Alavrez vs PICOP - d

8/11/2019 Alavrez vs PICOP - d

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EN BANC

HON. HEHERSON ALVAREZ substituted by HON.

ELISEA G. GOZUN, in her caacity as Secretary !" the

#eart$ent !" En%ir!n$ent and Natura& Res!urces,

Petitioner,

- versus -

'ICO' RESOURCES, INC.,

Respondent.

x - - - - - - - - - - - - - - - - - - - - - - - - -x

'ICO' RESOURCES, INC.,

Petitioner,

- versus -

HON. HEHERSON ALVAREZ substituted by HON.

ELISEA G. GOZUN, in her caacity as Secretary !" the

#eart$ent !" En%ir!n$ent and Natura& Res!urces

Respondent.

x - - - - - - - - - - - - - - - - - - - - - - - x

(HE HON. ANGELO (. RE)ES *"!r$er&y H!n. E&isea G.

G!+un, in his caacity as Secretary !" the #eart$ent !" En%ir!n$ent and Natura& Res!urces *#ENR,

Petitioner,

- versus -

'A'ER IN#US(RIES COR'. O-

G.R. N!.

/0012

G.R. N!.

/13/

G.R. N!.

4543

Present:

PUNO, C.J .,

CARPIO,

CORONA,

CARPIO

MORALES,



(HE'HILI''INES *'ICO',

Respondent.

CHICO-

NAZARIO,

VELASCO, JR.,

NACHURA,

LEONAR!O-

!E CAS"RO,

#RION,

PERAL"A,

#ERSAMIN,

!ELCAS"ILL

O,

A#A!, $nd

VILLARAMA,

JR., JJ .,

Pro%&'($ted:

!e)e%*er +,

x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x

R E S O L U " I O N

CHICO-NAZARIO, J .:

"/e )$&se o0 $)tion o0 PICOP Reso&r)es, In). 1PICOP2 in its Petition 0or

M$nd$%&s 3it/ t/e tri$' )o&rt is )'e$r: the 6!%ern$ent is b!und by c!ntract, a

7/7 #!cu$ent si6ned by then 'resident -erdinand 8arc!s, t! enter int! an

Inte6rated -!rest 8ana6e$ent A6ree$ent *I-8A 9ith 'ICO'. Sin)e t/e

re%ed4 o0 %$nd$%&s 'ies on'4 to )o%pe' $n o00i)er to per0or% $ ministerial d&t4,

$nd sin)e t/e 56 !o)&%ent itse'0 /$s $ pro7iso re8&irin( )o%p'i$n)e 3it/ t/e

'$3s $nd t/e Constit&tion, t/e iss&es in t/is Motion 0or Re)onsider$tion $re t/e0o''o3in(: * "irst&y, is the 7/7 #!cu$ent a contract en"!rceab&e under the

N!n;I$air$ent C&ause !" the C!nstituti!n, s! as t! $a<e the si6nin6 !" the

I-8A a $inisteria& duty= *0 sec!nd&y, did 'ICO' c!$&y 9ith a&& the &e6a&

and c!nstituti!na& re>uire$ents "!r the issuance !" an I-8A=

http://sc.judiciary.gov.ph/jurisprudence/2009/december2009/162243.htm#_ftn1




(! reca&&, 'ICO' "i&ed 9ith the #eart$ent !" En%ir!n$ent and

Natura& Res!urces *#ENR an a&icati!n t! ha%e its (i$ber License

A6ree$ent *(LA N!. 12 c!n%erted int! an I-8A. In the $idd&e !" the

r!cessin6 !" 'ICO'?s a&icati!n, h!9e%er, 'ICO' re"used t! attend "urther

$eetin6s 9ith the #ENR.

0 Sete$ber 0@@0, 'ICO' "i&ed be"!re the Re6i!na& (ria& C!urt *R(C

!" ue+!n City a 'etiti!n "!r 8anda$us a6ainst then #ENR Secretary

Hehers!n (. A&%are+ t! c!$e& the #ENR Secretary t! si6n, eDecute and

de&i%er an I-8A t! 'ICO', $s 3e'' $s to 9

I;ss&e t/e )orrespondin( I<MA $ssi(n%ent n&%*er on t/e $re$ )o7ered *4 t/e

I<MA, 0or%er'4 "LA No. =+, $s $%ended> *2 to iss&e t/e ne)ess$r4 per%it

$''o3in( petitioner to $)t $nd /$r7est ti%*er 0ro% t/e s$id $re$ o0 "LA No. =+,s&00i)ient to %eet t/e r$3 %$teri$' re8&ire%ents o0 petitioner?s p&'p $nd p$per

%i''s in $))ord$n)e 3it/ t/e 3$rr$nt4 $nd $(ree%ent o0 J&'4 , 56 *et3een t/e

(o7ern%ent $nd PICOP?s prede)essor-in-interest> $nd )2 to /onor $nd respe)t t/e@o7ern%ent $rr$nties $nd )ontr$)t&$' o*'i($tions to PICOP stri)t'4 in$))ord$n)e 3it/ t/e 3$rr$nt4 $nd $(ree%ent d$ted J&'4 , 56; *et3een t/e

(o7ern%ent $nd PICOP?s prede)essor-in-interest. x x x.;

R(C: (r$nted PICOP?s Petition 0or M$nd$%&s

On B O)to*er , t/e !ENR Se)ret$r4 0i'ed $ Motion 0or

Re)onsider$tion.=; R"C denied t/e !ENR Se)ret$r4?s Motion 0or Re)onsider$tion

$nd (r$nted PICOP?s Motion 0or t/e Iss&$n)e o0 rit o0 M$nd$%&s $ndor rit o0 M$nd$tor4 InD&n)tion.B;

"/e !ENR Se)ret$r4 0i'ed $ Noti)e o0 Appe$'. C!urt !" Aea&s

a""ir$ed5 the #ecisi!n !" the R(C.

On No7e%*er 6, this C!urt rendered t/e $ss$i'ed !e)ision on t/e

Conso'id$ted Petitions:

HERE-ORE, t/e Petition in @.R. No. 56=+ is GRAN(E#. "/e

!e)ision o0 t/e Co&rt o0 Appe$'s inso0$r $s it $00ir%ed t/e R"C !e)ision (r$ntin(t/e Petition 0or M$nd$%&s 0i'ed *4 P$per Ind&stries Corp. o0 t/e P/i'ippines

1PICOP2 is /ere*4 REVERSE# $nd SE( ASI#E. "/e Petition in @.R. No.56=B56 seein( t/e re7ers$' o0 t/e s$%e !e)ision inso0$r $s it n&''i0ied t/e $3$rd

o0 d$%$(es in 0$7or o0 PICOP is #ENIE# 0or '$) o0 %erit. "/e Petition in @.R.

No. 5F5GFB, $ss$i'in( t/e 'i0tin( o0 t/e Pre'i%in$r4 M$nd$tor4 InD&n)tion in 0$7or o0 t/e Se)ret$r4 o0 En7iron%ent $nd N$t&r$' Reso&r)es is #IS8ISSE# on t/e

(ro&nd o0 %ootness.5;

















PICOP !I! NO" COMPL I"H "HE REUIREMEN" <OR A

CER"I<ICA"ION <ROM "HE NCIP "HA" "HE AREA O< "LA

=+ !OES NO" OVERLAP I"H AN ANCES"RAL !OMAIN.

i7.

PICOP <AILE! "O HAVE PRIOR CONSUL"A"ION I"H

AN! APPROVAL <ROM "HE SAN@UNIAN CONCERNE!,AS REUIRE! # SEC"ION F O< "HE REPU#LIC AC" NO.

F56, O"HERISE NON AS "HE LOCAL @OVERNMEN"

CO!E O< 55.

7.

PCIOP <AILE! "O SECURE SOCIAL ACCEP"A#ILI"UN!ER PRESI!EN"IAL !ECREE NO. 5BG6.

IV

"HE MO"IVA"ION O< ALVAREZ IN RECALLIN@ "HE CLEARANCE <OR AU"OMA"IC CONVERSION HE ISSUE! ON B OC"O#ER 5 AS NO"

!UE "O AN SHOR"COMIN@ <ROM PICOP #U" !UE "O HIS

!E"ERMINA"ION "O EKCLU!E G,5B HEC"ARES <ROM "HE

CONVERSION AN! O"HER "HIN@S.

On 5B !e)e%*er G, on Motion *4 PICOP, t/e "/ird !i7ision o0 t/is

Co&rt reso'7ed to re0er t/e )onso'id$ted )$ses $t *$r to t/e Co&rt en banc. On 56

!e)e%*er G, t/is Co&rt sittin( en banc reso'7ed to $))ept t/e s$id )$ses $nd set

t/e% 0or or$' $r(&%ents. Or$' $r(&%ents 3ere )ond&)ted on 5 <e*r&$r4 .

'ICO'?s Cause !" Acti!n: 8atters

'ICO' Sh!u&d Ha%e 'r!%en t! Be

Entit&ed t! a rit !" 8anda$us

In see<in6 a 9rit !" $anda$us t! c!$e& the issuance !" an I-8A in its

"a%!r, 'ICO' re&ied !n a 07 Fu&y 7/7 #!cu$ent, the s!;ca&&ed 'residentia&

arranty ar!%ed by then 'resident -erdinand E. 8arc!s in "a%!r !"

'ICO'?s redecess!r;in;interest, Bis&i6 Bay Lu$ber C!$any, Inc.

*BBLCI2. PICOP?s )$&se o0 $)tion is s&%%$ried in p$r$(r$p/s 5.6 $nd =.5 o0

its Petition 0or M$nd$%&s:



5.6 Respondent Se)ret$r4 i%p$ired t/e o*'i($tion o0 )ontr$)t &nder t/e

s$id $rr$nt4 $nd A(ree%ent o0 J&'4 56 *4 re0&sin( to respe)t t/e ten&re>$nd its rene3$' 0or $not/er t3ent4 0i7e 1B2 4e$rs, o0 PICOP o7er t/e $re$ )o7ered

*4 t/e s$id A(ree%ent 3/i)/ )onsists o0 per%$nent 0orest '$nds 3it/ $n $((re($te

$re$ o0 55,BGF /e)t$res $nd $'ien$*'e $nd dispos$*'e '$nds 3it/ $n $((re($te$re$ o0 $pproxi%$te'4 5,BG /e)t$res, $nd petitioner?s ex)'&si7e ri(/t to )&t,

)o''e)t $nd re%o7e s$3ti%*er $nd p&'p3ood t/erein $nd t/e pe$)e0&' $nd

$de8&$te enDo4%ent o0 t/e s$id $re$ $s des)ri*ed $nd spe)i0ied in petitioner?s"i%*er Li)ense A(ree%ent 1"LA2 No. =+ (&$r$nteed *4 t/e @o7ern%ent, &nder

t/e $rr$nt4 $nd A(ree%ent o0 J&'4 56.5+;

=.5 Respondent is in 7io'$tion o0 t/e Constit&tion $nd /$s i%p$ired t/e

o*'i($tion o0 )ontr$)t *4 /is re0&s$' to respe)t: $2 t/e ten&ri$' ri(/ts o0 PICOP

o7er t/e 0orest $re$ )o7ered *4 "LA No. =+, $s $%ended $nd its rene3$' 0or

$not/er t3ent4 0i7e 1B2 4e$rs> *2 t/e ex)'&si7e ri(/t o0 PICOP to )&t, )o''e)t $nd

re%o7e s$3ti%*er $nd p&'p3ood t/erein> $nd )2 PICOP?s pe$)e0&' $nd $de8&$teenDo4%ent o0 t/e s$id $re$ 3/i)/ t/e (o7ern%ent (&$r$nteed &nder t/e $rr$nt4

$nd A(ree%ent o0 J&'4 56.5=;

"/e (ro&nds s&*%itted *4 PICOP in its Petition 0or M$nd$%&s $re $s

0o''o3s:

I

Respondent se)ret$r4 /$s &n'$30&''4 re0&sed $ndor ne('e)ted to si(n $nd exe)&te

t/e I<MA )ontr$)t o0 PICOP e7en $s t/e '$tter /$s )o%p'ied 3it/ $'' t/e 'e($'re8&ire%ents 0or t/e $&to%$ti) )on7ersion o0 "LA No. =+, $s $%ended, into $nI<MA.

II

Respondent Se)ret$r4 $)ted 3it/ (r$7e $*&se o0 dis)retion $ndor in ex)ess o0

D&risdi)tion in re0&sin( to si(n $nd exe)&te PICOP?s I<MA )ontr$)t,not3it/st$ndin( t/$t PICOP /$d )o%p'ied 3it/ $'' t/e re8&ire%ents 0or A&to%$ti)

Con7ersion &nder !AO -B+, $s in 0$)t A&to%$ti) Con7ersion 3$s $'re$d4

)'e$red in O)to*er, 5, $nd 3$s $ )o%p'eted pro)ess.

III

Respondent Se)ret$r4 /$s i%p$ired t/e o*'i($tion o0 )ontr$)t &nder $ 7$'id $nd *indin( 3$rr$nt4 $nd $(ree%ent o0 J&'4 56 *et3een t/e (o7ern%ent $nd

PICOP?s prede)essor-in-interest, *4 re0&sin( to respe)t: $2 t/e ten&re o0 PICOP,

$nd its rene3$' 0or $not/er t3ent4 0i7e 1B2 4e$rs, o7er t/e "LA No.=+ $re$)o7ered *4 s$id $(ree%ent> *2 t/e ex)'&si7e ri(/t to )&t, )o''e)t $nd re%o7e







s$3ti%*er $nd p&'p3ood ti%*er> $nd )2 t/e pe$)e0&' $nd $de8&$te enDo4%ent o0

t/e s$id $re$.

