natres transcription - atty. batacan (la)

Upload: vanmarie

Post on 03-Jun-2018

233 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    1/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    Natural Resources

    Lectures of Atty. Batacan

    Constitutional Provision on Natural Resources

    Where do we find the duty to conserve and preserve

    our natural resources and what do we understand bythe term natural resources?

    Natural resources is defined as material objects

    of economic value and utility to man produced by

    nature. Anything that is valuable to man and produced

    by nature is considered as natural resources and will

    constitute the patrimony of the nation, the heritage of

    the nation.

    The duty to preserve, conserve and develop our natural

    resources is found in the preamble.

    Preamble of 1987 Constitution

    We, the sovereign Filipino people, imploring the aid

    of Almighty God, in order to build a just and

    humane society and establish a Government that

    shall embody our ideals and aspirations, promote

    the common good, conserve and develop our

    patrimony, and secure to ourselves and our

    posterity the blessings of independence and

    democracy under the rule of law and a regime of

    truth, justice, freedom, love, equality, and peace,

    do ordain and promulgate this Constitution.

    The duty to conserve and preserve... Wala ka

    masyadong makita nohexcept on the preamble. But for

    purposes of our subject, Natural Resources, we would

    be concentrating on the provisions of our 1987

    Constitution (Article 12 on National Patrimony.)

    What is the concept of jura regalia in the context of

    Constitutional Law? What is the Regalian doctrine?

    The Regaliandoctrine 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 be

    private.(Republic vs. Court of Appeals 160 SCRA 228)

    Natural wealth is found in the bowels of the

    Earth, within the territorial jurisdiction of the

    Philippines. This concept is embodied in Section 2,

    Article XII of the 1987 Constitution.

    SECTION 2.All lands of the public domain, waters,

    minerals, coal, petroleum, and other mineral oils

    all forces of potential energy, fisheries, forests o

    timber, wildlife, flora and fauna, and other natura

    resources are owned by the State. With the

    exception of agricultural lands, all other natura

    resources shall not be alienated. The exploration

    development, and utilization of natural resources

    shall be under the full control and supervision ofthe 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 sixty per centum of whose capital is owned by

    such citizens. Such agreements may be for a period

    not exceeding twenty-five years, renewable for no

    more than twenty-five years, and under such terms

    and conditions as may be provided by law. In cases

    of water rights for irrigation, water supply, fisheries

    or industrial uses other than the development o

    water power, beneficial use may be the measure

    and limit of the grant.

    The State shall protect the nation's marine wealth

    in its archipelagic waters, territorial sea, and

    exclusive economic zone, and reserve its use and

    enjoyment exclusively to Filipino citizens.

    The Congress may, by law, allow small-scale

    utilization of natural resources by Filipino citizens

    as well as cooperative fish farming, with priority to

    subsistence fishermen and fishworkers in riverslakes, bays, and lagoons.

    The President may enter into agreements with

    foreign-owned corporations involving eithe

    technical of financial assistance for large-scale

    exploration, development, and utilization o

    minerals, petroleum, and other mineral oils

    according to the general terms and conditions

    provided by law, based on real contributions to the

    economic growth and general welfare of the

    country. In such agreements, the State shalpromote the development and use of local scientifi

    and technical resources.

    All lands of the public domain:

    1. Agricultural land

    2. Mineral land

    3. Timberland or Forest land

    4. National parks

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    2/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    Of these four, only agricultural lands are

    alienable. The rest are inalienable.

    Again, what are under natural resources:

    "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."

    Ano ibig sabihin ng Regal? Kingly. Nung araw

    kasi.. Kapanahunan ng mga kings. Ngayon, instead of

    this property belonging to the king, hindi naman tayo

    monarchy, they belong to the State. Now, the

    ownership of the State of all these natural resources

    carries with it the power or authority to dispose. When

    you say that the state is sovereign, it means that the

    state can do anything under the sun. Pero diba

    nakakatakot yun if they can do anything? So ano ang

    ginawa ng Constitution? It imposed limitations. The

    State itself curtailed its powers as sovereign. So what I

    am trying to say here? The power to own carries with it

    the power to dispose.

    The State can dispose its property under any

    circumstances, anytime that it wants, without

    conditions at all. But as I've said, the Constitution laid

    down some limitations. What are these limitations?

    Nasa section 2 pa rin.

    1.

    "With the exception of agricultural lands, all

    other natural resources shall not bealienated."

    Only agricultural lands of the public

    land may be alienated. In other words, the State

    cannot alienate mineral lands, forest lands and

    national parks.

    2.

    "The exploration, development, and utilization

    of natural resources shall be under the full

    control and supervision of the State."

    The State may..

    1.

    Directly undertake such activities (e.g. Ang

    State mismo ang magmimina); or

    2.

    Enter into co-production, joint venture, or

    production-sharing agreements (e.g. The

    State may enter into contracts to exploit or

    develop our natural resources. These

    agreements are limited to Filipino citizens

    and Filipino-owned corporations. When we

    say Filipino-owned corporations, we mean

    majority of the shares are owned by the

    Filipinos. Majority means at least 60%

    Why? In order to ensure that the Filipinos

    are in control of the corporations.)

    The Supreme Court said, "The

    exploitation of the nation of the naturaresources of the Filipinos is one of the hallmarks

    of our national integrity. If our natura

    resources, which is the material basis of ou

    nation's existence, is placed in the hands o

    aliens over whom the Philippine Governmen

    does not have complete control, the Filipinos

    may soon find themselves deprived of thei

    patrimony and living as it were, in a house tha

    no longer belongs to them." (Republic vs

    Quasha 46 SCRA 160)

    So if you allow foreigners to acquire lands of the

    public domains, they have money diba... Tayo

    nga walang pera, so ano?

    3. "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 be

    provided by law."

    All agreements shall not exceed 25

    years but renewable every 25 years. There is nosuch thing as perpetual agreement. The

    Constitution itself limits it to 25 years. But it is

    renewable for another 25 years. If you may ask

    bakit 25 25 lang? If you add the two, total 50

    Why 50 years? Because that is the juridical life

    of a corporation. The 25 year limit is not

    applicable to water rights.

    The general rule is agreements shall not exceed

    25 years but renewable for another 25 years.

    Exception: Not applicable for water rights(Water rights for irrigation, for water supply

    fisheries, or industrial uses)

    The beneficial use is the limit or measure of the

    grant.

    "In cases of water rights for irrigation, wate

    supply, fisheries, or industrial uses other than

    the development of water power, beneficial use

    may be the measure and limit of the grant."

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    3/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    4. "The State shall protect the nation's marine

    wealth in its archipelagic waters, territorial

    sea, and exclusive economic zone, and reserve

    its use and enjoyment exclusively to Filipino

    citizens."

