations in forest lands and off-shroe areas

The President may establish within any lands of the public domain, forest reserve and forest reservation for the national park system, for preservation and modify boundaries of existing ones.

(a) Reservation of land, covered by a timber concession, for experiment states vests in the grantee full ownership thereof.

Case: International Hardwood and Veneer Co (IHVCP ) vs University of the Philippines (UP)

Facts: IHVCP is a company engaged in the manufacture, processing and exportation of plywood. It renewed its timber license, which was granted by the government and shall be valid for 25 years, in early 1960. Said license authorizes the company to cut, collect and remove timber from the portion of timber land located in certain municipalities of Laguna, including Paete. In 1964, the Congress enacted R.A. 3990, an Act establishing an experiment station for UP. The said experiment station covers a portion of the timberland in Paete, occupied by IHVCP so UP, who claims ownership of said portion of timberland, demanded the latter to pay the forest charges to it, instead of the BIR. IHVCP rejected the demand and it filed a suit against UP, claiming that R.A. 3990 does not empower UP to scale, measure and seal the timber cut by it within the tract of land referred to in said Act, and collect the corresponding forest charges prescribed by the BIR.

Issue: Whether or not UP is the owner of the portion of timberland.

Ruling: YES. The Court ruled that R.A. 3990 ceded and transferred in full ownership to UP the area, which means that the Republic of the Philippines completely removed it from the public domain. In respect to the areas covered by the timber license of IHVCP, the said Act removed and segregated it from being a public forest. The Court further cited Sec. 3 of R.A. 3990, which provides that, "any incidental receipts or income therefrom shall pertain to the general fund of the University of the Philippines. The provision of the Act is clear that UP, being the owner of the land, has the right to collect forest charges and to supervise the operations of IHVCP insofar as the property of the UP within it is concerned.

A timber license is NOT a contract and MAY be revoked

IMPORTANT: No person may utilize, exploit, occupy, possess or conduct any activity within any forest land WITHOUT authorization under a LICENSE AGREEMENT, LEASE, LICENSE OR PERMIT.

Duration of license agreement to harvest timber in forest lands: The maximum period of any privilege to harvest timber is 25 years, renewable for a period, not exceeding 25 years. -Determined by the bureau.

Size of forest concessions.The size of forest lands which may be the subject of timber utilization shall be limited to that which a person may effectively utilize and develop for a period of 50 years.

Mining OperationsMining operations in forest lands shall be governed by mining laws and there must be an APPROVAL from the Director of Forest Bureau.

QualificationsSECTION 58: The privilege to utilize, exploit, occupy, or possess forest lands, or to conduct any activity therein, or to establish and operate wood-processing plants, shall be diffused to as many qualified and deserving applicants as possible.

SECTION 59. Citizenship. In the evaluation of applications of corporations, increased Filipino equity and participation beyond the 60% constitutional limitation shall be encouraged. All other factors being equal, the applicant with more Filipino equity and participation shall be preferred.

CRIMINAL OFFENSES

**GOOD FAITH is not a defense (SPECIAL LAW- mala prohibita)

(1) Cutting, gathering and/or collecting timber or other forest products from any forest land or timber from alienable or disposable public and, or from private land without any authority; and

(2) Possession of timber or other forest products without the legal documents required under existing forest laws and regulations

(3) Unlawful occupation ro destruction of forest lands, including the making of kaingin for private use, without authority

(4) For pasturing or grazing livestock in forest lands, grazing lands, or alienable and disposable public lands without authority

(5) For illegal occupation or national parks and recreation areas for vandalism

(6) Destruction of wild life resources

(7) Survey of unauthorized persons

(8) Misclassification and survey by government official or employee

(9) Unlawful possession of implements and devices used by forest officers.

(10) Failure to pay forest charges

(11) Sale of wood products without having complied with the grading rules of the government.

Criminal Procedure

Authority of forest officers: Forest officers and other government officials or employees duly authorized by the Secretary or Director, shall have free entry into areas covered with authority (license lease or permit).

Search and seizure without a warrant: When probable cause is established, the seizure of lumber is valid even without a warrant and may be admissible as evidence against the accused.

**DENR has jurisdiction over the confiscation of forest products and conveyances used in the commission of the offense, hence, it is beyond the reach of replevin[footnoteRef:4]. [4: Action for recovery of property unlawfully seized]

III. PHILIPPINE MINING ACT (RA 7942)

Art. XII Section 2 of the Constitution provides:

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.

Notes: Once minerals are discovered in the land, whatever the use to which it is being devoted at the time, such use may be discontinued by the state to enable it to extract the minerals therein in the exercise of its sovereign prerogative.

Thus a mineral found in a private land still belongs to the government.