IV

As $ res&'t o0 respondent Se)ret$r4?s &n'$30&' re0&s$' $ndor ne('e)t to si(n $ndde'i7er t/e I<MA )ontr$)t, $nd 7io'$tion o0 t/e )onstit&tion$' ri(/ts o0 PICOP

$($inst non-i%p$ir%ent o0 t/e o*'i($tion o0 )ontr$)t 1Se). 5, Art. III, 5F si);

Constit&tion2, PICOP s&00ered (r$7e $nd irrep$r$*'e d$%$(es.5B;

Petitions 0or M$nd$%&s $re (o7erned *4 R&'e 6B o0 t/e R&'es o0 Co&rt,

Se)tion + o0 3/i)/ pro7ides:

SEC. +. Petition for mandamus.— /en $n4 tri*&n$', )orpor$tion, *o$rd,

o00i)er or person &n'$30&''4 ne('e)ts t/e per0or%$n)e o0 $n act 9hich the &a9

seci"ica&&y en!ins as a duty resu&tin6 "r!$ an !""ice, trust, !r stati!n, or &n'$30&''4 ex)'&des $not/er 0ro% t/e &se $nd enDo4%ent o0 $ ri(/t or o00i)e to

3/i)/ s&)/ ot/er is entit'ed, $nd t/ere is no ot/er p'$in, speed4 $nd $de8&$tere%ed4 in t/e ordin$r4 )o&rse o0 '$3, t/e person $((rie7ed t/ere*4 %$4 0i'e $

7eri0ied petition in t/e proper )o&rt, $''e(in( t/e 0$)ts 3it/ )ert$int4 $nd pr$4in(

t/$t D&d(%ent *e rendered )o%%$ndin( t/e respondent, i%%edi$te'4 or $t so%eot/er ti%e to *e spe)i0ied *4 t/e )o&rt, to do t/e $)t re8&ired to *e done to prote)t

t/e ri(/ts o0 t/e petitioner, $nd to p$4 t/e d$%$(es s&st$ined *4 t/e petitioner *4

re$son o0 t/e 3ron(0&' $)ts o0 t/e respondent. 1E%p/$sis s&pp'ied.2

'ICO' is thus as<in6 this C!urt t! c!nc&ude that the #ENR Secretary isseci"ica&&y en!ined by &a9 t! issue an I-8A in its "a%!r. An I<MA, $s de0ined

*4 !ENR Ad%inistr$ti7e Order 1!AO2 No. -B+,56; is -

A; prod&)tion-s/$rin( )ontr$)t entered into *4 $nd *et3een t/e !ENR $nd $

8&$'i0ied $pp'i)$nt 3/erein t/e !ENR (r$nts to t/e '$tter t/e ex)'&si7e ri(/t to

de7e'op, %$n$(e, prote)t $nd &ti'ie $ spe)i0ied $re$ o0 0orest'$nd $nd 0orestreso&r)e t/erein 0or $ period o0 B 4e$rs $nd %$4 *e rene3ed 0or $not/er B-4e$r

period, )onsistent 3it/ t/e prin)ip'e o0 s&st$in$*'e de7e'op%ent $nd in

$))ord$n)e 3it/ $n $ppro7ed C!MP, $nd &nder 3/i)/ *ot/ p$rties s/$re in its

prod&)e.

5F;

PICOP stresses t/e 3ord $&to%$ti) in Se)tion o0 t/is !AO No. -B+:

"/is $d%inistr$ti7e re(&'$tion pro7ision allowing $&to%$ti) )on7ersion $0ter

proper e7$'&$tion )$n /$rd'4 8&$'i04 $s $ '$3, %&)/ 'ess $ '$3 specifically









enjoining t/e exe)&tion o0 $ )ontr$)t. "o enDoin is to order or dire)t 3it/ &r(en)4>

to instr&)t 3it/ $&t/orit4> to )o%%$nd.5; EnDoin? is $ %$nd$tor4 3ord, in 'e($'

p$r'$n)e, $'3$4s> in )o%%on p$r'$n)e, &s&$''4.; "/e 3ord $''o3, on t/e ot/er

/$nd, is not e8&i7$'ent to t/e 3ord %&st, $nd is in no sense $ )o%%$nd.5;

As $n extr$ordin$r4 3rit, the re$edy !" $anda$us &ies !n&y t! c!$e& an

!""icer t! er"!r$ a ministerial duty, n!t a discreti!nary !ne $anda$us 9i&&

n!t issue t! c!ntr!& the eDercise !" discreti!n !" a ub&ic !""icer 9here the &a9

i$!ses u!n hi$ the duty t! eDercise his ud6$ent in re"erence t! any

$anner in 9hich he is re>uired t! act, because it is his ud6$ent that is t! be

eDercised and n!t that !" the c!urt.00

"/e exe)&tion o0 $(ree%ents, in itse'0, in7o'7es t/e exer)ise o0

dis)retion. A(ree%ents $re prod&)ts o0 ne(oti$tions $nd %&t&$' )on)essions,

ne)essit$tin( e7$'&$tion o0 t/eir pro7isions on t/e p$rt o0 *ot/ p$rties. In t/e )$seo0 t/e I<MA, t/e e7$'&$tion on t/e p$rt o0 t/e (o7ern%ent is spe)i0i)$''4 %$nd$ted

in t/e $0ore-8&oted Se)tion + o0 !AO No. -B+. (his e%a&uati!n necessari&y

in%!&%es the eDercise !" discreti!n and ud6$ent !n the art !" the #ENR

Secretary, 9h! is tas<ed n!t !n&y t! ne6!tiate the sharin6 !" the r!"it arisin6

"r!$ the I-8A, but a&s! t! e%a&uate the c!$&iance 9ith the re>uire$ents !n

the art !" the a&icant.

<&rt/er%ore, $s s/$'' *e dis)&ssed '$ter, t/e period o0 $n I<MA t/$t 3$s

%ere'4 $&to%$ti)$''4 )on7erted 0ro% $ "LA in $))ord$n)e 3it/ Se)tion ,

p$r$(r$p/ o0 !AO No. -B+ 3o&'d on'4 *e 0or t/e re%$inin( period o0 t/e

"LA. Since the (LA !" 'ICO' eDired !n 0/ Ari& 0@@0, the I-8A that c!u&d

ha%e been 6ranted t! 'ICO' %ia the aut!$atic c!n%ersi!n r!%isi!n in #AO

N!. 77;32 9!u&d ha%e eDired !n the sa$e date, 0/ Ari& 0@@0, and the

'ICO'?s 'etiti!n "!r 8anda$us 9!u&d ha%e bec!$e $!!t.

"/is is 3/ere t/e 56 !o)&%ent, t/e p&rported Presidenti$' $rr$nt4,

)o%es into p'$4. /en PICOP?s $pp'i)$tion 3$s *ro&(/t to $ st$ndsti'' &pon t/e

e7$'&$tion t/$t PICOP /$d 4et to )o%p'4 3it/ t/e re8&ire%ents 0or s&)/

)on7ersion, PICOP re0&sed to $ttend 0&rt/er %eetin(s 3it/ t/e !ENR $nd inste$d0i'ed $ Petition 0or M$nd$%&s, insistin( t/$t t/e !ENR Se)ret$r4 /$d i%p$ired t/e

o*'i($tion o0 )ontr$)t *4 /is re0&s$' to respe)t: $2 t/e ten&ri$' ri(/ts o0 PICOP o7er

t/e 0orest $re$ )o7ered *4 "LA No. =+, $s $%ended, $nd its rene3$' 0or $not/er

t3ent4-0i7e 1B2 4e$rs> *2 t/e ex)'&si7e ri(/t o0 PICOP to )&t, )o''e)t $nd re%o7e

s$3ti%*er $nd p&'p3ood t/erein> $nd )2 PICOP?s pe$)e0&' $nd $de8&$te











enDo4%ent o0 t/e s$id $re$ 3/i)/ t/e (o7ern%ent (&$r$nteed &nder t/e $rr$nt4

$nd A(ree%ent o0 J&'4 56. +;

'ICO' is, thus, insistin6 that the 6!%ern$ent is obligated by contract t!

issue an I-8A in its "a%!r because !" the 7/7 #!cu$ent.

A )ontr$)t, *ein( t/e '$3 *et3een t/e p$rties, )$n indeed, 3it/ respe)t to t/e

St$te 3/en it is $ p$rt4 to s&)/ )ontr$)t, 8&$'i04 $s $ '$3 spe)i0i)$''4 enDoinin( t/e

per0or%$n)e o0 $n $)t. Hen)e, it is possi*'e t/$t $ 3rit o0 %$nd$%&s %$4 *e

iss&ed to PICOP, *&t !n&y i" it r!%es b!th !" the "!&&!9in6:

52 "/$t t/e 56 !o)&%ent is $ )ontr$)t re)o(nied &nder t/e non-

i%p$ir%ent )'$&se> $nd

2 "/$t t/e 56 !o)&%ent spe)i0i)$''4 enDoins t/e (o7ern%ent to iss&e t/e

I<MA.

I0 PICOP 0$i's to pro7e $n4 o0 t/ese t3o %$tters, t/e (r$nt o0 $ pri7i'e(ed

3rit o0 %$nd$%&s is not 3$rr$nted. "/is 3$s 3/4 3e prono&n)ed in t/e $ss$i'ed

!e)ision t/$t t/e o7erridin( )ontro7ers4 in7o'7ed in t/e Petition 3$s one o0 '$3.=; I0 PICOP 0$i's to pro7e $n4 o0 t/ese t3o %$tters, %ore si(ni0i)$nt'4 its

$ssertion t/$t t/e 56 !o)&%ent is $ )ontr$)t, PICOP 0$i's to pro7e its )$&se o0

$)tion. B; Not e7en t/e s$tis0$)tor4 )o%p'i$n)e 3it/ $'' 'e($' $nd $d%inistr$ti7e

re8&ire%ents 0or $n I<MA 3o&'d s$7e PICOP?s Petition 0or M$nd$%&s.

"/e re7erse, /o3e7er, is not tr&e. "/e 56 !o)&%ent express'4 st$tes t/$t

t/e 3$rr$nt4 $s to t/e ten&re o0 PICOP is s&*De)t to )o%p'i$n)e 3it/

)onstit&tion$' $nd st$t&tor4 re8&ire%ents $s 3e'' $s 3it/ existin( po'i)4 on ti%*er

)on)essions. "/&s, i" 'ICO' r!%es the t9! ab!%e;$enti!ned $atters, it sti&&

has t! r!%e c!$&iance 9ith statut!ry and ad$inistrati%e re>uire$ents "!r

the c!n%ersi!n !" its (LA int! an I-8A.

EDhausti!n !" Ad$inistrati%e Re$edies

PICOP &ses t/e s$%e $r(&%ent 99 t/$t t/e (o7ern%ent is *o&nd *4 )ontr$)t

to iss&e t/e I<MA 99 in its re0&s$' to ex/$&st $'' $d%inistr$ti7e re%edies *4 not

$ppe$'in( t/e $''e(ed i''e($' non-iss&$n)e o0 t/e I<MA to t/e O00i)e o0 t/e

President. I0 t/ere /$s *een no i%p$ir%ent o0 t/e o*'i($tion o0 )ontr$)ts in t/e

!ENR Se)ret$r4?s non-iss&$n)e o0 t/e I<MA, t/e proper re%ed4 o0 PICOP in

)'$i%in( t/$t it /$s )o%p'ied 3it/ $'' st$t&tor4 $nd $d%inistr$ti7e re8&ire%ents 0or











t/e iss&$n)e o0 t/e I<MA s/o&'d /$7e *een 3it/ t/e O00i)e o0 t/e President. "/is

%$es t/e iss&e o0 t/e en0or)e$*i'it4 o0 t/e 56 !o)&%ent $s $ )ontr$)t e7en

%ore si(ni0i)$nt.

(he Nature and E""ects !" the

'ur!rted 07 Fu&y 7/7 'residentia&

arranty

Base Metals Case

'ICO' cha&&en6es !ur ru&in6 that the 7/7 #!cu$ent is not a c!ntract.

The Presidential Warranty cannot, in any manner, be construed as acontractual undertaking assuring PICOP of exclusive ossession and

en!oyment of its concession areas" S&)/ $n interpret$tion 3o&'d res&'t in t/e)o%p'ete $*di)$tion *4 t/e St$te in 0$7or o0 PICOP o0 t/e so7erei(n po3er to

)ontro' $nd s&per7ise t/e exp'or$tion, de7e'op%ent $nd &ti'i$tion o0 t/e n$t&r$'

reso&r)es in t/e $re$.G;

"/e Motion 0or Re)onsider$tion 3$s denied. A Se)ond Motion 0or

Re)onsider$tion 0i'ed *4 PICOP 3$s $'so denied.

'ICO' insists that the r!n!unce$ent in Base Metals is a $ere obiter dictum, 9hich 9!u&d n!t bind this C!urt in res!&%in6 this 8!ti!n "!r

Rec!nsiderati!n. In t/e or$' $r(&%ents, /o3e7er, &pon 8&estionin( 0ro%

t/e ponente /i%se'0 o0 Base Metals, it 3$s $(reed t/$t t/e iss&e o0 3/et/er t/e

56 !o)&%ent is $ )ontr$)t 3$s ne)ess$r4 in t/e reso'&tion o0 Base Metals.