    The use and enjoyment of the marinewealth, of the archipelagic waters, territorial

    sea, and exclusive economic zone shall be

    reserved for Filipino citizens. Filipino citizens

    means Filipino natural persons. This is according

    to the opinion of Fr. Bernas. So, this suggestsna

    100% Filipino or if corporation, 100% of the

    stocks are owned by Filipinos.

    5. "The Congress may, by law, allow small-

    scale utilization of natural resources by Filipino

    citizens, as well as cooperative fish farming,

    with priority to subsistence fishermen and

    fishworkers in rivers, lakes, bays, and

    lagoons."

    The utilization of natural resources may

    be allowed on small-scales. The term "small-

    scale" refers to single proprietorship. If you

    allow corporations to utilize the natural

    resources, then you defeat the purpose of the

    law.

    Summary 5 Rules:1. Only agricultural lands are alienable.

    2. The exploration, development and utilization of

    natural resources belong to the state

    3. Agreements of the State and corporations shall not

    exceed for 25 years but may be renewed for another 25

    years

    4. The use and enjoyment of the marine wealth, of the

    archipelagic waters, territorial sea, exclusive economic

    zone shall be reserved for Filipino citizens.

    5. The utilization of natural resources may be allowed

    on small-scales.

    Sec. 3 talks about Rules on Disposition.

    SECTION 3. Lands of the public domain are

    classified into agricultural, forest or timber, mineral

    lands, and national parks. Agricultural lands of the

    public domain may be further classified by law

    according to the uses which they may be devoted.

    Alienable lands of the public domain shall be

    limited to agricultural lands. Private corporations o

    associations may not hold such alienable lands of

    the public domain except by lease, for a period no

    exceeding twenty-five years, renewable for no

    more than twenty-five years, and not to exceed one

    thousand hectares in area. Citizens of the

    Philippines may lease not more than five hundred

    hectares, or acquire not more than twelve hectaresthereof by purchase, homestead, or grant.

    Taking into account the requirements o

    conservation, ecology, and development, and

    subject to the requirements of agrarian reform, the

    Congress shall determine, by law, the size of land

    of the public domain which may be acquired

    developed, held, or leased and the condition

    therefor.

    Ano yung rules?

    1.

    Lands of the public domain are classified into

    agricultural, forest or timber, mineral lands,

    and national parks. Agricultural lands of the

    public domain may be further classified by law

    according to the uses which they may be

    devoted. Alienable lands of the public domain

    shall be limited to agricultural lands.

    Only agricultural lands of the public

    domain may be alienated. So, how about the

    rest? How can they be utilized, exploited and

    developed? Sabi ko kaninathere are four ways.

    The modes of exploitation of all the lands of the

    public domain that are inalienable.

    1.

    Direct activity

    2.

    Co-production

    3.

    Joint venture

    4.

    Production-sharing

    2. Only qualified individuals may acquire alienable

    lands of the public domain.

    By qualified individuals, we mean

    natural Filipinos. How about corporations? They

    are not allowed and qualified to acquire

    agricultural land but they can hold. There's a big

    difference between the terms acquire and hold

    When we say "acquire", ownership is

    transferred to another individual. When we say

    "hold," the ownership is retained by the State

    but possession is given to the lessee. Therefore

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    4/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    when we say "hold," we mean lease. There is a

    lease contract.

    What is the reason? Bakit hindi pwede ang

    corporation mag-acquire ng alienable lands of

    the public domain? Bakit disqualified sila?

    In the case of Lauson (118 SCRA 492),the Supreme Court said that the purpose of this

    Constitutional provision is to equitably diffuse

    land ownership or to encourage owner to be

    keeper *** and take a family-sized farm and

    therefore to discourage large land holdings by

    corporations.

    So, in order to equitably diffuse land

    ownership. Nung araw kasi, ang mga

    corporations, ang laki-laki ng kanilang land

    holdings. In order to prevent the same

    occurrence at the present, sa ating

    Constitution, bawal na. Only Filipino citizens

    may acquire alienable lands of the public

    domain.

    In the case of Republic vs. Villanueva

    (114 SCRA 875), the Court said the "prohibition

    was gained against undue exploitation of our

    natural resources by large corporations. "

    3. Filipinos are allowed to acquire not more than

    12 hectares. For leases, corporation can only leaseup to 1,000 hectares.

    "xxx not to exceed one thousand hectares in

    area. Citizens of the Philippines may lease not

    more than five hundred hectares, or acquire not

    more than twelve hectares thereof by purchase,

    homestead, or grant."

    The Court ruled in its discretion of the Congress

    to open public lands for lease for or acquisition ***.

    Summary:

    1. Only agricultural lands are alienable

    2. Only qualified individuals may acquire alienable lands

    of the public domain. Corporations cannot acquire but

    they can hold through lease.

    3. Filipinos can acquire only up to 12 hectares while

    corporations can lease only up to 1,000 hectares.

    ---- END OF FIRST EXAM ----

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    5/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    1903: The Public Land Law permitted the corporations,

    regardless of the nationality of the persons owning

    them, to purchase lands of the public domain.

    In 1919 came Act. No. 2874. After 62 years from the

    Public Land Law. It limited the exploitation of

    agricultural lands to Filipinos as well as Americans andcitizens of other countries which give reciprocity to the

    Philippines.

    Then came CA 141. It became effective on December 1,

    1936. It merely re-enacted Act. No. 2874 with respect to

    the modification with the nationality provision of the

    1935 Constitution. The 1935 Constitution preceded this

    law because this was enacted about a year after. It

    limits the disposition of lands to agricultural lands only.

    Wala nang ibang class unlike before na kahit na ano

    pwede. So, under CA 141, agricultural lands are furtherclassified into two (please check).

    Also, we have Act. No. 3013 which covers the

    disposition of patrimonial property of the government.

    Another law Act. No. 1123 and CA 32 as amended by CA

    316. These laws cover the disposition of mineral (?)

    lands.

    Another law is the Revised Administrative Law which

    covers the disposition of timber lands. Now, we have

    the Revised Forestry Law or PD 701. Dati, CA 542

    amending the Revised Administrative Law. Yan ang law

    governing the disposition of the timber lands. At

    present, PD 705 which covers the administration of

    timber lands and national parks.

    We also have CA 137. This is an old law. It's the Mining

    Act. We also have the Coal Act - RA 3719. Also, the

    Petroleum Act or RA 387.

    Then, RA 7160 also known as the Local Government

    Code of 1991 where the local government units has alimited power to re-classify agricultural lands of the

    public domain within its territorial jurisdiction.

    What office is mandated to control, develop or utilize

    our natural resources?

    As provided under Title 14, Sections 122 of EO 292 also

    known as the Administrative Code of 1987 (ordered

    during the time of Corazon Aquino.)...