The right to possess or own the surface ground is separate and distinct from the mineral rights over the same land. And the fact that the location of a mining claim has been perfected does not bar the governments exercise of its power of eminent domain.

The term full control and supervision:

The State, being the owner of the natural resources, is accorded the primary power and responsibility in the exploration, development and utilization thereof. As such, it may undertake these activities through four modes:

a. The state may directly undertake such activities.b. The state may enter into co-production, joint venture or production-sharing agreements with Filipino citizens or qualified corporations.c. Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens.d. For the large-scale exploration, development and utilization of minerals, petroleum and other mineral oils, the president may enter into agreements with foreign-owned corporations involving technical or financial assistance. (FTAA)

CASE: Atok-Big Wedge Mining Co. V Intermediate Appellate court:

The issue is who has preferred rights, the applicant for land registration or the mining claim?

Answer: The applicant for land registration shall prevail.The court ruled that, the mere recording or location of mining claim does not ipso facto and irreversibly convert the land into mineral land. Mere location does not mean absolute ownership over the affected land or mining claim. It merely segregates the located land or area from the public domain by barring other would-be locators from locating the same and appropriating for themselves the minerals found therein. The recording of a mining claim only operates to reserve to the registrant exclusive rights to undertake mining activities upon the land subject of the claim. Rather, there should be performance of annual work obligations, and extraction of the said minerals, thus, if no minerals were extracted therefrom, notwithstanding the recording of the claim, the land is not mineral land and registration thereof is not precluded by such recorded claim.

The answer will be different if; all the requirements were present for a valid mining claim, thus, mining claim will prevail over land registration.

Note: The effect on the land is that it will not be part of public domain but private property.

Abandonment:

The act of Abandonment constitutes actual, absolute and irrevocable desertion of ones right or property.

There should be concurrence of 2 elements:a. The intent to abandon a right or claimb. External act by which that intention is expressed and carried into effect.

EFFECT:

The said land will be reverted to the public domain.

As such, a person cannot claim privity of title with the owners of the prior locations since the present constitution in express terms states that with the exception of agricultural lands, all other natural resources shall not be alienated.

Mineral reservations:

Sec. 5 of RA 7942: The President may establish mineral reservations upon the recommendation of the Director through the Secretary.

It is beyond the power of DENR Secretary to withdraw lands from forest reserves and to declare the same as an area open for mining operations.

Mining Applications in forest lands:

RA 7942 Sec.18 allows mining in public or private lands, including timber or forest lands subject to existing rights and reservations. Similarly, Section 47 of PD 705 permits mining operations in forest lands which include the public forest, the permanent forest or forest reserves, and forest reservations.

Note: there should be authorization/permit from the government itself.

ORGANIZATIONAL STRUCTURE:

Authority of the Department:

The secretary shall have the authority to enter into mineral agreements on behalf of the government upon the recommendation of the Director, and promulgate such rules and regulations as may be necessary to implement the intent and provisions of the acts.

Role of the local governments:

P.174 (mahaba masyado)

Bureau conferred quasi-judicial powers:

It may be stated that under PD no. 1281, the Bureau of Mines, now the Mines and Geosciences Bureau (Bureau) was vested with jurisdictional supervision and control over all holders of mining claims or applicants for and/or grantees of mining licenses, permits, leases and/or operators thereof, including mining service contracts and service contractors insofar as their mining activites are concerned.

PD 1281 sec 7 conferred upon the Bureau original and exclusive jurisdiction to hear and decide cases involving, among others, the cancellation and/or enforcement of mining contracts due to the refusal of the claimowner/operator to abide by the terms and conditions thereof.

CASE: Asaphil Construction and Development Corporation:

The court reiterated that there is a distinction between 1) the primary powers granted by pertinent provisions of law to the then Secretary of Agriculture and Natural Resources of an executive or administrative nature, such as granting license, permits, lease and contracts, or approving, rejecting, reinstating or cancelling applications, or deciding conflicting applications, 2)controversies or disagreements of civil or contractual nature between litigants which are questions of a judicial nature that may be adjudicated only by the courts of justice.

Note: The resolution of the validity or voidness of the contracts remains a legal or judicial question as it requires the exercise of judicial functions. The complaint was not merely for the determination of rights under the mining contracts since the very validity of those contracts is put in issue.

SCOPE OF APPLICATION:

All minerals in public or private lands, including timber or forestlands in defined in existing laws, shall be open to mineral agreements or financial or technical assistance agreement applications.

Areas closed to mining operations:

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, archaeological 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 expressly prohibited by law;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;F. Old growth or virgin forest, proclaimed watershed forest reserves, wilderness area, mangrove forests, mossy forests, national parks, provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries as defined by law and in areas expressly prohibited under the National Integrated Protected Area System ( NIPAS ).