Interretation of the #$%$ &ocument That Would Be in 'armony (ith

the Constitution

PICOP?s interpret$tion o0 t/e 56 !o)&%ent )$nnot *e s&st$ined. PICOP?s

)'$i% t/$t t/e ter% o0 t/e 3$rr$nt4 is not 'i%ited to 0i0t4 4e$rs, *&t t/$t it extends

to ot/er 0i0t4 4e$rs, perpet&$''4, 7io'$tes Se)tion , Arti)'e KII o0 t/e Constit&tion

3/i)/ pro7ides:





Se)tion . A&& '$nds o0 t/e p&*'i) do%$in, 3$ters, %iner$'s, )o$',

petro'e&%, $nd ot/er %iner$' oi's, $'' 0or)es o0 potenti$' ener(4,

0is/eries, "!rests !r ti$ber, 3i'd'i0e, 0'or$ $nd 0$&n$,and !ther natura&

res!urces are !9ned by the State. ith the eDceti!n !" a6ricu&tura&

&ands, a&& !ther natura& res!urces sha&& n!t be a&ienated. (he

eD&!rati!n, de%e&!$ent, and uti&i+ati!n !" natura& res!urces sha&&

be under the "u&& c!ntr!& and suer%isi!n !" the State. (he State $ay

direct&y underta<e such acti%ities, !r it $ay enter int! c!;

r!ducti!n, !int %enture, !r r!ducti!n;sharin6 a6ree$ents 9ith

-i&iin! citi+ens, !r c!r!rati!ns !r ass!ciati!ns at &east siDty er

centu$ !" 9h!se caita& is !9ned by such citi+ens. Such a6ree$ents

$ay be "!r a eri!d n!t eDceedin6 t9enty;"i%e years, rene9ab&e "!r

n!t $!re than t9enty;"i%e years, and under such ter$s and

c!nditi!ns as $ay be r!%ided by &a9. In )$ses o0 3$ter ri(/ts 0or

irri($tion, 3$ter s&pp'4 0is/eries, or ind&stri$' &ses ot/er t/$n t/e

de7e'op%ent o0 3$ter po3er, *ene0i)i$' &se %$4 *e t/e %e$s&re $nd

'i%it o0 t/e (r$nt.

Mr. J&sti)e !$nte O. "in($?s interpret$tion o0 t/e 56 !o)&%ent is %&)/

%ore in $))ord 3it/ t/e '$3s $nd t/e Constit&tion. /$t one )$nnot do dire)t'4, /e

)$nnot do indire)t'4. <orest '$nds )$nnot *e $'ien$ted in 0$7or o0 pri7$te

entities. @r$ntin( to pri7$te entities, 7i$ $ )ontr$)t, $ per%$nent, irre7o)$*'e, $nd

ex)'&si7e possession o0 $nd ri(/t o7er 0orest '$nds is t$nt$%o&nt to (r$ntin(

o3ners/ip t/ereo0. PICOP, it s/o&'d *e noted, )'$i%s not/in( 'ess t/$n /$7in(ex)'&si7e, )ontin&o&s $nd &ninterr&pted possession o0 its )on)ession $re$s,+5; 3/ere $'' ot/er entr$nts $re i''e($',+; $nd 3/ere so-)$''ed i''e($' sett'ers $nd

s8&$tters $re $ppre/ended.++;

I<MAs $re prod&)tion-s/$rin( $(ree%ents )on)ernin( t/e de7e'op%ent $nd

&ti'i$tion o0 n$t&r$' reso&r)es. As s&)/, t/ese $(ree%ents %$4 *e 0or $ period

not ex)eedin( t3ent4-0i7e 4e$rs, rene3$*'e 0or not %ore t/$n t3ent4-0i7e 4e$rs,

$nd &nder s&)/ ter%s $nd )onditions $s %$4 *e pro7ided *4 '$3. An4 s&perior

)ontr$)t re8&irin( t/e St$te to iss&e "LAs $nd I<MAs 3/ene7er t/e4 expire

)'e$r'4 )ir)&%7ents Se)tion , Arti)'e KII o0 t/e Constit&tion, 3/i)/ pro7ides 0or

t/e on'4 per%issi*'e s)/e%es 3/erein t/e 0&'' )ontro' $nd s&per7ision o0 t/e St$te

$re not dero($ted: )o-prod&)tion, Doint 7ent&re, or prod&)tion-s/$rin( $(ree%ents

3it/in t/e ti%e 'i%it o0 t3ent4-0i7e 4e$rs, rene3$*'e 0or $not/er t3ent4-0i7e 4e$rs.









On its 0$)e, t/e 56 !o)&%ent 3$s %e$nt to expire on 6 Apri' , &pon

t/e expir$tion o0 t/e expe)ted extension o0 t/e ori(in$' "LA period endin( on 6

Apri' 5FF.

Any interretati!n eDtendin6 the a&icati!n !" the 7/7 #!cu$ent

bey!nd 0/ Ari& 0@@0 and any c!ncessi!n that $ay be 6ranted t! 'ICO'

bey!nd the said date 9!u&d %i!&ate the C!nstituti!n, and n! a$!unt !" &e6a&

her$eneutics can chan6e that.

PICOP is, in e00e)t, $r(&in( t/$t t/e !ENR iss&ed !AO No. -B+ in order

to pro7ide $ 3$4 to )ir)&%7ent t/e pro7isions o0 t/e Constit&tion 'i%itin(

$(ree%ents 0or t/e &ti'i$tion o0 n$t&r$' reso&r)es to $ %$xi%&% period o0 0i0t4

4e$rs. O00i)i$' d&ties $re, /o3e7er, disp&t$*'4 )onsidered to *e re(&'$r'4

per0or%ed,+B; $nd (ood 0$it/ is $'3$4s pres&%ed.

!AO No. -B+ 3$s iss&ed to )/$n(e t/e %e$ns *4 3/i)/ t/e (o7ern%ent

enters into $n $(ree%ent 3it/ pri7$te entities 0or t/e &ti'i$tion o0 0orest

prod&)ts. !AO No. -B+ is $ '$te response to t/e )/$n(e in t/e )onstit&tion$'

pro7isions on n$t&r$' reso&r)es 0ro% t/e 5F+ Constit&tion, 3/i)/ $''o3ed t/e

(r$ntin( o0 'i)enses to pri7$te entities,+6; to t/e present Constit&tion, 3/i)/

pro7ides 0or )o-prod&)tion, Doint 7ent&re, or prod&)tion-s/$rin( $(ree%ents $s t/e

per%issi*'e s)/e%es 3/erein pri7$te entities %$4 p$rti)ip$te in t/e &ti'i$tion o0

0orest prod&)ts. Sin)e t/e (r$ntin( o0 ti%*er 'i)enses )e$sed to *e $ per%issi*'e

s)/e%e 0or t/e p$rti)ip$tion o0 pri7$te entities &nder t/e present Constit&tion, t/eir

oper$tions s/o&'d /$7e )e$sed &pon t/e iss&$n)e o0 !AO No. -B+, t/e r&'ere(&'$tin( t/e s)/e%es &nder t/e present Constit&tion. "/is 3o&'d *e ini8&ito&s to

t/ose 3it/ existin( "LAs t/$t 3o&'d not /$7e expired 4et $s o0 t/e iss&$n)e o0

!AO No. -B+, espe)i$''4 t/ose 3it/ ne3 "LAs t/$t 3ere ori(in$''4 set to expire

$0ter 5 or e7en or %ore 4e$rs. "/e !ENR t/&s inserted $ pro7ision in !AO

No. -B+ $''o3in( t/ese "LA /o'ders to 0inis/ t/e period o0 t/eir "LAs, *&t t/is

ti%e $s I<MAs, 3it/o&t t/e ri(ors o0 (oin( t/ro&(/ $ ne3 $pp'i)$tion, 3/i)/ t/e4

/$7e pro*$*'4 D&st (one t/ro&(/ $ 0e3 4e$rs $(o.

S&)/ $n interpret$tion 3o&'d not on'4 %$e !AO No. -B+ )onsistent 3it/t/e pro7isions o0 t/e Constit&tion, *&t 3o&'d $'so pre7ent possi*'e dis)ri%in$tion

$($inst ne3 I<MA $pp'i)$nts.

PICOP insists t/$t t/e $''e(ed Presidenti$' $rr$nt4, /$7in( *een si(ned

on J&'4 56, )o&'d not /$7e possi*'4 )onsidered t/e 'i%it$tions 4et to *e







i%posed *4 0&t&re iss&$n)es, s&)/ $s t/e 5GF Constit&tion. Ho3e7er, Se)tion +,

Arti)'e KVIII o0 s$id Constit&tion, pro7ides:

Secti!n 2. A'' existin( '$3s, de)rees, exe)&ti7e orders,

pro)'$%$tions, 'etters o0 instr&)tions, $nd ot/er exe)&ti7e iss&$n)es not

in)onsistent 3it/ t/is Constit&tion s/$'' re%$in oper$ti7e &nti' $%ended,

repe$'ed, or re7oed.

In t/e re)ent )$se Sabio v. Gordon,+G; 3e r&'ed t/$t 1t2/e )'e$r i%port o0 t/is

pro7ision is t/$t $'' existin( '$3s, exe)&ti7e orders, pro)'$%$tions, 'etters o0

instr&)tions $nd ot/er exe)&ti7e iss&$n)es in)onsistent or rep&(n$nt to t/e

Constit&tion $re repe$'ed.

/en $ pro7ision is s&s)epti*'e o0 t3o interpret$tions, t/e one t/$t 3i''render t/e% oper$ti7e $nd e00e)ti7e $nd /$r%onio&s 3it/ ot/er pro7isions o0

'$3+;s/o&'d *e $dopted. As t/e interpret$tions in t/e $ss$i'ed !e)ision $nd in

Mr. J&sti)e "in($?s ponencia $re t/e ones t/$t 3o&'d not %$e t/e s&*De)t

Presidenti$' $rr$nt4 &n)onstit&tion$', t/ese $re 3/$t 3e s/$'' $dopt.

Purose of the #$%$ &ocument) *ssurance That the

Boundaries of Its Concession *rea Would +ot Be *ltered

&esite the Provision in the T* that the &-+. /ecretary

Can *mend /aid Boundaries

In t/e $ss$i'ed !e)ision, 3e r&'ed t/$t t/e 56 !o)&%ent )$nnot *e

)onsidered $ )ontr$)t t/$t 3o&'d *ind t/e (o7ern%ent re($rd'ess o0 )/$n(es in

po'i)4 $nd t/e de%$nds o0 p&*'i) interest $nd so)i$' 3e'0$re. PICOP )'$i%s t/is

)on)'&sion did not t$e into )onsider$tion t/$t PICOP $'re$d4 /$d $ 7$'id $nd

)&rrent "LA *e0ore t/e )ontr$)t 3it/ 3$rr$nt4 3$s si(ned in 56. =; PICOP

(oes on: "/e "LA is $ 'i)ense t/$t e8&ips $n4 "LA /o'der in t/e )o&ntr4 0or

/$r7estin( o0 ti%*er. A "LA is si(ned *4 t/e Se)ret$r4 o0 t/e !ANR no3

!ENR. "/e Co&rt i(nored t/e si(ni0i)$n)e o0 t/e need 0or $not/er )ontr$)t 3it/t/e Se)ret$r4 o0 t/e !ANR *&t t/is ti%e 3it/ t/e $ppro7$' o0 t/e President o0 t/e

Rep&*'i).=5; PICOP t/en $ss &s: I0 PICOP##LCI 3$s on'4 $n ordin$r4 "LA

/o'der, 3/4 3i'' it (o t/ro&(/ t/e extr$ step o0 se)&rin( $not/er )ontr$)t D&st to

/$r7est ti%*er 3/en t/e s$%e )$n *e ser7ed *4 t/e "LA si(ned on'4 *4 t/e

Se)ret$r4 $nd not re8&irin( t/e $ppro7$' o0 t/e President o0 t/e Rep&*'i)12=;













"/e $ns3er to t/is 8&er4 is 0o&nd in "LA No. =+ itse'0 3/erein, i%%edi$te'4

$0ter t/e *o&nd$r4 'ines o0 "LA No. =+ 3ere est$*'is/ed, t/e 0o''o3in( )onditions

3ere (i7en:

"/is 'i)ense is (r$nted to t/e s$id p$rt4 o0 t/e se)ond p$rt &pon t/e

0o''o3in( express )onditions:

I. "/$t $&t/orit4 is (r$nted /ere&nder to t/e party of te second

part =+; to )&t, )o''e)t or re%o7e 0ire3ood or ot/er %inor 0orest prod&)ts 0ro% t/e$re$ e%*r$)ed in t/is 'i)ense $(ree%ent ex)ept $s /erein$0ter pro7ided.

II. "/$t the arty of the first art 11 $ay a$end !r a&ter the

descriti!n !" the b!undaries !" the area c!%ered by this &icense a6ree$ent t!

c!n"!r$ 9ith !""icia& sur%eys $nd t/$t the decisi!n !" the arty !" the "irst

art as t! the eDact &!cati!n !" the said b!undaries sha&& be "ina&.

