AN ACT PROVIDING FOR THE CONSERVATION AND PROTECTION OF WILDLIFE RESOURCES AND THEIR HABITATS, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

• See IRR here

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I General Provisions

SECTION 1. Title. — This Act shall be known as the “Wildlife Resources Conservation and Protection Act.”

SECTION 2. Declaration of Policy. — It shall be the policy of the State to conserve the country’s wildlife resources and their habitats for sustainability. In the pursuit of this policy, this Act shall have the following objectives:

(a) to conserve and protect wildlife species and their habitats to promote ecological balance and enhance biological diversity;

(b) to regulate the collection and trade of wildlife;

(c) to pursue, with due regard to the national interest, the Philippine commitment to international conventions, protection of wildlife and their habitats; and

(d) to initiate or support scientific studies on the conservation of biological diversity.

SECTION 3. Scope of Application. — The provisions of this Act shall be enforceable for all wildlife species found in all areas of the country, including protected areas under Republic Act No. 7586, otherwise known as the National Integrated Protected Areas System (NIPAS) Act, and critical habitats. This Act shall also apply to exotic species which are subject to trade, are cultured, maintained and/or bred in captivity or propagated in the country.

SECTION 4. Jurisdiction of the Department of Environment and Natural Resources and the Department of Agriculture. — The Department of Environment and Natural Resources (DENR) shall have jurisdiction over all terrestrial plant and animal species, all turtles and tortoises and wetland species, including but not limited to crocodiles, waterbirds and all amphibians and dugong. The Department of Agriculture (DA) shall have jurisdiction over all declared aquatic critical habitats, all aquatic resources, including but not limited to all fishes, aquatic plants, invertebrates and all marine mammals, except dugong. The secretaries of the DENR and the DA shall review, and, by joint administrative order, revise and regularly update the list of species under their respective jurisdiction. In the Province of Palawan, jurisdiction herein conferred is vested to the Palawan Council for Sustainable Development pursuant to Republic Act No. 7611.

CHAPTER II Definition of Terms

SECTION 5. Definition of Terms. — As used in this Act, the term:

(a) “Bioprospecting” means the research, collection and utilization of biological and genetic resources for purposes of applying the knowledge derived therefrom solely for commercial purposes;

(b) “By-product or derivatives” means any part taken or substance extracted from wildlife, in raw or in processed form. This includes stuffed animals and herbarium specimens;

(c) “Captive-breeding/culture or propagation” means the process of producing individuals under controlled conditions or with human interventions;

(d) “Collection or collecting” means the act of gathering or harvesting wildlife, its by-products or derivatives;

(e) “Conservation” means preservation and sustainable utilization of wildlife, and/or maintenance, restoration and enhancement of the habitat;

(f) “Critically endangered species” refers to a species or subspecies that is facing extremely high risk of extinction in the wild in the immediate future;

(g) “Economically important species” means species which have actual or potential value in trade or utilization for commercial purpose;

(h) “Endangered species” refers to species or subspecies that is not critically endangered but whose survival in the wild is unlikely if the causal factors continue operating;

(i) “Endemic species” means species or subspecies which is naturally occurring and found only within specific areas in the country;

(j) “Exotic species” means species or subspecies which do not naturally occur in the country;

(k) “Export permit” refers to a permit authorizing an individual to bring out wildlife from the Philippines to any other country;

(l) “Gratuitous permit” means permit issued to any individual or entity engaged in noncommercial scientific or educational undertaking to collect wildlife;

(m) “Habitat” means a place or environment where a species or subspecies naturally occur or has naturally established its population;

(n) “Import permit” refers to a permit authorizing an individual to bring in wildlife from another country;

(o) “Indigenous wildlife” means species or subspecies of wildlife naturally occurring or has naturally established population in the country;

(p) “Introduction” means bringing species into the wild that is outside its natural habitat;

(q) “Reexport permit” refers to a permit authorizing an individual to bring out of the country a previously imported wildlife;

(r) “Secretary” means either or both the Secretary of the Department of Environment and Natural Resources and the Secretary of the Department of Agriculture;

(s) “Threatened species” a general term to denote species or subspecies considered as critically endangered, endangered, vulnerable or other accepted categories of wildlife whose population is at risk of extinction;

(t) “Trade” means the act of engaging in the exchange, exportation or importation, purchase or sale of wildlife, their derivatives or by-products, locally or internationally;

(u) “Traditional use” means utilization of wildlife by indigenous people in accordance with written or unwritten rules, usage, customs and practices traditionally observed, accepted and recognized by them;

(v) “Transport permit” means a permit issued authorizing an individual to bring wildlife from one place to another within the territorial jurisdiction of the Philippines;

(w) “Vulnerable species” refers to species or subspecies that is not critically endangered nor endangered but is under threat from adverse factors throughout their range and is likely to move to the endangered category in the near future;

(x) “Wildlife” means wild forms and varieties of flora and fauna, in all developmental stages, including those which are in captivity or are being bred or propagated;

(y) “Wildlife collector’s permit” means a permit to take or collect from the wild certain species and quantities of wildlife for commercial purpose; and

(z) “Wildlife farm/culture permit” means a permit to develop, operate and maintain a wildlife breeding farm for conservation, trade and/or scientific purposes.

CHAPTER III Conservation and Protection of Wildlife Resources

ARTICLE ONE General Provision

SECTION 6. Wildlife Information. — All activities, as subsequently manifested under this Chapter, shall be authorized by the Secretary upon proper evaluation of best available information or scientific data showing that the activity is, or for a purpose, not detrimental to the survival of the species or subspecies involved and/or their habitat. For this purpose, the Secretary shall regularly update wildlife information through research.

SECTION 7. Collection of Wildlife. — Collection of wildlife may be allowed in accordance with Section 6 of this Act: Provided, That in the collection of wildlife, appropriate and acceptable wildlife collection techniques with least or no detrimental effects to the existing wildlife populations and their habitats shall, likewise, be required: Provided, further, That collection of wildlife by indigenous people may be allowed for traditional use and not primarily for trade: Provided, furthermore, That collection and utilization for said purpose shall not cover threatened species: Provided, finally, That Section 23 of this Act shall govern the collection of threatened species.

SECTION 8. Possession of Wildlife. — No person or entity shall be allowed possession of wildlife unless such person or entity can prove financial and technical capability and facility to maintain said wildlife: Provided, That the source was not obtained in violation of this Act.

SECTION 9. Collection and/or Possession of By-Products and Derivatives. — By-products and derivatives may be collected and/or possessed: Provided, That the source was not obtained in violation of this Act.

SECTION 10. Local Transport of Wildlife, By-Products and Derivatives. — Local transport of wildlife, by-products and derivatives collected or possessed through any other means shall be authorized unless the same is prejudicial to the wildlife and public health.

SECTION 11. Exportation and/or Importation of Wildlife. — Wildlife species may be exported to or imported from another country as may be authorized by the Secretary or the designated representative, subject to strict compliance with the provisions of this Act and rules and regulations promulgated pursuant thereto: Provided, That the recipient of the wildlife is technically and financially capable to maintain it.

SECTION 12. Introduction, Reintroduction or Restocking of Endemic or Indigenous Wildlife. — The introduction, reintroduction or restocking of endemic and indigenous wildlife shall be allowed only for population enhancement or recovery purposes subject to prior clearance from the Secretary or the authorized representative pursuant to Section 6 of this Act.

Any proposed introduction shall be subject to a scientific study which shall focus on the bioecology. The proponent shall also conduct public consultations with concerned individuals or entities.

SECTION 13. Introduction of Exotic Wildlife. —No exotic species shall be introduced into the country, unless a clearance from the Secretary or the authorized representative is first obtained. In no case shall exotic species be introduced into protected areas covered by Republic Act No. 7586 and to critical habitats under Section 25 hereof.

In cases where introduction is allowed, it shall be subject to environmental impact study which shall focus on the bioecology, socioeconomic and related aspects of the area where the species will be introduced. The proponent shall also be required to secure the prior informed consent from the local stakeholders.

SECTION 14. Bioprospecting. — Bioprospecting shall be allowed upon execution of an undertaking by any proponent, stipulating therein its compliance with and commitment(s) to reasonable terms and conditions that may be imposed by the Secretary which are necessary to protect biological diversity.

The Secretary or the authorized representative, in consultation with the concerned agencies, before granting the necessary permit, shall require that prior informed consent be obtained by the applicant from the concerned indigenous cultural communities, local communities, management board under Republic Act No. 7586 or private individual or entity. The applicant shall disclose fully the intent and scope of the bioprospecting activity in a language and process understandable to the community. The prior informed consent from the indigenous peoples shall be obtained in accordance with existing laws. The action on the bioprospecting proposal by concerned bodies shall be made within a reasonable period.

Upon submission of the complete requirements, the Secretary shall act on the research proposal within a reasonable period.

If the applicant is a foreign entity or individual, a local institution should be actively involved in the research, collection and, whenever applicable and appropriate, in the technological development of the products derived from the biological and genetic resources.

SECTION 15. Scientific Researches on Wildlife. — Collection and utilization of biological resources for scientific research and not for commercial purposes shall be allowed upon execution of an undertaking/agreement with and issuance of a gratuitous permit by the Secretary or the authorized representative: Provided, That prior clearance from concerned bodies shall be secured before the issuance of the gratuitous permit: Provided, further, That the last paragraph of Section 14 shall likewise apply.

SECTION 16. Biosafety. — All activities dealing on genetic engineering and pathogenic organisms in the Philippines, as well as activities requiring the importation, introduction; field release and breeding of organisms that are potentially harmful to man and the environment shall be reviewed in accordance with the biosafety guidelines ensuring public welfare and the protection and conservation of wildlife and their habitats.

SECTION 17. Commercial Breeding or Propagation of Wildlife Resources. — Breeding or propagation of wildlife for commercial purposes shall be allowed by the Secretary or the authorized representative pursuant to Section 6 through the issuance of wildlife farm/culture permit: Provided, That only progenies of wildlife raised, as well as unproductive parent stock shall be utilized for trade: Provided, further, That commercial breeding operations for wildlife, whenever appropriate, shall be subject to an environmental impact study.

SECTION 18. Economically Important Species. — The Secretary, within one (1) year after the effectivity of this Act, shall establish a list of economically-important species. A population assessment of such species shall be conducted within a reasonable period and shall be regularly reviewed and updated by the Secretary.

The collection of certain species shall only be allowed when the results of the assessment show that, despite certain extent of collection, the population of such species can still remain viable and capable of recovering its numbers. For this purpose, the Secretary shall establish a schedule and volume of allowable harvests.

Whenever an economically important species become threatened, any form of collection shall be prohibited except for scientific, educational or breeding/propagation purposes, pursuant to the provisions of this Act.

SECTION 19. Designation of Management and Scientific Authorities for International Trade in Endangered Species of Wild Fauna and Flora. — For the implementation of international agreement on international trade in endangered species of wild fauna and flora, the management authorities for terrestrial and aquatic resources shall be the Protected Areas and Wildlife Bureau (PAWB) of the DENR and the Bureau of Fisheries and Aquatic Resources (BFAR) of the DA, respectively and that in the Province of Palawan the implementation hereof is vested to the Palawan Council for Sustainable Development pursuant to Republic Act No. 7611.

To provide advice to the management authorities, there shall be designated scientific authorities for terrestrial and aquatic/marine species. For the terrestrial species, the scientific authorities shall be the Ecosystems Research and Development Bureau (ERDB) of the DENR, the U.P. Institute of Biological Sciences and the National Museum and other agencies as may be designated by the Secretary. For the marine and aquatic species, the scientific authorities shall be the BFAR, the U.P. Marine Science Institute, U.P. Visayas, Silliman University and the National Museum and other agencies as may be designated by the Secretary: Provided, That, in the case of terrestrial species, the ERDB shall chair the scientific authorities, and in the case of marine and aquatic species, the U.P. Marine Science Institute shall chair the scientific authorities.

SECTION 20. Authority of the Secretary to Issue Permits. — The Secretary or the duly authorized representative, in order to effectively implement this Act, shall issue permits/certifications/clearances with corresponding period of validity, whenever appropriate, which shall include but not limited to the following:

(1) Wildlife farm or culture permit 3 to 5 years;

(2) Wildlife collector’s permit 1 to 3 years;

(3) Gratuitous permit 1 year;

(4) Local transport permit 1 to 3 months; and

(5) Export/Import/Reexport permit 1 to 6 months.

These permits may be renewed subject to the guidelines issued by the appropriate agency and upon consultation with concerned groups.

SECTION 21. Fees and Charges. — Reasonable fees and charges as may be determined upon consultation with the concerned groups, and in the amount fixed by the Secretary shall be imposed for the issuance of permits enumerated in the preceding section.

For the export of wildlife species, an export permit fee of not greater than three percentum (3%) of the export value, excluding transport costs, shall be charged: Provided, however, That in the determination of aforesaid fee, the production costs shall be given due consideration. Cutflowers, leaves the like, produced from farms shall be exempted from the said export fee: Provided, further, that fees and charges shall be reviewed by the Secretary every two (2) years or as the need arises and revise the same accordingly, subject to consultation with concerned sectors.

ARTICLE TWO Protection of Threatened Species

SECTION 22. Determination of Threatened Species. — The Secretary shall determine whether any wildlife species or subspecies is threatened, and classify the same as critically endangered, endangered, vulnerable or other accepted categories based on the best scientific data and with due regard to internationally accepted criteria, including but not limited to the following.

(a) present or threatened destruction, modification or curtailment of its habitat or range;

(b) over-utilization for commercial, recreational, scientific or educational purposes;

(c) inadequacy of existing regulatory mechanisms; and

(d) other natural or man-made factors affecting the existence of wildlife.

The Secretary shall review, revise and publish the list of categorized threatened wildlife within one (1) year after effectivity of this Act. Thereafter, the list shall be updated regularly or as the need arises: Provided, That a species listed as threatened shall not be removed therefrom within three (3) years following its initial listing.

Upon filing of a petition based on substantial scientific information of any person seeking for the addition or deletion of a species from the list, the Secretary shall evaluate in accordance with the relevant factors stated in the first paragraph of this section, the status of the species concerned and act on said petition within a reasonable period.

The Secretary shall also prepare and publish a list of wildlife which resembles so closely in appearance with listed threatened wildlife, which species shall likewise be categorized as threatened.

SECTION 23. Collection of Threatened Wildlife, By-Products and Derivatives. — The collection of threatened wildlife, as determined and listed pursuant to this Act, including its by-products and derivatives, shall be allowed only for scientific, or breeding or propagation purposes in accordance with Section 6 of this Act: Provided, That only the accredited individuals, business, research, educational or scientific entities shall be allowed to collect for conservation breeding or propagation purposes.

SECTION 24. Conservation Breeding or Propagation of Threatened Species. — Conservation breeding or propagation of threatened species shall be encouraged in order to enhance its population in its natural habitat. It shall be done simultaneously with the rehabilitation and/or protection of the habitat where the captive-bred or propagated species shall be released, reintroduced or restocked.

Commercial breeding or propagation of threatened species may be allowed provided that the following minimum requirements are met by the applicant, to wit:

(a) Proven effective breeding and captive management techniques of the species; and

(b) Commitment to undertake commercial breeding in accordance with Section 17 of this Act, simultaneous with conservation breeding.

The Secretary shall prepare a list of threatened species for commercial breeding and shall regularly revise or update such list or as the need arises.

SECTION 25. Establishment of Critical Habitats. —Within two (2) years following the effectivity of this Act, the Secretary shall designate critical habitats outside protected areas under Republic Act No. 7586, where threatened species are found. Such designation shall be made on the basis of the best scientific data taking into consideration species endemicity and/or richness, presence of man-made pressures/threats to the survival of wildlife living in the area, among others.

All designated critical habitats shall be protected, in coordination with the local government units and other concerned groups, from any form of exploitation or destruction which may be detrimental to the survival of the threatened species dependent therein. For such purpose, the Secretary may acquire, by purchase, donation or expropriation, lands, or interests therein, including the acquisition of usufruct, establishment of easements or other undertakings appropriate in protecting the critical habitat.

ARTICLE THREE Registration of Threatened and Exotic Species

SECTION 26. Registration of Threatened and Exotic Wildlife in the Possession of Private Persons. — No person or entity shall be allowed possession of wildlife unless such person or entity can prove financial and technical capability and facility to maintain said wildlife. Twelve (12) months after the effectivity of this Act, the Secretary shall set a period, within which persons/entities shall register all threatened species collected and exotic species imported prior to the effectivity of this Act. However, when the threatened species is needed for breeding/propagation or research purposes, the State may acquire the wildlife through a mutually acceptable arrangement.

After the period set has elapsed, threatened wildlife possessed without certificate of registration shall be confiscated in favor of the government, subject to the penalties herein provided.

All Philippine wildlife which are not listed as threatened prior to the effectivity of this Act but which may later become so, shall likewise be registered during the period set after the publication of the updated list of threatened species.

CHAPTER IV Illegal Acts

SECTION 27. Illegal Acts. — Unless otherwise allowed in accordance with this Act, it shall be unlawful for any person to willfully and knowingly exploit wildlife resources and their habitats, or undertake the following acts:

(a) killing and destroying wildlife species, except in the following instances;

(i) when it is done as part of the religious rituals of established tribal groups or indigenous cultural communities;

(ii) when the wildlife is afflicted with an incurable communicable disease;

(iii) when it is deemed necessary to put an end to the misery suffered by the wildlife;

(iv) when it is done to prevent an imminent danger to the life or limb of a human being; and

(v) when the wildlife is killed or destroyed after it has been used in authorized research or experiments.

(b) inflicting injury which cripples and/or impairs the reproductive system of wildlife species;

(c) effecting any of the following acts in critical habitat(s):

(i) dumping of waste products detrimental to wildlife;

(ii) squatting or otherwise occupying any portion of the critical habitat;

(iii) mineral exploration and/or extraction;

(iv) burning;

(v) logging; and

(vi) quarrying

(d) introduction, reintroduction or restocking of wildlife resources;

(e) trading of wildlife;

(f) collecting, hunting or possessing wildlife, their by-products and derivatives;

(g) gathering or destroying of active nests, nest trees, host plants and the like;

(h) maltreating and/or inflicting other injuries not covered by the preceding paragraph; and

(i) transporting of wildlife.

CHAPTER V Fines and Penalties

SECTION 28. Penalties for Violations of this Act. — For any person who undertakes illegal acts under paragraph (a) of the immediately preceding section to any species as may be categorized pursuant to this Act, the following penalties and/or fines shall be imposed:

(a) imprisonment of a minimum of six (6) years and one (1) day to twelve (12) years and/or a fine of One hundred thousand pesos (100,000.00) to One million pesos (1,000,000.00), if inflicted or undertaken against species listed as critical;

(b) imprisonment of four (4) years and one (1) day to six (6) years and/or a fine of Fifty thousand pesos (P50,000.00) to Five hundred thousand pesos (P500,000.00), if inflicted or undertaken against endangered species;

(c) imprisonment of two (2) years and one (1) day to four (4) years and/or a fine of Thirty thousand pesos (P30,000.00) to Three hundred thousand pesos (P300,000.00), if inflicted or undertaken against vulnerable species;

(d) imprisonment of one (1) year and one (1) day to two (2) years and/or a fine of Twenty thousand pesos (P20,000.00) to Two hundred thousand pesos (P200,000.00), if inflicted or undertaken against other threatened species; and

(e) imprisonment of six (6) months and one (1) day to one (1) year and/or a fine of Ten thousand pesos (P10,000.00) to One hundred thousand pesos (P100,000.00), if inflicted or undertaken against other wildlife species.

For illegal acts under paragraph (b) of the immediately preceding section, the following penalties and/or fines shall be imposed:

(a) imprisonment of a minimum of four (4) years and one (1) day to six (6) years and/or a fine of Fifty thousand pesos (P50,000.00) to Five hundred thousand pesos (P500,000.00), if inflicted or undertaken against species listed as critical;

(b) imprisonment of two (2)years and one (1) day to four (4) years and/or a fine of Thirty thousand pesos (P30,000.00) to Two hundred thousand pesos (P200,000.00), if inflicted or undertaken against endangered species;

(c) imprisonment of one (1) year and one (1) day to two (2) years and/or a fine of Twenty thousand pesos (P20,000.00) to Two hundred thousand pesos (P200,000.00), if inflicted or undertaken against vulnerable species;

(d) imprisonment of six (6) months and one (1) day to one (1) year and/or a fine of Ten thousand pesos (P10,000.00) to Fifty thousand pesos (P50,000.00), if inflicted or undertaken against other threatened species; and

(e) imprisonment of one (1) month to six (6) months and/or a fine of Five thousand pesos (P5,000.00) to Twenty thousand pesos (P20,000.00), if inflicted or undertaken against other wildlife species.

For illegal acts under paragraphs (c) and (d) of the immediately preceding section, an imprisonment of one (1) month to eight (8) years and/or a fine of Five thousand pesos (P5,000.00) to Five million pesos (P5,000,000.00) shall be imposed.

For illegal acts under paragraph (e), the following penalties and/or fines shall be imposed:

(a) imprisonment of two (2) years and one (1) day to four (4) years and/or a fine of Five thousand pesos (P5,000.00) to Three hundred thousand pesos (P300,000.00), if inflicted or undertaken against species listed as critical;

(b) imprisonment of one (1) year and one (1) day to two (2) years and/or a fine of Two thousand pesos (P2,000.00) to Two hundred thousand pesos (P200,000.00) if inflicted or undertaken against endangered species;

(c) imprisonment of six (6) months and one (1) day to one (1) year and/or a fine of One thousand pesos (P1,000.00) to One hundred thousand pesos (P100,000.00), if inflicted or undertaken against vulnerable species;

(d) imprisonment of one (1) month and one (1) day to six (6) months and/or a fine of Five hundred pesos (P500.00) to Fifty thousand pesos (P50,000.00), if inflicted or undertaken against species listed as other threatened species; and

(e) imprisonment of ten (10) days to one (1) month and/or a fine of Two hundred pesos (P200.00) to Twenty thousand pesos (P20,000.00), if inflicted or undertaken against other wildlife species.