    In the case of Custodio Mari vs. Sec. of

    Agriculture (92 Phil 410), the Supreme Court

    said "The Administration and distribution of

    public lands is committed by law to the Directo

    of Lands primarily, and ultimately to the

    Secretary of the Department of Agriculture and

    Natural Resources. In the exercise of such

    power they have to determine the conflictingclaims of applicants and occupants of

    disposable lands of the public domain."

    Who has the jurisdiction to adjudicate conflicting lands

    concerning disposable lands of the public domain?

    DENR. So, it is the DENR or Directors of Land which can

    adjudicate claims regarding disposable lands of the

    public domain.

    Is the grant of power and duty to the DENR operate to

    divest the ordinary courts of their jurisdiction to

    adjudicate conflicting claims? Example, conflicts in

    possession. To say it differently, the law vests DENR to

    adjudicate conflicting claims. Does it follow that the

    regular courts have lost their jurisdiction?

    The Supreme Court, in the case of Pitargue vs

    Sorilla (92 Phil 65), said "The vesting of the

    Lands Department with authority to administer

    dispose, and alienate public lands, therefore

    must not be understood as depriving the othe

    branches of the Government of the exercise o

    their respective functions or powers thereon

    such as the authority to stop disorders and quelbreaches of the peace by the police, and the

    authority on the part of the courts to take

    jurisdiction over possessory actions arising

    therefrom not involving, directly or indirectly

    alienation and disposition."

    What the SC is saying is that the power of the DENR

    does not divest regular courts their duty to try and hea

    cases involving cases with subject matter about

    possession?

    What is the jurisdiction of the DENR with respect to

    disposition and alienation of the lands of the public

    domain?

    If there are two applicants over a single

    property or a piece of land, then sa DENR because i

    involves alienation and disposition. That's the

    jurisdiction of DENR.

    But when the issue involves breaches of peace

    such as possession. Sabi ng isa na siya ang dapat na

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    6/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    possessor, sabi naman ng isa no. So, in issues of

    ejectment. When we say possession, it does not refer to

    ownership. It does not mean who has rights to own the

    land for purposes of alienation. Meaning, the State does

    not award this property.

    To make it simple. When the issue involves alienation

    and disposition of public lands, it is the DENR. If itinvolves merely possession and breaches of peace, it

    must be the ordinary courts.

    When a court adjudicates the issue in favor of

    one party, it does not declare who is the owner of the

    property. It merely declares who is entitled for the

    possession of the property. What I'm trying to say is

    that if there is a disposition of ownership in favor of one

    of the applicants, then it must the DENR ang may

    jurisdiction.

    What are the forms of concession of agricultural lands

    under CA 141?

    1.

    Homestead

    2.

    Lease

    3.

    Confirmation of Imperfect Title

    a.

    Judicial legalization

    b.

    Administrative legalization

    4.

    Sale

    We're going to discuss this one by one.

    Let's go to Homestead. What is the concept ofHomestead?

    By homestead is meant the home, the house and the

    adjoining land where the head of the family dwells. It

    can also be a home farm, the fixed residence of the

    head of the family, with land buildings surrounding the

    main house.

    So it is the land plus the building = Homestead

    But under CA 141, Homestead is a home of

    disposition of alienable lands of the public domain. It isa mode of a transfer of ownership of the disposable

    lands of the public domains.

    How can you own an alienable and disposable lands of

    the public domain?

    You apply for a homestead. If you are granted a

    homestead, then you will now own the land.

    What is the purpose of the Homestead?

    The Supreme Court in the case if Jocson vs

    Soriano (45 Phil 375), "To give the homesteade

    a place to live with his family so that he may

    become a happy citizen and a useful member o

    our society."

    Sabi nila, the root cause of insurgency is ou

    poverty. So, the solution there is to eradicate povertyOne way of eradicating poverty is to provide

    employment. One way of providing employment is to

    give our lands. Bigyan ng lupa ang mga tao na yan para

    mawala sa kanilang isipan ang kanilang problema. So,

    useful in the society na. That's the purpose.

    Cross reference pala is Article 152 of the Family

    Code on Family Home. It is the dwelling house and the

    land on which it is situated. Family home is where the

    family resides. It is the house, as well as the land. It is

    exempt from execution for as long as it is constituted as

    body home.

    Is homestead exempt from execution? Hindi pa siya

    pwede i-execute?

    Cross reference nito is Section 13a Rule 39 of the Rules

    of Court including Article 157 of the Family Code.

    If you look at Rule 39 (Section 13a), it talks

    about homestead as exempt from execution. Hindi yan

    ang ibig sabihin ng homestead under CA 141. The

    homestead under CA 141 is not the homestead

    mentioned under Section 3, par. 3. So what does itmean for homestead under Section13? It means fo

    purposes of execution, it means the dwelling house o

    the judgement debtor resides and the land in

    connection therewith. Kaya sinasabi ko, cross-reference

    natin is Articles 152 and 157 of the Family Code kas

    halos magkaparehas sila.

    Going back to the question, is homestead exempt from

    execution?

    The answer is yes but under Section 13 paragraph m

    Rule 39, not under Section paragraph a.(Properties specially exempted by law. But no

    article or species of property mentioned in this

    section shall be exempt from execution issued

    upon a judgment recovered for its price or upon

    a judgment of foreclosure of a mortgage

    thereon.)

    If you read CA 141, the homestead is exempt from

    execution. There is a limitation within the 5 yea

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    7/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    prohibitory period. Within that time, the homestead

    under CA 141, is exempt from execution.

    In the cases of Beach vs. Pacific (49 Phil 385)

    and Francisco vs. Parsons Hardware (67 Phil 234), the

    Supreme Court said that the homestead cannot be

    made liable for the satisfaction of any debt contracted

    before the expiration of the 5-year period from theissuance of the patent.

    If may judgment debtor and writ of execution,

    the court will order the sheriff to levy on your property.

    Pwede bang i-levy ang homestead sa inyong debt? No.

    Not within the prohibitory period. What if kusa mong

    ibinigay? Dacion en pago. You pay your debt and your

    dacion is your property. So, is it still covered under the

    prohibition? Yes because the Supreme Court in the

    Beach and Francisco cases, if you allow that to happen,

    you are circumventing the law.

    Basis: Section 118 of CA 141

    What would happen after the 5-year prohibitory

    period? Is homestead still under the exemption from

    execution?

    The answer is yes but not under CA 141 but under the

    provisions of the Family Code under Article 152 for as

    long as the homestead is also constituted as a family

    home.

    If within the 5-year prohibitory period, whether

    voluntary or involuntary, sale, encumbrance anddisposition of homestead is exempt under Section 13m

    of Rule 39 and Section 118 of CA 141.