III. "/$t i0 t/e p$rt4 o0 t/e 0irst p$rt dee%s it ne)ess$r4 to est$*'is/ ont/e (ro&nd t/e *o&nd$r4 'ines o0 t/e $re$ (r$nted &nder t/is 'i)ense $(ree%ent,

t/e p$rt4 o0 t/e se)ond p$rt s/$'' 0&rnis/ to t/e p$rt4 o0 t/e 0irst p$rt or itsrepresent$ti7es $s %$n4 '$*orers $s it needs $nd $'' t/e expenses to *e in)&rred on

t/e 3or in)'&din( t/e 3$(es o0 s&)/ '$*orers s/$'' *e p$id *4 t/e p$rt4 o0 t/e

se)ond p$rt.=B;

"/&s, BBLCI needed an assurance that the b!undaries !" its c!ncessi!n

area, as estab&ished in (LA N!. 12, as a$ended, 9!u&d n!t be a&tered desite

this r!%isi!n. Hen)e, ##LCI ende$7ored to o*t$in t/e 56 !o)&%ent

.e) *llegation That There Were Mutual Contract

Considerations

H$d t/e J&'4 56 !o)&%ent *een intended $s $ )ontr$)t, it )o&'d /$7e

e$si'4 s$id so. More i%port$nt'4, it )o&'d /$7e )'e$r'4 de0ined t/e %&t&$'

)onsider$tions o0 t/e p$rties t/ereto. It )o&'d /$7e $'so e$si'4 pro7ided 0or t/e

s$n)tions 0or t/e *re$)/ o0 t/e %&t&$' )onsider$tions spe)i0ied t/erein. PICOP /$d

7i(oro&s'4 $r(&ed t/$t t/e 56 !o)&%ent 3$s $ )ontr$)t *e)$&se o0 t/ese %&t&$')onsider$tions.

"/e do)&%ent 3$s %ore o0 $ )on0er%ent o0 $n in)enti7e 0or ##LCI?s

in7est%ent r$t/er t/$n $ )ontr$)t )re$tin( %&t&$' o*'i($tions on t/e p$rt o0 t/e

(o7ern%ent, on one /$nd, $nd ##LCI, on t/e ot/er. "/ere 3$s no stip&'$tion

pro7idin( 0or s$n)tions 0or *re$)/ i0 ##LCI?s *ein( )o%%itted to s&pport t/e 0irst









'$r(e s)$'e inte(r$ted 3ood pro)essin( )o%p'ex re%$ins $ )o%%it%ent. Neit/er

did t/e 56 !o)&%ent (i7e ##LCI $ period 3it/in 3/i)/ to p&rs&e t/is

)o%%it%ent.

A))ordin( to Arti)'e 5+B o0 t/e Ci7i' Code, Q1i2n onero&s )ontr$)ts t/e

)$&se is &nderstood to *e, 0or e$)/ )ontr$)tin( p$rt4, t/e prest$tion or pro%ise o0 $

t/in( or ser7i)e *4 t/e ot/er.=G; Pri7$te in7est%ents 0or one?s *&sinesses, 3/i'e

indeed e7ent&$''4 *ene0i)i$' to t/e )o&ntr4 $nd deser7in( to *e (i7en in)enti7es,

$re sti'' prin)ip$''4 $nd predo%in$nt'4 0or t/e *ene0it o0 t/e in7estors. "/&s, t/e

%&t&$' )ontr$)t )onsider$tions *4 *ot/ p$rties to t/is $''e(ed )ontr$)t 3o&'d *e

*ot/ 0or t/e *ene0it o0 one o0 t/e p$rties t/ereto, ##LCI, 3/i)/ is not o*'i($ted *4

t/e 56 !o)&%ent to s&rrender $ s/$re in its pro)eeds $n4 %ore t/$n it is $'re$d4

re8&ired *4 its "LA $nd *4 t/e t$x '$3s.

'ICO'?s ar6u$ent that its in%est$ents can be c!nsidered as c!ntractc!nsiderati!n der!6ates the ru&e that a &icense !r a er$it is n!t a c!ntract

bet9een the s!%erei6nty and the &icensee !r er$ittee, and is n!t a r!erty in

the c!nstituti!na& sense, as t! 9hich the c!nstituti!na& r!scriti!n a6ainst the

i$air$ent !" c!ntracts $ay eDtend.J (! c!nstrue these in%est$ents as

c!ntract c!nsiderati!ns 9!u&d be t! aband!n the "!re6!in6 ru&e, 9hich 9!u&d

$ean that the State 9!u&d be b!und t! a&& &icensees, and &!se its !9er t!

re%!<e !r a$end these &icenses 9hen ub&ic interest s! dictates.

"/e po3er to iss&e 'i)enses sprin(s 0ro% t/e St$te?s po'i)e po3er, no3n $s

t/e %ost essenti$', insistent $nd 'e$st 'i%it$*'e o0 po3ers, extendin( $s it does to

$'' t/e (re$t p&*'i) needs.=; #&sinesses $00e)tin( t/e p&*'i) interest, s&)/ $s t/e

oper$tion o0 p&*'i) &ti'ities $nd t/ose in7o'7in( t/e exp'oit$tion o0 n$t&r$'

reso&r)es, $re %$nd$ted *4 '$3 to $)8&ire 'i)enses. "/is is so in order t/$t t/e

St$te )$n re(&'$te t/eir oper$tions $nd t/ere*4 prote)t t/e p&*'i) interest. "/&s,

3/i'e t/ese 'i)enses )o%e in t/e 0or% o0 $(ree%ents, e.g.! "i%*er Li)ense

A(ree%ents, t/e4 )$nnot *e )onsidered )ontr$)ts &nder t/e non-i%p$ir%ent

)'$&se.B;

PICOP 0o&nd t/is $r(&%ent '$%e, $r(&in( on t/e *$sis o0 8&$ntit4, $nd3$nts &s to distin(&is/ *et3een t/e in7est%ent o0 t/e tri)4)'e dri7er $nd t/$t o0 t/e

%&'ti-*i''ion )orpor$tion. Ho3e7er, not e7en *i''ions o0 pesos in in7est%ent )$n

)/$n(e t/e 0$)t t/$t n$t&r$' reso&r)es $nd, t/ere0ore, p&*'i) interest $re in7o'7ed in

PICOP?s 7ent&re, )onse8&ent'4 ne)essit$tin( t/e 0&'' )ontro' $nd s&per7ision *4 t/e

St$te $s %$nd$ted *4 t/e Constit&tion. Not e7en *i''ions o0 pesos in in7est%ent

)$n *&4 0orest '$nds, 3/i)/ is pr$)ti)$''4 3/$t PICOP is $sin( 0or *4 interpretin(









t/e 56 !o)&%ent $s $ )ontr$)t (i7in( it perpet&$' $nd ex)'&si7e possession o7er

s&)/ '$nds. A%on( $'' "LA /o'ders in t/e P/i'ippines, PICOP /$s, *4 0$r, t/e

'$r(est )on)ession $re$ $t 5=+,56F /e)t$res, $ '$nd $re$ %ore t/$n t/e sie o0 t3o

Metro M$ni'$s.B; Ho3 )$n it not expe)t to $'so /$7e t/e '$r(est in7est%ent

Investment Incentives *ct

PICOP t/en )'$i%s t/$t t/e )ontr$)t&$' n$t&re o0 t/e 56 !o)&%ent 3$s

*ro&(/t $*o&t *4 its iss&$n)e in $))ord$n)e 3it/ $nd p&rs&$nt to t/e In7est%ent

In)enti7es A)t. A))ordin( to PICOP:

"/e )on)'&sion in t/e !e)ision t/$t to )onstr&e PICOP?s in7est%ents $s $

)onsider$tion in $ )ontr$)t 3o&'d *e to ste$'t/i'4 render ine00e)ti7e t/e prin)ip'e

t/$t $ 'i)ense is not $ )ontr$)t *et3een t/e so7erei(nt4 $nd t/e 'i)ensee is so0'$3ed sin)e t/e )ontr$)t 3it/ t/e 3$rr$nt4 d$ted J&'4 56 3$s iss&ed *4 t/e

@o7ern%ent in $))ord$n)e 3it/ $nd p&rs&$nt to Rep&*'i) A)t No. B5G6,ot/er3ise no3n $s "/e In7est%ent In)enti7es A)t.B+;

PICOP t/en pro)eeds to )ite Se)tions $nd =1d2 $nd 1e2 o0 s$id $)t:

Se)tion spe$s o0 t/e po'i)4 o0 t/e St$te to en)o&r$(e <i'ipino $nd 0orei(n

in7est%ents. It does not spe$ o0 /o3 t/is po'i)4 )$n *e

i%p'e%ented. I%p'e%ent$tion o0 t/is po'i)4 is t$)'ed in Se)tions B to 5 o0 t/e

s$%e '$3,B=; 3/i)/ PICOP 0$i'ed to %ention, $nd 0or $ (ood re$son. None o0 t/e

= in)enti7es en&%er$ted t/erein re'$tes to, or e7en re%ote'4 s&((ests t/$t,

PICOP?s proposition t/$t t/e 56 !o)&%ent is $ )ontr$)t.

PICOP )o&'d indeed $r(&e t/$t t/e en&%er$tion is not ex)'&si7e. Cert$in'4,

(r$ntin( in)enti7es to in7estors, 3/et/er in)'&ded in t/e en&%er$tion or not, 3o&'d

*e $n i%p'e%ent$tion o0 t/is po'i)4. Ho3e7er, it is pres&%ed t/$t 3/$te7er

in)enti7es %$4 *e (i7en to in7estors s/o&'d *e 3it/in t/e *o&nds o0 t/e '$3s $nd

t/e Constit&tion. "/e de)'$r$tion o0 po'i)4 in Se)tion )$nnot, *4 $n4 stret)/ o0

t/e i%$(in$tion, *e re$d to pro7ide $n ex)eption to eit/er t/e '$3s or, /e$7en0or*id, t/e Constit&tion. Ex)eptions $re ne7er pres&%ed $nd s/o&'d *e

)on7in)in('4 pro7en. Se)tion o0 t/e In7est%ent In)enti7es A)t )$nnot *e re$d $s

exe%ptin( in7estors 0ro% t/e Constit&tion$' pro7isions 152 pro/i*itin( pri7$te

o3ners/ip o0 0orest '$nds> 12 pro7idin( 0or t/e )o%p'ete )ontro' $nd s&per7ision

*4 t/e St$te o0 exp'oit$tion $)ti7ities> or 1+2 'i%itin( exp'oit$tion $(ree%ents to

t3ent4-0i7e 4e$rs, rene3$*'e 0or $not/er t3ent4-0i7e 4e$rs.










Se)tion =1d2 $nd 1e2, on t/e ot/er /$nd, is $ re)o(nition o0 ri(/ts $'re$d4

(&$r$nteed &nder t/e Constit&tion. <reedo% 0ro% expropri$tion is (r$nted &nder

Se)tion o0 Arti)'e IIIBB; o0 t/e Constit&tion, 3/i'e t/e pro7ision on re8&isition is $

ne($ti7e rest$te%ent o0 Se)tion 6, Arti)'e KII.B6;

Re0&s$' to (r$nt perpet&$' $nd ex)'&si7e possession to PICOP o0 its

)on)ession $re$ 3o&'d not res&'t in t/e expropri$tion or re8&isition o0 PICOP?s

propert4, $s t/ese 0orest '$nds *e'on( to t/e St$te, $nd not to PICOP.

"/e re8&ire%ent 0or 'o((in( )o%p$nies to preser7e $nd %$int$in 0orest

$re$s, in)'&din( t/e re0orest$tion t/ereo0, is one o0 t/e pri)es $ 'o((in( )o%p$n4

%&st p$4 0or t/e exp'oit$tion t/ereo0. <orest '$nds $re %e$nt to *e enDo4ed *4

)o&nt'ess 0&t&re (ener$tions o0 <i'ipinos, $nd not D&st *4 one 'o((in(

)o%p$n4. "/e re8&ire%ents o0 re0orest$tion $nd preser7$tion o0 t/e )on)ession$re$s $re %e$nt to prote)t t/e%, t/e 0&t&re (ener$tions, $nd not

PICOP. Re"!restati!n and reser%ati!n !" the c!ncessi!n areas are n!t

re>uired !" &!66in6 c!$anies s! that they 9!u&d ha%e s!$ethin6 t! cut a6ain,

but s! that the "!rest 9!u&d re$ain intact a"ter their !erati!ns. "/$t PICOP

3o&'d not $))ept t/e responsi*i'it4 to preser7e its )on)ession $re$ i0 it is not

$ss&red o0 ten&re t/ereto does not spe$ 3e'' o0 its )orpor$te po'i)ies.

Conclusion

In su$, 'ICO' 9as n!t ab&e t! r!%e either !" the t9! thin6s it needed

t! r!%e t! be entit&ed t! a rit !" 8anda$us a6ainst the #ENR

Secretary. "/e 56 !o)&%ent is not $ )ontr$)t re)o(nied &nder t/e non-

i%p$ir%ent )'$&se $nd, e7en i0 3e $ss&%e 0or t/e s$e o0 $r(&%ent t/$t it is, it did

not enDoin t/e (o7ern%ent to iss&e $n I<MA in eit/er. "/ese $re t/e essenti$'

e'e%ents in PICOP?s )$&se o0 $)tion, $nd t/e 0$i'&re to pro7e t/e s$%e 3$rr$nts $

dis%iss$' o0 PICOP?s Petition 0or M$nd$%&s, $s not e7en PICOP?s )o%p'i$n)e

3it/ $'' t/e $d%inistr$ti7e $nd st$t&tor4 re8&ire%ents )$n s$7e its Petition no3.

hether 'ICO' Has C!$&ied 9ith the

Statut!ry and Ad$inistrati%e

Re>uire$ents "!r the C!n%ersi!n !" the

(LA t! an I-8A

In the assai&ed #ecisi!n, !ur ru&in6 9as based !n t9! distinct 6r!unds,

each !ne bein6 su""icient in itse&" "!r us t! ru&e that 'ICO' 9as n!t entit&ed t!







a rit !" 8anda$us: * the 7/7 #!cu$ent, !n 9hich 'ICO' hin6es its ri6ht

t! c!$e& the issuance !" an I-8A, is n!t a c!ntract and *0 'ICO' has n!t

c!$&ied 9ith a&& ad$inistrati%e and statut!ry re>uire$ents "!r the issuance

!" an I-8A.