For illegal acts under paragraphs (f) and (g) of the immediately preceding section, the following penalties and/or fines shall be imposed:

(a) imprisonment of two (2) years and one (1) day to four (4) years and a fine of Thirty thousand pesos (P30,000.00) to Three hundred thousand pesos (P300,000.00), if inflicted or undertaken against species listed as critical;

(b) imprisonment of one (1) year and one (1) day to two (2) years and a fine of Twenty thousand pesos (P20,000.00) to Two hundred thousand pesos (P200,000.00), if inflicted or undertaken against endangered species;

(c) imprisonment of six (6) months and one (1) day to one (1) year and a fine of Ten thousand pesos (P10,000.00) to One hundred thousand pesos (P100,000.00), if inflicted or undertaken against vulnerable species;

(d) imprisonment of one (1) month and one (1) day to six (6) months and a fine of Five thousand pesos (P5,000.00) to Fifty thousand pesos (P50,000.00), if inflicted or undertaken against species listed as other threatened species; and

(e) imprisonment of ten (10) days to one (1) month and a fine of One thousand pesos (P1,000.00) to Five thousand pesos (P5,000.00), if inflicted or undertaken against other wildlife species: Provided, That in case of paragraph (f), where the acts were perpetuated through the means of inappropriate techniques and devices, the maximum penalty herein provided shall be imposed.

For illegal acts under paragraphs (h) and (i) of the immediately preceding section, the following penalties and/or fines shall be imposed:

(a) imprisonment of six (6) months and one (1) day to one (1) year and a fine of Fifty thousand pesos (P50,000.00) to One hundred thousand pesos (P100,000.00), if inflicted or undertaken against species listed as critical species;

(b) imprisonment of three (3) months and one (1) day to six (6) months and a fine of Twenty thousand pesos (P20,000.00) to Fifty thousand pesos (P50,000.00), if inflicted or undertaken against endangered species;

(c) imprisonment of one (1) month and one (1) day to three (3) months and a fine of Five thousand pesos (P5,000.00) to Twenty thousand pesos (P20,000.00), if inflicted or undertaken against vulnerable species;

(d) imprisonment of ten (10) days to one (1) month and a fine of One thousand pesos (P1,000.00) to Five thousand pesos (P5,000.00) if inflicted or undertaken against species listed as other threatened species;

(e) imprisonment of five (5) days to ten (10) days and a fine of Two hundred pesos (P200.00) to One thousand pesos (P1,000.00), if inflicted or undertaken against other wildlife species.

All wildlife, its derivatives or by-products, and all paraphernalia, tools and conveyances used in connection with violations of this Act, shall be ipso facto forfeited in favor of the government: Provided, That where the ownership of the aforesaid conveyances belong to third persons who has no participation in or knowledge of the illegal acts, the same may be released to said owner. The apprehending agency shall immediately cause the transfer of all wildlife that have been seized or recovered to the nearest Wildlife Rescue Center of the Department in the area.

If the offender is an alien, he shall be deported after service of sentence and payment of fines, without any further proceedings.

The fines herein prescribed shall be increased by at least ten percent (10%) every three (3) years to compensate for inflation and to maintain the deterrent function of such fines.

CHAPTER VI Miscellaneous Provisions

SECTION 29. Wildlife Management Fund. — There is hereby established a Wildlife Management Fund to be administered by the Department as a special account in the National Treasury. It shall finance rehabilitation or restoration of habitats affected by acts committed in violation of this Act and support scientific research, enforcement and monitoring activities, as well as enhancement of capabilities of relevant agencies.

The Fund shall derive from fines imposed and damages awarded, fees, charges, donations, endowments, administrative fees or grants in the form of contributions. Contributions to the Fund shall be exempted from donor taxes and all other taxes, charges or fees imposed by the government.

SECTION 30. Deputation of Wildlife Enforcement Officers. — The Secretary shall deputize wildlife enforcement officers from nongovernment organizations, citizens groups, community organizations and other volunteers who have undergone the necessary training for this purpose. The Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), the National Bureau of Investigation (NBI) and other law enforcement agencies shall designate wildlife enforcement officers. As such, the wildlife enforcement officers shall have the full authority to seize illegally traded wildlife and to arrest violators of this Act subject to existing laws, rules and regulations on arrest and detention.

SECTION 31. Establishment of National Wildlife Research Centers. — The Secretary shall establish national wildlife research centers for terrestrial and aquatic species to lead in the conduct of scientific researches on the proper strategies for the conservation and protection of wildlife, including captive breeding or propagation. In this regard, the Secretary shall encourage the participation of experts from academic/research institutions and wildlife industry.

SECTION 32. Wildlife Rescue Center. — The Secretary shall establish or designate wildlife rescue centers to take temporary custody and care of all confiscated, abandoned and/or donated wildlife to ensure their welfare and well-being. The Secretary shall formulate guidelines for the disposition of wildlife from the rescue centers.

SECTION 33. Creation of Wildlife Traffic Monitoring Units. — The Secretary shall create wildlife traffic monitoring units in strategic air and seaports all over the country to ensure the strict compliance and effective implementation of all existing wildlife laws, rules and regulations, including pertinent international agreements.

Customs officers and/or other authorized government representatives assigned at air or seaports who may have intercepted wildlife commodities in the discharge of their official functions shall, prior to further disposition thereof, secure a clearance from the wildlife traffic monitoring unit assigned in the area.

SECTION 34. Exemption from Taxes. — Any donation, contribution, bequest, subsidy or financial aid which may be made to the Department of Environment and Natural Resources or to the Department of Agriculture and to NGOs engaged in wildlife conservation duly registered with the Securities and Exchange Commission as certified by the local government unit, the Department of Environment and Natural Resources or the Department of Agriculture, for the conservation and protection of wildlife resources and their habitats shall constitute as an allowable deduction from the taxable income of the donor and shall be exempt from donor’s tax.

SECTION 35. Flagship Species. — Local government units shall initiate conservation measures for endemic species in their areas. For this purpose, they may adopt flagship species such as the Cebu black shama (copsychus cebuensis), tamaraw (bubalus mindorensis) Philippine tarsier (tarsius syrichta), Philippine teak (tectona philippinensis), which shall serve as emblems of conservation for the local government concerned.

SECTION 36. Botanical Gardens, Zoological Parks and Other Similar Establishments. — The Secretary shall regulate the establishment, operation and maintenance of botanical gardens, zoological parks and other similar establishments for recreation, education and conservation.

SECTION 37. Implementing Rules and Regulations. — Within twelve (12) months following the effectivity of this Act, the secretaries of the Department of Environment and Natural Resources and the Department of Agriculture, in coordination with the Committees on Environment and Ecology of the Senate and the House of Representatives, respectively, shall promulgate respective rules and regulations for the effective implementation of this Act. Whenever appropriate, coordination in the preparation and implementation of rules and regulations on joint and inseparable issues shall be done by both Departments. The commitments of the State to international agreements and protocols shall likewise be a consideration in the implementation of this Act.

SECTION 38. Appropriations. — The amount necessary to initially implement the provisions of this Act shall be charged against the appropriations of the Department of Environment and Natural Resources in the current General Appropriations Act. Thereafter, such sums as may be necessary to fully implement the provisions of this Act shall be included in the annual General Appropriations Act.

SECTION 39. Separability Clause. — Should any provision of this Act be subsequently declared as unconstitutional, the same shall not affect the validity or the legality of the other provisions.

SECTION 40. Repealing Clause. — Act Nos. 2590 and 3983, Commonwealth Act No. 63, as amended, Presidential Decree No. 1219, as amended, Republic Act No. 6147, and other laws, orders and regulations inconsistent herewith are hereby repealed or amended accordingly.

SECTION 41. Effectivity. — This Act shall take effect fifteen (15) days after publication in the Official Gazette or two (2) newspapers of general circulation.

March 3, 1995

AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION, DEVELOPMENT, UTILIZATION, AND CONSERVATION

• See IRR here

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I Introductory Provision

Section 1. Title — This Act shall be known as the "Philippine Mining Act of 1995."

Section 2. Declaration of Policy — All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State. It shall be the responsibility of the State to promote their rational exploration, development, utilization and conservation through the combined efforts of government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of affected communities.

Section 3. Definition of Terms — As used in and for purposes of this Act, the following terms, whether in singular or plural, shall mean:

a. Ancestral lands refers to all lands exclusively and actually possessed, occupied, or utilized by indigenous cultural communities by themselves or through their ancestors in accordance with their customs and traditions since time immemorial, and as may be defined and delineated by law.

b. Block or meridional block means an area bounded by one-half (1/2) minute of latitude and one-half (1/2) minute of longitude, containing approximately eighty-one hectares (81 has.).

c. Bureau means the Mines and Geosciences Bureau under the Department of Environment and Natural Resources.

d. Carrying capacity refers to the capacity of natural and human environments to accommodate and absorb change without experiencing conditions of instability and attendant degradation.

e. Contiguous zone refers to water, sea bottom and substratum measured twenty-four nautical miles (24 n.m.) seaward from the base line of the Philippine archipelago.

f. Contract area means land or body of water delineated for purposes of exploration, development, or utilization of the minerals found therein.

g. Contractor means a qualified person acting alone or in consortium who is a party to a mineral agreement or to a financial or technical assistance agreement.

h. Co-production agreement (CA) means an agreement entered into between the Government and one or more contractors in accordance with Section 26(b) hereof.

i. Department means the Department of Environment and Natural Resources.

j. Development means the work undertaken to explore and prepare an ore body or a mineral deposit for mining, including the construction of necessary infrastructure and related facilities.

k. Director means the Director of the Mines and Geosciences Bureau.

l. Ecological profile or eco-profile refers to geographic-based instruments for planners and decision-makers which presents an evaluation of the environmental quality and carrying capacity of an area.

m. Environmental compliance certificate (ECC) refers to the document issued by the government agency concerned certifying that the project under consideration will not bring about an unacceptable environmental impact and that the proponent has complied with the requirements of the environmental impact statement system.

n. Environmental impact statement (EIS) is the document which aims to identify, predict, interpret, and communicate information regarding changes in environmental quality associated with a proposed project and which examines the range of alternatives for the objectives of the proposal and their impact on the environment.

o. Exclusive economic zone means the water, sea bottom and subsurface measured from the baseline of the Philippine archipelago up to two hundred nautical miles (200 n.m.) offshore.

p. Existing mining/quarrying right means a valid and subsisting mining claim or permit or quarry permit or any mining lease contract or agreement covering a mineralized area granted/issued under pertinent mining laws.

q. Exploration means the searching or prospecting for mineral resources by geological, geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining the existence, extent, quantity and quality thereof and the feasibility of mining them for profit.

r. Financial or technical assistance agreement means a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources.

s. Force majeure means acts or circumstances beyond the reasonable control of contractor including, but not limited to, war, rebellion, insurrection, riots, civil disturbance, blockade, sabotage, embargo, strike, lockout, any dispute with surface owners and other labor disputes, epidemic, earthquake, storm, flood or other adverse weather conditions, explosion, fire, adverse action by government or by any instrumentality or subdivision thereof, act of God or any public enemy and any cause that herein describe over which the affected party has no reasonable control.

t. Foreign-owned corporation means any corporation, partnership, association, or cooperative duly registered in accordance with law in which less than fifty per centum (50%) of the capital is owned by Filipino citizens.

u. Government means the government of the Republic of the Philippines.

v. Gross output means the actual market value of minerals or mineral products from its mining area as defined in the National Internal Revenue Code.

w. Indigenous cultural community means a group or tribe of indigenous Filipinos who have continuously lived as communities on communally-bounded and defined land since time immemorial and have succeeded in preserving, maintaining, and sharing common bonds of languages, customs, traditions, and other distinctive cultural traits, and as may be defined and delineated by law.

x. Joint venture agreement (JVA) means an agreement entered into between the Government and one or more contractors in accordance with Section 26(c) hereof.

y. Mineral processing means the milling, beneficiation or upgrading of ores or minerals and rocks or by similar means to convert the same into marketable products.

z. Mine wastes and tailings shall mean soil and rock materials from surface or underground mining and milling operations with no economic value to the generator of the same.

aa. Minerals refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials, and geothermal energy.

ab. Mineral agreement means a contract between the government and a contractor, involving mineral production-sharing agreement, co-production agreement, or joint-venture agreement.

ac. Mineral land means any area where mineral resources are found.

ad. Mineral resource means any concentration of minerals/rocks with potential economic value.

ae. Mining area means a portion of the contract area identified by the contractor for purposes of development, mining, utilization, and sites for support facilities or in the immediate vicinity of the mining operations.

af. Mining operation means mining activities involving exploration, feasibility, development, utilization, and processing.

ag. Non-governmental organization (NGO) includes nonstock, nonprofit organizations involved in activities dealing with resource and environmental conservation, management and protection.

ah. Net assets refers to the property, plant and equipment as reflected in the audited financial statement of the contractor net of depreciation, as computed for tax purposes, excluding appraisal increase and construction in progress.

ai. Offshore means the water, sea bottom and subsurface from the shore or coastline reckoned from the mean low tide level up to the two hundred nautical miles (200 n.m.) exclusive economic zone including the archipelagic sea and contiguous zone.

aj. Onshore means the landward side from the mean tide elevation, including submerged lands in lakes, rivers and creeks.

ak. Ore means a naturally occurring substance or material from which a mineral or element can be mined and/or processed for profit.

al. Permittee means the holder of an exploration permit.

am. Pollution control and infrastructure devices refers to infrastructure, machinery, equipment and/or improvements used for impounding, treating or neutralizing, precipitating, filtering, conveying and cleansing mine industrial waste and tailings as well as eliminating or reducing hazardous effects of solid particles, chemicals, liquids or other harmful byproducts and gases emitted from any facility utilized in mining operations for their disposal.

an. President means the President of the Republic of the Philippines.

ao. Private land refers to any land belonging to any private person which includes alienable and disposable land being claimed by a holder, claimant, or occupant who has already acquired a vested right thereto under the law, although the corresponding certificate or evidence of title or patent has not been actually issued.

ap. Public land refers to lands of the public domain which have been classified as agricultural lands and subject to management and disposition or concession under existing laws.

aq. Qualified person means any citizen of the Philippines with capacity to contract, or a corporation, partnership, association, or cooperative organized or authorized for the purpose of engaging in miring, with technical and financial capability to undertake mineral resources development and duly registered in accordance with law at least sixty per centum (60%) of the capital of which is owned by citizens of the Philippines: Provided, That a legally organized foreign-owned corporation shall be deemed a qualified person for purposes of granting an exploration permit, financial or technical assistance agreement or mineral processing permit.

ar. Quarrying means the process of extracting, removing and disposing quarry resources found on or underneath the surface of private or public land.

as. Quarry permit means a document granted to a qualified person for the extraction and utilization of quarry resources on public or private lands.

at. Quarry resources refers to any common rock or other mineral substances as the Director of Mines and Geosciences Bureau may declare to be quarry resources such as, but not limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, marble, marl, red burning clays for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic glass: Provided, That such quarry resources do not contain metals or metallic constituents and/or other valuable minerals in economically workable quantities: Provided, further, That non-metallic minerals such as kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles, bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica, precious and semi-precious stones, and other non-metallic minerals that may later be discovered and which the: Director declares the same to be of economically workable quantities, shall not be classified under the category of quarry resources.

au. Regional director means the regional director of any mines regional office under the Department of Environment and Natural Resources.

av. Regional office means any of the mines regional offices of the Department of Environment and Natural Resources.

aw. Secretary means the Secretary of the Department of Environment and Natural Resources.

ax. Special allowance refers to payment to the claim-owners or surface right-owners particularly during the transition period from Presidential Decree No. 463 and Executive Order No. 279, series of 1987.

ay. State means the Republic of the Philippines.

az. Utilization means the extraction or disposition of minerals.

CHAPTER II Government Management

Section 4. Ownership of Mineral Resources — Mineral resources are owned by the State and the exploration, development, utilization, and processing thereof shall be under its full control and supervision. The State may directly undertake such activities or it may enter into mineral agreements with contractors.

The State shall recognize and protect the rights of the indigenous cultural communities to their ancestral lands as provided for by the Constitution.

Section 5. Mineral Reservations — When the national interest so requires, such as when there is a need to preserve strategic raw materials for industries critical to national development, or certain minerals for scientific, cultural or ecological value, the President may establish mineral reservations upon the recommendation of the Director through the Secretary. Mining operations in existing mineral reservations and such other reservations as may thereafter be established, shall be undertaken by the Department or through a contractor: Provided, That a small scale-mining cooperative covered by Republic Act No. 7076 shall be given preferential right to apply for a small-scale mining agreement for a maximum aggregate area of twenty-five percent (25%) of such mineral reservation, subject to valid existing mining/quarrying rights as provided under Section 112 Chapter XX hereof. All submerged lands within the contiguous zone and in the exclusive economic zone of the Philippines are hereby declared to be mineral reservations.

A ten per centum (10%) share of all royalties and revenues to be derived by the government from the development and utilization of the mineral resources within mineral reservations as provided under this Act shall accrue to the Mines and Geosciences Bureau to be allotted for special projects and other administrative expenses related to the exploration and development of other mineral reservations mentioned in Section 6 hereof.

Section 6. Other Reservations — Mining operations in reserved lands other than mineral reservations may be undertaken by the Department, subject to limitations as herein provided. In the event that the Department cannot undertake such activities, they may be undertaken by a qualified person in accordance with the rules and regulations promulgated by the Secretary. The right to develop and utilize the minerals found therein shall be awarded by the President under such terms and conditions as recommended by the Director and approved by the Secretary: Provided, That the party who undertook the exploration of said reservation shall be given priority. The mineral land so awarded shall be automatically excluded from the reservation during the term of the agreement: Provided, further, That the right of the lessee of a valid mining contract existing within the reservation at the time of its establishment shall not be prejudiced or impaired.

Section 7. Periodic Review of Existing Mineral Reservations — The Secretary shall periodically review existing mineral reservations for the purpose of determining whether their continued existence is consistent with the national interest, and upon his recommendation, the President may, by proclamation, alter or modify the boundaries thereof or revert the same to the public domain without prejudice to prior existing rights.

Section 8. Authority of the Department — The Department shall be the primary government agency responsible for the conservation, management, development, and proper use of the State's mineral resources including those in reservations, watershed areas, and lands of the public domain. The Secretary shall have the authority to enter into mineral agreements on behalf of the Government upon the recommendation of the Director, promulgate such rules and regulations as may be necessary to implement the intent and provisions of this Act.

Section 9. Authority of the Bureau — The Bureau shall have direct charge in the administration and disposition of mineral lands and mineral resources and shall undertake geological, mining, metallurgical, chemical, and other researches as well as geological and mineral exploration surveys. The Director shall recommend to the Secretary the granting of mineral agreements to duly qualified persons and shall monitor the compliance by the contractor of the terms and conditions of the mineral agreements. The Bureau may confiscate surety, performance and guaranty bonds posted through an order to be promulgated by the Director. The Director may deputize, when necessary, any member or unit of the Philippine National Police, barangay, duly registered non-governmental organization (NGO) or any qualified person to police all mining activities.

Section 10. Regional Offices — There shall be as many regional offices in the country as may be established by the Secretary, upon the recommendation of the Director.

Section 11. Processing of Applications — The system of processing applications for mining rights shall be prescribed in the rules and regulations of this Act.

Section 12. Survey, Charting and Delineation of Mining Areas — A sketch plan or map of the contract or mining area prepared by a deputized geodetic engineer suitable for publication purposes shall be required during the filing of a mineral agreement or financial or technical assistance agreement application. Thereafter, the contract or mining area shall be surveyed and monumented by a deputized geodetic engineer or bureau geodetic engineer and the survey plan shall be approved by the Director before the approval of the mining feasibility.

Section 13. Meridional Blocks — For purposes of the delineation of the contract or mining areas under this Act, the Philippine territory and its exclusive economic zone shall be divided into meridional blocks of one-half (1/2) minute of latitude and one-half (1/2) minute of longitude.

Section 14. Recording System — There shall be established a national and regional filing and recording system. A mineral resource database system shall be set up in the Bureau which shall include, among others, a mineral rights management system. The Bureau shall publish at least annually, a mineral gazette of nationwide circulation containing among others, a current list of mineral rights, their location in the map, mining rules and regulations, other official acts affecting mining, and other information relevant to mineral resources development. A system and publication fund shall be included in the regular budget of the Bureau.

CHAPTER III Scope of Application

Section 15. Scope of Application — This Act shall govern the exploration, development, utilization and processing of all mineral resources.

Section 16. Opening of Ancestral Lands for Mining Operations — No ancestral land shall be opened for mining-operations without prior consent of the indigenous cultural community concerned.

Section 17. Royalty Payments for Indigenous Cultural Communities — In the event of an agreement with an indigenous cultural community pursuant to the preceding section, the royalty payment, upon utilization of the minerals shall be agreed upon by the parties. The said royalty shall form part of a trust fund for the socioeconomic well-being of the indigenous cultural community.

Section 18. Areas Open to Mining Operations — Subject to any existing rights or reservations and prior agreements of all parties, all mineral resources in public or private lands, including timber or forestlands as defined in existing laws, shall be open to mineral agreements or financial or technical assistance agreement applications. Any conflict that may arise under this provision shall be heard and resolved by the panel of arbitrators.

Section 19. Areas Closed to Mining Applications — Mineral agreement or financial or technical assistance agreement applications shall not be allowed:

a. In military and other government reservations, except upon prior written clearance by the government agency concerned;

b. Near or under public or private buildings, cemeteries, archeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects, public or private works including plantations or valuable crops, except upon written consent of the government agency or private entity concerned;

c. In areas covered by valid and existing mining rights;

d. In areas expressedly prohibited by law;

e. In areas covered by small-scale miners as defined by law unless with prior consent of the small-scale miners, in which case a royalty payment upon the utilization of minerals shall be agreed upon by the parties, said royalty forming a trust fund for the socioeconomic development of the community concerned; and

f. Old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas, mangrove forests, mossy forests, national parks provincial/municipal forests, parks, greenbelts, game refuge and bird sanctuaries as defined by law and in areas expressly prohibited under the National Integrated Protected Areas System (NIPAS) under Republic Act No. 7586, Department Administrative Order No. 25, series of 1992 and other laws.

CHAPTER IV Exploration Permit

Section 20. Exploration Permit — An exploration permit grants the right to conduct exploration for all minerals in specified areas. The Bureau shall have the authority to grant an exploration Permit to a qualified person.

Section 21. Terms and Conditions of the Exploration Permit — An exploration permit shall be for a period of two (2) years, subject to annual review and relinquishment or renewal upon the recommendation of the Director.