    If made after the expiration of the prohibitory

    period, is it still exempt from execution? Yes but this

    time, under Article 152 of the Family Code.

    What is the extent of the exemption from execution?

    ...When the judgment is rendered to recover --- upon a

    judgment for mortgage or foreclosure. Niutang ka,

    ginawa mong collateral. Can you still claim forexemption? No. That's an exemption.

    If niutang ka, di ka nakabayad, di pwede i-

    execute ang homestead or family home for the

    settlement of the debt. Pero if nangutang ka sa bangko,

    then ginawa mong collateral, you cannot claim "exempt

    ko from execution."

    Hindi kasali ang value in excess of Php 300,000

    in urban and Php 200,000 in rural areas. So, it's

    exemption is only up to Php 300,000 or 200,000.So, 18

    years of age, does not own more than 24 hectares of

    land. As to natural persons not allowed to acquire

    homestead. As to married woman, generally, no

    allowed. It must be the husband. As a general rule, the

    married woman is not allowed to apply for homesteadunless she is living separately from the husband and not

    dependent upon him for support. Another exception is

    when her husband is insane or physically incapacitated

    to work and third when her husband is in prison serving

    a term of such duration as to --- him from complying

    with the requirements of the law regarding the --- o

    the land. So these are the instances where a married

    woman may be allowed for a homestead.

    What is the maximum allowed under CA 141?Not more than 24 hectares. So up to 24 hectares only.

    think this has been modified by the 1987 Constitution

    where the maximum area is only 12 hectares. As to the

    issue whether or not a qualified person may be

    qualified for more than 2 homesteads, as a general rule

    no. The privilege is granted to a homesteader by Act

    No. 926 to acquire additional homestead but there are

    exceptions.

    As a general rule, only one homestead i

    allowed. As an exception: where homestead is acquired

    prior to the approval of CA 146, provided that the oldhomestead plus the new homestead do not exceed 24

    hectares. Again, this is modified by the 1987

    Constitution. Second, when old homestead plus new

    homestead are located adjacent in the same

    municipality. Magkatabi sa isang municipality. And the

    patent for the old homestead has not yet been issued

    prior to the entry to the news homestead. Ibig sabihin

    hindi pa na-issuehan ng patent. Homestead entry

    meaning you are allowed to possess the land.

    By the way, you read the case of Republic of CA(129 S 331).

    What is the procedure?

    You have to apply a formal application in writing. Comes

    the approval of the application. After, entry is allowed

    When entry is allowed, you are given time within which

    to cultivate the land. After that, there is a hearing in

    order to receive evidence of compliance of the

    requirements of cultivation. After submitting the

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    8/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    evidence, survey will follow if plan is --- and eventually

    the plan is approved. After the approval of the plan, the

    grant of the patent.

    If you are granted a patent, you register it in

    accordance to provisions PD 1529 or the Property

    Registration Decree to come under the protection of

    Torrens System of registration in the Philippines.

    Now, what is the nature of the right of

    possession of a homestead applicant? After your

    application is approved, you are allowed entry. Diba?

    This is the ideal procedure but actually, whats

    happening is that yung tao, nauna na yung entry kesa

    yung application. So kung ano yung possession mo, yun

    yung ina-applyan mo but that is not how it is supposed

    to be. Supposedly, papasok ka lang sa area when your

    application is approved.

    So if you are allowed entry, what is the nature of your

    possession?

    Syempre, when you enter the land, necessarily you

    possess the land. So what is the nature of your

    possession as a homestead applicant? Remember, the

    patent has not yet been issued. Your still in the process

    of complying with the requirements of cultivation.

    Before the approval of the homestead

    application, sinabi ko kanina, yung applicant has no

    right at all to enter the land. No rights to possess the

    land. But after the application is approved, just to

    reiterate, entry is authorized. If you are authorized toenter, you have the right to cultivate and the right to

    acquire title to the land after compliance with the

    requirements on cultivation. Then, the right to be

    notified in case of a cancellation of the homestead

    entry. This is the case of Ayson vs. Republic(November

    29, 1954.)

    Now, what are the conditions on the authority

    to possess prior to the completion of the requirements?

    Nakapasok ka na, you are cultivating already but di mo

    pa nacocomplete ang period of requirements ofcompletion. Your right is not indivisible. Your right of

    possession is not indivisible. It doesnt mean that when

    you are allowed entry that the land is subject of your

    application can no longer be awarded to other tenants.

    More significantly, your possession of the land

    does not deprive the Director of Land of his control over

    the disposition of that land and the adjudication of the

    same in favour of other applicants or tenants. More

    often, there is an overlapping of claims between

    applicants. One cannot claim superior right over the

    other because the possession cannot be indivisible. A

    what Ive said, it doesnt mean that the Director o

    Lands would lose jurisdiction over the land.

    After the completion of the land requirement

    (cultivation) and even before the issuance of the patentthe right of the homestead applicant becomes a vested

    right. Meaning, the homesteader here becomes an

    equitable owner. More significantly again, the land

    becomes a private land. Remember these three.

    When is homestead ownership determined therefore?

    The date of acquisition of the ownership is determined

    from the time when the applicant fully complied with

    the requirements of the Public Land Law for the

    acquisition of the patent, not from the issuance of the

    patent but from the time he is able to comply with the

    requirements on cultivation.

    CA 141 covers only alienable lands of the public

    domain. So, lands which have been previously

    adjudicated to a patentee and a certificate of title has

    already been issued, the same can no longer be furthe

    adjudicated by the Director of Lands because once the

    land becomes a private land, the same is taken away

    from the jurisdiction of the Director of Lands. It is

    already a private land.

    Lets talk about transfer of rights, sale or mortgage of ahomestead before the expiration of prohibitory period.

    May an applicant of a homestead patent be allowed to

    transfer his rights after the approval of his application

    but before issuance of a title?

    Section 20 of CA 141. The answer to this is generally no

    The general rule is no. He cannot transfer his rights

    after the application is approved or before the issuance

    of the patent.

    Exceptions: First, the applicant has already

    complied with all the requirements of the law that hecannot continue of his application on his own. The

    transfer is made to a purchaser who is legally qualified

    to acquire a homestead. And the transfer is not made

    for purposes of --- or to sell it for a higher price. Lastly

    there must be an approval of the Director of Lands.

    Let us talk about the prohibitory period. It is counted

    from the issuance of the patent.

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    9/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    What is the effect of a sale of homestead during the

    prohibitory period? It is null and void.

    What is the effect of mortgage, alienation or

    encumbrance during the said period? Again, it is null

    and void.

    Even if the sale is approved by the Director of Lands, the

    sale is still void. Even if the mortgage is made with theconsent of the DoL, it is still void. Even if the sale is

    ratified after the prohibitory period, the sale or

    mortgage is void. Kaya sinasabi ko, the prohibition is

    absolute within the prohibitory period.