/en $ )o&rt *$ses its de)ision on t3o or %ore (ro&nds, e$)/ is $s

$&t/orit$ti7e $s t/e ot/er $nd neit/er is obiter dictum.BG; "/&s, *ot/ (ro&nds on

3/i)/ 3e *$sed o&r r&'in( in t/e $ss$i'ed !e)ision 3o&'d *e)o%e judicial dictum,

$nd 3o&'d $00e)t t/e ri(/ts $nd interests o0 t/e p$rties to t/is )$se &n'ess )orre)ted

in t/is Reso'&tion on PICOP?s Motion 0or Re)onsider$tion. (here"!re, a&th!u6h

'ICO' 9!u&d n!t be entit&ed t! a rit !" 8anda$us e%en i" the sec!nd issue

is res!&%ed in its "a%!r, 9e sh!u&d n!nethe&ess res!&%e the sa$e and deter$ine

9hether 'ICO' has indeed c!$&ied 9ith a&& ad$inistrati%e and statut!ry

re>uire$ents "!r the issuance !" an I-8A.

/i'e t/e 0irst iss&e 1on t/e n$t&re o0 t/e 56 !o)&%ent2 is entire'4 'e($',

t/is se)ond iss&e 1on PICOP?s )o%p'i$n)e 3it/ $d%inistr$ti7e $nd st$t&tor4

re8&ire%ents 0or t/e iss&$n)e o0 $n I<MA2 /$s *ot/ 'e($' $nd 0$)t&$' s&*-

iss&es. Le6a& sub;issues inc&ude 9hether 'ICO' is &e6a&&y re>uired t! *

c!nsu&t 9ith and ac>uire an ar!%a& "r!$ the San66unian c!ncerned under

Secti!ns 0/ and 04 !" the L!ca& G!%ern$ent C!de and *0 ac>uire a

Certi"icati!n "r!$ the Nati!na& C!$$issi!n !n Indi6en!us 'e!&es *NCI'

that the c!ncessi!n area d!es n!t !%er&a 9ith any ancestra& d!$ain . <$)t&$'

s&*-iss&es in)'&de 3/et/er, $t t/e ti%e it 0i'ed its Petition 0or M$nd$%&s, PICOP

/$d s&*%itted t/e re8&ired <i7e-e$r <orest Prote)tion P'$n $nd Se7en-e$r

Re0orest$tion P'$n $nd 3/et/er PICOP /$d p$id $'' 0orest )/$r(es.

<or t/e 0$)t&$' s&*-iss&es, PICOP in7oes t/e do)trine t/$t 0$)t&$' 0indin(s

o0 t/e tri$' )o&rt, espe)i$''4 3/en &p/e'd *4 t/e Co&rt o0 Appe$'s, deser7e (re$t

3ei(/t. Ho3e7er, deser7in( o0 e7en (re$ter 3ei(/t $re t/e 0$)t&$' 0indin(s o0

$d%inistr$ti7e $(en)ies t/$t /$7e t/e expertise in t/e $re$ o0 )on)ern. "/e

)ontentio&s 0$)ts in t/is )$se re'$te to t/e 'i)ensin(, re(&'$tion $nd %$n$(e%ent o0

0orest reso&r)es, t/e deter%in$tion o0 3/i)/ *e'on(s ex)'&si7e'4 to t/e !ENR.

/en p$rties 0i'e $ Petition 0or Certiorari $($inst D&d(%ents o0

$d%inistr$ti7e $(en)ies t$sed 3it/ o7erseein( t/e i%p'e%ent$tion o0 '$3s, t/e

0indin(s o0 s&)/ $d%inistr$ti7e $(en)ies $re entit'ed to (re$t 3ei(/t. In the case

at bar, 'ICO' c!u&d n!t ha%e "i&ed a 'etiti!n "!r Certiorari , as the #ENR

Secretary had n!t yet e%en deter$ined 9hether 'ICO' sh!u&d be issued an

I-8A. As pre7io&s'4 %entioned, 3/en PICOP?s $pp'i)$tion 3$s *ro&(/t to $





st$ndsti'' &pon t/e e7$'&$tion t/$t PICOP /$d 4et to )o%p'4 3it/ t/e re8&ire%ents

0or t/e iss&$n)e o0 $n I<MA, PICOP re0&sed to $ttend 0&rt/er %eetin(s 3it/ t/e

!ENR $nd inste$d 0i'ed $ Petition 0or M$nd$%&s $($inst t/e '$tter. #4 D&%pin(

t/e (&n, PICOP did not di%inis/ t/e 3ei(/t o0 t/e !ENR Se)ret$r4?s initi$'

deter%in$tion.

0orest Protection and .eforestation Plans

(he 'er"!r$ance E%a&uati!n (ea$ tas<ed t! araise 'ICO'?s

er"!r$ance !n its (LA N!. 12 "!und that 'ICO' had n!t sub$itted its -i%e;

)ear -!rest 'r!tecti!n '&an and its Se%en;)ear Re"!restati!n '&an. /@

In its Motion 0or Re)onsider$tion, PICOP $sserts t/$t, in its Letter o0 Intentd$ted G A&(&st $nd %$red $s Ex/i*it L in t/e tri$' )o&rt, t/ere 3$s $

re0eren)e to $ "en-e$r S&st$in$*'e <orest M$n$(e%ent P'$n 1S<MP2, in 3/i)/ $

<i7e-e$r <orest Prote)tion P'$n $nd $ Se7en-e$r Re0orest$tion P'$n 3ere

$''e(ed'4 in)orpor$ted. PICOP s&*%itted $ %$)/ine )op4 o0 $ )erti0ied p/oto)op4

o0 p$(es B-6F $nd 5=-55 o0 t/is S<MP in its Motion 0or

Re)onsider$tion. PICOP )'$i%s t/$t t/e existen)e o0 t/is S<MP 3$s repe$ted'4

$sserted d&rin( t/e I<MA $pp'i)$tion pro)ess.65;

Upon ex$%in$tion o0 t/e portions o0 t/e S<MP s&*%itted to &s, 3e )$nnot

/e'p *&t noti)e t/$t PICOP?s )on)ept o0 0orest prote)tion is t/e se)&rit4 o0 t/e $re$

$($inst i''e($' entr$nts $nd sett'ers. "/ere is no %ention o0 t/e prote)tion o0 t/e

3i'd'i0e t/erein, $s t/e 0o)&s o0 t/e dis)&ssion o0 t/e si'7i)&'t&r$' tre$t%ents $nd

t/e S<MP itse'0 is on t/e prote)tion $nd (ener$tion o0 0&t&re ti%*er /$r7ests. e

$re p$rti)&'$r'4 dist&r*ed *4 t/e portions st$tin( t/$t trees o0 &ndesir$*'e 8&$'it4

s/$'' *e re%o7ed.

Ho3e7er, 3/en 3e re8&ired t/e !ENR Se)ret$r4 to )o%%ent on PICOP?s

Motion 0or Re)onsider$tion, t/e !ENR Se)ret$r4 did not disp&te t/e existen)e o0

t/is S<MP, or 8&estion PICOP?s $ssertion t/$t $ "en-e$r <orest Prote)tion P'$n$nd $ "en-e$r Re0orest$tion P'$n $re $'re$d4 in)orpor$ted t/erein. Hen)e, sin)e

t/e $(en)4 t$sed to deter%ine )o%p'i$n)e 3it/ I<MA $d%inistr$ti7e re8&ire%ents

)/ose to re%$in si'ent in t/e 0$)e o0 $''e($tions o0 )o%p'i$n)e, 3e $re )onstr$ined

to 3it/dr$3 o&r prono&n)e%ent in t/e $ss$i'ed !e)ision t/$t PICOP /$d not

s&*%itted $ <i7e-e$r <orest Prote)tion P'$n $nd $ Se7en-e$r Re0orest$tion P'$n









0$i'ed to p$4 its re(&'$r 0orest )/$r(es )o7erin( t/e period 0ro%

Septe%*er 5 to 6 Apri' in t/e tot$' $%o&nt

o0 P5B,B6,B=.B66; PICOP $'so $''e(ed'4 p$id '$te %ost o0 its 0orest

)/$r(es 0ro% 56 on3$rds, *4 re$son o0 3/i)/, PICOP is 'i$*'e 0or $

s&r)/$r(e o0 B per $nn&% on t/e t$x d&e $nd interest o0 per

$nn&% 3/i)/ no3 $%o&nts to P5B,56,=GB..6F; Lie3ise, PICOP

$''e(ed'4 /$d o7erd&e $nd &np$id si'7i)&'t&r$' 0ees in t/e $%o&nt

o0 P,+66,5. $s o0 + A&(&st .6G; S&%%in( &p t/e testi%on4,

t/ere0ore, it 3$s $''e(ed t/$t PICOP /$d &np$id $nd o7erd&e 0orest

)/$r(es in t/e s&% o0P56F,B,==. $s o0 5 A&(&st .6;

. Co''e)tion 'etters 3ere sent to PICOP, *&t no o00i)i$' re)eipts $re ext$nt

in t/e !ENR re)ord in #is'i( Cit4 e7iden)in( p$4%ent o0 t/e o7erd&e

$%o&nt st$ted in t/e s$id )o''e)tion 'etters. F; "/ere 3ere no o00i)i$'

re)eipts 0or t/e period )o7erin( Septe%*er 5 to 6 Apri' .

e $'so )onsidered t/ese pie)es o0 e7iden)e %ore )on7in)in( t/$n t/e ot/er

ones presented *4 PICOP:

5. PICOP presented t/e )erti0i)$tion o0 Co%%&nit4 En7iron%ent $nd

N$t&r$' Reso&r)es O00i)e 1CENRO2 O00i)er P/i'ip A. C$'&ns$(, 3/i)/

re0ers on'4 to PICOP?s $''e(ed p$4%ent o0 re(&'$r 0orest )/$r(es

)o7erin( t/e period 0ro% 5= Septe%*er 5 to 5B M$4 .F5; e

noted t/$t it does not %ention si%i'$r p$4%ent o0 t/e pen$'ties,

s&r)/$r(es $nd interests t/$t PICOP in)&rred in p$4in( '$te se7er$'

0orest )/$r(es, 3/i)/ 0$)t 3$s not re*&tted *4 PICOP.

. "/e F M$4 Certi0i)$tion *4 CENRO C$'&ns$( spe)i0ied on'4 t/e

period )o7erin( 5= Septe%*er 5 to 5B M$4 $nd t/e $%o&nt o0

PB+,6+,F5.GB p$id *4 PICOP 3it/o&t indi)$tin( t/e )orrespondin(

7o'&%e $nd d$te o0 prod&)tion o0 t/e 'o(s. "/is is in )ontr$st to t/e

0indin(s o0 S<MS E7$n(e'ist$, 3/i)/ )o7er t/e period 0ro% C 56 to

+ A&(&st $nd in)'&des pen$'ties, interests, $nd s&r)/$r(es 0or '$te

p$4%ent p&rs&$nt to !AO G, series o0 5GF.

+. "/e 5 A&(&st PICOP-re8&ested )erti0i)$tion iss&ed *4 #i''

Co''e)tor A%e'i$ !. Ar$4$n, $nd $ttested to *4 CENRO C$'&ns$(

/i%se'0, s/o3s t/$t PICOP p$id on'4 re(&'$r 0orest )/$r(es 0or its 'o(

prod&)tion )o7erin( 5 J&'4 5 to 5 Septe%*er 5. Ho3e7er,

t/ere 3ere 'o( prod&)tions $0ter 5 Septe%*er 5, t/e re(&'$r 0orest















)/$r(es 0or 3/i)/ /$7e not *een p$id, $%o&ntin( to P5B,B6,B=.B.F; "/e s$%e )erti0i)$tion s/o3s de'$4ed p$4%ent o0 0orest )/$r(es,

t/ere*4 )orro*or$tin( t/e testi%on4 o0 S<MS E7$n(e'ist$ $nd

s&*st$nti$tin( t/e i%position o0 pen$'ties $nd s&r)/$r(es.

In its Motion 0or Re)onsider$tion, PICOP )'$i%s t/$t S<MS E7$n(e'ist$ is

$ssi(ned to $n o00i)e t/$t /$s not/in( to do 3it/ t/e )o''e)tion o0 0orest )/$r(es,

$nd t/$t /e *$sed /is testi%on4 on t/e Me%or$nd$ o0 <orest M$n$(e%ent

Spe)i$'ist II 1<MS II2 "eo0i'$ Or'$nes $nd !ENR, #is'i( Cit4 #i'' Co''e)tor

A%e'i$ !. Ar$4$n, neit/er o0 3/o% 3$s presented to testi04 on /is or /er

Me%or$nd&%. PICOP $'so s&*%itted $n Addend&% to Motion 0or

Re)onsider$tion, 3/erein it $ppended )erti0ied tr&e )opies o0 CENRO S&%%$ries

3it/ $tt$)/ed O00i)i$' Re)eipts tendin( to s/o3 t/$t PICOP /$d p$id $ tot$'

o0 PG5,5G=,F=F.F in 0orest )/$r(es 0or 5 J$n&$r4 5 to !e)e%*er ,

in)'&din( t/e period d&rin( 3/i)/ S<MS E7$n(e'ist$ )'$i%s PICOP did not p$40orest )/$r(es 1 Septe%*er 5 to 6 Apri' 2.