Section 22. Maximum Areas for Exploration Permit — The maximum area that a qualified person may hold at any one time shall be:

a. Onshore, in any one province

1. for individuals, twenty (20) blocks: and

2. for partnerships, corporations, cooperatives, or associations, two hundred (200) blocks.

b. Onshore, in the entire Philippines

1. for individuals, forty (40) blocks; and

2. for partnerships, corporations, cooperatives, or associations, four hundred (400) blocks.

c. Offshore, beyond five hundred meters (500m) from the mean low tide level:

1. for individuals, one hundred (100) blocks; and

2. for partnerships, corporations, cooperatives, or associations, one thousand (1,000) blocks.

Section 23. Rights and Obligations of the Permittee — An exploration permit shall grant to the permittee, his heirs or successors-in-interest, the right to enter, occupy and explore the area: Provided, That if private or other parties are affected, the permittee shall first discuss with the said parties the extent, necessity, and manner of his entry, occupation and exploration and in case of disagreement, a panel of arbitrators shall resolve the conflict or disagreement.

The permittee shall undertake an exploration work on the area as specified by its permit based on an approved work program.

Any expenditure in excess of the yearly budget of the approved work program may be carried forward and credited to the succeeding years covering the duration of the permit. The Secretary, through the Director, shall promulgate rules and regulations governing the terms and conditions of the permit.

The permittee may apply for a mineral production sharing agreement, joint venture agreement, co-production agreement or financial or technical assistance agreement over the permit area, which application shall be granted if the permittee meets the necessary qualifications and the terms and conditions of any such agreement: Provided, That the exploration period covered by the exploration permit shall be included as part of the exploration period of the mineral agreement or financial or technical assistance agreement.

Section 24. Declaration of Mining Project Feasibility — A holder of an exploration permit who determines the commercial viability of a project covering a mining area may, within the term of the permit, file with the Bureau a declaration of mining project feasibility accompanied by a work program for development. The approval of the mining project feasibility and compliance with other requirements provided in this Act shall entitle the holder to an exclusive right to a mineral production sharing agreement or other mineral agreements or financial or technical assistance agreement.

Section 25. Transfer or Assignment — An exploration permit may be transferred or assigned to a qualified person subject to the approval of the Secretary upon the recommendation of the Director.

CHAPTER V Mineral Agreements

Section 26. Modes of Mineral Agreement — For purposes of mining operations, a mineral agreement may take the following forms as herein defined:

a. Mineral production sharing agreement is an agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement.

b. Co-production agreement is an agreement between the Government and the contractor wherein the Government shall provide inputs to the mining operations other than the mineral resource.

c. Joint venture agreement is an agreement where a joint-venture company is organized by the Government and the contractor with both parties having equity shares. Aside from earnings in equity, the Government shall be entitled to a share in the gross output.

A mineral agreement shall grant to the contractor the exclusive right to conduct mining operations and to extract all mineral resources found in the contract area. In addition, the contractor may be allowed to convert his agreement into any of the modes of mineral agreements or financial or technical assistance agreement covering the remaining period of the original agreement subject to the approval of the Secretary.

Section 27. Eligibility — A qualified person may enter into any of the three (3) modes of mineral agreement with the government for the exploration, development and utilization of mineral resources: Provided, That in case the applicant has been in the mining industry for any length of time, he should possess a satisfactory environmental track record as determined by the Mines and Geosciences Bureau and in consultation with the Environmental Management Bureau of the Department.

Section 28. Maximum Areas for Mineral Agreement — The maximum area that a qualified person may hold at any time under a mineral agreement shall be:

a. Onshore, in any one province

1. for individuals, ten (10) blocks; and

2. for partnerships, cooperatives, associations, or corporations, one hundred (100) blocks.

b. Onshore, in the entire Philippines

1. for individuals, twenty (20) blocks; and

2. for partnerships, cooperatives, associations, or corporations, two hundred (200) blocks.

c. Offshore, in the entire Philippines

1. for individuals fifty (50) blocks;

2. for partnerships, cooperatives, associations, or corporations, five hundred (500) blocks; and

3. for the exclusive economic zone, a larger area to be determined by the Secretary.

The maximum areas mentioned above that a contractor may hold under a mineral agreement shall not include mining/quarry areas under operating agreements between the contractor and a claimowner/lessee/permittee/licensee entered into under Presidential Decree No. 463.

Section 29. Filing and Approval of Mineral Agreements — All proposed mineral agreements shall be filed in the region where the areas of interest are located, except in mineral reservations which shall be filed with the Bureau.

The filing of a proposal for a mineral agreement shall give the proponent the prior right to areas covered by the same. The proposed mineral agreement will be approved by the Secretary and copies thereof shall be submitted to the President. Thereafter, the President shall provide a list to Congress of every approved mineral agreement within thirty (30) days from its approval by the Secretary.

Section 30. Assignment/Transfer — Any assignment or transfer of rights and obligations under any mineral agreement except a financial or technical assistance agreement shall be subject to the prior approval of the Secretary. Such assignment or transfer shall be deemed automatically approved if not acted upon by the Secretary within thirty (30) working days from official receipt thereof, unless patently unconstitutional or illegal.

Section 31. Withdrawal from Mineral Agreements — The contractor may, by giving due notice at any time during the term of the agreement, apply for the cancellation of the mineral agreement due to causes which, in the opinion of the contractor, make continued mining operations no longer feasible or viable. The Secretary shall consider the notice and issue its decision within a period of thirty (30) days: Provided, That the contractor has met all its financial, fiscal and legal obligations.

Section 32. Terms — Mineral agreements shall have a term not exceeding twenty-five (25) years to start from the date of execution thereof, and renewable for another term not exceeding twenty-five (25) years under the same terms and conditions thereof, without prejudice to changes mutually agreed upon by the parties. After the renewal period, the operation of the mine may be undertaken by the Government or through a contractor. The contract for the operation of a mine shall be awarded to the highest bidder in a public bidding after due publication of the notice thereof: Provided, That the contractor shall have the right to equal the highest bid upon reimbursement of all reasonable expenses of the highest bidder.

CHAPTER VI Financial or Technical Assistance Agreement

Section 33. Eligibility — Any qualified person with technical and financial capability to undertake large-scale exploration, development, and utilization of mineral resources in the Philippines may enter into a financial or technical assistance agreement directly with the Government through the Department.

Section 34. Maximum Contract Area — The maximum contract area that may be granted per qualified person, subject to relinquishment shall be:

a. 1,000 meridional blocks onshore;

b. 4,000 meridional blocks offshore; or

c. Combinations of a and b provided that it shall not exceed the maximum limits for onshore and offshore areas.

Section 35. Terms and Conditions — The following terms, conditions, and warranties shall be incorporated in the financial or technical assistance agreement, to wit:

a. A firm commitment in the form of a sworn statement, of an amount corresponding to the expenditure obligation that will be invested in the contract area: Provided, That such amount shall be subject to changes as may be provided for in the rules and regulations of this Act;

b. A financial guarantee bond shall be posted in favor of the Government in an amount equivalent to the expenditure obligation of the applicant for any year;

c. Submission of proof of technical competence, such as, but not limited to, its track record in mineral resource exploration, development, and utilization; details of technology to be employed in the proposed operation; and details of technical personnel to undertake the operation;

d. Representations and warranties that the applicant has all the qualifications and none of the disqualifications for entering into the agreement;

e. Representations and warranties that the contractor has or has access to all the financing, managerial and technical expertise and, if circumstances demand, the technology required to promptly and effectively carry out the objectives of the agreement with the understanding to timely deploy these resources under its supervision pursuant to the periodic work programs and related budgets, when proper, providing an exploration period up to two (2) years, extendible for another two (2) years but subject to annual review by the Secretary in accordance with the implementing rules and regulations of this Act, and further, subject to the relinquishment obligations;

f. Representations and warranties that, except for payments for dispositions for its equity, foreign investments in local enterprises which are qualified for repatriation, and local supplier's credits and such other generally accepted and permissible financial schemes for raising funds for valid business purposes, the contractor shall not raise any form of financing from domestic sources of funds, whether in Philippine or foreign currency, for conducting its mining operations for and in the contract area;

g. The mining operations shall be conducted in accordance with the provisions of this Act and its implementing rules and regulations;

h. Work programs and minimum expenditures commitments;

i. Preferential use of local goods and services to the maximum extent practicable;

j. A stipulation that the contractors are obligated to give preference to Filipinos in all types of mining employment for which they are qualified and that technology shall be transferred to the same;

k. Requiring the proponent to effectively use appropriate anti-pollution technology and facilities to protect the environment and to restore or rehabilitate mined out areas and other areas affected by mine tailings and other forms of pollution or destruction;

l. The contractors shall furnish the Government records of geologic, accounting, and other relevant data for its mining operations, and that book of accounts and records shall be open for inspection by the government;

m. Requiring the proponent to dispose of the minerals and byproducts produced under a financial or technical assistance agreement at the highest price and more advantageous terms and conditions as provided for under the rules and regulations of this Act;

n. Provide for consultation and arbitration with respect to the interpretation and implementation of the terms and conditions of the agreements; and

o. Such other terms and conditions consistent with the Constitution and with this Act as the Secretary may deem to be for the best interest of the State and the welfare of the Filipino people.

Section 36. Negotiations — A financial or technical assistance agreement shall be negotiated by the Department and executed and approved by the President. The President shall notify Congress of all financial or technical assistance agreements within thirty (30) days from execution and approval thereof.

Section 37. Filing and Evaluation of Financial or Technical Assistance Agreement Proposals — All financial or technical assistance agreement proposals shall be filed with the Bureau after payment of the required processing fees. If the proposal is found to be sufficient and meritorious in form and substance after evaluation, it shall be recorded with the appropriate government agency to give the proponent the prior right to the area covered by such proposal: Provided, That existing mineral agreements, financial or technical assistance agreements and other mining rights are not impaired or prejudiced thereby. The Secretary shall recommend its approval to the President.

Section 38. Term of Financial or Technical Assistance Agreement — A financial or technical assistance agreement shall have a term not exceeding twenty-five (25) years to start from the execution thereof, renewable for not more than twenty-five (25) years under such terms and conditions as may be provided by law.

Section 39. Option to Convert into a Mineral Agreement — The contractor has the option to convert the financial or technical assistance agreement to a mineral agreement at any time during the term of the agreement, if the economic viability of the contract area is found to be inadequate to justify large-scale mining operations, after proper notice to the Secretary as provided for under the implementing rules and regulations: Provided, That the mineral agreement shall only be for the remaining period of the original agreement.

In the case of a foreign contractor, it shall reduce its equity to forty percent (40%) in the corporation, partnership, association, or cooperative. Upon compliance with this requirement by the contractor, the Secretary shall approve the conversion and execute the mineral production-sharing agreement.

Section 40. Assignment/Transfer — A financial or technical assistance agreement may be assigned or transferred, in whole or in part, to a qualified person subject to the prior approval of the President: Provided, That the President shall notify Congress of every financial or technical assistance agreement assigned or converted in accordance with this provision within thirty (30) days from the date of the approval thereof.

Section 41. Withdrawal from Financial or Technical Assistance Agreement — The contractor shall manifest in writing to the Secretary his intention to withdraw from the agreement, if in his judgment the mining project is no longer economically feasible, even after he has exerted reasonable diligence to remedy the cause or the situation. The Secretary may accept the withdrawal: Provided, That the contractor has complied or satisfied all his financial, fiscal or legal obligations.

CHAPTER VII Small-scale Mining

Section 42. Small-scale Mining — Small-scale mining shall continue to be governed by Republic Act No. 7076 and other pertinent laws.

CHAPTER VIII Quarry Resources

Section 43. Quarry Permit — Any qualified person may apply to the provincial/city mining regulatory board for a quarry permit on privately-owned lands and/or public lands for building and construction materials such as marble, basalt, andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filling materials, clay for ceramic tiles and building bricks, pumice, perlite and other similar materials that are extracted by quarrying from the ground. The provincial governor shall grant the permit after the applicant has complied with all the requirements as prescribed by the rules and regulations.

The maximum area which a qualified person may hold at any one time shall be five hectares (5 has.): Provided, That in large-scale quarry operations involving cement raw materials, marble, granite, sand and gravel and construction aggregates, a qualified person and the government may enter into a mineral agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable for like periods but not to exceed a total term of twenty-five (25) years. No quarry permit shall be issued or granted on any area covered by a mineral agreement or financial or technical assistance agreement.

Section 44. Quarry Fee and Taxes — A permittee shall, during the term of his permit, pay a quarry fee as provided for under the implementing rules and regulations. The permittee shall also pay the excise tax as provided by pertinent laws.

Section 45. Cancellation of Quarry Permit — A quarry permit may be cancelled by the provincial governor for violations of the provisions of this Act or its implementing rules and regulations or the terms and conditions of said permit: Provided, That before the cancellation of such permit, the holder thereof shall be given the opportunity to be heard in an investigation conducted for the purpose.

Section 46. Commercial Sand and Gravel Permit — Any qualified person may be granted a permit by the provincial governor to extract and remove sand and gravel or other loose or unconsolidated materials which are used in their natural state, without undergoing processing from an area of not more than five hectares (5 has.) and in such quantities as may be specified in the permit.

Section 47. Industrial Sand and Gravel Permit — Any qualified person may be granted an industrial sand and gravel permit by the Bureau for the extraction of sand and gravel and other loose or unconsolidated materials that necessitate the use of mechanical processing covering an area of more than five hectares (5 has.) at any one time. The permit shall have a term of five (5) years, renewable for a like period but not to exceed a total term of twenty-five (25) years.

Section 48. Exclusive Sand and Gravel Permit — Any qualified person may be granted an exclusive sand and gravel permit by the provincial governor to quarry and utilize sand and gravel or other loose or unconsolidated materials from public lands for his own use, provided that there will be no commercial disposition thereof.

A mineral agreement or a financial technical assistance agreement contractor shall, however, have the right to extract and remove sand and gravel and other loose unconsolidated materials without need of a permit within the area covered by the mining agreement for the exclusive use in the mining operations: Provided, That monthly reports of the quantity of materials extracted therefrom shall be submitted to the mines regional office concerned: Provided, further, That said right shall be coterminous with the expiration of the agreement.

Holders of existing mining leases shall likewise have the same rights as that of a contractor: Provided, That said right shall be coterminous with the expiry dates of the lease.

Section 49. Government Gratuitous Permit — Any government entity or instrumentality may be granted a gratuitous permit by the provincial governor to extract sand and gravel, quarry or loose unconsolidated materials needed in the construction of building and/or infrastructure for public use or other purposes over an area of not more than two hectares (2 has.) for a period coterminous with said construction.

Section 50. Private Gratuitous Permit — Any owner of land may be granted a private gratuitous permit by the provincial governor.

Section 51. Guano Permit — Any qualified person may be granted a guano permit by the provincial governor to extract and utilize loose unconsolidated guano and other organic fertilizer materials in any portion of a municipality where he has established domicile. The permit shall be for specific caves and/or for confined sites with locations verified by the Department's field officer in accordance with existing rules and regulations.

Section 52. Gemstone Gathering Permit — Any qualified person may be granted a non-exclusive gemstone gathering permit by the provincial governor to gather loose stones useful as gemstones in rivers and other locations.

CHAPTER IX Transport, Sale and Processing of Minerals

Section 53. Ore Transport Permit — A permit specifying the origin and quantity of non-processed mineral ores or minerals shall be required for their transport. Transport permits shall be issued by the mines regional director who has jurisdiction over the area where the ores were extracted. In the case of mineral ores or minerals being transported from the small-scale mining areas to the custom mills or processing plants, the Provincial Mining Regulatory Board (PMRB) concerned shall formulate their own policies to govern such transport of ores produced by small-scale miners. The absence of a permit shall be considered as prima facie evidence of illegal mining and shall be sufficient cause for the Government to confiscate the ores or minerals being transported, the tools and equipment utilized, and the vehicle containing the same. Ore samples not exceeding two metric tons (2 m.t.) to be used exclusively for assay or pilot test purposes shall be exempted from such requirement.

Section 54. Mineral Trading Registration — No person shall engage in the trading of mineral products, either locally or internationally, unless registered with the Department of Trade and Industry and accredited by the Department, with a copy of said registration submitted to the Bureau.

Section 55. Minerals Processing Permit — No person shall engage in the processing of minerals without first securing a minerals processing permit from the Secretary. Minerals processing permit shall be for a period of five (5) years renewable for like periods but not to exceed a total term of twenty-five (25) years. In the case of mineral ores or minerals produced by the small-scale miners, the processing thereof as well as the licensing of their custom mills, or processing plants shall continue to be governed by the provisions of Republic Act No. 7076.

Section 56. Eligibility of Foreign-owned/-controlled Corporation — A foreign-owned/-controlled corporation may be granted a mineral processing permit.

CHAPTER X Development of Mining Communities, Science and Mining Technology

Section 57. Expenditure for Community Development and Science and Mining Technology — A contractor shall assist in the development of its mining community, the promotion of the general welfare of its inhabitants, and the development of science and mining technology.

Section 58. Credited Activities — Activities that may be credited as expenditures for development of mining communities, and science and mining technology are the following:

a. Any activity or expenditure intended to enhance the development of the mining and neighboring communities of a mining operation other than those required or provided for under existing laws, or collective bargaining agreements, and the like; and

b. Any activity or expenditure directed towards the development of geosciences and mining technology such as, but not limited to, institutional and manpower development, and basic and applied researches. Appropriate supervision and control mechanisms shall be prescribed in the implementing rules and regulations of this Act.

Section 59. Training and Development — A contractor shall maintain an effective program of manpower training and development throughout the term of the mineral agreement and shall encourage and train Filipinos to participate in all aspects of the mining operations, including the management thereof. For highly-technical and specialized mining operations, the contractor may, subject to the necessary government clearances, employ qualified foreigners.

Section 60. Use of Indigenous Goods, Services and Technologies — A contractor shall give preference to the use of local goods, services and scientific and technical resources in the mining operations, where the same are of equivalent quality, and are available on equivalent terms as their imported counterparts.

Section 61. Donations/Turn Over of Facilities — Prior to cessation of mining operations occasioned by abandonment or withdrawal of operations, on public lands by the contractor, the latter shall have a period of one (1) year therefrom within which to remove his improvements; otherwise, all the social infrastructure and facilities shall be turned over or donated tax-free to the proper government authorities, national or local, to ensure that said infrastructure and facilities are continuously maintained and utilized by the host and neighboring communities.

Section 62. Employment of Filipinos — A contractor shall give preference to Filipino citizens in all types of mining employment within the country insofar as such citizens are qualified to perform the corresponding work with reasonable efficiency and without hazard to the safety of the operations. The contractor, however, shall not be hindered from hiring employees of his own selection, subject to the provisions of Commonwealth Act No. 613, as amended, for technical and specialized work which, in his judgment and with the approval of the Director, requires highly-specialized training or long experience in exploration, development or utilization of mineral resources: Provided, That in no case shall each employment exceed five (5) years or the payback period as represented in original project study, whichever is longer: Provided, further, That each foreigner employed as mine manager, vice-president for operations or in an equivalent managerial position in charge of mining, milling, quarrying or drilling operation shall:

a. Present evidence of his qualification and work experience; or

b. Shall pass the appropriate government licensure examination; or

c. In special cases, may be permitted to work by the Director for a period not exceeding one (1) year: Provided, however, That if reciprocal privileges are extended to Filipino nationals in the country of domicile, the Director may grant waivers or exemptions.

CHAPTER XI Safety and Environmental Protection

Section 63. Mines Safety and Environmental Protection — All contractors and permittees shall strictly comply with all the mines safety rules and regulations as may be promulgated by the Secretary concerning the safe and sanitary upkeep of the mining operations and achieve waste-free and efficient mine development. Personnel of the Department involved in the implementation of mines safety, health and environmental rules and regulations shall be covered under Republic Act No. 7305.

Section 64. Mine Labor — No person under sixteen (16) years of age shall be employed in any phase of mining operations and no person under eighteen (18) years of age shall be employed underground in a mine.

Section 65. Mine Supervision — All mining and quarrying operations that employ more than fifty (50) workers shall have at least one (1) licensed mining engineer with at least five (5) years of experience in mining operations, and one (1) registered foreman.

Section 66. Mine Inspection — The regional director shall have exclusive jurisdiction over the safety inspection of all installations, surface or underground, in mining operations at reasonable hours of the day or night and as much as possible in a manner that will not impede or obstruct work in progress of a contractor or permittee.

Section 67. Power to Issue Orders — The mines regional director shall, in consultation with the Environmental Management Bureau, forthwith or within such time as specified in his order, require the contractor to remedy any practice connected with mining or quarrying operations, which is not in accordance with safety and anti-pollution laws and regulations. In case of imminent danger to life or property, the mines regional director may summarily suspend the mining or quarrying operations until the danger is removed, or appropriate measures are taken by the contractor or permittee.

Section 68. Report of Accidents — In case of any incident or accident, causing or creating the danger of loss of life or serious physical injuries, the person in charge of operations shall immediately report the same to the regional office where the operations are situated. Failure to report the same without justifiable reason shall be a cause for the imposition of administrative sanctions prescribed in the rules and regulations implementing this Act.

Section 69. Environmental Protection — Every contractor shall undertake an environmental protection and enhancement program covering the period of the mineral agreement or permit. Such environmental program shall be incorporated in the work program which the contractor or permittee shall submit as an accompanying document to the application for a mineral agreement or permit. The work program shall include not only plans relative to mining operations but also to rehabilitation, regeneration, revegetation and reforestation of mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture, watershed development and water conservation; and socioeconomic development.

Section 70. Environmental Impact Assessment (EIA) — Except during the exploration period of a mineral agreement or financial or technical assistance agreement or an exploration permit, an environmental clearance certificate shall be required based on an environmental impact assessment and procedures under the Philippine Environmental Impact Assessment System including Sections 26 and 27 of the Local Government Code of 1991 which require national government agencies to maintain ecological balance, and prior consultation with the local government units, non-governmental and people's organizations and other concerned sectors of the community: Provided, That a completed ecological profile of the proposed mining area shall also constitute part of the environmental impact assessment. People's organizations and non-governmental organizations shall be allowed and encouraged to participate in ensuring that contractors/permittees shall observe all the requirements of environmental protection.

Section 71. Rehabilitation — Contractors and permittees shall technically and biologically rehabilitate the excavated, mined-out, tailings covered and disturbed areas to the condition of environmental safety, as may be provided in the implementing rules and regulations of this Act. A mine rehabilitation fund shall be created, based on the contractor's approved work program, and shall be deposited as a trust fund in a government depository bank and used for physical and social rehabilitation of areas and communities affected by mining activities and for research on the social, technical and preventive aspects of rehabilitation. Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining activities of the contractor/permittee concerned.