    What is the rationale behind this?

    The Supreme Court, in the cases of Ortega vs.

    Tan (January 23, 1990) and Delos Santos vs.

    Roman Catholic Church (Feburary 25, 1954),

    said The prohibition of the law which prohibits

    the sale or encumbrance of the homestead

    within the prohibitory period is mandatory. This

    cannot be defeated even with approvals

    granted beyond the expiration of the period

    because the purpose of the is to promote a ---

    policy which is to preserve and keep in the

    family of a homesteader that portion of the

    public alnd which the State has gratuitously

    given to him

    In other words, it would render the very spirit

    of the law as naught and meaningless. It is going to

    render CA 141 as balewala. After the prohibitory period,the 5 year, meron din siyang 25-year prohibitory period

    but the period of 25 year prohibition is not mandatory

    but only directory. Di kailganan sundin except when

    constitutional issues are present.

    Read these cases: Flores vs. Placima(50 OG 73), --- vs.

    Montano(Gr. No. L-5567)

    Within the 25-year prohibitory period, the

    approval of the DoL is necessary. If you sell a

    homestead within the 25-year prohibitory period, hindimo kailangan agad-agad makuha ang consent ng DENR

    Secretary or Director of Land, but you can get it

    anytime. Kapag kumuha ka ng consent, the same cannot

    be denied. Well, except, sabi ko nga, on constitutional

    grounds.

    Section 119 of CA 141 provides a right of redemption.

    Every particular piece of of land acquired under

    homestead or free patent, provision of RA --- shall be

    subject to repurchase by the applicant, his widow o

    legal heirs within a period of 5 years from the date o

    conveyance.

    So, if you sell it now, you still have 5 years in

    which to redeem the homestead. You can read

    the case of Belisario vs. IAC (165 S 101). So

    take note that the right of repurchase under CA141 is a right. It is not an obligation. It is

    transmissible and it cannot be waived even if

    the waiver is part of the Deed of Sale.

    If you sell a homestead and one of the

    provisions therein is a waiver on the part of the seller to

    re-acquire or repurchase the property, the same is void

    Your right of repurchase under CA 141 automatically

    becomes of the sale even if this provision does not

    appear in the Deed of Sale. It is impliedly written in the

    Deed of Sale. What would govern is the law on Section

    119 of CA 141.

    When are you going to count the 5 year period of

    repurchase?

    Depende yan if it is voluntary. If voluntary, from the

    date of sale. If involuntary, for example foreclosure o

    the property and subjected to public auction sale, the

    period is counted from the expiration of the 1 year lega

    redemption period. And the legal redemption period

    usually, is counted from the date of registration in the

    Registry of Deeds, not on the date of sale.

    How do you construe the term heirs?

    The Supreme Court said, in the case o

    Madapos vs. Dela Merced (174 S 599), the term

    legal heirs is used in Section 119 in its generic

    sense. It is broad enough to cover any persons

    called to the succession either by provision in a

    will or by operation of law. Thus, legal heirs

    include all testate and intestate heirs depending

    upon whether the succession is by the will of

    the testator or the law.

    The enumeration under Section 119 of CA 141 is

    not an exclusionary rule. It merely enumerates

    the persons qualified under the law to make the

    repurchase. So, nakalagay kasi sa Section 119

    subject to repurchase of the applicant, by his

    widow or his legal heirs. Walang preference sab

    ng SC. But when the seller is still living, he is the

    one who has the right of redemption. This is the

    case of Umengan vs. Butacan(7 SCRA 311).

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    10/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    What is the purpose of right of repurchase? Bakit

    merong right of repurchase?

    This is answered in the case of Ferrer vs.

    Magante (50 SCAR 424) in reference toRivera

    vs. Oramen (24 SCRA 448) where the Supreme

    Court said The applicant for a homestead is to

    be given all the inducement that the law offersand is entitled to its full protection. The policy

    of the law is not difficult to understand.

    The incentive for a pioneer to venture

    into developing virgin land becomes more

    attractive if he is assured that his effort will not

    go for naught should perchance his life be cut

    short. This is merely a recognition of how

    closely bound parents and children are in a

    Filipino family. Logic, the sense of fitness and of

    right, as well as pragmatic considerations thus

    call for continued adherence to the policy that

    not the individual applicant alone but those so

    closely related to him as are entitled to legal

    succession may take full advantage of the

    benefits the law confers.

    As I said before, if it involves a voluntary sale,

    the 5-year period of repurchase is counted from the

    date or conveyance. If it is an involuntary sale, it is

    counted from the expiration of the 1 year legal

    redemption period.

    The Supreme Court, in the case of Belisario vs.

    IAC (165 S 101) and East Bank vs. CA (174 S

    619), said The target period of redemption in

    Section 119 of CA 141 begins run after the

    expiration of the one year period of the

    purchase of the land in an extra-judicial

    foreclosure. The period is reckoned from the

    date of registration of the certificate of sale on

    the Registry of Properties concerned and not

    from the date of option sale. So thats very

    clear.

    Right of repurchase when properly exercised.

    Lee vs. CA (November 28, 1975)The Supreme

    Court said that the right of repurchase is

    deemed to have been exercised only when

    tender of oayment has been made by the

    vendor. It not sufficient for the vendor to

    intimate or to state to the vendee that the

    former desires to redeem the thing sold, but he

    must immediately thereupon offer to repay the

    price.

    So within the 5-year period of repurchase

    before the expiration of the period, the homesteade

    shall offer to pay. Hindi enough yung sasabihin lang niya

    na I'm going to repurchase. It must be more than thatIn this case, the SC said you must immediately offer to

    pay. Dapat sabihin na I'm going to redeem and I'm going

    to say. There must also be a tender of payment. I

    tender mo ang bayad mo.

    What do we understand by tender of payment?

    In the case of Roman Catholic Bishop of

    Malolos vs. IAC (November 16, 1990), the

    Supreme Court said "Tender of payment

    involves a positive and unconditional act by the

    obligor of offering legal tender currency as

    payment to the obligee for the formers

    obligation and demanding that the latter accept

    the same." Offer legal tender, ibig sabihin cold

    cash.

    However, in the case of Francisco vs. Bautista

    (December 19, 1990), the Supreme Court said

    that when you make a tender of payment... it

    must be followed by consignation in court

    Once a consignation is made, the obligation is

    made. The Supreme Court also said that "In

    instances where no debt due and owingconsignation is not proper. Consignation is not

    required to preserve the right of repurchase a

    a mere tender of payment is enough if made on

    time as a basis for an action to compel the

    vendee a retro to resell the property."

