Professional Documents
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Miners Association of The Philippines, Inc. vs. Factoran, JR
Miners Association of The Philippines, Inc. vs. Factoran, JR
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* EN BANC.
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ROMERO, J.:
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2
The adoption of the concept of jura regalia that all natural
resources are owned by the State embodied in the 1935,
1973 and 1987 Constitutions, as well as the recognition of
the importance of the countryÊs natural resources, not only
for national economic development,
3
but also for its security
and national defense, ushered in the adoption of the
constitutional policy of „full control
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industrial uses other than the development of water power, in which cases,
beneficial use may be the measure and the limit of the grant.‰
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Pursuant to the 4
mandate of the above-quoted provision,
legislative acts were successively issued by the President
in the
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4 Executive Order No. 211 (July 10, 1987) and Executive Order No.
279 (July 25, 1987).
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5
exercise of her legislative power.
To implement said legislative acts, the Secretary of the
Department of Environment and Natural Resources
(DENR) in turn promulgated Administrative Order Nos. 57
and 82, the validity and constitutionality of which are
being challenged in this petition.
On July 10, 1987, President Corazon C. Aquino, in the
exercise of her then legislative powers under Article II,
Section 1 of the Provisional Constitution and Article XIII,
Section 6 of the 1987 Constitution, promulgated Executive
Order No. 211 prescribing the interim procedures in the
processing and approval of applications for the exploration,
development and utilization of minerals pursuant to the
1987 Constitution in order to ensure the continuity of
mining operations and activities and to hasten the
development of mineral resources. The pertinent provisions
read as follows:
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approved.
„SECTION 2. Applications for the exploration, development and
utilization of mineral resources, including renewal applications and
applications for approval of operating agreements and mining
service contracts, shall be accepted and processed and may be
approved; concomitantly thereto, declarations of locations and all
other kinds of mining applications shall be accepted and registered
by the Bureau of Mines and Geo-Sciences.
„SECTION 3. The processing, evaluation and approval of all
mining applications, declarations of locations, operating agreements
and service contracts as provided for in Section 2 above, shall be
governed by Presidential Decree No. 463, as amended, other
existing mining laws and their implementing rules and regulations:
Provided, however, that the privileges granted, as well as the terms
and conditions thereof shall be subject to any and all modifications
or alterations
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8
Association of the Philippines, Inc, to file the instant
petition assailing their validity and constitutionality before
this Court.
In this petition for certiorari, petitioner Miners
Association of the Philippines, Inc., mainly contends that
respondent Secretary of DENR issued both Administrative
Order Nos. 57 and 82 in excess of his rule-making power
under Section 6 of Executive Order No. 279. On the
assumption that the questioned administrative orders do
not conform with Executive Order Nos. 211 and 279,
petitioner contends that both orders violate the
nonimpairment of contract provision under Article III,
Section 10 of the 1987 Constitution on the ground that
Administrative Order No. 57 unduly pre-terminates
existing mining leases and other mining agreements and -
automatically converts them into production-sharing
agreements within one (1) year from its effectivity date. On
the other hand, Administrative Order No. 82 declares that
failure to submit Letters of Intent and Mineral Production-
Sharing Agreements within two (2) years from the „date of
effectivity of said guideline or on July 17, 1991 shall cause
the abandonment of their mining, quarry and sand gravel
permits.
On July 2, 1991, the Court, acting on petitionerÊs urgent
exparte petition for issuance of a restraining
order/preliminary injunction, issued a Temporary
Restraining Order, upon posting of a P500,000.00 bond,
enjoining the enforcement and implementation of DENR
Administrative Order Nos. 579 and 82, as amended, Series
of 1989 and 1990, respectively.
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10
On November 13, 1991, Continental Marble Corporation,
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thru its President, Felipe A. David, sought to intervene in
this case alleging that because of the temporary restraining
order issued by the Court, the DENR, Regional Office No. 3
in San Fernando, Pampanga refused to renew its Mines
Temporary Permit after it expired on July 31, 1991.
Claiming that its rights and interests are prejudicially
affected by the implementation of DENR Administrative
Order Nos. 57 and 82, it joined petitioner herein in seeking
to annul Administrative Order Nos. 57 and 82 and prayed
that the DENR, Regional Office No. 3 be ordered to issue a
Mines Temporary Permit in its favor to enable it to operate
during the pendency of the suit.
Public respondents were required to comment on the
Continental Marble CorporationÊs petition12
for intervention
in the resolution of November 28, 1991.
Now to the main petition. It is argued that
Administrative Order Nos. 57 and 82 have the 13
effect of
repealing or abrogating existing mining laws which are
not inconsistent with the provisions of Executive Order No.14
279. Invoking Section 7 of said Executive Order No. 279,
petitioner maintains that respondent DENR Secretary
cannot provide guidelines such as Administrative
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February 2, 1987, the State assumed a more dynamic role
in the exploration, development and utilization of the
natural resources of the country. Article XII, Section 2 of
the said Charter explicitly ordains that the exploration,
development and utilization of natural resources shall be
under the full control and supervision of the State.
Consonant therewith. the exploration. development and
utilization of natural resources may be undertaken by
means of direct act of the State, or it may opt to enter into
co-production, joint venture, or production-sharing
agreements, or it may enter into agreements with foreign-
owned corporations involving either technical or financial
assistance for large-scale exploration,
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18 De Leon v. Esguerra, G.R. No. L-78059, August 31, 1987, 153 SCRA
602.
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„ARTICLE 9
ÂTRANSITORY PROVISION
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21 86 Phil. 50 (1950).
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22 86 Phil. at 54–55.
23 120 Phil. 168 (1964).
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Petition dismissed.
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