CHAPTER XII Auxiliary Mining Rights

Section 72. Timber Rights — Any provision of law to the contrary notwithstanding, a contractor may be granted a right to cut trees or timber within his mining area as may be necessary for his mining operations subject to forestry laws, rules and regulations: Provided, That if the land covered by the mining area is already covered by existing timber concessions, the volume of timber needed and the manner of cutting and removal thereof shall be determined by the mines regional director, upon consultation with the contractor, the timber concessionaire/permittee and the Forest Management Bureau of the Department: Provided, further, That in case of disagreement between the contractor and the timber concessionaire, the matter shall be submitted to the Secretary whose decision shall be final. The contractor shall perform reforestation work within his mining area in accordance with forestry laws, rules and regulations.

Section 73. Water Rights — A contractor shall have water rights for mining operations upon approval of application with the appropriate government agency in accordance with existing water laws, rules and regulations promulgated thereunder: Provided, That water rights already granted or vested through long use, recognized and acknowledged by local customs, laws, and decisions of courts shall not thereby be impaired: Provided, further, That the Government reserves the right to regulate water rights and the reasonable and equitable distribution of water supply so as to prevent the monopoly of the use thereof.

Section 74. Right to Possess Explosives — A contractor/exploration permittee shall have the right to possess and use explosives within his contract/permit area as may be necessary for his mining operations upon approval of application with the appropriate government agency in accordance with existing laws, rules and regulations promulgated thereunder: Provided, That the Government reserves the right to regulate and control the explosive accessories to ensure safe mining operations.

Section 75. Easement Rights — When mining areas are so situated that for purposes of more convenient mining operations it is necessary to build, construct or install on the mining areas or lands owned, occupied or leased by other persons, such infrastructure as roads, railroads, mills, waste dump sites, tailings ponds, warehouses, staging or storage areas and port facilities, tramways, runways, airports, electric transmission, telephone or telegraph lines, dams and their normal flood and catchment areas, sites for water wells, ditches, canals, new river beds, pipelines, flumes, cuts, shafts, tunnels, or mills, the contractor, upon payment of just compensation, shall be entitled to enter and occupy said mining areas or lands.

Section 76. Entry into Private Lands and Concession Areas — Subject to prior notification, holders of mining rights shall not be prevented from entry into private lands and concession areas by surface owners, occupants, or concessionaires when conducting mining operations therein: Provided, That any damage done to the property of the surface owner, occupant, or concessionaire as a consequence of such operations shall be properly compensated as may be provided for in the implementing rules and regulations: Provided, further, That to guarantee such compensation, the person authorized to conduct mining operation shall, prior thereto, post a bond with the regional director based on the type of properties, the prevailing prices in and around the area where the mining operations are to be conducted, with surety or sureties satisfactory to the regional director.

CHAPTER XIII Settlement of Conflicts

Section 77. Panel of Arbitrators — There shall be a panel of arbitrators in the regional office of the Department composed of three (3) members, two (2) of whom must be members of the Philippine Bar in good standing and one a licensed mining engineer or a professional in a related field, and duly designated by the Secretary as recommended by the Mines and Geosciences Bureau Director. Those designated as members of the panel shall serve as such in addition to their work in the Department without receiving any additional compensation As much as practicable, said members shall come from the different bureaus of the Department in the region. The presiding officer thereof shall be selected by the drawing of lots. His tenure as presiding officer shall be on a yearly basis. The members of the panel shall perform their duties and obligations in hearing and deciding cases until their designation is withdrawn or revoked by the Secretary. Within thirty (30) working days, after the submission of the case by the parties for decision, the panel shall have exclusive and original jurisdiction to hear and decide on the following:

a. Disputes involving rights to mining areas;

b. Disputes involving mineral agreements or permits;

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

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

Section 78. Appellate Jurisdiction — The decision or order of the panel of arbitrators may be appealed by the party not satisfied thereto to the Mines Adjudication Board within fifteen (15) days from receipt thereof which must decide the case within thirty (30) days from submission thereof for decision.

Section 79. Mines Adjudication Board — The Mines Adjudication Board shall be composed of three (3) members. The Secretary shall be the chairman with the Director of the Mines and Geosciences Bureau and the Undersecretary for Operations of the Department as members thereof. The Board shall have the following powers and functions:

a. To promulgate rules and regulations governing the hearing and disposition of cases before it, as well as those pertaining to its internal functions, and such rules and regulations as may be necessary to carry out its functions;

b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, papers, contracts, records, statement of accounts, agreements, and other documents as may be material to a just determination of the matter under investigation, and to testify in any investigation or hearing conducted in pursuance of this Act;

c. To conduct hearings on all matters within its jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who has been summoned or served with notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn its hearings at any time and place, refer technical matters or accounts to an expert and to accept his report as evidence after hearing of the parties upon due notice, direct parties to be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or irregularity, whether in substance or in form, give all such directions as it may deem necessary or expedient in the determination of the dispute before it, and dismiss the mining dispute as part thereof, where it is trivial or where further proceedings by the Board are not necessary or desirable:

1. To hold any person in contempt, directly or indirectly, and impose appropriate penalties therefor; and

2. To enjoin any or all acts involving or arising from any case pending before it which, if not restrained forthwith, may cause grave or irreparable damage to any of the parties to the case or seriously affect social and economic stability.

In any proceeding before the Board, the rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit and intention of this Act that shall govern. The Board shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or procedure, all in the interest of due process. In any proceeding before the Board, the parties may be represented by legal counsel. The findings of fact of the Board shall be conclusive and binding on the parties and its decision or order shall be final and executory.

A petition for review by certiorari and question of law may be filed by the aggrieved party with the Supreme Court within thirty (30) days from receipt of the order or decision of the Board.

CHAPTER XIV Government Share

Section 80. Government Share in Mineral Production Sharing Agreement — The total government share in a mineral production sharing agreement shall be the excise tax on mineral products as provided in Republic Act No. 7729, amending Section 151(a) of the National Internal Revenue Code, as amended.

Section 81. Government Share in Other Mineral Agreements — The share of the Government in co-production and joint-venture agreements shall be negotiated by the Government and the contractor taking into consideration the:

a. capital investment of the project;

b. risks involved;

c. contribution of the project to the economy; and

d. other factors that will provide for a fair and equitable sharing between the Government and the contractor.

The Government shall also be entitled to compensations for its other contributions which shall be agreed upon by the parties, and shall consist, among other things, the contractor's income tax, excise tax, special allowance, withholding tax due from the contractor's foreign stockholders arising from dividend or interest payments to the said foreign stockholders, in case of a foreign national, and all such other taxes, duties and fees as provided for under existing laws.

The Government share in financial or technical assistance agreement shall consist of, among other things, the contractor's corporate income tax, excise tax, special allowance, withholding tax due from the contractor's foreign stockholders arising from dividend or interest payments to the said foreign stockholder in case of a foreign national and all such other taxes, duties and fees as provided for under existing laws.

The collection of Government share in financial or technical assistance agreement shall commence after the financial or technical assistance agreement contractor has fully recovered its pre-operating expenses, exploration, and development expenditures, inclusive.

Section 82. Allocation of Government Share — The Government share as referred to in the preceding sections shall be shared and allocated in accordance with Sections 290 and 292 of Republic Act No. 7160 otherwise known as the Local Government Code of 1991. In case the development and utilization of mineral resources is undertaken by a government-owned or -controlled corporation, the sharing and allocation shall be in accordance with Sections 291 and 292 of the said Code.

CHAPTER XV Taxes and Fees

Section 83. Income Taxes — After the lapse of the income tax holiday as provided for in the Omnibus Investments Code, the contractor shall be liable to pay income tax as provided in the National Internal Revenue Code, as amended.

Section 84. Excise Tax on Mineral Products — The contractor shall be liable to pay the excise tax on mineral products as provided for under Section 151 of the National Internal Revenue Code: Provided, however, That with respect to a mineral production sharing agreement, the excise tax on mineral products shall be the government share under said agreement.

Section 85. Mine Wastes and Tailings Fees — A semi-annual fee to be known as mine wastes and tailings fee is hereby imposed on all operating mining companies in accordance with the implementing rules and regulations. The mine wastes and tailings fee shall accrue to a reserve fund to be used exclusively for payment for damages to:

a. Lives and personal safety;

b. Lands, agricultural crops and forest products, marine life and aquatic resources, cultural resources; and

c. Infrastructure and the revegetation and rehabilitation of silted farm lands and other areas devoted to agriculture and fishing caused by mining pollution.

This is in addition to the suspension or closure of the activities of the contractor at any time and the penal sanctions imposed upon the same.

The Secretary is authorized to increase mine wastes and tailings fees, when public interest so requires, upon the recommendation of the Director.

Section 86. Occupation Fees — There shall be collected from any holder of a mineral agreement, financial or technical assistance agreement or exploration permit on public or private lands, an annual occupation fee in accordance with the following schedule:

a. For exploration permit - Five pesos (P5.00) per hectare or fraction thereof per annum;

b. For mineral agreements and financial or technical assistance agreements - Fifty pesos (P50.00) per hectare or fraction thereof per annum; and

c. For mineral reservation - One hundred pesos (P100.00) per hectare or fraction thereof per annum.

The Secretary is authorized to increase the occupation fees provided herein when the public interest so requires, upon recommendation of the Bureau Director.

Section 87. Manner of Payment of Fees — The fees shall be paid on the date the mining agreement is registered with the appropriate office and on the same date every year thereafter. It shall be paid to the treasurer of the municipality or city where the onshore mining areas are located, or to the Director in case of offshore mining areas. For this purpose, the appropriate officer shall submit to the treasurer of the municipality or city where the onshore mining area is located, a complete list of all onshore mining rights registered with his office, indicating therein the names of the holders, area in hectares, location, and date registered. If the fee is not paid on the date specified, it shall be increased by twenty-five per centum (25%).

Section 88. Allocation of Occupation Fees — Thirty per centum (30%) of all occupational fees collected from holders of mining rights in onshore mining areas shall accrue to the province and seventy per centum (70%) to the municipality in which the onshore mining areas are located. In a chartered city, the full amount shall accrue to the city concerned.

Section 89. Filing Fees and Other Charges — The Secretary is authorized to charge reasonable filing fees and other charges as he may prescribe in accordance with the implementing rules and regulations.

CHAPTER XVI Incentives

Section 90. Incentives — The contractors in mineral agreements, and financial or technical assistance agreements shall be entitled to the applicable fiscal and non-fiscal incentives as provided for under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987. Provided, That holders of exploration permits may register with the Board of Investments and be entitled to the fiscal incentives granted under the said Code for the duration of the permits or extensions thereof: Provided, further, That mining activities shall always be included in the investment priorities plan.

Section 91. Incentives for Pollution Control Devices — Pollution control devices acquired, constructed or installed by contractors shall not be considered as improvements on the land or building where they are placed, and shall not be subject to real property and other taxes or assessments: Provided, however, That payment of mine wastes and tailings fees is not exempted.

Section 92. Income Tax-Carry Forward of Losses — A net operating loss without the benefit of incentives incurred in any of the first ten (10) years of operations may be carried over as a deduction from taxable income for the next five (5) years immediately following the year of such loss. The entire amount of the loss shall be carried over to the first of the five (5) taxable years following the loss, and any portion of such loss which exceeds the taxable income of such first year shall be deducted in like manner from the taxable income of the next remaining four (4) years.

Section 93. Income Tax-Accelerated Depreciation — Fixed assets may be depreciated as follows:

a. To the extent of not more than twice as fast as the normal rate of depreciation or depreciated at normal rate of depreciation if the expected life is ten (10) years or less; or

b. Depreciated over any number of years between five (5) years and the expected life if the latter is more than ten (10) years, and the depreciation thereon allowed as deduction from taxable income: Provided, That the contractor notifies the Bureau of Internal Revenue at the beginning of the depreciation period which depreciation rate allowed by this section will be used.

In computing for taxable income, unless otherwise provided in this Act, the contractor may, at his option, deduct exploration and development expenditures accumulated at cost as of the date of the prospecting or exploration and development expenditures paid or incurred during the taxable year: Provided, That the total amount deductible for exploration and development expenditures shall not exceed twenty-five per centum (25%) of the net income from mining operations. The actual exploration and development expenditures minus the twenty-five per centum (25%) net income from mining shall be carried forward to the succeeding years until fully deducted.

Net income from mining operation is defined as gross income from operations less allowable deductions which are necessary or related to mining operations. Allowable deductions shall include mining, milling and marketing expenses, depreciation of properties directly used in the mining operations. This paragraph shall not apply to expenditures for the acquisition or improvement of property of a character which is subject to the allowances for depreciation.

Section 94. Investment Guarantees — The contractor shall be entitled to the basic rights and guarantees provided in the Constitution and such other rights recognized by the government as enumerated hereunder:

a. Repatriation of investments. The right to repatriate the entire proceeds of the liquidation of the foreign investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of repatriation.

b. Remittance of earnings. The right to remit earnings from the investment in the currency in which the foreign investment was originally made and at the exchange rate prevailing at the time of remittance.

c. Foreign loans and contracts. The right to remit at the exchange rate prevailing at the time of remittance such sums as may be necessary to meet the payments of interest and principal on foreign loans and foreign obligations arising from financial or technical assistance contracts.

d. Freedom from expropriation. The right to be free from expropriation by the Government of the property represented by investments or loans, or of the property of the enterprise except for public use or in the interest of national welfare or defense and upon payment of just compensation. In such cases, foreign investors or enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.

e. Requisition of investment. The right to be free from requisition of the property represented by the investment or of the property of the enterprises except in case of war or national emergency and only for the duration thereof. Just compensation shall be determined and paid either at the time or immediately after cessation of the state of war or national emergency. Payments received as compensation for the requisitioned property may be remitted in the currency in which the investments were originally made and at the exchange rate prevailing at the time of remittance.

f. Confidentiality. Any confidential information supplied by the contractor pursuant to this Act and its implementing rules and regulations shall be treated as such by the Department and the Government, and during the term of the project to which it relates.

CHAPTER XVII Ground for Cancellation, Revocation and Termination

Section 95. Late or Non-filing of Requirements — Failure of the permittee or contractor to comply with any of the requirements provided in this Act or in its implementing rules and regulations, without a valid reason, shall be sufficient ground for the suspension of any permit or agreement provided under this Act.

Section 96. Violation of the Terms and Conditions of Permits or Agreements — Violation of the terms and conditions of the permits or agreements shall be a sufficient ground for cancellation of the same.

Section 97. Non-Payment of Taxes and Fees — Failure to pay the taxes and fees due the Government for two (2) consecutive years shall cause the cancellation of the exploration permit, mineral agreement, financial or technical assistance agreement and other agreements and the re-opening of the area subject thereof to new applicants.

Section 98. Suspension or Cancellation of Tar Incentives and Credits — Failure to abide by the terms and conditions of tax incentive and credits shall cause the suspension or cancellation of said incentives and credits.

Section 99. Falsehood or Omission of Facts in the Statement — All statements made in the exploration permit, mining agreement and financial or technical assistance agreement shall be considered as conditions and essential parts thereof and any falsehood in said statements or omission of facts therein which may alter, change or affect substantially the facts set forth in said statements may cause the revocation and termination of the exploration permit, mining agreement and financial or technical assistance agreement.

CHAPTER XVIII Organizational and Institutional Arrangements

Section 100. From Staff Bureau to Line Bureau — The Mines and Geosciences Bureau is hereby transformed into a line bureau consistent with Section 9 of this Act: Provided, That under the Mines and Geosciences Bureau shall be the necessary mines regional, district and other pertinent offices - the number and specific functions of which shall be provided in the implementing rules and regulations of this Act.

CHAPTER XIX Penal Provisions

Section 101. False Statements — Any person who knowingly presents any false application, declaration, or evidence to the Government or publishes or causes to be published any prospectus or other information containing any false statement relating to mines, mining operations or mineral agreements, financial or technical assistance agreements and permits shall, upon conviction, be penalized by a fine of not exceeding Ten thousand pesos (P10,000.00).

Section 102. Illegal Exploration — Any person undertaking exploration work without the necessary exploration permit shall, upon conviction, be penalized by a fine of not exceeding Fifty thousand pesos (P50,000.00).

Section 103. Theft of Minerals — Any person extracting minerals and disposing the same without a mining agreement, lease, permit, license, or steals minerals or ores or the products thereof from mines or mills or processing plants shall, upon conviction, be imprisoned from six (6) months to six (6) years or pay a fine from Ten thousand pesos (P10,000.00) to Twenty thousand pesos (P20,000.00) or both, at the discretion of the appropriate court. In addition, he shall be liable to pay damages and compensation for the minerals removed, extracted, and disposed of. In the case of associations, partnerships, or corporations, the president and each of the directors thereof shall be responsible for the acts committed by such association, corporation, or partnership.

Section 104. Destruction of Mining Structures — Any person who willfully destroys or damages structures in or on the mining area or on the mill sites shall, upon conviction, be imprisoned for a period not to exceed five (5) years and shall, in addition, pay compensation for the damages which may have been caused thereby.

Section 105. Mines Arson — Any person who willfully sets fire to any mineral stockpile, mine or workings, fittings or a mine, shall be guilty of arson and shall be punished, upon conviction, by the appropriate court in accordance with the provisions of the Revised Penal Code and shall, in addition, pay compensation for the damages caused hereby.

Section 106. Willful Damage to a Mine — Any person who willfully damages a mine, unlawfully causes water to run into a mine, or obstructs any shaft or passage to a mine, or renders useless, damages or destroys any machine, appliance, apparatus, rope, chain, tackle, or any other things used in a mine, shall be punished, upon conviction, by the appropriate court, by imprisonment not exceeding a period of five (5) years and shall, in addition, pay compensation for the damages caused thereby.

Section 107. Illegal Obstruction to Permittees or Contractors — Any person who, without justifiable cause, prevents or obstructs the holder of any permit, agreement or lease from undertaking his mining operations shall be punished, upon conviction by the appropriate court, by a fine not exceeding Five thousand pesos (P5,000.00) or imprisonment not exceeding one (1) year, or both, at the discretion of the court.

Section 108. Violation of the Terms and Conditions of the Environmental Compliance Certificate — Any person who willfully violates or grossly neglects to abide by the terms and conditions of the environmental compliance certificate issued to said person and which causes environmental damage through pollution shall suffer the penalty of imprisonment of six (6) months to six (6) years or a fine of Fifty thousand pesos (P50,000.00) to Two hundred thousand pesos (P200,000.00), or both, at the discretion of the court.

Section 109. Illegal Obstruction to Government Officials — Any person who illegally prevents or obstructs the Secretary, the Director or any of their representatives in the performance of their duties under the provisions of this Act and of the regulations promulgated hereunder shall be punished upon conviction, by the appropriate court, by a fine not exceeding Five thousand pesos (P5,000.00) or by imprisonment not exceeding one (1) year, or both, at the discretion of the court.

Section 110. Other Violations — Any other violation of this Act and its implementing rules and regulations shall constitute an offense punishable with a fine not exceeding Five thousand pesos (P5,000.00).

Section 111. Fines — The Secretary is authorized to charge fines for late or non-submission of reports in accordance with the implementing rules and regulations of this Act.

CHAPTER XX Transitory and Miscellaneous Provisions

Section 112. Non-Impairment of Existing Mining/Quarrying Rights — All valid and existing mining lease contracts, permits/licenses, leases pending renewal, mineral production-sharing agreements granted under Executive Order No. 279, at the date of effectivity of this Act, shall remain valid, shall not be impaired, and shall be recognized by the Government: Provided, That the provisions of Chapter XIV on government share in mineral production-sharing agreement and of Chapter XVI on incentives of this Act shall immediately govern and apply to a mining lessee or contractor unless the mining lessee or contractor indicates his intention to the secretary, in writing, not to avail of said provisions: Provided, further, That no renewal of mining lease contracts shall be made after the expiration of its term: Provided, finally, That such leases, production-sharing agreements, financial or technical assistance agreements shall comply with the applicable provisions of this Act and its implementing rules and regulations.

Section 113. Recognition of Valid and Existing Mining Claims and Lease/Quarry Applications — Holders of valid and existing mining claims, lease/quarry applications shall be given preferential rights to enter into any mode of mineral agreement with the government within two (2) years from the promulgation of the rules and regulations implementing this Act.

Section 114. Separability Clause — If any of the provision of this Act is held or declared to be unconstitutional or invalid by a competent court, the other provisions hereof shall continue to be in force as if the provision so annulled or voided had never been incorporated in this Act.

Section 115. Repealing and Amending Clause — All laws, executive orders, presidential decrees, rules and regulations or parts thereof which are inconsistent with any of the provisions of this Act are hereby repealed or amended accordingly.

Section 116. Effectivity Clause — This Act shall take effect thirty (30) days following its complete publication in two (2) newspapers of general circulation in the Philippines.

June 1, 1992

AN ACT PROVIDING FOR THE ESTABLISHMENT AND MANAGEMENT OF

NATIONAL INTEGRATED PROTECTED AREAS SYSTEM,

DEFINING ITS SCOPE AND COVERAGE, AND FOR OTHER PURPOSES

• See IRR here

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title – This Act shall be known and referred to as the “Expanded National Integrated Protected Areas System Act of 2018”.

SECTION 2. Declaration of Policy – Cognizant of the profound impact of human activities on all components of the natural environment particularly the effect of increasing population, resource exploitation and industrial advancement, and recognizing the critical importance of protecting and maintaining the natural, biological, and physical diversities of the environment notably on areas with biologically unique features to sustain human life and development, as well as plant and animal life, it is hereby declared the policy of the State to secure for the Filipino people of present for future generations, the perpetual existence of all native plants and animals through the establishment of a comprehensive system of integrated protected areas within the classification of national park as provided for in the Constitution.

It is hereby recognized that these areas, although distinct in features, possess common ecological values that may be incorporated into a holistic plan to conserve and protect our natural heritage; that effective administration of these areas is possible only through cooperation among the national government, local governments, concerned nongovernment organizations, private organizations, and local communities; that the use and enjoyment of these protected areas much be consistent with the principles of biological diversity and sustainable development.

To this end, there is hereby established a National Integrated Protected Areas System (NIPAS), which shall encompass ecologically rich and unique areas and biologically important public lands that are habitats of rare and threatened species of plants and animals, biogeographic zones and related ecosystems, whether terrestrial, wetland or marine, all of which shall be designated as 'protected areas'. The System shall recognize conservation areas and the management regimes being implemented by local government units (LGUs), local communities and indigenous peoples (IPs).