    Further, the Supreme Court said where valid

    tender of payment is made pursuant to the ---, the right

    of repurchase is a right. It is not an obligation. So, within

    the five year repurchase period, it is enough to preserve

    the right in a valid tender of payment. If hindi gi-acceptng creditor, even beyond the 5 year period, the right o

    repurchase is still there.

    Tan vs. CA(172 S 660): "Legal redemption is in

    the nature of a privilege created by law partly

    for reasons of public policy and partly for the

    benefit and convenience of the redemptioner

    to afford him a way out of what might be a

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    11/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    disagreeable or inconvenient association into

    which he has been thrust."

    That is the rationale behind the right given to the

    homesteader to repurchase the property. It is a

    privilege created by law for reasons of public policy and

    partly for the benefit and convenience of redemptioner.

    For rural banks, there is a different period of

    repurchase. You read the case of Rural Bank of Davao

    vs. CA (217 S 554). Pag-rural bank ang nag-foreclose, the

    legal redemption period is 2 years. So, if you add 5 years

    to the 2 years, the period of redemption in favor of the

    homesteader is now 7 years.

    What would be the redemption price?

    Article 1616 on the New Civil Code in relation to Article

    597 and 546, the redemption price would be the price

    of sale + necessary expenses and useful expenses.

    Necessary expenses are those incurred for the

    preservation of the land. Useful expenses are those

    which increase the value of the thing or augment the

    income of the thing.

    The house constructed on a homestead is a

    useful homestead. The homesteader has an

    option either to require the vendee a retro to

    remove the useful improvement on the land

    subject to the sale a retro or to pay for for the

    useful improvement introduced by the vendeea retro. This is the ruling in the case of Calagan

    vs. CFI of Davao (95 S 498).

    Section 28 of Rule 39 of the Rules of Court: The

    redemption price would be the purchase price plus the

    interest plus assessments and taxes. So if you are going

    to fuse Section 28 and Article 1616, you add the

    necessary expenses and useful expenses in the

    enumeration. Actually, in assestments, taxes are

    considered necessary expenses. So, you included there

    in the enumeration of useful expenses. So, purchaseprice, interests, taxes as well as useful expenses.

    Cross-reference: Salinilias vs. CA (169 S 829). What are

    the instances when the right to redemption is not

    applicable?

    1.

    When the conveyance was made to an

    immediate member of the family of a

    homesteader and to his direct descendants and

    heirs. (So, walang instance na lalabas yung

    homestead sa family circle.)

    2.

    Where the exercise of the right of repurchase i

    not for the purpose of preserving the land

    within the family circle but to dispose of it once

    again for a greater profit.

    3.

    Where the land is no longer devoted to

    agricultural purposes but converted toresidential and commercial purposes. (So wala

    na yung essence ng agriculture which is the very

    reason why the homestead is granted to the

    homesteader. Once converted to other uses

    the right of redemption is lost.)

    Let's now take up sale.

    For your reference, read the case of Jimenez vs

    Macaraig (219 S 230). Who are qualified to purchase

    agricultural land? Filipino citizen of legal age and head

    of family. Sale is not allowed to corporations by express

    provision of the 1987 Constitution, Sec. 3 of Article 12

    Maximum area allowed is only 12 hectares.

    Take note of the procedures in acquiring of agricultura

    lands through sale.

    First is the filing of the application followed by the

    appraisal then publication of the notice of sale

    submission of bids, the award to the highest bidder and

    of course, the payment of the selling price.

    What are the conditions of the issuance of the sale'spatent?Take note of the conditions.

    1.

    The purchaser must cultivate not less than 1/5

    of the land within the 5 years from the date of

    award.

    2.

    The purchaser must show actual occupancy

    cultivation and improvements for at least 1/5 o

    the land applied.

    Upon compliance with conditions 1 and

    2, there will be a survey of the area. After the

    survey of the area, the sales parent is issued. Iyou are issued a patent, you have to register it

    under PD 1529 to be covered by the Torren's

    System of Registration. Iba yung patent, iba

    yung registration of title. The patent evidence

    the grant by the government under CA 141 but

    that is not enough to come under the

    protection of the system of registration. So the

    patentee still needs to register it under the

    Registration Decree or PD 1529.

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    12/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    Assuming you are occupying the land, you are still

    cultivating it and the patent is to be issued, meron ka

    bang rights to sell?

    CA 141 allows the sale of an applicant over a sales

    patent application provided that the sale does not

    affect the interest of the government of the land and

    the sale is made to a transferee who is qualified. Thetransferee must not be deliquent and the sale must be

    approved by the DENR.

    1.

    Take note also of the restrictions. What are the

    restrictions? Yung limitations nasa Sections 128,

    110. 111, 112, 131 and 132. The more

    important restrictions are:

    1.

    There is a 10 year prohibitory period from the

    issuance of the sales patent on encumbrance,

    conveyance and disposal. So a patentee cannot

    encumber ir dispose of the land within the

    prohibitory period.

    2.

    Joint ventures are not also allowed.

    3.

    Take note of the special limitation under

    Section 122 where it provides that lands

    originally acquired under CA 141 (homestead

    patent, homestead patent, sales patent) shall

    not be encumbered, alienated or transferred

    except to a person or corporation who may

    acquire lands of the public domain under CA

    141. Tandaan niyo yan. There is a big

    implication.

    So if you are a buyer of a land originally

    disposed of under the provisions of CA 141, there might

    be a danger that the sale would be declared null and

    void if you are not qualified. The sale must be made in

    favor if a person or corporation qualified or allowed

    under CA 141 to own lands of the public domain.

    There is no issue with respect to a natural

    person because a Filipino citizen is qualified to acquire

    lands of the public domain. So, the sale made by a

    homestead patentee or a sales patentee to a Filipinocitizen, pwede yan. No danger. But when the buyer is a

    Filipino corporation, you have to determine whether or

    not that Filipino corporation is qualified under CA 141

    to acquire lands of the public domain.

    What are those corporations qualified under CA 141?

    Corporations for commercial, industrial, educational,

    religious or charitable purposes. These are the only

    corporations which are allowed to acquire lands of the

    public domain.

    So any corporations which buy a land originally

    disposed of under CA 141 and those not enumerated

    above (under CA 141), there is a likehood that the sale

    would be null and void. Take note of this.

    Sa lease naman. Cross-reference Section 23 of CA 141

    and Section 3 of Article 13 of the Constitution.

    This time, Filipino corporations owned by at

    least 60% owned Filipinos are qualified to lease lands of

    the public domain. What is the maximum area allowed

    for Filipino citizens, we have not more than 500

    hectares and for Filipino corporations not more than

    1000 hectares. Foreign corporations are not allowed to

    lease agricultural lands of the public domain.

    What is the period of lease? 25 years.