EXPLORATION PERMIT:

Sec 20 of RA 7942:

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.

Foreigners are allowed to apply for and hold an exploration permit. There is no prohibition at all against foreign or local corporations or contractors holding exploration permits. ( La bugal-blaan Tribal Association V Ramos )

Note:Such permit does not amount to an authorization to extract and carry off the mineral resources that may be discovered.

Such permit is revocable when demanded by the police power.

Transfer: in can be transfer or assigned provided that there is approval of the secretary upon recommendation of the director and should be a qualified person.

TYPES OF MINERAL AGREEMENTS:

1. MPSA 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.

Scope: the government grants the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The MPSA contractor provides the financing, technology, management and personnel necessary for the agreements implementation. The total government share in MPSA is the excise tax on mineral products.

2. CA 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 resources.

Scope: the government provides inputs to the mining operations other than the mineral resource.

3. JVA 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.

Scope: the government enjoys the greatest participation; the government and JVA contractor organize a company with both parties having equity shares. Aside from earnings in equity, the government in a JVA is also entitled to a share in the gross output.

Eligibility (for the 3 Mineral Agreements):In case of individual must be a Filipino citizen of legal age and with capacity to contract

In case of a corporation, partnership, association or cooperative must be organized or authorized for the purpose of engaging in mining, duly registered in accordance with law, at least 60% of the capital of which is owned by Filipino Citizens.

SHARE OF THE GOVERNMENT IN CA/JVA:Section 81 of RA 7942:

The share of the Government in co-production and joint-venture 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; andd. 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 contractors income tax, excise tax, special allowance, withholding tax due from the contractors 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 contractors corporate income tax, excise tax, special allowance, withholding tax due from the contractors 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.

Effect: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.

Registration of Mineral Agreement should be approved by the Secretary, and forwarded to the Bureau for numbering. Failure to register may become a ground for cancellation.

FTAA Financial or Technical Assistance Agreement:

A contract involving financial or technical assistance for large-scale exploration, development, and utilization of natural resources.

FTAA is subject to negotiation. The governments contributions, in the form of taxes in an FTAA is identical to its contributions in the 2 mineral agreements (CA/JVA), save that in an FTAA; 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.

Eligibility: a legally organized foreign-owned corporation (any corporation, partnership, association, or cooperative duly registered in accordance with law in which less than 50% of the capital is owned by Filipino citizens) is deemed a qualified person.

FTAA may be Assign or Transfer: in whole or in part, to a qualified person subject to the prior approval of the President.

CASE: La Bugal-blaan Tribal Association v Ramos:In this case, the Petitioner assesses the act of WMCP (Western Mining Corporation (Philippines), Inc., in managing and operating every aspect of the mining activity. ( WMPC is a fully foreigned-owned mining corporation ). The Petitioner contends that, in pursuant to Art XII sec.2, WMCP acts should only be limited to technical or financial assistance

Ruling: Petitioner won.The court ruled that, pursuant to 1987 Constitution, the utilization of inalienable lands of public domain through license, concession or lease is no longer allowed under the present constitution.

But, the State may secure the help of foreign companies, especially financial and technical assistance, provided that the State maintains its right of full control.

Non-Impairment of Contracts:

The court declared in Lepanto Consolidated Mining Co. v WMC resources that if section 40 of the Philippine Mining Act of 1995 requiring the approval of the President with respect to assignment or transfer of FTAAs, is applied retroactively to the Columbio FTAA, that would tantamount to an impairment of the obligations under said contract as it would effectively restrict the right of the parties thereto assign or transfer their interest in the said FTAA.

Note: The transfer of Columbio FTAA rights came first before the enactment of the said Mining Act.

QUARRY RESOURCES:

The Provincial/City Mining Regulatory Board shall, among others, accept, process and evaluate applications and determine administrative charges and fees for quarry, sand and gravel, guano, gemstone gathering and small-scale mining permits duly filed with the same.

Permit: Any qualified person may apply for a quarry permit with the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board. No quarry permit shall be issued or granted on any area covered by a mineral agreement of FTAA, except on areas where a written a consent is granted by the mineral agreement or FTAA contractor.

Sand and Gravel Permits:

Commercial Sand and Gravel Permit - Any qualified person may apply for a Commercial Sand and Gravel permit with the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the extraction, removal and disposition of sand and gravel and other loose or unconsolidated materials which are used in their natural state without undergoing processing.

Industrial Sand and Gravel Permit - Any qualified person may apply for Industrial Sand and Gravel permit with the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the extraction, removal and disposition of sand and gravel and other loose or unconsolidated materials that necessitate the use of mechanical processing.

Exclusive Sand and Gravel Permit - Any qualified person may apply for Exclusive Sand and Gravel permit with the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the extraction, removal and disposition of sand and gravel and other loose or unconsolidated materials from public land for its own use.