The State shall ensure the full implementation of this Act, the mobilization of resources for the institutional mechanisms herein established, and the full scientific and technical support needed for the conservation of biodiversity and the integrity of the ecosystems, culture and indigenous practices. (as amended by RA No 11038)

SECTION 3. Categories – The following categories of protected areas are hereby established:

a. Strict nature reserve;

b. Natural park;

c. Natural monument;

d. Wildlife sanctuary;

e. Protected landscapes and seascapes;

f. Resource reserve;

g. Natural biotic areas; and

h. Other categories established by law, conventions or international agreements which the Philippine Government is a signatory.

SECTION 4. Definition of Terms – For purposes of this Act, the following terms shall be defined as follows:

(a) Biological diversity or biodiversity refers to the variability among the living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems;

(b) Bioprospecting refers to the research, collection, and utilization of biological and genetic resources for purposes of applying the knowledge derived therefrom solely for commercial purposes;

(c) Buffer zones refers to identified areas outside the boundaries of and immediately adjacent to designated protected areas that need special development control in order to avoid or minimize harm to the protected area;

(d) By-products or Derivatives refers to parts taken or substances extracted from wildlife, in raw or in processed form;

(e) Collecting refers to the act of gathering or harvesting wildlife and its by-products or derivatives;

(f) Conveyance refers to every kind of vessel, including motorized or non-motorized vehicles, nondisplacement crafts and seaplanes that are used or may be used as a means of transportation on land or water. It shall include everything found therein except personal effects;

(g) Delineation refers to the actual ground survey of the boundaries of protected areas and their buffer zones and management and management zones using the global positioning system (GPS) or other applicable survey instruments and technologies, with the intention of producing a map of the area;

(h) Demarcation refers to the establishment of the boundaries of protected areas and their buffer zones using visible markers, monuments, buoys in case of marine areas, and known natural features and landmarks, among others, as a result of the actual ground delineation;

(i) Ecosystem goods and services refers to the multitude of material and nonmaterial provisions and benefits from healthy ecosystems necessary for human sustenance, well-being, and survival including support processes, provisioning and environment regulating services, and cultural resource preservation services;

(j) Endemic species refers to the species or subspecies of flora and fauna which are naturally occurring and found within specific areas in the country;

(k) Exotic species refer to the species or subspecies of flora and fauna which do not naturally occur within the protected area at present or in historical time;

(l) Exploration refers to the act of searching or prospecting for mineral resources, as defined by law, by geological, geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling, or any other means, for the purpose of determining the existence, extent, quantity, and quality of resources in an area, and the feasibility of utilizing these resources for profit;

(m) Gear refers to any instrument or device and its accessories utilized in taking, catching gathering , killing, hunting, destroying, disturbing, removing, or possessing resources within the protected area;

(n) Genetically modified organism (GMO) refers to any living organism that possesses a novel combination of genetic material through the use of modern biotechnology;

(o) Hunting refers to the killing or catching of wild fauna for food and recreational purposes, with the use of weapons such as guns, bow and arrow, spears, traps and snares, and the like;

(p) Indigenous Cultural Community (ICC)/Indigenous People (IP) refers to a group of people sharing common bonds of language, customs traditions, and other distinctive cultural traits, and who have, since time immemorial occupied, possessed and utilized a territory;

(q) Integrated Protected Area Fund (IPAF) refers to the special account established for the purpose of financing projects of the NIPAS and individual protected areas;

(r) Invasive alien species refers to species introduced deliberately or unintentionally outside their natural habitats where they have the ability to establish themselves, invade, outcompete native species, and take over the new environment;

(s) Kaingin refers to the slash-and-burn cultivation of vegetated land in a protected area, whether occupied or not, shifting and permanent with little or no provision to prevent soil erosion;

(t) Multiple-use zone refers to the area where settlement, traditional and sustainable land use including agriculture, agroforestry, extraction activities, and income generating or livelihood activities, and may be allowed to the extent prescribed in the protected area management plan;

(u) National Integrated Protected Areas System (NIPAS) refers to the classification and administration of all designated protected areas to maintain essential ecological processes and life-support systems, to preserve genetic diversity, to ensure sustainable use of resources found therein, and to maintain their natural conditions to the greatest extent possible;

(v) National park refers to the lands of the public domain classified as such in the Constitution which include all areas under the NIPAS pursuant to this Act, primarily designated for the conservation of native plants and animals, their associated habitats and cultural diversity;

(w) Natural biotic area refers to an area set aside to allow the way of life of societies living in harmony with the environment to adapt to modern technology at their pace;

(x) Natural monument refers to a relatively small area focused on the protection of small features to protect or preserve nationally significant natural features on account of their special interest or unique characteristics;

(y) Natural park refers to a relatively large area not materially altered by human activity where extractive resources uses not allowed and is maintained to protect outstanding natural and scenic areas of national or international significance for scientific, educational, recreational use;

(z) Occupying refers to a continuous stay of individuals or groups within a protected area, whether residing or engaging in the cultivation of land or fishing for more that twenty-four (24) hours;

(aa) Poaching refers to gathering, collecting, or possessing products or natural resources from the protected area by any individual person, corporation or entity whether local or foreign; in the case of marine protected areas, operating any foreign fishing vessels by any person, corporation , or entity without a permit;

(bb) Protected area refers to identified portions of land and/or water set aside by reason of their unique physical and biological diversity and protected against destructive human exploitation;

(cc) Protected Area Occupants refers to persons who are residing, utilizing, and cultivating areas within the protected area.1âwphi1 These include private owners, IPs, tenured migrants and informal settlers;

(dd) Protected Area Retained Income Account refers to the trust fund maintained by any protected area and administered by the respective Protected Area Management Boards (PAMB) created pursuant to this Act representing the seventy-five percent (75%) of revenues generated from the protected area to support its operation and management;

(ee) Protected landscapes and/or seascapes refer to areas of national significance which are characterized by the harmonious interaction of man and land and water while providing opportunities for public enjoyment through recreation, tourism, and other economic activities;

(ff) Protected species refers to plants or animals declared protected under Philippine laws, rules, and regulations. These shall include all species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora and all its Annexes, the Convention on the Conservation of Migratory Species (CMS), those specified under the red-list categories of the International Union for Conservation of Nature and Natural Resources (DENR), PAMB or any government agency may deem necessary for conservation and preservation in the protected area;

(gg) Quarrying refers to the process of extracting, removing, and disposing sand gravel, guano, limestone, and all other resources used as building and construction materials that are found within the protected area;

(hh) Resource reserve refers to an extensive, relatively isolated, and uninhabited area which is difficult to access and is designated to protect the natural resources of the area for future use and prevent or contain development activities that could affect the resources, pending the establishment of sustainable resources utilization goals which are based upon appropriate information and planning;

(ii) Special Account in the General Fund (SAGF) refers to the trust fund deposited in the national treasury representing the twenty-five percent (25%) of the revenues generated from the operation of individual protected area and earmarked to support the NIPAS;

(jj) Strict nature reserve refers to an area possessing some outstanding ecosystem, features, and species of flora and fauna of national scientific importance that should be maintained to protect and to preserve nature in its undisturbed state and to preserve nature in its undisturbed state and to preserve ecologically representative examples of the natural environment to ensure their availability for scientific study, environmental to ensure their availability for scientific study, environmental monitoring, education, and for the for the maintenance of genetic resources in a dynamic and evolutionary state;

(kk) Tenure migrants refer to protected area occupants who have been actually, continuously and presently occupants who have been actually, continuously and presently occupying a portion of the protected area for five (5) years before the proclamation or law establishing the same as a protected area, and are solely dependent therein for subsistence;

(ll) Threatened species refer to species or subspecies considered critically endangered, vulnerable, or other accepted categories of wildlife whose population is at risk of extinction;

(mm) Wetlands refers to wide variety of inland habitats such as marshes, peatlands, floodplains, rivers and lakes, and coastal areas such as saltmarshes, mangroves, intertidal mudflats and seagrass beds, and also coral reefs and other marine areas no deeper than six (6) meters at low, as well as human-made wetlands such as dams, reservoirs, rice paddies and wastewater treatment ponds and lagoons;

nn) Wildlife refers to the wild forms and varieties of flora and fauna, in all developmental stages, including those who which are in capacity or are being bred, fed, or propagated; and

(oo) Wildlife Sanctuary. - refers to an area which assures the natural conditions necessary to protect nationally significant species, groups of species, biotic communities or physical features of the environment which may require specific human manipulations for their perpetuation. (as amended by RA No 11038)

SECTION 5. Establishment and Extent of the System – The establishment and operationalization of the System shall involve the following:

(a) All areas or islands in the Philippines proclaimed, designated or set aside, pursuant to a law, presidential decree, presidential proclamation or executive order as national park, game refuge, bird and wildlife sanctuary, wilderness area, strict nature reserve, watershed, mangrove reserve, fish sanctuary, natural and historical landmark, protected and managed landscape/seascape as well as old growth forests identified before the effectivity of this Act or still to be identified, are hereby designated as initial components of the System. The initial components of the System shall be governed by existing laws, rules, and regulations, not inconsistent with this Act.

(a.1.) Establishment as Protected Areas. - Aside from the areas already declared as protected areas through acts of Congress, the following parcels of land and/or bodies of water are hereby established as protected areas within the classification of national park pursuant to the Philippine Constitution:

Please refer to the Table below

The boundaries and technical description of each protected area as described in the attached Annex, which are duly certified accurate on every page thereof by the National Mapping and Resource Information Authority (NAMRIA) are hereby adopted and made an integral part thereof.

The DENR, with the assistance of other government agencies, if necessary, shall delineate and demarcate on the ground the boundaries of each protected area which shall not be modified except by an act of Congress.

(a.2.) The Remaining Initial Components. - Within three (3) years from the effectivity of this Act, the DENR shall undertake the following activities in preparation for the establishment of the remaining initial components as protected areas through an act of Congress:

1. Provide maps and technical descriptions of the areas;

2. Conduct suitability assessment of the areas; and

3. Conduct public consultations.

Any initial component that does not satisfy the abovementioned requirements shall be disestablished pursuant to Section 7 of this Act.

(b) All DENR records pertaining to said protected areas, including maps and technical descriptions or natural boundaries, copies of rules and regulations governing them, copies of public notices of, and reports submitted to Congress regarding pending additions, eliminations, or modifications shall be made available to the public. These legal documents pertaining to protected areas shall also be available to the public in the respective DENR Regional Offices, Provincial Environment and Natural Resources Offices (PENROs) and Community Environment and Natural Resources Offices (CENROs) and Protected Area Management Offices (PAMOs) where protected areas are located;

(c) The DENR shall conduct a suitability assessment for each of the proposed protected area. If found suitable for inclusion in the System according to the categories established in Section 3 hereof, a report containing the following items shall be submitted to the president as soon as the study is completed, to wit:

1. A Protected area occupants survey;

2. An ethnographic study;

3. A protected area resource profile;

4. Land and water use plans; and

5. Other background studies.

(d) In the conduct of public consultation, the DENR shall:

1. Notify the public of proposed action through publication in a newspaper of general circulation and such other means including notices to the stakeholders that will likely be affected within the respective localities, thirty (30) days prior to the public consultation;

2. Conduct public consultation at locations near the proposed protected area;

3. Invite all local government units (LGUs) in the affected areas, national agencies concerned, people's organizations (POs) and nongovernment organizations (NGOs) and request for corresponding position papers; and

4. Prepare recommendations based on the views and comments gathered from public consultation;

(e) Upon receipt of the recommendations of the DENR, the President shall issue a proclamation establishing the proposed protected areas and providing for measures for their protection until the time when Congress shall have enacted a law finally declaring the recommended areas as part of the System; and

(f) Upon completion of the appropriate review, the President shall recommend to the Senate and the House of Representatives the designations of protected areas or reclassification of each area. (as amended by RA No 11038)

SECTION 6. Additional Areas to be Included into the System. – Upon the recommendation of the DENR, additional areas with unique physical features, anthropological significance and high biological diversity may be proposed for inclusion as part of the System. Such areas shall undergo the same procedure as the remaining initial components for legislative enactment. (as amended by RA No 11038)

SECTION 7. Disestablishment as Protected Area. – When in the opinion of the DENR a certain protected area should be withdrawn or disestablished, or its boundaries modified as warranted by a study and sanctioned by the majority of the members of the respective boards for the protected area as herein established in Section 11, it shall, in turn, advice Congress. Disestablishment of a protected area under the System or modification of its boundary shall take effect pursuant to an act of Congress. Thereafter, said area shall revert to the category of public forests unless otherwise classified by Congress: Provided however, that after disestablishment by Congress, the Secretary may recommend the transfer of such disestablished area to other government agencies to serve other priority programs of national interest.

SECTION 8. Buffer Zones. – When necessary, the DENR Secretary, upon the recommendation of the PAMB, may be designate areas surrounding the protected areas as buffer zones for the purpose of providing extra layer of protection where restrictions may be applied: Provided, That, in cases where the designated buffer zone would cover private lands, the owners thereof shall be required to design their development with due consideration to the protected area management plan. (as amended by RA No 11038)

SECTION 9. Management Plans. – Within one (1) year from the establishment of the protected area there shall be a management plan formulated for each protected area that small serve as the basic long-term framework plan for the management of the protected area and guide in the preparation of its annual operations plan and budget.

The management plan shall, at the minimum, promote the adoption and implementation of innovative management techniques including, when necessary, zoning, buffer zone management, habitat conservation and rehabilitation, diversity management, community organizing and development, socioeconomic and scientific researches, site-specific policy development, climate change adaptation and mitigation, disaster risk reduction and management, waste sewerage and septic management, and gender and development, among others.

The plan shall be harmonized with the Ancestral Domain Sustainable Development and Protection Plan (ADSDPP) required under Republic Act No. 8371, or "The Indigenous People's Right Act of 1997', the respective Comprehensive Land Use Plans (CLUPs) of local governments required under Republic Act No. 7160 or the 'Local Government Code of 1991' and other local plans. (as amended by RA No 11038)

SECTION 10. Administration and Management of the System. – The National Integrated Protected Area System (NIPAS) is hereby placed under the control and administration of the DENR through the Biodiversity Management Bureau (BMB).

To carry out the mandate of this Act, the secretary of the DENR is empowered to perform the following acts:

(a) Issue a system-wide set of rules and regulations to implement the provision of this Act;

(b) Set standards, procedures, and protocols for the establishment and management of protected areas and the System, such as, but not limited to conduct of study, zoning, review of plans and project proposals, specifications and types of buildings and other structures, and installation of uniform markers and symbols;

(c) Deputize field officers and other technical and support personnel;

(d) Determine a system-wide set of fees and charges to ensure sustainable financing of protected areas and the System;

(e) Impose administrative fines and penalties;

(f) Report on the status of the Integrated Protected Area Fund (IPAF), its collection of fees, and disbursements from the IPAF;

(g) Designate the appropriate Chairperson of each PAMB;

(h) Enter into contracts and/or agreements with private entities or public agencies as may be necessary to carry out the objectives of the System;

(i) Accept in the name of the Philippine Government and in behalf of NIPAS funds, gifts or bequest of money for immediate disbursements or other property in the interest of the NIPAS, its activities or its services;

(j) Call on any agency or instrumentality of the Government as well as academic institutions, NGOs and the private sector as may be necessary to accomplish the objectives and activities of the System;

(k) Submit an annual report to the President of the Republic of the Philippines and to Congress on the status of protected areas in the country;

(l) Oversee and set guidelines in the construction, operations and maintenance of roads, trails, waterworks, sewerage systems, fire protection, sanitation systems and other public utilities within the protected area;

(m) Within the limits allowed by existing laws, rules and regulations ensure that settlement areas inside the protected area shall not be expanded and that coverage shall only be limited to the original area/s occupied by tenured migrants and indigenous communities; and

(n) Perform such other functions as may be directed by the President of the Republic of the Philippines, and to do cuh acts as may be necessary to the accomplishment of the purposes and objectives of the System. (as amended by RA No 11038)

SECTION 11. Protected Area Management Board (PAMB). – Within three (3) months after the effectivity of this Act, a PAMB shall be created for each of the protected areas designated as initial component, established by presidential proclamation, and declared by law. The Board shall be composed of the following:

(a) DENR Regional Director under whose jurisdiction the protected area is located, as Chairperson;

(b) Governor/s of the province/s where the protected area is located or their duly designated representative/s;

(c) A Senator of the Republic of the Philippines who is a duly registered resident of the city or province where the protected area is located or a duly authorized representative, unless the Senator declines membership in the PAMB;

(d) District Representative/s of the Congressional district/s where the protected area is located or their duly designated representatives, unless the District Representative declines membership in the PAMB;

(e) Mayor/s of the city/cities or municipality/municipalities where the protected area is located or their duly designated representative/s;

(f) Chairperson/s of the barangay/s where the protected area is located;

(g) Regional Directors of the following government agencies, namely: the Department of Agriculture (DA), the National Economic and Development Authority (NEDA), the Department of Science and Technology (DOST), the Philippine National Police (PNP), and the Department of National Defense (DND);

(h) Three (3) representatives from either an NGO or PO, duly accredited both by the DENR and the provincial government. The NGO or PO represented should have been in existence for at least five (5) years and with track record in or related to protected area management;

(i) At least one (1) but not more than three (3) representatives from all the IPs/ICCs present in the area and recognized by the National Commission on Indigenous Peoples (NCIP);

(j) One (1) representative from an academic institution, preferably from a university or college in the province where the protected area is located, with proven track record in or related is located, with proven track record in or related to the protected area management; and

(k) One (1) representative from the private sector, preferably a resident of the province where the protected area is located, who is distinguished in a profession or field of interest relevant to the protected area management.

Ex officio members or members of the PAMB by virtue of their elective or appointive government positions as specified in the immediately preceding subparagraphs (a), (b), (c), (d), (e), (f), and (g), shall serve for the duration of their respective terms of office in their respective elective or appointive government positions.

On the other hand, the members of the PAMB specified under subparagraphs (h), (i), (j), and (k) of this section shall be appointed by the DENR Secretary after the conduct of a transparent and fair selection process. They shall each serve a term of three (3) years and may be reappointed for another term.

The members of the PAMB shall serve without compensation, except for the actual and necessary traveling and subsistence expenses incurred in the performance of their duties, either in their attendance in meetings of the PAMB or in connection with other official business authorized through a resolution of the PAMB, subject to existing rules and regulations. Each member shall have the full capacity and accountability for decisions binding to the member's sector.

The PAMB members duly appointed prior to the effectivity of this Act shall continue their term until the expiration of their appointment. Thereafter, members of the management board shall be appointed in accordance with the provisions of this Act: Provided, That the Regional Director of the DENR shall ensure that the relevant members of the PAMB are duly appointed by the DENR Secretary: Provided, further, That at least forty percent (40%) of the PAMB members shall be women, pursuant to Republic Act No. 9710 or 'The Magna Carta of Women'.

A member of the PAMB may be removed for any of the following grounds:

(1) More than three (3) consecutive unexcused absences from regular meetings of the management board;

(2) Commission of acts prejudicial to the management of protected areas as embodied in Section 20 hereof and/or other existing rules and regulations governing protected areas;

(3) Disassociation from the office or organization being represented;

(4) Termination of relationship with the office or organization being represented; or

(5) Conviction by final judgment of any criminal act. (as amended by RA No 11038)

SECTION 11-A. Powers and Functions of the PAMB. - The PAMB shall have the following powers and functions:

(a) Oversee the management of the protected area;

(b) Approve policies, plans and programs, proposals, agreements, and other related documents for the management of the protected areas;

(c) Approve the management plan of the protected area and ensure its harmonization and integration with the ADSDPP, land use plan and other development plan public or private, and its implementation;

(d) Adopt a manual of operations to include rules of procedures in the conduct of business, and the creation of committees and their respective terms of reference;

(e) Recommend the deputation of appropriate agencies and individuals for the enforcement of the laws, rules and regulations governing the management of protected area;

(f) Allocate financial resources for the implementation of the management plan and manage the Protected Area Retention Income Account and and other funds in accordance with the accounting and budgeting rules and regulations;

(g) Set fees and charges in accordance with the existing guidelines;

(h) Issue rules and regulations for the resolution of conflicts through appropriate and effective means;

(i) Recommend appropriate policy changes to the DENR and other governing authorities;

(j) Monitor and assess the performance of the protected area personnel and compliance of partners with the terms and conditions of any undertaking, contract or agreement;

(k) Recommend from among a shortlist of qualified candidates, the designation or appointment of the PASU; and

(l) Assess the effectiveness of the management of the protected area: Provided, That the members of the management board representing the LGUs and national agencies in the PAMB shall inform their respective constituents, offices or sectors, of PAMB-approved or other relevant policies, rules, regulations, programs, and projects and shall ensure that the provisions of this Act and its implementing rules and regulations are complied with, and used as reference and framework in their respective plans, policies, programs, and projects. Failure to comply with the foregoing shall be the basis for disciplinary action against such member according to administrative rules and regulations and such penalties as the PAMB may provide: Provided, further, That The DENR, through the Regional Director, shall ensure that the PAMB acts within the scope of its powers and functions. In case of conflict between the resolutions issued by the PAMB and the existing administrative orders of national application, the latter shall prevail." (as inserted by RA No 11038)

SECTION 11-B. The Protected Area Management Office (PAMO). - There is hereby established a Protected Area Management Office (PAMO) to be headed by a Protected Area Superintendent (PASU) with a permanent plantilla position who shall supervise the day management, protection and administration of the protected area. A sufficient number of support staff with permanent plantilla position shall be appointed by the DENR to assist the PASU in the management of the protected area.

The PASU shall be primarily accountable to the PAMB and the DENR for the management and operations of the protected area. Pursuant thereto, the PASU shall have the following duties and responsibilities:

(a) Prepare the management plan, in consultation with the stakeholders, including the annual work and financial plans and ensure its implementation;

(b) Ensure the integration of the protected area management plans, programs, projects, and policies with relevant national and LGUs' plans and programs;

(c) Provide secretariat services to the PAMB and its committees and ensure the availability of relevant and timely information for decision-making;

(d) Formulate and recommend to the PAMB proposed policies, rules, regulations, and programs;

(e) Establish, operate, and maintain a database management system which shall be an important basis for decision-making;

(f) Enforce the laws, rules and regulations relevant to the protected area. Commence and institute administrative and legal actions in collaboration with other government agencies or organizations, and assist in the prosecution of offenses committed in violation of this Act;

(g) Monitor, evaluate, and report the implementation of management activities of protected area;

(h) Request for and receive any technical assistance support or advice from any agency or instrumentality of the government as well as academic institutions, NGOs, and the private sector, as may be necessary for the effective management, protection and administration of the protected area;

(i) Issue permits and clearances for activities that implement the management plan and other permitted activities in accordance with terms, conditions, and criteria established by the PAMS: Provided, That all permits for extraction activities, including collection for research purposes, shall also continue to be issued by relevant authorities, subject to prior clearance from the PAMB, through the PASU, in accordance with the specific acts to be covered;

(j) Collect and/or receive pertinent fees, charges, donations, and other income for the protected area: Provided, That such fees, charges, donations, and other income collected /received shall be reported regularly to the PAMB and the DENR in accordance with existing guidelines;

(k) Prepare and recommend to the management plan; and

(l) Perform such other functions as the PAMB and the DENR may assign.