#e0ore pro)eedin( $n4 0&rt/er, it is ne)ess$r4 0or &s to point o&t t/$t, $s 3it/

o&r r&'in( on t/e 0orest prote)tion $nd re0orest$tion p'$ns, t/is deter%in$tion o0

)o%p'i$n)e 3it/ t/e p$4%ent o0 0orest )/$r(es is ex)'&si7e'4 0or t/e p&rpose o0

deter%inin( PICOP?s s$tis0$)tor4 per0or%$n)e on its "LA No. =+. "/is )$nnot

*ind eit/er p$rt4 in $ possi*'e )o''e)tion )$se t/$t %$4 ens&e.

An e7$'&$tion o0 t/e !ENR Se)ret$r4?s position on t/is %$tter s/o3s $

/e$74 re'i$n)e on t/e testi%on4 o0 S<MS E7$n(e'ist$, %$in( it i%per$ti7e 0or &s

to stri)t'4 s)r&tinie t/e s$%e 3it/ respe)t to its )ontents $nd $d%issi*i'it4.

PICOP )'$i%s t/$t S<MS E7$n(e'ist$?s o00i)e /$s not/in( to do 3it/ t/e

)o''e)tion o0 0orest )/$r(es. A))ordin( to PICOP, t/e entit4 /$7in( $d%inistr$ti7e

D&risdi)tion o7er it is CENRO, #is'i( Cit4 *4 7irt&e o0 !ENR Ad%inistr$ti7e

Order No. 6-+6, d$ted No7e%*er 56, 3/i)/ st$tes:

5. In order 0or t/e !ENR to *e $*'e to exer)ise )'oser $nd %ore e00e)ti7e

s&per7ision, %$n$(e%ent $nd )ontro' o7er t/e 0orest reso&r)es 3it/in t/e $re$s)o7ered *4 "LA No. =+, P"LA No. =F $nd I<MA No. +B o0 t/e PICOP Reso&r)es,

In)., 1PRI2 $nd, $t t/e s$%e ti%e, pro7ide (re$ter 0$)i'it4 in t/e de'i7er4 o0 !ENR

ser7i)es to 7$rio&s p&*'i)s, t/e $0ores$id 0orest /o'din(s o0 PRI $re /ere*4 p'$)ed&nder t/e ex)'&si7e D&risdi)tion o0 !ENR Re(ion No. KIII 3it/ t/e CENR O00i)e

$t #is'i(, S&ri($o de' S&r, $s dire)t'4 responsi*'e t/ereto. x x x.





e dis$(ree. E7$n(e'ist$ is $n S<MS $ssi(ned $t t/e N$t&r$' <orest

M$n$(e%ent !i7ision o0 t/e <M#, !ENR. In E7$n(e'ist$?s $0ore%entioned

$00id$7it s&*%itted $s p$rt o0 /is dire)t ex$%in$tion, E7$n(e'ist$ en&%er$ted /is

d&ties $nd 0&n)tions $s S<MS:

5. As S<MS, I /$7e t/e 0o''o3in( d&ties $nd 0&n)tions:

$2 "o e7$'&$te $nd $)t on )$ses pert$inin( to 0orest %$n$(e%ent re0erredto in t/e N$t&r$' 0orest M$n$(e%ent !i7ision>

*2 "o %onitor, 7eri04 $nd 7$'id$te 0orest %$n$(e%ent $nd re'$ted

$)ti7ities *4 ti%*er 'i)en)es $s to t/eir )o%p'i$n)e to $ppro7ed p'$ns

$nd pro(r$%s>)2 "o )ond&)t in7esti($tion $nd 7eri0i)$tion o0 )o%p'i$n)e *4 ti%*er

'i)ensesper%ittees to existin( !ENR r&'es $nd re(&'$tions>

d2 "o ($t/er 0ie'd d$t$ $nd in0or%$tion to *e &sed in t/e 0or%&'$tion o0 0orest po'i)ies $nd re(&'$tions> $nd

e2 "o per0or% ot/er d&ties $nd responsi*i'ities $s %$4 *e dire)ted *4

s&periors.F+;

PICOP $'so $''e(es t/$t t/e testi%on4 o0 S<MS E7$n(e'ist$ 3$s *$sed on

t/e $0ore%entioned Me%or$nd$ o0 Or'$nes $nd Ar$4$n $nd t/$t, sin)e neit/er

Or'$nes nor Ar$4$n 3$s presented $s $ 3itness, S<MS E7$n(e'ist$?s testi%on4

s/o&'d *e dee%ed /e$rs$4. S<MS E7$n(e'ist$?s 5 O)to*er A00id$7it,F=; 3/i)/ 3$s o00ered $s p$rt o0 /is testi%on4, pro7ides:

. So%eti%e in Septe%*er, 5 t/e !ENR Se)ret$r4 3$s 0&rnis/ed $

)op4 o0 0orest M$n$(e%ent Spe)i$'ist II 1<MS II2 "eo0i'$ L. Or'$nes?

Me%or$nd&% d$ted Septe%*er =, 5 )on)ernin( &nop$id 0orest )/$r(es o0

PICOP. Att$)/ed to t/e s$id Me%or$nd&% 3$s $ Me%or$nd&% d$ted Septe%*er 5, 5 o0 A%e'i$ !. Ar$4$n, #i'' )o''e)tor o0 t/e !ENR R5+-

5=, #is'i( Cit4. Copies o0 t/e s$id Me%or$nd$ $re $tt$)/ed $s Annexes 5 $nd ,

respe)ti7e'4.

+. "/e s$id Me%or$nd$ 3ere re0erred to t/e <M# !ire)tor 0or $ppropri$te

$)tion.

=. "/&s, on A&(&st B, , I 3$s dire)ted *4 t/e <M# !ire)tor to

pro)eed to Re(ion 5+ to ($t/er 0orestr4-re'$ted d$t$ $nd 7$'id$te t/e report

)ont$ined in t/e Me%or$nd$ o0 Ms. Or'$nes $nd Ar$4$n.

B. On A&(&st 6, , I pro)eeded to !ENR Re(ion 5+ in #is'i( Cit4. A

)op4 o0 %4 "r$7e' Order is $tt$)/ed $s Annex +.








6. Upon %4 $rri7$' $t CENRO, #is'i(, s&ri($o de' S&r, I )oordin$ted 3it/

CENRO O00i)er P/i'ip A. C$'&ns$( $nd re8&ested /i% to %$e $7$i'$*'e to %e

t/e re)ords re($rdin( t/e 0orest prod&)ts $ssess%ents o0 PICOP.

F. A0ter I 3$s pro7ided 3it/ t/e re8&ested re)ords, I e7$'&$ted $nd

)o''e)ted t/e d$t$.

G. A0ter t/e e7$'&$tion, I 0o&nd t/$t t/e &np$id 0orest )/$r(es $d7erted to

in t/e Me%or$nd$ o0 Mr. Or'$nes $nd Ar$4$n )o7erin( t/e period 0ro% M$4 G,5 to J&'4 F, 5 /$d $'re$d4 *een p$id *&t '$te. I 0&rt/er 0o&nd o&t t/$t

PICOP /$d not p$id its 0orest )/$r(es )o7erin( t/e period 0ro% Septe%*er ,

5 to Apri' 6, in t/e tot$' $%o&nt o0P5B,B6,B=.B.

. I $'so dis)o7ered t/$t 0ro% 56 &p to $&(&st +, , PICOP p$id '$te

so%e o0 its 0orest )/$r(es in 56 $nd )onsistent'4 0$i'ed to p$4 '$te its 0orest

)/$r(es 0ro% 5F &p to t/e present ti%e.

5. Under Se)tion F.= o0 !AO No. G Series o0 5FGF $nd P$r$(r$p/

1=$2, Se)tion 5 o0 #IR re7en&e Re(&'$tions No. -G5 d$ted No7e%*er 5G, 5G,PICOP is %$nd$ted to p$4 $ s&r)/$r(e o0 B per $nn&% o0 t/e t$x d&e $nd

interest o0 per $nn&% 0or '$te p$4%ent o0 0orest )/$r(es.

55. "/e o7erd&e &np$id 0orest )/$r(es o0 PICOP $s s/o3n in t/e $tt$)/ed

t$*&'$tion %$red $s Annex = /ereo0 is P5B,56,=GB.. Lie3ise, PICOP /$s

o7erd&e $nd &np$id si'7i)&'t&r$' 0ees in t/e $%o&nt o0 P,+66,5. 0ro% 56

to t/e present.

5. In $'', PICOP /$s $n o&tst$ndin( $nd o7erd&e tot$' o*'i($tion

o0 P56F,B,==. $s o0 A&(&st +, *$sed on t/e $tt$)/ed t$*&'$tion 3/i)/is %$red $s Annex B /ereo0.FB;

C'e$r'4, S<MS E7$n(e'ist$ /$d not relied on t/e Me%or$nd$ o0 Or'$nes $nd

Ar$4$n. On t/e )ontr$r4, /e tr$7e'ed to S&ri($o de' S&r in order to 7eri04 t/e

)ontents o0 t/ese Me%or$nd$. S<MS E7$n(e'ist$, in 0$)t, re7ised t/e 0indin(s

t/erein, $s /e dis)o7ered t/$t )ert$in 0orest )/$r(es $d7erted to $s &np$id /$d

$'re$d4 *een p$id.

"/is does not %e$n, /o3e7er, t/$t S<MS E7$n(e'ist$?s testi%on4 3$s not

/e$rs$4. A 3itness %$4 testi04 on'4 on 0$)ts o0 3/i)/ /e /$s person$' no3'ed(e>

t/$t is, t/ose deri7ed 0ro% /is per)eption, ex)ept in )ert$in )ir)&%st$n)es $''o3ed

*4 t/e R&'es.F6; Ot/er3ise, s&)/ testi%on4 is )onsidered /e$rs$4 $nd, /en)e,

in$d%issi*'e in e7iden)e.FF;









S<MS E7$n(e'ist$, 3/i'e not re'4in( on t/e Me%or$nd$ o0 Or'$nes $nd

Ar$4$n, ne7ert/e'ess re'ied on re)ords, t/e prep$r$tion o0 3/i)/ /e did not

p$rti)ip$te in.FG; "/ese re)ords $nd t/e persons 3/o prep$red t/e% 3ere not

presented in )o&rt, eit/er. As s&)/, S<MS E7$n(e'ist$?s testi%on4, inso0$r $s /e

re'ied on t/ese re)ords, 3$s on %$tters not deri7ed 0ro% /is o3n per)eption, $nd

3$s, t/ere0ore, /e$rs$4.

Se)tion ==, R&'e 5+ o0 t/e R&'es o0 Co&rt, 3/i)/ spe$s o0 entries in

o00i)i$' re)ords $s $n ex)eption to t/e /e$rs$4 r&'e, )$nnot ex)&se t/e testi%on4 o0

S<MS E7$n(e'ist$. Se)tion == pro7ides:

SEC. ==. "ntries in official records. 9 Entries in o00i)i$' re)ords %$de in

t/e per0or%$n)e o0 /is d&t4 *4 $ p&*'i) o00i)er o0 t/e P/i'ippines, or *4 $ person

in t/e per0or%$n)e o0 $ d&t4 spe)i$''4 enDoined *4 '$3, $re prima facie e7iden)eo0 t/e 0$)ts t/erein st$ted.

In #frica v. Calte$,F; 3e en&%er$ted t/e 0o''o3in( re8&isites 0or t/e

$d%ission o0 entries in o00i)i$' re)ords $s $n ex)eption to t/e /e$rs$4 r&'e: 152 t/e

entries 3ere %$de *4 $ p&*'i) o00i)er or $ pri7$te person in t/e per0or%$n)e o0 $

d&t4> 12 t/e per0or%$n)e o0 t/e d&t4 is espe)i$''4 enDoined *4 '$3> 1+2 t/e p&*'i)

o00i)er or t/e pri7$te person /$d s&00i)ient no3'ed(e o0 t/e 0$)ts st$ted *4 /i%,

3/i)/ %&st /$7e *een $)8&ired *4 /i% person$''4 or t/ro&(/ o00i)i$' in0or%$tion.

"/e present$tion o0 t/e re)ords t/e%se'7es 3o&'d, t/ere0ore, /$7e *een$d%issi*'e $s $n ex)eption to t/e /e$rs$4 r&'e e7en i0 t/e p&*'i) o00i)ers 3/o

prep$red t/e% 3$s3ere not presented in )o&rt, pro7ided t/e $*o7e re8&isites

)o&'d *e $de8&$te'4 pro7en. In t/e )$se $t *$r, /o3e7er, neit/er t/e re)ords nor t/e

persons 3/o prep$red t/e% 3ere presented in )o&rt. "/&s, t/e $*o7e re8&isites

)$nnot *e s&00i)ient'4 pro7en. A'so, sin)e S<MS E7$n(e'ist$ %ere'4 testi0ied

*$sed on 3/$t t/ose re)ords )ont$ined, /is testi%on4 3$s /e$rs$4 e7iden)e t3i)e

re%o7ed, 3/i)/ 3$s one step too %$n4 to *e )o7ered *4 t/e o00i)i$'-re)ords

ex)eption to t/e /e$rs$4 r&'e.

S<MS E7$n(e'ist$?s testi%on4 o0 nonp$4%ent o0 0orest )/$r(es 3$s,0&rt/er%ore, *$sed on /is 0$i'&re to 0ind o00i)i$' re)eipts )orrespondin( to *i''in(s

sent to PICOP. As st$ted $*o7e, PICOP $tt$)/ed o00i)i$' re)eipts in its Addend&%

to Motion 0or Re)onsider$tion to t/is Co&rt. /i'e t/is )o&rse o0 $)tion is

nor%$''4 irre(&'$r in D&di)i$' pro)eedin(s, 3e %ere'4 st$ted in t/e $ss$i'ed

!e)ision t/$t t/e !ENR Se)ret$r4 /$s $de8&$te'4 pro7en t/$t PICOP /$s, at this

time, 0$i'ed to )o%p'4 3it/ $d%inistr$ti7e $nd st$t&tor4 re8&ire%ents 0or t/e







)on7ersion o0 "LA No. =+ into $n I<MA, G; $nd t/$t t/is disposition )on0ers

$not/er )/$n)e to )o%p'4 3it/ t/e 0ore(oin( re8&ire%ents.G5;

In 7ie3 o0 t/e 0ore(oin(, 3e 3it/dr$3 o&r prono&n)e%ent t/$t PICOP /$s

&np$id 0orestr4 )/$r(es, $t 'e$st 0or t/e p&rpose o0 deter%inin( )o%p'i$n)e 3it/

t/e I<MA re8&ire%ents.

