Rep. of the Phil. v Prov. Gov.

of Palawan (Motion for Reconsideration)

GR Nos. 170867 and 185941, 21 Jan. 2020
Leonen, J.:

DOCTRINE
When the territory consists of 1 or more islands, territorial jurisdiction can able
exercised over all waters found inland, or in any area that is part of its seabed, subsoil,
or continental margin, in the manner provided by law.

FACTS
(see facts of the original Court Resolution)

A Motion for Reconsideration was filed by Palawan insisting that, since the Camago-
Malampaya reservoir (“Reservoir”) is located within the continental shelf of the
Municipality of Kalayaan, Palawan, the said Reservoir is in actuality within its
territorial jurisdiction. Palawan also argues that the State can be estopped when it
promulgated issuances recognizing the reservoir as part of Palawan and granting 40%
share of the proceeds to the same.

For Arigo, et al., they argue that:

1. The natural prolongation of the landmass of Palawan leading to a continental
shelf is an area that is appurtenant to it and falls within its jurisdiction;
2. Palawan is entitled to the process of the natural gas project;
3. Since the Republic has used Palawan as the reference point to mark its maritime
entitlements in the South China Sea dispute (“Dispute”), it has already
recognized the Palawan’s unique geological features as comprised of islands;
4. By declaring that Palawan cannot generate its own continental shelf, the Court
has erased all that remains of the legal gains the Philippines achieved in the
Dispute.

As for the Republic, it contends that:

1. There is no law granting Palawan territorial jurisdiction over the continental
shelf where the Reservoir is located. Hence, Palawan is not entitled to the
proceeds;
2. The Reservoir is beyond the boundaries designated by PD 1596 and Act No. 422;
3. The provisions of the UNCLOS apply to the sovereign state, not to an LGU;
4. Sec. 1, Art. X of the 1987 Constitution does not require that every portion of the
Philippine territory be made part of the territory of an LGU. An LGU’s territory
only pertains to its land area and not to its waters.
 ISSUE
Whether the Province of Palawa is entitled to a 40% equitable share in the proceeds
from the Camago-Malampaya Natural Gas Project.

HELD
No, Palawan is not entitled to a 40% equitable share in the proceeds from the gas
project. However, whatever amount Palawan has already received need not be
returned. Also, any share that the Congress will allot for Palawan will purely be an act
of political discretion.

In the original 2018 Resolution of this case, the Court placed too much reliance on the
“land area” as indicative of the metes and bounds of an LGU. Under the LGC, it is
required that the land area must be “contiguous, unless it comprises 2 or more islands
or separated by [an LGU] independent of the other; properly identified by metes and
bounds with technical description and sufficient to provide for such basic services and
facilities…”1 It is clear that the requirement of contiguity shall not apply if the LGU is
comprised of islands. All that is required is that it is properly identified by its metes
and bounds.

Under the LGC and the Philippine Fisheries Code (PFC)of the Philippines, an LGU’s
territory extends to its municipal water which is within 15km from its shorelines during
low tide.2 Moreover, PD 1596 states that the seabed, subsoil, and continental margin
shall be included in the Municipality of Kalayaan and made part of the Province of
Palawan. This is consistent with the factual findings of the Permanent Court of
Arbitration in the landmark case of In the Matter of the South Sea China Arbitration.

Thus, it is inaccurate to declare that an LGU’s territory, and by extension, its territorial
jurisdiction, can only be over land that is contiguous. When the territory consists of 1
or more islands, territorial jurisdiction can able exercised over all waters found
inland, or in any area that is part of its seabed, subsoil, or continental margin, in the
manner provided by law.

Unfortunately, none of the maps on record or the relevant laws could conclusively
prove that Palawan has territorial jurisdiction over the Camago-Malampaya natural gas
reservoir. The area is beyond the province’s territory when the 15km boundary of the
LGC and PFC is applied. The area is also beyond Palawan’s territory when the
UNCLOS, 1898 Treaty of Paris, PD 1596, RA 7611.

1
Sec. 7(c), LGC.
2
Sec. 131, LGC, “Municipal waters includes…marine waters included between 2 lines drawn
perpendicularly to the general coastline from points where the boundary lines of the municipality/city
touch the sea at low tide and a 3rd line parallel with the general coastline and 15km from it…”