The PAMO may be augmented by the deputized local environment and natural resources officers upon the recommendation of the PAMB and approval of the DENR. (as inserted by RA No 11038)

SECTION 12. Environmental Impact Assessment (EIA). – Considering that protected areas are environmentally critical areas, the proponent of development projects and activities with potentially significant adverse impacts as determined by the Environmental Management Bureaus (EMB), whether or not these projects or activities are included in the management plan, shall secure an Environmental Compliance Certificate (ECC) in accordance with the Philippine Environment Impact Statement (EIS) System: Provided, That for development projects and activities that are not environmentally critical, an initial environmental examination (IEE) shall be undertaken instead of a full-blown EIA. No project or activity may be undertaken by any project proponent without prior clearance from the PAMB. The DENR shall require the submission of the PAMB clearance, among others, before issuing an ECC to a project proponent.

No actual implementation of such activities shall be allowed without the required ECC under the Philippine EIA System. Violations of environmental laws, rules and regulations, including those under the EIA System, shall be penalized accordingly. (as amended by RA No 11038)

SECTION 13. Ancestral Domains and Customary Rights. – Ancestral domains and customary rights shall be accorded due recognition.

As part of heritage preservation and pursuant to the need to conserve biologically significant areas, the territories and areas occupied and conserved for and by IPs and communities shall be recognized, respected, developed, and promoted.

The ICCs and IPs concerned shall have the responsibility to govern, maintain, develop, protect, and conserve such areas, in accordance with their indigenous knowledge systems and practices and customary law, with full and effective assistance from the NCIP, DENR and other concerned government agencies.

A mechanism for coordination and complementation between the indigenous traditional leadership and governance structures and the NCIP, DENR, government agencies, concerned LGUs and civil society organizations shall be created. (as amended by RA No 11038)

SECTION 14. Energy Resources. – Consistent with the policies declared in Section 2 hereof, the exploration for energy resources may be allowed in protected areas only for the purpose of gathering data and information and only if such activity is carried out with the least damage to surrounding areas.

Surveys for nonrenewable energy projects shall be conducted only in accordance with a program approved by the DENR, and the result of such surveys shall be made available to the public and submitted to the President who shall make the appropriate recommendations to Congress. The development and operation of nonrenewable energy projects are prohibited in areas categorized as strict nature reserves and natural parks.

Renewable energy projects may be allowed within the protected area by the PAMB with the concurrence of the DENR Secretary: Provided, That renewable energy projects, which shall be located outside the strict protection zones, shall undergo the EIA as provided by law, and shall adopt reduces impact technologies so as not to be detrimental to ecosystem functions, biodiversity, cultural practices and traditions: Provided, That sufficient bond shall be remitted by the proponent to the DENR. The amount of which will be based on damage estimation upon decommissioning and projected cost of rehabilitation. It shall be released to the depositor upon the satisfactory decommissioning of all equipment, structures and improvements and the rehabilitation of the site according to the zones and objectives of the management plan as attested to the PAMB. (as amended by RA No 11038)

SECTION 15. Areas Under the Management of Other Departments and Government Instrumentalities. – Should there be protected areas, or portions thereof, under the jurisdiction of government instrumentalities other than the DENR, such jurisdiction shall remain in the said department or government instrumentality: Provided, That the DENR shall retain its oversight function over such protected areas, and the concerned agency shall provide annual reports on the management of said areas focusing on the conservation of the biodiversity therein. (as amended by RA No 11038)

SECTION 16. Integrated Protected Areas Fund (IPAF). — There is hereby established a trust fund to be known as Integrated Protected Area Fund (IPAF) for the purpose of financing the projects and sustaining the operation of protected areas and the System. Income generated from the operation and management of protected area shall accrue to the IPAF. The income shall be derived from fees and charges from the use of resources and facilities of protected areas; contributions from industries and facilities directly benefiting from the protected area; and such other fees and income derived from the operation of the protected area.

The PAMB shall retain seventy-five percent (75%) of all revenues raised through the above means, which shall be deposited in the Protected Area-Retained Income Account (PA-RIA) in any authorized government depository bank within the locality: Provided, That disbursement out of such deposits shall be used solely for the protection, maintenance, administration, and management of the protected area and implementation of duly approved projects of the PAMB.

Grants, donations, and endowments from various sources, domestic or foreign, shall be deposited in full in a special account in the National Treasury to be used for the purpose specified in the deeds and instruments covering them.

Voluntary or legislated payments for ecosystem goods and services, including fines, penalties, and compensation for damages from protected area offenses shall accrue fully to the PA-RIA and shall be managed by the PAMB.

The remaining twenty-five percent (25%) of revenues shall be deposited as a special account in the General Fund in the National Treasury for purposes of financing the projects of the System.

The use of the IPAF shall be in accordance with existing accounting, budgeting, and auditing rules and regulations: Provided, further, That the IPAF shall not be used to cover personal services expenditures.

The DENR shall submit to the Department of Budget and Management (DBM) and the Department of Finance (DOF) quarterly reports on the financial and physical accomplishments on the utilization of the IPAF and other documents as may be required by the DBM, and shall furnish a copy of the same to the House Committee on Appropriations and the Senate Committee on Finance. (as amended by RA Nos 10629, 11038)

SECTION 16-A Tax Exemption. - All grants, bequests and endowments, donations and contributions made to the protected area fund to be used actually, directly, and exclusively by the protected area, shall be exempted from donor's tax and shall be considered as allowable deduction from the gross income of the donor for the purpose of computing the taxable income of the donor in accordance with the provisions of the National Internal Revenue Code of 1997, as amended. (as inserted by RA No 11038)

SECTION 17. Annual Report to Congress. – At the opening of each session of Congress, the DENR shall report to the President, for transmission to Congress, on the status of the System, regulation in force and other pertinent information, together with recommendations.

SECTION 18. Field Officers. – All officials, technical personnel and forest guards employed in the integrated protected area service or all persons deputized by the DENR, upon recommendation of the Management Board shall be considered as field officers and shall have the authority to investigate and search premises and buildings and make arrests in accordance with the rules on criminal procedure for the violation of laws and regulations relating to the protected areas. Persons arrested shall be brought to the nearest police precinct for investigation.

Nothing herein mentioned shall be construed as preventing regular law enforcers and police officers from arresting any person in the act of violating said laws and regulations.

SECTION 19. Special Prosecutors and Retained Counsel. – Within thirty (30) days from the effectivity of this Act, the Department of Justice (DOJ) shall appoint special prosecutors to prosecute violations of laws, rules and regulations in protected areas. The special prosecutors shall coordinate with the PAMB and the PASU in the performance of duties and assist in the training of wardens and rangers in arrest and criminal procedures. The PAMB may retain the services of counsel to prosecution of cases under the direct control and supervision of the regular or special prosecutor. Said counsel shall also represent and defend the members of the PAMB, PASU and the staff, or any DENR-deputized individual and volunteer, against any legal action arising from the performance of their powers, functions and responsibilities as provided in this Act. (as amended by RA No 11038)

SECTION 20. Prohibited Acts. – Except as may be allowed by the nature of their categories and pursuant to rules and regulations governing the same, the following acts are prohibited within protected areas:

(a) Poaching, killing, destroying, disturbing of any wildlife including in private lands within the protected area;

(b) Hunting, taking, collecting, or possessing of any wildlife, or by-products derived therefrom, including in private lands within the protected area without the necessary permit, authorization or exemption: Provided, That the PASU as authorization or exemption only for culling, scientific research , the exemptions provided under Section 27(a) of Republic Act No. 9147 (Wildlife Resources, Conservation and Protection Act) or harvests of non-protected species in multiple-use zones by tenured migrants and IPs;

(c) Cutting, gathering, removing or collecting timber within the protected area including private lands therein, without the necessary permit, authorization, certification of planted trees or exemption such acts are done in accordance with the duly recognized practices of the IPs/ICCs for subsistence purposes;

(d) Possessing or transporting outside the protected area any timber, forest products, wildlife, or by-products derived therefrom which are ascertained to have been taken from the protected area other that exotic species, the culling of which has been authorized under an appropriate permit;

(e) Using any fishing or harvesting gear and practices or any of their variations that destroys coral reefs, seagrass beds or other marine life and their associated habitats or terrestrial habitat as may be determined by the DA or the DENR; Provided, That mere possession of such gears within the protected areas shall be prima facie evidence of their use;

(f) Dumping, throwing, using, or causing to be dumped into or places in the protected area of any toxic chemical, noxious or poisonous substance or nonbiodegradable material, untreated sewage or animal waste or products whether in liquid, solid or gas state, including pesticides and other hazardous substances as defined under Republic Act No. 6969, otherwise known as the "Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990' detrimental to the protected area, or to the plants and animals or inhabitants therein;

(g) Operating any motorized conveyance within the protected area without permit from the PAMB, except when the use of such motorized conveyance is the only practical means of transportation of IPs/ICCs in accessing their ancestral domain/land;

(h) Altering, removing, destroying or defacing boundary marks or signs;

(i) Engaging in 'kaingin' or, any manner, causing forest fires inside the protected area;

(j) Mutilating, defacing, destroying, excavating, vandalizing or, in any manner damaging any natural formation, religious, spiritual, historical sites, artifacts and other objects of natural beauty, scenic value or objects of interest to IPs/ICCs;

(k) Damaging and leaving roads and trails in damaged condition;

(l) Littering or depositing refuse or debris on the ground or in bodies of water;

(m) Possessing or using blasting caps or explosives anywhere within the protected area;

(n) Occupying or dwelling in any public land within the protected area without clearance from the PAMB;

(o) Constructing, erecting, or maintaining any kind of structure, fence or enclosure, conducting any business enterprise within the protected area without prior clearance from the PAMB and permit from the DENR, or conducting these activities in a manner that is inconsistent with the management plan duly approved by the PAMB;

(p) Undertaking mineral exploration or extraction within the protected area;

(q) Engaging in commercial or large-scale quarrying within the protected area;

(r) Establishing or introducing exotic species, including GMOs or invasive alien species within the protected area;

(s) Conducting bioprospecting within the protected area without prior PAMB clearance in accordance with existing guidelines: Provided, That in addition to the penalty provided herein, any commercial use of any substance derived from non-permitted bioprospecting within a protected area will not be allowed and all revenue earned from illegal commercialization thereof shall be forfeited and deposited as part of the I{AF;

(t) Prospecting, hunting or otherwise locating hidden treasure within the protected area;

(u) Purchasing or selling, mortgaging or leasing lands or other portions of the protected area which are covered by any tenurial instrument; and

(v) Constructing any permanent structure within the forty (40)-meter easement from the high water mark of any natural body of water or issuing a permit for such construction pursuant to Article 51 of Presidential Decree No. 1067: Provided, That construction for common usage wharves and shoreline protection shall be permitted by the PAMB only after thorough EIA. (as amended by RA No 11038)

SECTION 21. Penalties. – Violation under this Act shall be subject to the following penalties:

(a) A fine of not less than Two hundred thousand pesos (P200,000) but not more than One million pesos (P1,000,000) or imprisonment from one (1) year but not more than six years, or both, plus damages of triple the value of the said resources, or both, shall be imposed upon any person who violates paragraphs (a) to (e) of Section 20 herein;

(b) A fine of not less than Two hundred thousand pesos (P200,000) but not more than One million pesos (P1,000,000) or imprisonment from (1) year but not more than six (6) years, or both, shall be imposed upon any person who violates paragraphs (f) to (n) of Section 20 herein;

(c) A fine of not less than One million pesos (P1,000,000) but not more than Five million pesos (P5,000,000) or imprisonment from six (6) years but not more than twelve (12) years, or both, shall be imposed upon any person who violates paragraphs (o) to (v) of section 20 herein;

(d) A fine of Fifty thousand pesos (P50,000) daily shall be imposed on the owner of existing facilities within a protected area under Section 24 of this Act, if the existence of the same and its future plans and operations will be detrimental to the protected area. For every continuing violation, or if the violation continues to be committed for thirty (30) days and upon reaching a total fine of Five hundred thousand pesos (P500,000), the PAMB through the PASU and other deputized government entities shall cause the cessation of operation and either forfeit in favor of the PAMO or demolish the facility at the cost of its owner. If the facility is government-owned, the agency in charge shall submit a plan for a substitute facility that complies with the protected area standards and, within one (1) year, execute the approved protected area management plan;

(e) Administrative fines of not less that Fifty thousand pesos (P50,000), but not exceeding Five million pesos (P5,000,000), shall be imposed by the DENR Secretary for the violation of any rule, regulation, or provision of any agreement reached with the PAMB: Provided, That if an area which has sustained damage from any activity conducted therein requires rehabilitation or restoration as determined by the court, the offender shall be required to restore of pay compensation for damage, which payment shall accrue to the IPAF.

On the basis of a court order, the DENR shall cause the eviction of an offender from the protected area: Provided, That in cases of emergency, the DENR Secretary may order the immediate exit or departure of the offender from the protected area. The DENR Secretary may call on other enforcement agencies to assist in executing the order to vacate.

An emergency occurs when there is a demonstrated impending threat to human life and biodiversity or to species found within the ecosystem of the protected area.

All minerals, timber or species collected or removed from the protected area, including all equipment, devices, conveyances, and firearms used in connection therewith, shall be forfeited in favor of the government, and any construction or improvement made thereon by the offender shall be subject to confiscation by the PAMO, subject to the application of due process.

The conveyance, vessels, equipment, paraphernalia, implements, gears, tools, and similar devices used in the commission of the crime shall be dealt with in accordance with Part 4, Rule 12 (Custody and Disposition of Seized Items, Equipment, Paraphernalia, Conveyance and Instruments) of Administrative Matter No. 09-6-8-SC (Rules of Procedures for Environmental Cases) issued by the Supreme Court. However, in no case shall any confiscated or rescued protected animal species be sold or in any manner disposed of but shall be immediately turned over to the PAMO for rehabilitation and release to its natural habitat, subject to existing regulations. Valuation of the damages shall take into account biodiversity and conservation considerations as well as aesthetic and scenic value. The valuation and assessment by the DENR, in coordination with other concerned government agencies, shall be presumed regular, unless otherwise proven by the preponderance of evidence.

If the offender is an association or corporation, the president or manager, who is proven to have participated in or have actual knowledge of any violation against the provisions of this Act shall be directly liable for the act of the employees and laborers: Provided, finally, That the DENR may impose administrative fines and penalties consistent with this Act.

Any person who shall induce another or conspire to commit any of the acts prohibited in this Act, or force their workers to commit any of the same, shall be liable as principal.

The penalties specified in this section shall be in addition to the penalties provided in Republic Act No. 9072 or the National Caves and Cave Resources Management and Protection Act', Republic Act No. 9147 or the 'Wildlife Resources Conservation and Protection Act', Republic Act No. 8550 or the 'Philippine Fisheries Code of 1998' and other related laws.

The conviction of a public officer of the law whether from the LGU or any national government agency for any violation of the provisions of this Act shall carry the accessory penalty of perpetual; disqualification from public office. (as amended by RA No 11038)

SECTION 22. Existing Rights. - All property and private rights within the protected area and its buffer zones already existing and/or vested upon the effectivity of this Act shall be protected and respected in accordance with existing laws: Provided, That the exercise of such property and private rights shall be harmonized, as far as practicable, with the provisions of this Act. Notwithstanding this Act, all existing rights, contracts, or agreements entered into by the government for utilization of natural resources within protected areas shall continue to be recognized and governed by Philippine laws.

The renewal of permits, contracts, and agreements shall be subject to the provisions of this Act. If the permits, contracts, agreements are not renewed, such areas shall be rehabilitated or restored by the permit holders within the period provided by the pertinent laws and shall revert to the national parks classification. As such, all holders of permits, contracts, and agreements are required to prepare and submit a rehabilitation plan to the PAMB: Provided, That upon renewal, a sufficient bond shall be remitted by the proponent to the DENR to be released to the depository bank in the event of damage by a closure of the establishment after satisfactory rehabilitation according to the zones and objectives of the management plan as attested to by the PAMB.

The occupation of the LGUs and communities within the protected area shall be respected. Within ninety (90) days after the creation of the PAMB, the Board shall assess the physical occupation of said LGUs and communities within protected areas and recommend to proper authorities measures to ensure the protection of their well-being. Municipalities and cities with existing townships and town centers within the protected area shall continue to occupy such townships and town centers: Provided, That in the development of their CLUPs and barangay development plans, due consideration shall be given to the intended for conservation and biodiversity as well as the objectives for protected areas to keep human habitation and environmental conservation in harmony. (as inserted by RA No 11038)

SECTION 23. Tenure Migrants and Other Protected Area Occupants. - Tenure migrants shall be eligible to become stewards portions of lands within multiple-use zones, The PAMB shall identify, verify and review all tenurial instruments, land claims, issuances of permits for resource use within the protected area and recommend the issuance of the appropriate tenure instrument consistent with the zoning provided in the management plan and the provisions of this Act.

Should areas occupied by tenured migrants be designated as zones in which no occupation or other activities are allowed pursuant to the attainment of sustainable development, the provision for the transfer of the tenure migrants to multiple-use zones or buffer zones shall be accomplished through just and humane means: Provided, That protected area occupants who are not qualified as tenured migrants shall be resettled outside the protected area.

The rights of the tenured migrants may be transferred only to the spouse or one of their direct descendants listed at the time of the survey."In the event of termination of a tenurial instrument for cause or by voluntary surrender of rights, the PASU shall take immediate steps to rehabilitate the are.

Following the protected area occupants survey required under Section 5(c)(1) hereof, the DENR Regional Director shall submit to the BMB within two (2) years from the passage of this Act, the final list of tenured migrants, which shall be the basis for tenured migrants recognition and issuance of tenurial instruments. Within the two (2)-year period, the DENR Regional Director shall submit an accomplishment report every 6 (6) months.

The DENR through the BMB shall issue guidelines for the determination of the reckoning period for the recognition of the tenured migrants. (as inserted by RA No 11038)

SECTION 24. Existing Facilities Within the Protected Area. Within sixty (60) days from the effectivity of this Act, an inventory of all existing facilities such as roads, buildings and structures, water systems, transmission lines, communication facilities, heavy equipment, and irrigation facilities, among others, within the protected area shall be conducted.

The DENR Regional Director shall submit the inventory of the facilities with corresponding descriptions and an assessment report containing the appropriate recommendations to the DENR Secretary through the BMB.

The PAMB, with the assistance of the DENR, may impose conditions for the continuous operation of a facility found to be detrimental to the protected area until its eventual relocation. If the conditions are violated, the owner of the facility shall be made liable pursuant to Section 21 (d) hereof.

Existing facilities allowed to remain within the protected area shall be charged a reasonable fee by the PAMB based on existing guidelines. Structures found within the forty (40)-meter easement shall be demolished unless proven necessary to protect the shoreline and mitigate habitat destruction. The PAMB shall levy a reasonable fee for the use of such easement for their continued operations. Wharves shall be kept accessible to the public. (as inserted by RA No 11038)

SECTION 25. Special Uses Within Protected Areas. - Consistent with Section 2 hereof, special uses may be allowed within protected areas except in strict protection zones and strict nature reserves. The PAMB mat recommend the issuance of tenurial instrument subject to compliance to ECC and payment of corresponding user fee equivalent to five percent (5%) of the zonal value of commercial land within the nearest barangay or municipality where the project is located multiplied by the area of development plus one percent (1%) value of improvement as premium: Provided, That the activity shall not be detrimental to ecosystem functions and biodiversity, and cultural practices and traditions.

A sufficient bond shall be remitted by the proponent to the DENR to be released to the depository bank in the event of damage by or closure of the establishment after the satisfactory rehabilitation according to the zones and objectives of the management plan as attested by the PAMB. (as inserted by RA No 11038)

SECTION 26. Local Government Units. (LGUs). - The LGUs within the protected area shall participate in its management through representation in the PAMB as provided for in this ACT. Said LGUs may appropriate portions of their share from the annual internal revenue allotment and other income for use of the protected area: Provided, That all funds directly coming from the LGUs shall be exempted form twenty-five percent (25%) remittance requirement for the IPAF under Section 16 hereof.

The LGUs shall continue to impose and collect other fees not enumerated under Section 16 hereof which they have traditionally collected, such as business permits and rentals of LGU facilities: Provided, That the LGUs shall not impose property tax on properties owned by the government nor issue any tax declarations for areas covered by the protected area. Furthermore, LGUs may charge add-ons to fees imposed by the PAMB: Provided, That such add-ons shall be based on the contribution of the LGUs in the maintenance and protection of the protected area.