+CIP Certification

"/e Co&rt o0 Appe$'s /e'd t/$t PICOP need not )o%p'4 3it/ Se)tion B o0

Rep&*'i) A)t No. G+F5, 3/i)/ re8&ires prior )erti0i)$tion 0ro% t/e NCIP t/$t t/e

$re$s $00e)ted do not o7er'$p 3it/ $n4 $n)estr$' do%$in *e0ore $n4 I<MA )$n *e

entered into *4 t/e (o7ern%ent. A))ordin( to t/e Co&rt o0 Appe$'s, Se)tion B

s/o&'d *e interpreted to re0er to $n)estr$' do%$ins t/$t /$7e *een d&'4 est$*'is/ed

$s s&)/ *4 t/e )ontin&o&s possession $nd o))&p$tion o0 t/e $re$ )on)erned *4indi(eno&s peop'es sin)e ti%e i%%e%ori$' &p to t/e present. "/e Co&rt o0

Appe$'s /e'd t/$t PICOP /$d $)8&ired propert4 ri(/ts o7er "LA No. =+ $re$s,

*ein( in ex)'&si7e, )ontin&o&s $nd &ninterr&pted possession $nd o))&p$tion o0

t/ese $re$s sin)e 5B &p to t/e present.

In t/e $ss$i'ed !e)ision, 3e re7ersed t/e 0indin(s o0 t/e Co&rt o0

Appe$'s. <irst'4, t/e Co&rt o0 Appe$'s r&'in( de0ies t/e sett'ed D&rispr&den)e 3e

/$7e %entioned e$r'ier, t/$t $ "LA is neit/er $ propert4 nor $ propert4 ri(/t, $nd

t/$t it does not )re$te $ 7ested ri(/t.G;

Se)ond'4, t/e Co&rt o0 Appe$'s? resort to st$t&tor4 )onstr&)tion is %isp'$)ed,

$s Se)tion B o0 Rep&*'i) A)t No. G+F is )'e$r $nd &n$%*i(&o&s.

PICOP /$d tried to p&t $ )'o&d o0 $%*i(&it4 o7er Se)tion B o0 Rep&*'i)

A)t No. G+F5 *4 in7oin( t/e de0inition o0 An)estr$' !o%$ins in Se)tion +1$2

t/ereo0, 3/erein t/e possesssion *4 Indi(eno&s C&'t&r$' Co%%&nitiesIndi(eno&s

Peop'es 1ICCsIPs2 %&st /$7e *een )ontin&o&s to t/e present. Ho3e7er, 3e noted

t/e ex)eption 0o&nd in t/e 7er4 s$%e senten)e in7oed *4 PICOP.

An)estr$' do%$ins, t/ere0ore, re%$in $s s&)/ e7en 3/en possession or

o))&p$tion o0 t/ese $re$s /$s *een interr&pted *4 )$&ses pro7ided &nder t/e '$3,

s&)/ $s 7o'&nt$r4 de$'in(s entered into *4 t/e (o7ern%ent $nd pri7$te

indi7id&$'s)orpor$tions. Conse8&ent'4, t/e iss&$n)e o0 "LA No. =+ in 5B did

not )$&se t/e ICCsIPs to 'ose t/eir possession or o))&p$tion o7er t/e $re$ )o7ered

*4 "LA No. =+.











ter% renewal . Ot/er3ise, t/e in)'&sion o0 rene3in( in Se)tion B 3o&'d *e

rendered inoper$ti7e.

PICOP 0&rt/er )'$i%s:

GB. Veri'4, in interpretin( t/e ter% /e'd &nder )'$i% o0 o3ners/ip, t/e

S&pre%e Co&rt )o&'d not /$7e %e$nt to in)'&de )'$i%s t/$t /$d D&st *een 0i'ed

$nd not 4et re)o(nied &nder t/e pro7isions o0 !ENR Ad%inistr$ti7e Order No. Series o0 5+, nor to $n4 ot/er )o%%&nit4 $n)estr$' do%$in pro(r$% prior to

R.A. G+F5.

x x x x

GF. One )$n not i%$(ine t/e terri*'e d$%$(e $nd )/$os to t/e )o&ntr4, its

e)ono%4, its peop'e $nd its 0&t&re i0 $ %ere )'$i% 0i'ed 0or t/e iss&$n)e o0 $CA!C or CA!" 3i'' $'re$d4 pro7ide t/ose 3/o 0i'ed t/e $pp'i)$tion, t/e

$&t/orit4 or ri(/t to stop t/e rene3$' or iss&$n)e o0 $n4 )on)ession, 'i)ense or

'e$se or $n4 prod&)tion-s/$rin( $(ree%ent. "/e s$%e interpret$tion 3i'' (i7es&)/ $pp'i)$nts t/ro&(/ $ %ere $pp'i)$tion t/e ri(/t to stop or s&spend $n4 proDe)t

t/$t t/e4 )$n )ite 0or not s$tis04in( t/e re8&ire%ents o0 t/e )ons&'t$tion pro)ess o0

R.A. G+F5. I0 s&)/ interpret$tion (ets ens/rined in t/e st$t&res o0 t/e '$nd, t/e

&ns)r&p&'o&s $nd t/e extortionists )$n p&t $n4 on(oin( or 0&t&re proDe)t or $)ti7it4 to $ stop in $n4 p$rt o0 t/e )o&ntr4 )itin( t/eir ri(/t 0ro% /$7in( 0i'ed $n

$pp'i)$tion 0or iss&$n)e o0 $ CA!C or CA!" )'$i% $nd t/e 'e($' do)trine

est$*'is/ed *4 t/e S&pre%e Co&rt in t/is PICOP )$se.GB;

e $re not s&re 3/et/er PICOP?s )o&nse's $re de'i*er$te'4 tr4in( to %is'e$d

&s, or $re D&st p'$in'4 i(nor$nt o0 *$si) pre)epts o0 '$3 . (he ter$ c&ai$J in the

hrase c&ai$ !" !9nershiJ is n!t a d!cu$ent !" any s!rt. It is an attitude

t!9ards s!$ethin6. (he hrase c&ai$ !" !9nershiJ $eans the !ssessi!n

!" a iece !" r!erty 9ith the intenti!n !" c&ai$in6 it in h!sti&ity t! the true

!9ner.J5/ It is a&s! de"ined as a arty?s $ani"est intenti!n t! ta<e !%er &and,

re6ard&ess !" tit&e !r ri6ht.J54 Ot/er t/$n in Rep&*'i) A)t No. G+F5, t/e p/r$se

)'$i% o0 o3ners/ip is t/oro&(/'4 dis)&ssed in iss&es re'$tin( to $)8&isiti7e

pres)ription in Ci7i' L$3.

#e0ore PICOP?s )o&nse's )o&'d $ttri*&te to &s $n $ssertion t/$t $

%ere attitude or intention 3o&'d stop t/e rene3$' or iss&$n)e o0 $n4 )on)ession,

'i)ense or 'e$se or $n4 prod&)tion-s/$rin( $(ree%ent, 3e s/o&'d stress *e0ore/$nd

t/$t t/is attitude or intention %&st *e )'e$r'4 s/o3n *4 o7ert $)ts $nd, $s re8&ired

*4 Se)tion +1$2, s/o&'d /$7e *een in existen)e sin)e ti%e i%%e%ori$',

)ontin&o&s'4 to t/e present ex)ept 3/en interr&pted *4 3$r, force majeure or









disp'$)e%ent *4 0or)e, de)eit, ste$'t/ or $s $ )onse8&en)e o0 (o7ern%ent proDe)ts

or $n4 ot/er 7o'&nt$r4 de$'in(s entered into *4 (o7ern%ent $nd pri7$te

indi7id&$'s)orpor$tions.

Anot/er $r(&%ent o0 PICOP in7o'7es t/e )'$i% itse'0 t/$t t/ere 3$s no

o7er'$ppin(.

/$t is re8&ired in Se)tion B o0 Rep&*'i) A)t No. G+F is $ Certi0i)$tion

0ro% t/e NCIP t/$t t/ere 3$s no o7er'$ppin( 3it/ $n4 An)estr$' !o%$in. PICOP

)$nnot )'$i% t/$t t/e !ENR (r$7e'4 $*&sed its dis)retion 0or re8&irin( t/is

Certi0i)$tion, on t/e (ro&nd t/$t t/ere 3$s no o7er'$ppin(. e reiter$te t/$t it is

$ani"est&y absurd t! c&ai$ that the subect &ands $ust "irst be r!%en t! be

art !" ancestra& d!$ains be"!re a certi"icati!n that they are n!t can be

re>uired. As dis)&ssed in t/e $ss$i'ed !e)ision, PICOP did not e7en see $n4

)erti0i)$tion 0ro% t/e NCIP t/$t t/e $re$ )o7ered *4 "LA No. =+, s&*De)t o0 itsI<MA )on7ersion, did not o7er'$p 3it/ $n4 $n)estr$' do%$in.GG;

/anggunian Consultation and *roval

/i'e PICOP did not see $n4 )erti0i)$tion 0ro% t/e NCIP t/$t t/e 0or%er?s

)on)ession $re$ did not o7er'$p 3it/ $n4 $n)estr$' do%$in, PICOP initi$''4 so&(/t

to )o%p'4 3it/ t/e re8&ire%ent &nder Se)tions 6 $nd F o0 t/e Lo)$' @o7ern%ent

Code to pro)&re prior $ppro7$' o0 t/e S$n((&ni$ns )on)erned. Ho3e7er, on'4 one

o0 t/e %$n4 pro7in)es $00e)ted $ppro7ed t/e iss&$n)e o0 $n I<MA to

PICOP. Und$&nted, PICOP ne7ert/e'ess s&*%itted to t/e !ENR t/e p&rported

reso'&tionG; o0 t/e Pro7in)e o0 S&ri($o de' S&r indorsin( t/e $ppro7$' o0 PICOP?s

$pp'i)$tion 0or I<MA )on7ersion, $pp$rent'4 /opin( eit/er t/$t t/e dis$ppro7$' o0

t/e ot/er pro7in)es 3o&'d (o &nnoti)ed, or t/$t t/e S&ri($o de' S&r $ppro7$' 3o&'d

*e tre$ted $s s&00i)ient )o%p'i$n)e.

S&rprisin('4, t/e dis$ppro7$' *4 t/e ot/er pro7in)es did (o &nnoti)ed *e0ore

t/e R"C $nd t/e Co&rt o0 Appe$'s, despite t/e repe$ted $ssertions t/ereo0 *4 t/e

So'i)itor @ener$'. /en 3e pointed o&t in t/e $ss$i'ed !e)ision t/$t t/e $ppro7$'

%&st *e *4 $'' t/e S$n((&ni$ns )on)erned $nd not *4 on'4 one o0 t/e%, PICOP)/$n(ed its t/eor4 o0 t/e )$se in its Motion 0or Re)onsider$tion, t/is ti%e )'$i%in(

t/$t t/e4 $re not re8&ired at all to pro)&re S$n((&ni$n $ppro7$'.

As st$ted in t/e $ss$i'ed !e)ision, t/e )o%%on e7iden)e o0 t/e !ENR

Se)ret$r4 $nd PICOP, n$%e'4, t/e +5 J&'4 5 Me%or$nd&% o0 Re(ion$'

Exe)&ti7e !ire)tor 1RE!2 E'i$s !. Ser$spi, Jr., en&%er$ted t/e 'o)$' (o7ern%ent







&nits $nd ot/er (ro&ps 3/i)/ /$d expressed t/eir opposition to PICOP?s

$pp'i)$tion 0or I<MA )on7ersion:

F. !&rin( t/e )ond&)t o0 t/e per0or%$n)e e7$'&$tion o0 "LA No. =+ iss&es

)o%p'$ints $($inst PRI 3ere s&*%itted t/r& Reso'&tions $nd 'etters. It is

i%port$nt t/$t t/ese $re in)'&ded in t/is report 0or $ssess%ent o0 3/$t $re t/eir 3ort/, 7i:

x x x x

F. Joint Reso'&tion 1&nn&%*ered2, d$ted M$r)/ 5, 5 o0 t/e

#$r$n($4 Co&n)i' $nd #$r$n($4 "ri*$' Co&n)i' o0 Si%&'$o, #oston,!$7$o Orient$' 1ANNEK <2 opposin( t/e )on7ersion o0 "LA No. =+

into I<MA o7er t/e 5F,55 /e)t$res $''e(ed'4 )o7ered 3it/ CA!C

No. B.

F.+ Reso'&tion Nos. 5, s-5 $nd B, s-5 1ANNEKES @ T H2 o0 t/e #&n$3$n "ri*$' Co&n)i' o0 E'ders 1##M"CE2 stron('4

de%$ndin( none rene3$' o0 PICOP "LA. "/e4 )'$i% to *e t/eri(/t0&' o3ner o0 t/e $re$ it *ein( t/eir $''e(ed $n)estr$' '$nd.