    What is the procedure?

    Cross-reference Section 24-27 of CA 141. Similar to sale

    ang process. There must be an application, then

    appraisal, notice, publication, bidding and afterwards

    award.

    I like to stress also the restrictions on lease. Provided

    under Section 14.

    1.

    Sub-lease is not allowed except when approved

    by the DENR Secretary. 2. Sub-lease is not alsoallowed to those not corporations and citizens

    not allowed to acquire public lands.

    2.

    The lessee is restricted to remove or dispose o

    timber except as permitted by exisiting fores

    regulation (PD 705.)

    We're done with sales and lease. Next meeting, we are

    going to discuss confirmation of imperfect title.

    ---- END OF SECOND EXAM ----

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    13/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    Okay, confirmation of imperfect or incomplete title.

    There are two ways to confirm or to perfect an

    incomplete title.

    1.

    Judicial legalization

    2.

    Administrative legalization or Free Patent under

    the provisions of CA 141

    Lets go directly to procedure of application forjudicial legalization. As the term suggests, the

    application is filed for by the courts. Section 43 of CA

    141 provides that it must be made in accordance with

    the Land Registration Act. The Land Registration Act is

    now PD 1529 or Property Registration Decree.

    What is the procedure?

    1.

    The applicant shall cause the survey of the land

    applied for.

    Kasi pag-sinabi mong confirmation of

    imperfect title, when would this happen? If you

    are in possession of a public land which is

    alienable and disposable for at least for 30

    years, then what you need to do is to have it

    confirmed. Under the law, the lapse of at least

    30 years would make the applicant or the

    possessor the equitable owner of the land.

    Wala lang siya titulo and to have titulo, he

    needs to apply for the confirmation of the title.

    So, this is an example of the exception

    that prescription does not lie against the

    government. The general rule is that

    prescription does not lie against thegovernment and the exception is when the

    government gives its consent. CA 141 is an an

    example of the consent given by government

    for prescription.

    2.

    The survey will be attached to the application to

    be filed via petition to the courts.

    3.

    There will be an initial hearing.

    4.

    The court orders service of notice to interested

    parties.

    It is addressed to the general public

    that Mr. Juan de la Cruz is claiming ownership ina public land attached therewith is a survey.

    Those of you who have interest over the

    property shall file comment or opposition for

    the application of the imperfect title.

    5.

    If there is an opposition, the procedure will be

    more tedious.

    For reason of due process, the court is

    mandated to hear the opposition or petition.

    6.

    There would be a hearing and decision of the

    court. After promulgation, there would be

    issuance of the decree of the court and

    registration must be made in accordance with

    the Land Registration Act (or Land Registration

    Authority).

    7.

    There will be registration in the Registry of

    Deeds.

    After following the procedures, that is the time

    that a persons possession or property rights will come

    within the protection of the Torrens System of

    Registration.

    What is the difference between Land Registration Ac

    (PD 1529) and the Public Land Act (CA 141)?

    If you find for a confirmation of imperfect title

    before the courts, under CA 141, you have to follow the

    procedures outlined under PD 1529, that is you file a

    petition before the court. If you file a homestead unde

    CA 141, you follow the procedures under CA 141. If one

    applies under the provisions of PD 1529, and the other

    one applies also for the similar application of the

    Homestead law, ano ang difference ng procedure nato?

    Judicial legalization under PD 1529 and Homestead

    provisions under CA 141?

    1.

    Under the LRA, the right of title of the applican

    is presumed to exist. If you are the applicant

    udner the provisions of the Property

    Registration Act, ang sinasabi mo is that this

    land is mine. Akin ito, because I possess this foat least 30 years. I am now considered as the

    equitable owner by virtue of prescription. It is

    presumed that when you apply, you are

    presumed to be the rightful possessor and

    owner of the land. Ang hinhigi mo lang is the

    confirmation. BUT under CA 141, no such

    presumption over the right of the title. If you

    file a homestead petition, ang sabihin nun is

    that the property is owned by the government

    What you are saying is, bigyan niyo ako ng lupa.

    2.

    Under the LRA, right of the title of the land issought to be confirmed while under the PLA

    the land is under claim of ownership.

    3.

    Under LRA, dismissal of the court may be

    subject to re-application. Under PLA, dismissa

    bars future petition.

    4.

    Under LRA, notice of losing the land (?). Unde

    PLA, once application is denied, the person

    loses the land without affording anothe

    chance.

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    14/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    As Ive said earlier, Section 41 of CA 141, this

    one of the examples where the State gives consent for

    prescription. In relation to Article 1113 of the NCC

    Under Section 48 of CA 141, the burden of proof lies

    with the state to prove that the land is really a public

    land. So magkaiba na ngayon yung position. So, if you

    are claiming or applying under the provisions of LA,particularly PD 1529, the burden of proof lies on the

    part of the state to dispute the presumption. Again, the

    presumption is that the land is owned by the applicant.

    It is the obligation of the state to show otherwise, or

    that the land is inalienable or disposable, or that

    prescription has not set in.

    Take note that juridical persons are disqualified

    to apply for judicial confirmation of imperfect or

    incomplete title under the provisions of CA 141. But you

    read these cases

    1.

    Director of Lands vs. Lo-od (134 S 463)

    2.

    Director of Lands vs. IAC (146 S 509)

    3.

    De Ocsio vs. CA (February 28, 1989)

    Lets go to administrative legislation. The term

    suggests administrative, its non-judicial. You file it with

    the Bureau of Lands. Administrative legalization of

    imperfect title, so yung venue yung magkaiba.

    The procedures under the Bureau of Lands are

    simple. Its more simple.

    1.

    Apply with the BoL, then the BoL will justmake sort of notice (posting of notices sa

    iba-ibang lugar).

    2.

    There would be investigation before survey.

    3.

    If survey is approved, the plan is drawn.

    4.

    Then issuance of the patent.

    Although the procedure is more simple, it

    would take several years before the title or patent is

    issued. Mas mabilis pa rin sa court kesa Bureau of

    Lands. Now, after the patent is issued, the land

    becomes private. Francisco vs. Villegas (145 S 87)

    Although some cases would suggest that when

    a parcel of land is occupied by an individual, then

    prescription had already set in, the land is already

    segregated from the mass of the public domain. In

    other words, the land no longer becomes part of the

    public domain.

    Sabi ng court, in order for the right to ripen to a

    patentable title, kailangan mo pa rin mag-apply para

    magkaroon ka ng titulo. So that would be a concrete

    evidence that the land is already segregated from the

    land of the public domain. Its a proof of ownership ove

    the parcel of land. Case of Naval vs. Jonsay (50 OG

    4792)

    In your study of land titles and deeds, the free

    patent is deemed final and conclusive. One year from

    the date of promulgation of the patent. One year before

    the title becomes indefeasible. So, the indefeasibility o

    the title is conclusive one year after the issuance of the

    patent. The exception is when the title is confirmed

    through fault.