LGUs with territory inside protected areas shall align their CLUPs, local development plans, disaster risk reduction management plans and other required plans according to the objectives specified herein and in the protected area management plans. Within six (6) months from the approval of the protected area management plan, the PAMB and the PASU shall collaborate with the LGU concerned in the formulation of the CLUP and other local plans and in the enforcement thereof. The concerned LGU official shall be held administratively and criminally liable for failure to enforce and/or implement the provisions of this Act. (as inserted by RA No 11038)

SECTION 27. Reporting Responsibility. - The PASU, through the PAMB, shall submit an annual accomplishment report of the protected area to the Secretary of DENR through the BMB. A report on the conditions and benefits of the biological resources and ecosystem services of the protected area shall also be submitted by the PASU, through channels, to the Secretary of the DENR every five (5) years. Consequently, the BMB shall likewise prepare a National State of Protected Areas (NSPAs) report every five (5) years and shall submit the same to the President, the senate and the House of Representatives. (as inserted by RA No 11038)

SECTION 28. Appropriations. - The Secretary of the DENR shall immediately include in the DENR's program the implementation of this ACT, the funding of which shall be included in the annual General Appropriations Act. (as inserted by RA No 11038)

SECTION 29. Construction and Interpretation. The provisions of this Act shall be construed liberally in favor of the protection and rehabilitation of the protected area and the conservation and restoration biological diversity taking into account the needs and interests of qualified tenured migrants, vested rights, IPs and local communities, and the benefits from ecosystem services and functions of protected areas, for present and future generations: Provided, That nothing in this Act shall be construed as a diminution of local autonomy or in derogation of ancestral domain rights under the Indigenous Peoples' Rights Act of 1997. (as inserted by RA No 11038)

SECTION 30. Subsequent Site-Specific Legislation. - Upon the generation of site-specific requirements for new legislation, the PAMB, through the DENR, shall endorse to Congress for its consideration and enactment site-specific proposals to appropriately respond to the distinct and particular needs and conservation requirements of the protected areas in each locality. Protected areas that may be later established or declared pursuant to this Act shall likewise undergo the same requirements of site-specific legislation. (as inserted by RA No 11038)

SECTION 31. Joint Congressional Oversight Committee. - To monitor and oversee the implementation of this Act, a Joint Congressional Oversight Committee is hereby created. It shall be composed of the Chairpersons of the Senate Committee on Environment and Natural Resources and the House Committee on Natural Resources as Chairperson and Co-chairperson, respectively, five (5) members each from the Senate and the House of Representatives as members: Provided, That two (2) of the five (5) members are nominated by the respective minority leaders of the Senate and the House of Representatives. (as inserted by RA No 11038)

SECTION 32. Implementing Rules and Regulations (IRR). Within six (6) months from the effectivity of this Act, the DENR shall prepare the IRR of this Act. (as inserted by RA No 11038)

SECTION 33. Transitory Provision. - In order to enhance biological diversity and to develop sustainable livelihood opportunities for tenure migrants, the DENR shall henceforth cease to issue concessions, licenses, permits, clearances, compliance documents or other instruments that allow utilization of resources within the protected area until the management plan shall have been put into effect.

All existing land use and resource use permits issued for purposes which are authorized within the protected area shall be reviewed and shall not be renewed upon their expiration unless consistent with the management plan and approved by the PAMB. (as inserted by RA No 11038)

SECTION 34 [22]. Separability Clause. – If any part or section of this Act is declared unconstitutional, such declaration shall not affect the other parts or sections of this Act.

SECTION 35 [23]. Repealing Clause. – All laws, presidential decrees, executive orders, rules and regulations inconsistent with any provisions of this Act shall be deemed repealed or modified accordingly.

SECTION 36 [24]. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete publication in two (2) newspapers of general circulation.

June 27, 1991

AN ACT CREATING A PEOPLE'S SMALL-SCALE MINING PROGRAM AND FOR OTHER PURPOSES

• See IRR here

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section 1. Title. – This Act shall be known as the "People's Small-scale Mining Act of 1991."

Section 2. Declaration of Policy. – It is hereby declared of the State to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation's wealth and natural resources, giving due regard to existing rights as herein provided.

Section 3. Definitions. – For purposes of this Act, the following terms shall be defined as follows:

(a) "Mineralized areas" refer to areas with naturally occurring mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources;

(b) "Small-scale mining" refers to mining activities which rely heavily on manual labor using simple implement and methods and do not use explosives or heavy mining equipment;

(c) "Small-scale miners" refer to Filipino citizens who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly licensed by the Department of Environment and Natural Resources to engage, under the terms and conditions of a contract, in the extraction or removal of minerals or ore-bearing materials from the ground;

(d) "Small-scale mining contract" refers to co-production, joint venture or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale utilization of a plot of mineral land;

(e) "Small-scale mining contractor" refers to an individual or a cooperative of small-scale miners, registered with the Securities and Exchange Commission or other appropriate government agency, which has entered into an agreement with the State for the small-scale utilization of a plot of mineral land within a people's small-scale mining area;

(f) "Active mining area" refers to areas under actual exploration, development, exploitation or commercial production as determined by the Secretary after the necessary field investigation or verification including contiguous and geologically related areas belonging to the same claimowner and/or under contract with an operator, but in no case to exceed the maximum area allowed by law;

(g) "Existing mining right" refers to perfected and subsisting claim, lease, license or permit covering a mineralized area prior to its declaration as a people's small-scale mining area;

(h) "Claimowner" refers to a holder of an existing mining right;

(i) "Processor" refers to a person issued a license to engage in the treatment of minerals or ore-bearing materials such as by gravity concentration, leaching beneficiation, cyanidation, cutting, sizing, polishing and other similar activities;

(j) "License" refers to the privilege granted to a person to legitimately pursue his occupation as a small-scale miner or processor under this Act;

(k) "Mining plan" refers to a two-year program of activities and methodologies employed in the extraction and production of minerals or ore-bearing materials, including the financial plan and other resources in support thereof;

(l) "Director" refers to the regional executive director of the Department of Environment and Natural Resources; and

(m) "Secretary" refers to the Secretary of the Department of Environment and Natural Resources.

Section 4. People's Small-scale Mining Program. – For the purpose of carrying out the declared policy provided in Section 2 hereof, there is hereby established a People's Small-scale Mining Program to be implemented by the Secretary of the Department of Environment and Natural Resources, hereinafter called the Department, in coordination with other concerned government agencies, designed to achieve an orderly, systematic and rational scheme for the small-scale development and utilization of mineral resources in certain mineral areas in order to address the social, economic, technical, and environmental connected with small-scale mining activities.

The People's Small-scale Mining Program shall include the following features:

(a) The identification, segregation and reservation of certain mineral lands as people's small-scale mining areas;

(b) The recognition of prior existing rights and productivity;

(c) The encouragement of the formation of cooperatives;

(d) The extension of technical and financial assistance, and other social services;

(e) The extension of assistance in processing and marketing;

(f) The generation of ancillary livelihood activities;

(g) The regulation of the small-scale mining industry with the view to encourage growth and productivity; and

(h) The efficient collection of government revenue.

Section 5. Declaration of People's Small-scale Mining Areas. – The Board is hereby authorized to declare and set aside people's small-scale mining areas in sites onshore suitable for small-scale mining, subject to review by the Secretary, immediately giving priority to areas already occupied and actively mined by small-scale miners before August 1, 1987: provided, that such areas are not considered as active mining areas: provided, further, that the minerals found therein are technically and commercially suitable for small-scale mining activities: provided, finally, that the areas are not covered by existing forest rights or reservations and have not been declared as tourist or marine reserved, parks and wildlife reservations, unless their status as such is withdrawn by competent authority.

Section 6. Future People's Small-scale Mining Areas. – The following lands, when suitable for small-scale mining, may be declared by the Board as people's small scale mining areas:

(a) Public lands not subject to any existing right;

(b) Public lands covered by existing mining rights which are not active mining areas; and

(c) Private lands, subject to certain rights and conditions, except those with substantial improvements or in bona fide and regular use as a yard, stockyard, garden, plant nursery, plantation, cemetery or burial site, or land situated within one hundred meters (100 m.) from such cemetery or burial site, water reservoir or a separate parcel of land with an area of ten thousand square meters (10,000 sq. m.) or less.

Section 7. Ancestral Lands. – No ancestral land may be declared as a people's small-scale mining area without the prior consent of the cultural communities concerned: provided, that, if ancestral lands are declared as people's small-scale mining areas, the members of the cultural communities therein shall be given priority in the awarding of small-scale mining contracts.

Section 8. Registration of Small-scale Miners. – All persons undertaking small-scale mining activities shall register as miners with the Board and may organize themselves into cooperatives in order to qualify for the awarding of a people's small-scale mining contract.

Section 9. Award of People's Small-scale Mining Contracts. – A people's small-scale mining contract may be awarded by the Board to small-scale miners who have voluntarily organized and have duly registered with the appropriate government agency as an individual miner or cooperative; Provided, that only one (1) people's small-scale mining contract may be awarded at any one time to a small-scale mining operations within one (1) year from the date of award: provided, further, that priority shall be given or city where the small-scale mining area is located.

Applications for a contract shall be subject to a reasonable fee to be paid to the Department of Environment and Natural Resources regional office having jurisdiction over the area.

Section 10. Extent of Contract Area. – The Board shall determine the reasonable size and shape of the contract area following the meridional block system established under Presidential Decree No. 463, as amended, otherwise known as the Mineral Resources Development Decree of 1974, but in no case shall the area exceed twenty hectares (20 has.) per contractor and the depth or length of the tunnel or adit not exceeding that recommended by the director taking into account the following circumstances:

(a) Size of membership and capitalization of the cooperative;

(b) Size of mineralized area;

(c) Quantity of mineral deposits;

(d) Safety of miners;

(e) Environmental impact and other considerations; and

(f) Other related circumstances.

Section 11. Easement Rights. – Upon the declaration of a people's small-scale mining area, the director, in consultation with the operator, claimowner, landowner or lessor of an affected area, shall determine the right of the small scale miners to existing facilities such as mining and logging roads, private roads, port and communication facilities, processing plants which are necessary for the effective implementation of the People's Small-scale Mining Program, subject to payment of reasonable fees to the operator, claimowner, landowner or lessor.

Section 12. Rights Under a People's Small-scale Mining Contract. – A people's small-scale mining contract entitles the small-scale mining contractor to the right to mine, extract and dispose of mineral ores for commercial purposes. In no case shall a small-scale mining contract be subcontracted, assigned or otherwise transferred.

Section 13. Terms and Conditions of the Contract. – A contract shall have a term of two (2) years, renewable subject to verification by the Board for like periods as long as the contractor complies with the provisions set forth in this Act, and confers upon the contractor the right to mine within the contract area: provided, that the holder of a small-scale mining contract shall have the following duties and obligations:

(a) Undertake mining activities only in accordance with a mining plan duly approved by the Board;

(b) Abide by the Mines and Geosciences Bureau and the small-scale Mining Safety Rules and Regulations;

(c) Comply with his obligations to the holder of an existing mining right;

(d) Pay all taxes, royalties or government production share as are now or may hereafter be provided by law;

(e) Comply with pertinent rules and regulations on environmental protection and conservation, particularly those on tree-cutting mineral-processing and pollution control;

(f) File under oath at the end of each month a detailed production and financial report to the Board; and

(g) Assume responsibility for the safety of persons working in the mines.

Section 14. Rights of Claimowners. – In case a site declared and set aside as a people's-scale mining area is covered by an existing mining right, the claimowner and the small-scale miners therein are encouraged to enter into a voluntary and acceptable contractual agreement with respect to the small-scale utilization of the mineral values from the area under claim. In case of disagreement, the claimowner shall be entitled to the following rights and privileges:

(a) Exemption from the performance of annual work obligations and payment of occupation fees, rental, and real property taxes;

(b) Subject to the approval of the Board, free access to the contract area to conduct metallurgical tests, explorations and other activities, provided such activities do not unduly interfere with the operations of the small-scale miners; and

(c) Royalty equivalent to one and one half percent (1 1/2%) of the gross value of the metallic mineral output or one percent (1%) of the gross value of the nonmetallic mineral output to be paid to the claimowner: provided, that such rights and privileges shall be available only if he is not delinquent and other performance of his annual work obligations and other requirements for the last two (2) years prior to the effectivity of this Act.

Section 15. Rights of Private Landowners. – The private landowner or lawful possessor shall be notified of any plan or petition to declare his land as a people's small-scale mining area. Said landowner may oppose such plan or petition in an appropriate proceeding and hearing conducted before the Board.

If a private land is declared as a people's small-scale mining area, the owner and the small-scale mining contractors are encouraged to enter into a voluntary and acceptable contractual agreement for the small-scale utilization of the mineral values from the private land: provided, that the owner shall in all cases be entitled to the payment of actual damages which he may suffer as a result of such declaration: provided, further, that royalties paid to the owner shall in no case exceed one percent (1%) of the gross value of the minerals recovered as royalty.

Section 16. Ownership of Milllings. – The small-scale mining contractor shall be the owner of all milllings produced from the contract area. He may sell the millings or have them processed in any custom mill in the area: provided, that, if the small-scale mining contractor decide to sell its milllings, the claimowner shall have a preemptive right to purchase said milllings at the prevailing market price.

Section 17. Sale of Gold. – All gold produced by small-scale miners in any mineral area shall be sold to the Central Bank, or its duly authorized representatives, which shall buy it at prices competitive with those prevailing in the world market regardless of volume or weight.

The Central Bank shall establish as many buying stations in gold-rush areas to fully service the requirements of the small-scale minerals thereat.

Section 18. Custom Mills. – The establishment and operation of safe and efficient customs mills to process minerals or ore-bearing materials shall be limited to mineral processing zones duly designated by the local government unit concerned upon recommendation of the Board.

In mining areas where the private sector is unable to establish custom mills, the Government shall construct such custom mills upon the recommendation of the Board based on the viability of the project.

The Board shall issue licenses for the operation of custom mills and other processing plants subject to pollution control and safety standards.

The Department shall establish assay laboratories to cross-check the integrity of custom mills and to render metallurgical and laboratory services to mines.

Custom mills shall be constituted as withholding agents for the royalties, production share or other taxes due the Government.

Section 19. Government Share and Allotment. – The revenue to be derived by the Government from the operation of the mining program herein established shall be subject to the sharing provided in the Local Government Code.

Section 20. People's Small-scale Mining Protection Fund. – There is hereby created a People's Small-scale Mining Protection Fund which shall be fifteen percent (15%) of the national government's share due the Government which shall be used primarily for information dissemination and training of small-scale miners on safety, health and environmental protection, and the establishment of mine rescue and recovery teams including the procurement of rescue equipment necessary in cases of emergencies such as landslides, tunnel collapse, or the like.

The fund shall also be made available to address the needs of the small-scale miners brought about by accidents and/or fortuitous events.

Section 21. Rescission of Contracts and Administrative Fines. – The noncompliance with the terms and conditions of the contract or violation of the rules and regulations issued by the Secretary pursuant to this Act, as well as the abandonment of the mining site by the contractor, shall constitute a ground for the cancellation of the contracts and the ejectment from the people's small-scale mining area of the contractor. In addition, the Secretary may impose fines against the violator in an amount of not less than Twenty thousand pesos (P20,000.00) and not more than One hundred thousand pesos (P100,000.00). Nonpayment of the fine imposed shall render the small-scale mining contractor ineligible for other small-scale mining contracts.

Section 22. Reversion of People's Small-scale Mining Areas. – The Secretary, upon recommendation of the director, shall withdraw the status of the people's small-scale mining area when it can no longer feasibly operated on a small-scale mining basis or when the safety, health and environmental conditions warrant that the same shall revert to the State for proper disposition.

Section 23. Actual Occupation by Small-scale Miners. – Small-scale miners who have been in actual operation of mineral lands on or before August 1, 1987 as determined by the Board shall not be dispossessed, ejected or removed from said areas: provided, that they comply with the provisions of this Act.

Section 24. Provincial/City Mining Regulatory Board. – There is hereby created under the direct supervision and control of the Secretary a provincial/city mining regulatory board, herein called the Board, which shall be the implementing agency of the Department, and shall exercise the following powers and functions, subject to review by the Secretary:

(a) Declare and segregate existing gold-rush areas for small-scale mining;

(b) Reserve future gold and other mining areas for small-scale mining;

(c) Award contracts to small-scale miners;

(d) Formulate and implement rules and regulations related to small-scale mining;

(e) Settle disputes, conflicts or litigations over conflicting claims within a people's small-scale mining area, an area that is declared a small-mining; and

(f) Perform such other functions as may be necessary to achieve the goals and objectives of this Act.

Section 25. Composition of the Provincial/City Mining Regulatory Board. – The Board shall be composed of the Department of Environment and Natural Resources representative as Chairman; and the representative of the governor or city mayor, as the representative of the governor or city mayor, as the case may be, one (1) small scale mining representative, one (1) big-scale mining representative, and the representative from a nongovernment organization who shall come from an environmental group, as members.

The representatives from the private sector shall be nominated by their respective organizations and appointed by the Department regional director. The Department shall provide the staff support to the Board.

Section 26. Administrative Supervision over the People's Small-scale Mining Program. – The Secretary through his representative shall exercise direct supervision and control over the program and activities of the small-scale miners within the people's small-scale mining area.

The Secretary shall within ninety (90) days from the effectivity of this Act promulgate rules and regulations to effectively implement the provisions of the same. Priority shall be given to such rules and regulations that will ensure the least disruption in the operations of the small-scale miners.

Section 27. Penal Sanctions. – Violations of the provisions of this Act or of the rules and regulations issued pursuant hereto shall be penalized with imprisonment of not less than six (6) months nor more than six (6) years and shall include the confiscation and seizure of equipment, tools and instruments.

Section 28. Repealing Clause. – All laws, decrees, letters of instruction, executive orders, rules and regulations, and other issuances, or parts thereof, in conflict or inconsistent with this Act are hereby repealed or modified accordingly.

Section 29. Separability Clause. – Any section or provision of this Act which may be declared unconstitutional shall not affect the other sections or provisions hereof.

Section 30. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a national newspaper of general circulation.

Approved: June 27, 1991.

WHEREAS, the individual and, at times, conflicting, demands of population growth, urbanization, industrial expansion, rapid natural resources utilization and increasing technological advances have resulted in a piecemeal-approach concept of environmental protection;

WHEREAS, such tunnel-vision concept is not conducive to the attainment of an ideal environmental situation where man and nature can thrive in harmony with one another; and

WHEREAS, there is now an urgent need to formulate an intensive, integrated program of environmental protection that will bring about a concerted effort towards the protection of the entire spectrum of the environment through a requirement of environmental impact assessments and statements:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. Policy. It is hereby declared a continuing policy of the State (a) to create, develop, maintain and improve conditions under which man and nature can thrive in productive and enjoyable harmony with each other, (b) to fulfill the social, economic and other requirements of present and future generations of Filipinos, and (c) to insure the attainment of an environmental quality that is conducive to a life of dignity and well-being.

Section 2. Goal. In pursuing this policy, it shall be the responsibility of the Government, in cooperation with concerned private organizations and entities, to use all practicable means, consistent with other essential considerations of national policy, in promoting the general welfare to the end that the Nation may (a) recognize, discharge and fulfill the responsibilities of each generation as trustee and guardian of the environment for succeeding generations, (b) assure the people of a safe, decent, healthful, productive and aesthetic environment, (c) encourage the widest exploitation of the environment without degrading it, or endangering human life, health and safety or creating conditions adverse to agriculture, commerce and industry, (d) preserve important historic and cultural aspects of the Philippine heritage, (e) attain a rational and orderly balance between population and resource use, and (f) improve the utilization of renewable and non-renewable resources.

Section 3. Right to a Healthy Environment. In furtherance of these goals and policies, the Government recognizes the right of the people to a healthful environment. It shall be the duty and responsibility of each individual to contribute to the preservation and enhancement of the Philippine environment.

Section 4. Environmental Impact Statements. Pursuant to the above enunciated policies and goals, all agencies and instrumentalities of the national government, including government-owned or controlled corporations, as well as private corporations firms and entities shall prepare, file and include in every action, project or undertaking which significantly affects the quality of the environment a detail statement on

(a) the environmental impact of the proposed action, project or undertaking

(b) any adverse environmental effect which cannot be avoided should the proposal be implemented;

(c) alternative to the proposed action;

(d) a determination that the short-term uses of the resources of the environment are consistent with the maintenance and enhancement of the long-term productivity of the same; and

(e) whenever a proposal involve the use of depletable or non-renewable resources, a finding must be made that such use and commitment are warranted.

Before an environmental impact statement is issued by a lead agency, all agencies having jurisdiction over, or special expertise on, the subject matter involved shall comment on the draft environmental impact statement made by the lead agency within thirty (30) days from receipt of the same.

Section 5. Agency Guidelines. The different agencies charged with environmental protection as enumerated in Letter of Instruction No. 422 shall, within sixty (60) days from the effectivity of this Decree, submit to the National Environmental Protection Council (NEPC), their respective guidelines, rules and regulations to carry out the provisions of Sec. 4 hereof on environmental impact assessments and statements.

Section 6. Repealing Clause. All Acts, Presidential Decrees, executive orders, rules and regulations or parts thereof which are inconsistent with the provisions of this Decree are hereby repealed, amended or modified accordingly.

Section 7. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila this 6th day of June in the year of Our Lord, nineteen hundred and seventy-nine.

ESTABLISHING AN ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING OTHER ENVIRONMENTAL MANAGEMENT RELATED MEASURES AND FOR OTHER PURPOSES

• See IRR here

• See IRR for the Operationalization of the Environmental Revolving Fund here

• See IRR (DENR AO No 30-03) here

WHEREAS, the pursuit of a comprehensive and integrated environment protection program necessitates the establishment and institutionalization of a system whereby the exigencies of socio-economic undertakings can be reconciled with the requirements of environmental quality;

WHEREAS, the regulatory requirements of environmental Impact Statements and Assessments instituted in pursuit of this national environmental protection program have to be worked into their full regulatory and procedural details in a manner consistent with the goals of the program.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order and declare:

Section 1. Policy. It is hereby declared the policy of the State to attain and maintain a rational and orderly balance between socio-economic growth and environmental protection.

Section 2. Environmental Impact Statement System. There is hereby established an Environmental Impact Statement System founded and based on the environmental impact statement required, under Section 4 of Presidential Decree No. 1151, of all agencies and instrumentalities of the national government, including government-owned or controlled corporations, as well as private corporations, firms and entities, for every proposed project and undertaking which significantly affect the quality of the environment.

Section 3. Determination of Lead Agency. The Minister of Human Settlements or his designated representative is hereby authorized to name the lead agencies referred to in Section 4 of Presidential Decree No. 1151 which shall have jurisdiction to undertake the preparation of the necessary environmental impact statements on declared environmentally critical projects and areas. All Environmental Impact Statements shall be submitted to the National Environmental Protection Council for review and evaluation.

Section 4. Presidential Proclamation of Environmentally Critical Areas and Projects. The President of the Philippines may, on his own initiative or upon recommendation of the National Environmental Protection Council, by proclamation declare certain projects, undertakings or areas in the country as environmentally critical. No person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an Environmental Compliance Certificate issued by the President or his duly authorized representative. For the proper management of said critical project or area, the President may by his proclamation reorganize such government offices, agencies, institutions, corporations or instrumentalities including the re-alignment of government personnel, and their specific functions and responsibilities.

For the same purpose as above, the Ministry of Human Settlements shall: (a) prepare the proper land or water use pattern for said critical project(s) or area (s); (b) establish ambient environmental quality standards; (c) develop a program of environmental enhancement or protective measures against calamituous factors such as earthquake, floods, water erosion and others, and (d) perform such other functions as may be directed by the President from time to time.