F.= Reso'&tion No. =, S-5 o0 Sitio Lin$o, S$nJose, #is'i( Cit4 1ANNEK I2 re8&estin( not to rene3 "LA =+ o7er

t/e /e)t$res o))&pied *4 t/e%.

F.B Reso'&tion No. , S-5 1ANNEK J2 o0 t/e S$n(&ni$n( #$4$n,

Lin(i(, S&ri($o de' S&r not to (r$nt t/e )on7ersion o0 "LA =+ )itin(

t/e p'i(/t o0 0or%er e%p'o4ees o0 PRI 3/o 3ere 0or)ed to enter $nd0$r% portion o0 "LA No. =+, $0ter t/e4 3ere '$id o00.

F.6 SP Reso'&tion No. 5-55+ $nd C!C Reso'&tion Nos. -5 o0

t/e S$n(&ni$n( P$n('&n(sod o0 #is'i( Cit4 1ANNEKES T L2re8&estin( to ex)'&de t/e $re$ o0 "LA No. =+ 0or 3$ters/ed

p&rposes.

F.F Reso'&tion No. 5-56=, d$ted J&ne 5, 5 1ANNEK M2

S$n(&ni$n( P$n('&n(sod o0 #is'i( Cit4 opposin( t/e )on7ersion o0

"LA =+ to I<MA 0or t/e re$son t/$t I<MA do not (i7e re7en&e

*ene0its to t/e Cit4.;

PICOP /$d )'$i%ed t/$t it )o%p'ied 3it/ t/e Lo)$' @o7ern%ent Code

re8&ire%ent o0 o*t$inin( prior $ppro7$' o0 t/e S$n((&ni$n )on)erned *4

s&*%ittin( $ p&rported reso'&tion5; o0 t/e Pro7in)e o0 S&ri($o de' S&r indorsin(

t/e $ppro7$' o0 PICOP?s $pp'i)$tion 0or I<MA )on7ersion. e ru&ed that this








cann!t be dee$ed su""icient c!$&iance 9ith the "!re6!in6 r!%isi!n. Suri6a!

de& Sur is n!t the !n&y r!%ince a""ected by the area c!%ered by the r!!sed

I-8A. As e%en the C!urt !" Aea&s "!und, 'ICO'?s (LA N!. 12 tra%erses

the &en6th and breadth n!t !n&y !" Suri6a! de& Sur but a&s! !" A6usan de&

Sur, C!$!ste&a Va&&ey and #a%a! Orienta'.;

On Motion 0or Re)onsider$tion, PICOP no3 $r(&es t/$t t/e re8&ire%ent

&nder Se)tions 6 $nd F does not $pp'4 to it.

e /$7e to re%ind PICOP $($in o0 t/e )ontents o0 Se)tion , Arti)'e KII o0

t/e Constit&tion:

Se)tion . A'' '$nds o0 t/e p&*'i) do%$in, 3$ters, %iner$'s, )o$',

petro'e&%, $nd ot/er %iner$' oi's, $'' 0or)es o0 potenti$' ener(4,

0is/eries, 0orests or ti%*er, 3i'd'i0e, 0'or$ $nd 0$&n$, $nd ot/er n$t&r$'reso&r)es $re o3ned *4 t/e St$te. it/ t/e ex)eption o0 $(ri)&'t&r$'

'$nds, $'' ot/er n$t&r$' reso&r)es s/$'' not *e $'ien$ted. (he eD&!rati!n,

de%e&!$ent, and uti&i+ati!n !" natura& res!urces sha&& be under the

"u&& c!ntr!& and suer%isi!n !" the State. (he State $ay direct&y

underta<e such acti%ities, !r it $ay enter int! c!;r!ducti!n, !int

%enture, !r r!ducti!n;sharin6 a6ree$ents 9ith -i&iin! citi+ens, !r

c!r!rati!ns !r ass!ciati!ns at &east siDty er centu$ !" 9h!se

caita& is !9ned by such citi+ens. S&)/ $(ree%ents %$4 *e 0or $ period

not ex)eedin( t3ent4-0i7e 4e$rs, rene3$*'e 0or not %ore t/$n t3ent4-

0i7e 4e$rs, $nd &nder s&)/ ter%s $nd )onditions $s %$4 *e pro7ided *4'$3. In )$ses o0 3$ter ri(/ts 0or irri($tion, 3$ter s&pp'4, 0is/eries, or

ind&stri$' &ses ot/er t/$n t/e de7e'op%ent o0 3$ter po3er, *ene0i)i$' &se

%$4 *e t/e %e$s&re $nd 'i%it o0 t/e (r$nt.

A&& r!ects re&atin6 t! the eD&!rati!n, de%e&!$ent and uti&i+ati!n !"

natura& res!urces are r!ects !" the State. hi&e the State $ay enter int! c!;

r!ducti!n, !int %enture, !r r!ducti!n;sharin6 a6ree$ents 9ith -i&iin!

citi+ens, !r c!r!rati!ns !r ass!ciati!ns at &east siDty er centu$ !" 9h!se

caita& is !9ned by these citi+ens, such as 'ICO', the r!ects ne%erthe&ess

re$ain as State r!ects and can never be urely rivate endeavors.

A'so, despite enterin( into )o-prod&)tion, Doint 7ent&re, or prod&)tion-

s/$rin( $(ree%ents, t/e St$te re%$ins in 0&'' )ontro' $nd s&per7ision o7er s&)/

proDe)ts. 'ICO', thus, cann!t &i$it 6!%ern$ent articiati!n in the r!ect t!

bein6 $ere&y its b!uncer, 9h!se ri$ary articiati!n is !n&y t! 9arrant and





ensure that the 'ICO' r!ect sha&& ha%e eace"u& tenure in the er$anent

"!rest a&&!cated t! r!%ide ra9 $ateria&s "!r the r!ect.

PICOP is indeed neit/er $ n$tion$' $(en)4 nor $ (o7ern%ent-o3ned or

)ontro''ed )orpor$tion. (he #ENR, h!9e%er, is a nati!na& a6ency and

is the nati!na& a6ency r!hibited by Secti!n 04 "r!$ issuin6 an I-8A 9ith!ut

the ri!r ar!%a& !" the San66unian c!ncerned. As re%i!us&y discussed,

'ICO'?s 'etiti!n "!r 8anda$us can !n&y be 6ranted i" the #ENR Secretary

is re5uired by la( t! issue an I-8A. e, /o3e7er, see /ere t/e ex$)t opposite:

the #ENR Secretary 9as actua&&y rohibited by la( "r!$ issuin6 an I-8A, as

there had been n! ri!r ar!%a& by a&& the !ther San66unians c!ncerned.

As re($rds PICOP?s $ssertion t/$t t/e $pp'i)$tion to t/e% o0 $ 55 '$3 is in

7io'$tion o0 t/e pro/i*ition $($inst t/e non-retro$)ti7it4 pro7ision in Arti)'e = o0

t/e Ci7i' Code, 3e /$7e to re%ind PICOP t/$t it is $pp'4in( 0or $n I<MA 3it/ $ter% o0 to F. Se)tion , Arti)'e KII o0 t/e Constit&tion $''o3s

exp'oit$tion $(ree%ents to '$st on'4 0or $ period not ex)eedin( t3ent4-0i7e 4e$rs,

rene3$*'e 0or not %ore t/$n t3ent4-0i7e 4e$rs. PICOP, t/&s, )$nnot 'e($''4 )'$i%

t/$t t/e proDe)t?s ter% st$rted in 5B $nd extends $'' t/e 3$4 to t/e present.

<in$''4, t/e de7o'&tion o0 t/e proDe)t to 'o)$' (o7ern%ent &nits is not

re8&ired *e0ore Se)tions 6 $nd F 3o&'d *e $pp'i)$*'e. Neit/er Se)tion 6 nor F

%entions s&)/ $ re8&ire%ent. Moreo7er, it is not on'4 t/e 'etter, *&t %ore

i%port$nt'4 t/e spirit o0 Se)tions 6 $nd F, t/$t s/o3s t/$t t/e de7o'&tion o0 t/e

proDe)t is not re8&ired. "/e $ppro7$' o0 t/e S$n((&ni$n )on)erned is re8&ired *4

'$3, not *e)$&se t/e 'o)$' (o7ern%ent /$s )ontro' o7er s&)/ proDe)t, *&t *e)$&se

t/e 'o)$' (o7ern%ent /$s t/e d&t4 to prote)t its )onstit&ents $nd t/eir st$e in t/e

i%p'e%ent$tion o0 t/e proDe)t. A($in, Se)tion 6 st$tes t/$t it $pp'ies to proDe)ts

t/$t %$4 )$&se po''&tion, )'i%$ti) )/$n(e, dep'etion o0 non-rene3$*'e reso&r)es,

'oss o0 )rop '$nd, r$n(e'$nd, or 0orest )o7er, $nd extin)tion o0 $ni%$' or p'$nt

spe)ies. "/e 'o)$' (o7ern%ent s/o&'d t/&s represent t/e )o%%&nities in s&)/

$re$, t/e 7er4 peop'e 3/o 3i'' *e $00e)ted *4 0'oodin(, '$nds'ides or e7en )'i%$ti)

)/$n(e i0 t/e proDe)t is not proper'4 re(&'$ted, $nd 3/o 'ie3ise /$7e $ st$e in t/e

reso&r)es in t/e $re$, $nd deser7e to *e $de8&$te'4 )o%pens$ted 3/en t/esereso&r)es $re exp'oited.

Indeed, it 3o&'d *e $*s&rd to )'$i% t/$t t/e proDe)t %&st 0irst *e de7o'7ed to

t/e 'o)$' (o7ern%ent *e0ore t/e re8&ire%ent o0 t/e n$tion$' (o7ern%ent seein(

$ppro7$' 0ro% t/e 'o)$' (o7ern%ent )$n *e $pp'ied. I0 $ proDe)t /$s *een de7o'7ed

to t/e 'o)$' (o7ern%ent, t/e 'o)$' (o7ern%ent itse'0 3o&'d *e i%p'e%entin( t/e



proDe)t. "/$t t/e 'o)$' (o7ern%ent 3o&'d need its o3n $ppro7$' *e0ore

i%p'e%entin( its o3n proDe)t is p$tent'4 si''4.

E'ILOGUE AN# #IS'OSI(ION

PICOP?) )$&se o0 $)tion )onsists in t/e $''e($tion t/$t t/e !ENR Se)ret$r4,

in not iss&in( $n I<MA, 7io'$ted its )onstit&tion$' ri(/t $($inst non-i%p$ir%ent o0

)ontr$)ts. e ha%e ru&ed, h!9e%er, that the 7/7 #!cu$ent is n!t a c!ntract

rec!6ni+ed under the n!n;i$air$ent c&ause, $uch &ess a c!ntract seci"ica&&y

en!inin6 the #ENR Secretary t! issue the I-8A. "/e )on)'&sion t/$t t/e 56

!o)&%ent is not $ )ontr$)t re)o(nied &nder t/e non-i%p$ir%ent )'$&se /$s e7en

*een disposed o0 in $not/er )$se de)ided *4 $not/er di7ision o0 t/is Co&rt, P)C*P

(esources! )nc. v. Base Metals Mineral (esources Corporation,=; t/e !e)ision in

3/i)/ )$se /$s *e)o%e 0in$' $nd exe)&tor4. PICOP?s Petition 0or M$nd$%&s

s/o&'d, t/ere0ore, 0$i'.

<&rt/er%ore, e7en i0 3e $ss&%e 0or t/e s$e o0 $r(&%ent t/$t t/e 56

!o)&%ent is $ )ontr$)t re)o(nied &nder t/e non-i%p$ir%ent )'$&se, $nd e7en i0

3e $ss&%e 0or t/e s$e o0 $r(&%ent t/$t t/e s$%e is $ )ontr$)t spe)i0i)$''4

enDoinin( t/e !ENR Se)ret$r4 to iss&e $n I<MA, PICOP?s Petition 0or M$nd$%&s

%&st sti'' 0$i'. (he 7/7 #!cu$ent eDress&y states that the 9arranty as t! the

tenure !" 'ICO' is subect t! c!$&iance 9ith c!nstituti!na& and statut!ry

re>uire$ents as 9e&& as 9ith eDistin6 !&icy !n ti$ber c!ncessi!ns.J (hus, i"

'ICO' r!%es the t9! ab!%e;$enti!ned $atters, it sti&& has t! r!%ec!$&iance 9ith statut!ry and ad$inistrati%e re>uire$ents "!r the c!n%ersi!n

!" its (LA int! an I-8A.

/i'e 3e /$7e 3it/dr$3n o&r prono&n)e%ents in t/e $ss$i'ed !e)ision t/$t

152 PICOP /$d not s&*%itted t/e re8&ired 0orest prote)tion $nd re0orest$tion p'$ns,

$nd t/$t 12 PICOP /$d &np$id 0orestr4 )/$r(es, t/&s e00e)ti7e'4 r&'in( in 0$7or o0

PICOP on all 0$)t&$' iss&es in t/is )$se, PICOP sti'' insists t/$t t/e re8&ire%ents o0

$n NCIP )erti0i)$tion $nd S$n((&ni$n )ons&'t$tion $nd $ppro7$' do not $pp'4 to

it. "o $00ir% PICOP?s position on t/ese %$tters 3o&'d ent$i' not/in( 'ess t/$n

re3ritin( t/e Indi(eno&s Peop'es? Ri(/ts A)t $nd t/e Lo)$' @o7ern%ent Code, $n$)t si%p'4 *e4ond o&r D&risdi)tion.

HERE-ORE, t/e Motion 0or Re)onsider$tion o0 PICOP Reso&r)es, In).

is #ENIE#.



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