    Director of Lands vs. Abanilla (124 S 358): The

    Supreme Court was categorical when it said that the

    certificate of title cannot be used as a shield to ---.

    Take note of the restrictions under Section 118

    of CA 141, sa free patents. Merong mandatory

    prohibitory of 5 years from the issuance of the patent. I

    cannot be sold, encumbered or alienated within the

    said prohibitory period.

    So, lets go to Minerals.

    Refer to Section 2 of Article 12 of the 1987 Constitution

    1.

    The exploration, development, and utilization o

    natural resources shall be under the full controand supervision of the State. The State may

    directly undertake such activities, or it may

    enter into co-production, joint venture, o

    production-sharing agreements with Filipino

    citizens, or corporations or associations at least

    60 per centum of whose capital is owned by

    such citizens.

    2.

    The President may enter into agreements with

    foreign-owned corporations involving eithe

    technical or financial assistance for large-scale

    exploration, development, and utilization ominerals, petroleum, and other mineral oils.

    What are the limitations?

    1.

    Financial and technical assistance.

    2.

    Large-scale exploration, development and

    utilization of minerals.

    Ano yung pwede ienter ng President into

    agreements? With foreign owned-corporations pero

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    15/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    limited lang. Refer above. Tsaka, it involves only mineral

    lands, hindi pwede ang forest lands.

    In the case of La-Bugal Blaan, the decision of

    the Supreme Court on the issue on WON the provisions

    under the Mining Act of 1982 allowing foreign-owned

    corporations to directly mine the mineral lands, pwede

    ba? The constitution says that their participation is onlyfor financial and technical assistance. In other words,

    they cannot engage in actual mining operations.

    But the Philippine Mining Act of 1982 provides

    for a situation where foreign-owned corporations may

    directly undertake actual mining operations. That

    provision was assailed as unconstitutional. The

    constitution does not allow it. The Supreme Court

    decided that the provisions RA 7942 is unconstitutional.

    But then, the respondents filed a motion for

    reconsideration. The SC then said that it is

    constitutional. The SC justified it by the maount of

    money or profit the government will generate from the

    operations of the foreign-owned corporations. So that

    paved a way for the entry of foreign-owned

    corporations.

    Under the Spanish Regime, ang sinusunod is the

    concept of jura regalia. All natural resources belong to

    the crown, or to the king. If you want to exploit, you get

    a decree from the king. During the American regime, we

    have the Philippine Bill of 1902 where the disposition of

    mineral resources of the public domain was reserved tothe state, nawala na yung ownership by the crown but

    ownership by the state. So, the exploration and

    exploitation are open to both Filipinos and Americans.

    During the American regime, Americans were allowed.

    Take note of other related laws, RA 1776 as well

    as RA 7952. Maraming important laws like Petroleum

    Act, Coal Development Act, Mineral Resources

    Development Decree. Ito yung mga lumang batas but

    they are still good. Although yung mga ibang laws on

    mining, nawala na ito. Nadagdagan ng bago. At present,we are using the Philippine Mining Act of 1995, not

    1992.

    Take note of the definition of minerals and

    mineral lands. Also the classification of mineral lands.

    If we go by the old definition, we have four

    kinds of mineral lands. We have the metal, precious

    stones, fuels (lands containing combustible materials)

    salines, mineral waters, granite.

    The small-mining act would only refer to meta

    or metal--- ores. Yung particularly gold and tsaka silver

    RA 7076 does not cover precious stones, jewels and

    salines and mineral waters.

    What office is charged with the administration

    of mining laws? DENR. The findings of facts of the DENR

    is conclusive and cannot be changed unless there is a

    grave abuse of discretion.

    What is the maximum area allowed? With

    respect to individuals, we have 500 has, and 1000 has

    entire Philippines. For mining partnership, 5000 has in

    province and 10000 has entire Philippines. For mining

    corporations, 10,000 has.

    Take note of the areas close to mining locations

    You read the case of Baguio Gold Mining vs. CA (July 18

    1991) and the case of Apex Mining vs. Garcia (July 16,

    1991).

    There are two cases here which Id like to

    discuss in relation to mineral lands.

    The case of Ungay M Mines, Inc. vs. IAC

    (September 1987): An individual filed an application fo

    the said agricultural purposes. Ito yung lupa, nag-apply

    siya. Pero dito, this man also applied for miningoperations. The issue here is WON a land can be

    classified as both agricultural and mineral. Can they co

    exist? Under the premise that the said land can be

    classified as both mineral and agricultural, the SC said

    the issuance of load patents on mineral palce by the

    President of the Philippines in 1962 in favour of the

    petitioner, granted to it only the right to extract or use

    the minerals which may be found on or under the

    surface of the land. On the other hand, the issuance of

    the free patents by the Director of Lands in 1979 in

    favour of respondents, granted to them the ownershipand rights to use the land for agricultural purposes bu

    excluding the rights to use or extract the minerals which

    may be found on or under the surface.

    What the SC is saying is that both can co-exist

    The land may be classified as both agricultural and

    mineral. Depende na, may limitation. If you are granted

    free patent, sayo lang ang sa taas. You use it fo

    agricultural purposes but you have no right over the

  • 8/12/2019 NatRes Transcription - Atty. Batacan (LA)

    16/16

    NATURAL RESOURCESATTY. BATACAN (SY 2013-14) | CUTIE NOTES

    minerals found therein. Kung ikaw naman ang nabigyan

    ng right to mine, sa baba ka lang. You cannot prevent

    others from utilizing the land.

    But then, one year later, thatshow --- the SC is.

    In the case of Atok vs. CA, decided April 15, 1950. The

    SC said the rights over the land are indivisible. The land

    cannot be half agricultural and half mineral. Theclassification must be categorical, in that the land must

    be completely mineral or completely agricultural. It can

    never be both. The land which was originally classified

    to be agricultural ceased to be so mineral and

    completely mineral once ---. Kapag mineral yan, mineral

    na yan. Memorize the case of Atok (digest).

    What is the rule? The rule is that once minerals

    are discovered in the land, whatever the use to which it

    is devoted at that time, such use may be discontinued

    by the state to enable it to extract the minerals therein

    in the exercise of its sovereign prerogative. It may be

    converted to a mineral land and may not be used by any

    party, including its registered owner. In other words,

    even if you are now the owner of a private land like 2

    has of agricultural land and naay nakita na mina, the

    natural resources even found in the private land, belong

    to the state. So the state may take back your land to

    mine the resources. Of course, there is payment of just

    compensation.

    ---- END OF THIRD EXAM ----