Effect: the quarry or sand and gravel permit holder, its heirs or successors-in-interest shall have the right to exclusively extract, remove, dispose and or utilize quarry or sand and gravel resources within the permit area with full rights of ingress and egress, the right to occupy the same, all other rights provided for in the act and these implementing rules and regulations; and the obligation to fully comply with the terms and conditions of the permit.

GRATUITOUS PERMIT:

Government Gratuitous Permit: Any government entity/instrumentality in need of quarry, sand and gravel or loose/unconsolidated materials in the construction of buildings and or infrastructure for public use or other purposes.

Private Gratuitous Permit: Any landowner may apply for a private gratuitous permit with the Provincial Governor/City Mayor through the Provincial/City Mining Regulatory Board for the extraction, removal and utilization of quarry, sand and gravel or loose/unconsolidated materials from his/her land for a non-renewable.

Guano Permit:Any qualified person, whose domicile is within the municipality where the area applied for is located, may apply for a guano permit.

Gratuitous Guano Permit: A Gratuitous Guano permit may be granted to an individual for his/her personal use to any government agency in need of the material within a specified person.

Commercial Guano Permit:May be granted to a qualified person for sale or commercial disposition thereof within a specified period.

Effect: the guano permit holder, its heirs or successors-in-interest shall have the right to exclusively extract, remove, dispose and or utilize guano resources within the permit area with full rights of ingress and egress, the right to occupy the same, all other rights provided for in the act and these implementing rules and regulations; and the obligation to fully comply with the terms and conditions of the permit.

Gemstone gathering permit: same goes with the previous ones.

TRANSPORT, SALE AND PROCESSING OF MINERALS:

Ore Transport Permit: Transport permit shall be issued by the mines regional director who has jurisdiction over the area where the ores were extracted. In 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/theft and shall be sufficient for confiscation.

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.

Mineral Processing Permit there should be permit from the secretary.

SAFETY AND ENVIROMENTAL PROTECTION:

Pollution cases under jurisdiction of the Pollution and Adjudication Board (PAB).

The internal structure, organization and description of the functions of the DENR, particularly the Mines and Geosciences Bureau reveals no provision pertaining to the resolution of cases involving violations of pollution law.

The mines regional director has express administrative and regulatory powers over mining operations and installations, he has no adjudicative powers over complaints for violation of pollution control statutes and regulations.

Thus, the PAB has not been divested of its authority to try and hear pollution cases connected with mining operations by virtue of the subsequent enactment of RA 7942.

SURFACE RIGHTS:

Section 75 of RA7492: 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.

The Panel of Arbitrators has preliminary say on the determination of compensation.

Entry into lands: (Section 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.

Note:There should 1st be agreementIn case of disagreement: matter shall be brought before the Panel of Arbitrators for proper disposition.

Note:Determination of compensation by the Panel of Arbitrators is only preliminary unless accepted by all parties concerned, the determination still lies in the judicial court.

In case of transfer without permit, then it will be confiscated together with the equipment and tools and conveyance.

SETTLEMENT OF CONFLICTS:

The Penal of Arbitrators: two (2) members of the Philippines bar and one (1) licensed mining engineer or a professional in related field designated by the DENR Secretary upon the recommendation of the Mines and Geosciences Bureau.

After the submission of the case by the parties for decision, the panel shall have exclusive and original jurisdiction (primary jurisdiction) to hear and decide on the following:

a. Disputes involving rights to mining areas (mining disputes);

b. Disputes involving mineral agreements or permits;

c. Disputes involving surface owners, occupants and claimholders/concessionaires; and

d. Disputes pending before the Bureau and the Department at the date of the effectivity of this Act.

APPEAL: MINES ADJUDICATION BOARD (MAB)Fifteen (15) days from receipt thereof which must decide the case within thirty (30) days from submission for decision.

MAB is composed of three (3) members, with the DENR Secretary as Chairman, and the Director of the Mines and Geosciences Bureau and the Undersecretary for Operations of the department as members.

The decisions of MAB are appealable to the Court of Appeals.

GROUNDS FOR CANCELLATION,REVOCATION AND TERMINATION

1. Late or non-filing of requirements2. Violation of the terms and conditions of permits or agreements3. Non-payment of taxes or fees

PENAL PROVISIONS

1. 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 2. Illegal Exploration: Any person undertaking exploration work without the necessary exploration permit.

3. 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 4. Destruction of Mining Structures: Any person who willfully destroys or damages structures in or on the mining area or on the mill sites 5. Mines Arson: Any person who willfully sets fire to any mineral stockpile, mine or workings, fittings or a mine

6. 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. 7. 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. 8. Violation of the Terms and Conditions of the Environmental Compliance Certificate

9. 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.