Section 5. Environmentally Non-Critical Projects. All other projects, undertakings and areas not declared by the President as environmentally critical shall be considered as non-critical and shall not be required to submit an environmental impact statement. The National Environmental Protection Council, thru the Ministry of Human Settlements may however require non-critical projects and undertakings to provide additional environmental safeguards as it may deem necessary.

Section 6. Secretariat. The National Environmental Protection Council is hereby authorized to constitute the necessary secretariat which will administer the Environmental Impact Statement System and undertake the processing and evaluation of environmental impact statements.

Section 7. Management and Financial Assistance. The Ministry of Human Settlements is hereby authorized to provide management and financial support to government offices and instrumentalities placed under its supervision pursuant to this Decree financed from its existing appropriation or from budgetary augmentation as the Minister of Human Settlements may deem necessary.

Section 8. Rules and Regulations. The National Environmental Protection Council shall issue the necessary rules and regulations to implement this Decree. For this purpose, the National Pollution Control Commission may be availed of as one of its implementing arms, consistent with the powers and responsibilities of the National Pollution Control Commission as provided in P.D. No. 984.

Section 9. Penalty for Violation. Any person, corporation or partnership found violating Section 4 of this Decree, or the terms and conditions in the issuance of the Environmental Compliance Certificate, or of the standards, rules and regulations issued by the National Environmental Protection Council pursuant to this Decree shall be punished by the suspension or cancellation of his/its certificate or and/or a fine in an amount not to exceed Fifty Thousand Pesos (P50,000.00) for every violation thereof, at the discretion of the National Environmental Protection Council.

Section 10. Environmental Revolving Fund. Proceeds from the penalties prescribed in the preceding Section 9 and other penalties imposed by the National Pollution Control Commission as authorized in P.D. 984, shall be automatically appropriated into an Environment Revolving Fund hereby created as an exemption to P.D. 711 and P.D. 1234. The fund shall be used exclusively for the operation of the National Environmental Protection Council and the National Pollution Control Commission in the implementation of this Decree. The rules and regulations for the utilization of this fund shall be formulated by the Ministry of Human Settlements and submitted to the President for approval.

Section 11. Repealing Clause. The Inter-Agency Advisory Council of the National Pollution Control Commission created under Section 4 of P.D. 984 is hereby abolished and its powers and responsibilities are forthwith delegated and transferred to the Control of the National Environmental Protection Council.

All other laws, decrees, executive orders, rules and regulations inconsistent herewith are hereby repealed, amended or modified accordingly.

Section 12. Effectivity Clause. This Decree shall take effect immediately.

DONE in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

WHEREAS, the broad spectrum of environment has become a matter of vital concern to the government;

WHEREAS, the national leadership has taken a step towards this direction by creating the National Environmental Protection Council under Presidential Decree No. 1121;

WHEREAS, it is necessary that the creation of the Council be implemented with the launching of a comprehensive program of environmental protection and management;

WHEREAS, such a program can assume tangible and meaningful significance only by establishing specific environment management policies and prescribing environment quality standards in a Philippine Environment Code:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. Short Title. This Decree shall be known and cited as the "Philippine Environment Code."

TITLE I AIR QUALITY MANAGEMENT

Section 2. Purposes. The purposes of this Title are:

(a) to achieve and maintain such levels of air quality as to protect public health; and

(b) to prevent to the greatest extent practicable, injury and/or damage to plant and animal life and property, and promote the social and economic development of the country.

Chapter I Standards

Section 3. Ambient Air Quality Standards. There shall be established ambient air quality standards which shall prescribe the maximum concentration of air pollutants permissible in the atmosphere consistent with public health, safety and general welfare.

In the establishment of ambient air quality standards, factors such as local atmospheric conditions, location and land use, and available technology, shall be considered among others.

Section 4. National Emission Standards. There shall be established national emission standards for new and existing stationary and mobile sources of pollution which shall consider among others such factors as type of industry, practicable control technology available, location and land use, and the nature of pollutants emitted.

Section 5. Community Noise Standards. Appropriate standards for community noise levels shall be established considering, among others, location, zoning and land use classification.

Section 6. Standards for Noise-Producing Equipment. There shall be established a standard for noise producing equipment such as construction equipment, transportation equipment, stationary engines, and electrical or electronic equipment and such similar equipment or contrivances. The standards shall set a limit on the acceptable level of noise emitted from a given equipment for the protection of public health and welfare, considering among others, the magnitude and condition of use, the degree of noise reduction achievable through the application of best available technology and the cost of compliance.

The Installation of any noise-producing equipment shall conform with the requirements of Presidential Decree No. 1096 and other applicable laws as well as their implementing rules and regulations.

Section 7. Aircraft Emission and Sonic Booms. Appropriate government agencies shall encourage research studies on the harmful effects of aircraft emissions in the environment in order to establish permissible emission standards.

Research and studies shall also be undertaken to mitigate and/or minimize the effects of sonic booms in the environment.

Chapter II Regulation and Enforcement

Section 8. Air Quality and Noise Standards. The National Pollution Control Commission in coordination with appropriate government agencies shall be responsible for the enforcement of ambient air quality emission and noise standards, including the monitoring and surveillance of air pollutants, licensing and permitting of air pollution control facilities, and the promulgation of appropriate rules and regulations.

Existing air quality emission and noise standards may be revised and/or modified consistent with new development and technology.

Section 9. Aircraft Noise. Community noise standards around airports shall be implemented by the Civil Aeronautics Administration in coordination with the National Pollution Control Commission.

Section 10. Vehicular Emissions. The Land Transportation Commission, in coordination with the National Pollution Control Commission, shall implement emission standards for motor vehicles and may deputize other appropriate law enforcement agencies for the purpose.

Section 11. Radioactive Emissions. The release and emission of radioactivity into the environment incident to the establishment or possession of nuclear energy facilities and radioactive materials, handling, transport, production, storage, use and disposal of radioactive materials shall be regulated by the Philippine Atomic Energy Commission in coordination with other appropriate government agencies.

Chapter III Monitoring

Section 12. Air Quality Monitoring. The National Pollution Control Commission, in coordination with appropriate government agencies, shall establish to the greatest extent practicable an air quality monitoring network. Such air quality monitoring network shall put to maximum use the capabilities of these agencies.

The National Environmental Protection Council shall be furnished with the results of air quality monitoring activities.

Section 13. Weather Modification. The Philippine Atmospheric, Geophysical and Astronomical Services Administration shall monitor regularly meteorological factors affecting environmental conditions in order to effectively guide air pollution monitoring activities.

Activities relating to weather modification such as rainfall stimulation and storm seeding experiments shall be undertaken in consultation and/or in coordination with the Philippine Atmospheric, Geophysical and Astronomical Service Administration.

TITLE II WATER QUALITY MANAGEMENT

Section 14. Purpose. It is the purpose of this Title to prescribe management guidelines aimed to protect and improve the quality of Philippine water resources through:

(a) classification of Philippine waters;

(b) establishment of water quality standards;

(c) protection and improvement of the quality of the Philippine water resources, and

(d) responsibilities for surveillance and mitigation of pollution incidents.

Chapter I Classification and Standards

Section 15. Classification of Philippine Waters. The National Pollution Control Commission, in coordination with appropriate government agencies, shall classify Philippine waters, according to their best usage. In classifying said waters, the National Pollution Control Commission shall take into account, among others, the following:

(a) the existing quality of the body of water at the time of classification;

(b) the size, depth, surface area covered, volume, direction, rate of flow, gradient of stream; and

(c) the most beneficial uses of said bodies of water and lands bordering them for residential, agricultural, commercial, industrial, navigational, recreational, and aesthetic purposes.

Section 16. Reclassification of Waters Based on Intended Beneficial Use. Where the public interest so requires, the National Pollution Control Commission, in coordination with appropriate government agencies, shall reclassify a body of water based on the intended beneficial use and take such steps as may be necessary to upgrade the quality of said water. Other government agencies may adopt higher standards for a particular body of water, subject to the approval of the National Pollution Control Commission.

Section 17. Upgrading of Water Quality. Where the quality of water has deteriorated to a degree where its state will adversely affect its best usage, the government agencies concerned shall take such measures as may be necessary to upgrade the quality of such water to meet the prescribed water quality standards.

Section 18. Water Quality Standards. The National Pollution Control Commission shall prescribe quality and effluent standards consistent with the guidelines set by the National Environmental Protection Council and the classification of waters prescribed in the preceding sections, taking into consideration, among others, the following:

(a) the standard of water quality or purity may vary according to beneficial uses; and

(b) the technology relating to water pollution control.

Chapter II Protection and Improvement of Water Quality

Section 19. Enforcement and Coordination. The production, utilization, storage and distribution of hazardous, toxic and other substances such as radioactive materials, heavy metals, pesticides, fertilizers, and oils, and the disposal, discharge and dumping of untreated wastewater, mine tailings and other substances that may pollute any body of water of the Philippines resulting from normal operations of industries, water-borne sources, and other human activities as well as those resulting from accidental spills and discharge shall be regulated by appropriate government agencies pursuant to their respective charters and enabling legislations. In the performance of the above functions, the government agencies concern shall coordinate with the National Environmental Protection Council and furnish the latter with such information as may be necessary to enable it to attain its objectives under Presidential Decree No. 1121.

Section 20. Clean-up Operations. It shall be the responsibility of the polluter to contain, remove and clean up water pollution incidents at his own expense. In case of his failure to do so, the government agencies concerned shall undertake containment, removal and clean-up operations and expenses incurred in said operations shall be charged against the persons and/or entities responsible for such pollution.

Section 21. Water Quality Monitoring and Surveillance. The various government agencies concerned with environmental protection shall establish to the greatest extent practicable a water quality surveillance and monitoring network with sufficient stations and sampling schedules to meet the needs of the country. Said water quality surveillance network shall put to maximum use the capabilities of such government agencies. Each agency involved in such network shall report to the National Environmental Protection Council the results of these monitoring activities as the need arises.

TITLE III LAND USE MANAGEMENT

Section 22. Purpose. The purposes of this Title are:

(a) to provide a rational, orderly and efficient acquisition, utilization and disposition of land and its resources in order to derive therefrom maximum benefits; and

(b) to encourage the prudent use and conservation of land resources in order to prevent and imbalance between the nation's needs and such resources.

Section 23. National Land Use Scheme. The Human Settlements Commission, in coordination with the appropriate agencies of the government, shall formulate and recommend to the National Environmental Protection Council a land use scheme consistent with the purpose of this Title.

The Land Use Scheme shall include among others, the following:

(a) a science-based and technology-oriented land inventory and classification system;

(b) a determination of present land uses, the extent to which they are utilized, underutilized, rendered idle or abandoned;

(c) a comprehensive and accurate determination of the adaptability of the land for community development, agriculture, industry, commerce and other fields of endeavor;

(d) a method of identification of areas where uncontrolled development could result in irreparable damage to important historic, cultural, or aesthetic values, or natural systems or processes of national significance;

(e) a method for exercising control by the appropriate government agencies over the use of land in areas of critical environmental concern and areas impacted by public facilities including, but not limited to, airports, highways, bridges, ports and wharves, buildings and other infrastructure projects;

(f) a method to ensure the consideration of regional development and land use in local regulations;

(g) policy for influencing the location of new communities and methods for assuring appropriate controls over the use of land around new communities;

(h) a system of controls and regulations pertaining to areas and development activities designed to ensure that any source of pollution will not be located where it would result in a violation of any applicable environmental pollution control regulations; and

(i) a recommended method for the periodic revisions and updating of the national land use scheme to meet changing conditions.

Section 24. Location of Industries. In the location of industries, factories, plants, depots and similar industrial establishments, the regulating or enforcing agencies of the government shall take into consideration the social, economic, geographic and significant environmental impact of said establishments.

TITLE IV NATURAL RESOURCES MANAGEMENT AND CONSERVATION

Section 25. Purposes. The purposes of this Title are:

(a) to provide the basic policy on the management and conservation of the country's natural resources to obtain the optimum benefits therefrom and to preserve the same for the future generations; and

(b) to provide general measures through which the aforesaid policy may be carried out effectively.

Chapter I Fisheries and Aquatic Resources

Section 26. Management Policy. The National government, through the Department of Natural Resources, shall establish a system of rational exploitation of fisheries and aquatic resources within the Philippine territory and shall encourage citizen participation therein to maintain and/or enhance the optimum and continuous productivity of the same.

Section 27. Measures for National Exploitation. Measures for the national exploitation of fisheries and other aquatic resources may include, but shall not be limited to, the following:

(a) undertaking manpower and expertise development;

(b) acquiring the necessary facilities and equipment;

(c) regulating the marketing of threatened species of fish or other aquatic resources;

(d) reviewing all existing rules and regulations on the exploitation of fisheries and aquatic resources with a view of formulating guidelines for the systematic and effective enforcement thereof; and

(e) conserving the vanishing species of fish and aquatic resources such as turtles, sea snakes, crocodiles, corals, as well as maintaining the mangrove areas, marshes and inland waters, coral reef-areas and islands serving as sanctuaries for fish and other aquatic life.

Chapter II Wildlife

Section 28. Management Policy. The national government through the Department of Natural Resources, shall establish a system of rational exploitation and conservation of wildlife resources and shall encourage citizen participation in the maintenance and/or enhancement of their continuous productivity.

Section 29. Measures for Rational Exploitation. Measures for rational exploitation of wildlife resources may include, but shall not be limited to, the following:

(a) regulating the marketing of threatened wildlife resources.

(b) reviewing all existing rules and regulations on the exploitation of wildlife resources with a view of formulating guidelines for the systematic and effective enforcement thereof; and

(c) conserving the threatened species of fauna, increasing their rate of reproduction, maintaining their original habitat, habitat manipulation, determining bag/creel limits, population control in relation to the carrying capacity of any given area, banning of indiscriminate and/or destructive means of catching or hunting them.

Chapter III Forestry and Soil Conservation

Section 30. Management Policy for Forestry. The national government, through the Department of Natural Resources, shall undertake a system of rational exploitation of forest resources and shall encourage citizen participation therein to keep the country's forest resources at maximum productivity at all time.

Section 31. Measures for Rational Exploitation of Forest Resources. Measures for the rational exploitation of forest resources may include, but shall not be limited to, the following:

(a) regulating the marketing of threatened forest resources;

(b) reviewing all existing rules and regulations on the exploitation of forest resources with a view of formulating guidelines for the systematic and efficient enforcement thereof;

(c) conserving threatened species of flora as well as increasing their rate of propagation; the banning of destructive modes of exploitation, kaingin making or shifting cultivation, indiscriminate harvesting of minor forest products the recycling methods of waste materials, and

(d) carrying out a continuing effect on reforestation; timber stand improvement; forest protection; land classification; forest occupancy management; agri-silviculture; range management; agri-silvicultural/kaingin management; industrial tree plantation; parks and wildlife management; multiple use forest; timber management and forest research.

Section 32. Use of Fertilizers and Pesticides. The use of fertilizers and pesticides in agriculture shall be regulated prescribing therefor a tolerance level in their use. Their use shall be monitored by appropriate government agencies to provide empirical data for effective regulation.

Section 33. Management Policy on Soil Conservation. The national government, through the Department of Natural Resources and the Department of Agriculture, shall likewise undertake a soil conservation program including therein the identification and protection of critical watershed areas, encouragement of scientific farming techniques, physical and biological means of soil conservation, and short-term and long-term researches and technology for effective soil conservation.

Chapter IV Flood Control and Natural Calamities

Section 34. Measures in Flood Control Program. In addition to the pertinent provisions of existing laws, the following shall be included in a soil erosion, sediment and flood control program;

(a) the control of soil erosion on the banks of rivers, the shores of lakes, and the seashores;

(b) the control of flow and flooding in and from rivers and lakes;

(c) the conservation of water which, for purposes of this Section shall mean forms of water, but shall not include captive water;

(d) the needs of fisheries and wildlife and all other recreational uses of natural water;

(e) measures to control the damming, diversion, taking, and use of natural water, so far as any such act may affect the quality and availability of natural water for other purposes; and

(f) measures to stimulate research in matters relating to natural water and soil conservation and the application of knowledge thereby acquired.

Section 35. Measures to Mitigate Destructive Effects of Calamities. The national government, through the Philippine Atmospheric, Geophysical and Astronomical Services Administration, shall promote intensified and concerted research efforts on weather modification, typhoon, earthquake, tsunami, storm surge, and other tropical natural phenomena in order to bring about any significant effect to mitigate or prevent their destructive effects.

Chapter V Energy Development

Section 36. Policy. Consistent with the environmental protection policies, the national government, through the Energy Development Board, shall undertake an energy development program encouraging the utilization of invariant sources such as solar, wind and tidal energy.

Section 37. Measures for Energy Development. Measures for energy development program may include, but shall not be limited to, the following:

(a) setting up of pilot plants utilizing invariant sources of energy;

(b) training of technical personnel for purposes of energy development; and

(c) conducting researches aimed at developing technology for energy development.

Section 38. Safety Measures on Energy Development. Rules and regulations shall be promulgated to prevent or mitigate the adverse effects of energy development on the environment. For this purpose, all nuclear powered plants exploring and utilizing geothermal energy, whether owned or controlled by private or government entities shall:

(a) observe internationally accepted standards of safety; and

(b) provide safety devices to ensure the health and welfare of their personnel as well as the surrounding community.

Chapter VI Conservation and Utilization of Surface and Ground Waters

Section 39. Management Policy. In addition to existing laws, the national government through the National Water Resources Council in coordination with other appropriate government agencies, shall prescribe measures for the conservation and improvement of the quality of Philippine water resources and provide for the prevention, control and abatement of water pollution.

Chapter VII Mineral Resources

Section 40. Management Policy. - The national government, through the Department of Natural Resources, shall undertake a system of gainful exploitation and rational and efficient utilization of mineral resources and shall encourage citizen participation in this endeavor.

Section 41. Measures for Exploitation and Utilization of Mineral Resources. Measures for the gainful exploitation and rational and efficient utilization of such mineral resources may include, but shall not be limited to the following:

(a) increasing research and development in mineral resources technology;

(b) training of additional technical manpower needed in geology, geophysics, mining engineering, and related fields;

(c) regulating the exploitation of identified mineral reserves;

(d) accelerating the exploration of undiscovered mineral deposits; and

(e) encouraging the establishment of processing plants for refined metals.

TITLE V WASTE MANAGEMENT

Section 42. Purpose. The purposes of this Title are:

(a) to set guidelines for waste management with a view to ensuring its effectiveness;

(b) to encourage, promote and stimulate technological, educational economic and social efforts to prevent environmental damage and unnecessary loss of valuable resources of the nation through recovery, recycling and re-use of wastes and waste products; and

(c) to provide measures to guide and encourage appropriate government agencies in establishing sound, efficient, comprehensive and effective waste management.

Chapter I Enforcement and Guidelines

Section 43. Waste Management Programs. Preparation and implementation of waste management program shall be required of all provinces, cities and municipalities. The Department of Local Government and Community Development shall promulgate guidelines for the formulation and establishment of waste management programs.

Every waste management program shall include the following:

(a) an orderly system of operation consistent with the needs of the area concerned;

(b) a provision that the operation will not create pollution of any kind or will constitute public nuisance;

(c) a system for a safe and sanitary disposal of waste;

(d) a provision that existing plans affecting the development, use and protection of air, water or natural resources shall be considered;

(e) schedules and methods of implementing the development, construction and operation of the plan together with the estimated costs; and

(f) a provision for the periodic revision of the program to ensure its effective implementation.

Section 44. Responsibility of Local Governments. Each province, city or municipality shall provide measures to facilitate the collection, transportation, processing and disposal of waste within its jurisdiction in coordination with other government agencies concerned. For this purpose, the national government shall provide the necessary subsidy, to local governments upon request made through the National Environmental Protection Council and subject to such terms and conditions as the latter may provide.

Chapter II Methods of Solid Waste Disposal

Section 45. Solid Waste Disposal. Solid Waste disposal shall be by sanitary landfill, incineration, composing, and other methods as may be approved by competent government authority.

Section 46. Sanitary Landfills. Local governments, including private individuals, corporations or organizations may operate one or more sanitary landfills. Any entity proposing to operate a sanitary landfill shall submit to the appropriate government agency an operational work plan showing, among other things, a map of the proposed work location, disposal areas for rubbish, garbage, refuse and other waste matter; and the equipment or machinery needed to accomplish its operations. In no case shall landfill or work locations under this Section be located along any shore or coastline, or along the banks of rivers and streams. lakes throughout their entire length, in violation of any existing rules and regulations.

Section 47. Incineration and Composting Plants. The installation and establishment of incineration or composting plants, or the alteration/modification of any part thereof shall be regulated by the local governments concerned in coordination with the National Pollution Control Commission.

Section 48. Disposal Sites. The location of solid waste disposal sites shall conform with existing zoning; land use standards, and pollution control regulations.

Section 49. Dumping into the Sea and Other Navigable Waters. The dumping or disposal of solid wastes into the sea and any body of water in the Philippines, including shorelines and river banks, where these wastes are likely to be washed into the water is prohibited. However, dumping of solid wastes or other materials into the sea or any navigable waters shall be permitted in case of immediate or imminent danger to life and property, subject to the rules and regulations of the Philippine Coast Guard and the National Pollution Control Commission.

Government agencies and private entities which are undertaking solid waste management programs shall make consultations with the government agencies concerned with respect to the effects of such dumping to the marine environment and navigation.

Chapter III Methods of Liquid Waste Disposal

Section 50. Liquid Waste Disposal. Wastewater from manufacturing plants, industries, community, or domestic sources shall be treated either physically, biologically or chemically prior to disposal in accordance with the rules and regulations promulgated by proper government authority.

Section 51. Applicability of Sec. 8. The provisions of Sec. 8 hereof shall likewise apply to the dumping or disposal of liquid waste into the sea and other bodies of water.

TITLE VI MISCELLANEOUS PROVISIONS

Section 52. Population-Environment Balance. In the assessment of development projects, the National Environmental Protection Council, hereinafter referred to in this Title as the "Council" shall take into consideration their effect on population with a view to achieving a rational and orderly balance between man and his environment.

Section 53. Environmental Education. The Department of Education and Culture shall integrate subjects on environmental education in its school curricula at all levels. It shall also endeavor to conduct special community education emphasizing the relationship of man and nature as well as environmental sanitation and practices.

The Council and other government agencies implementing environmental protection laws in coordination with public information agencies of the government shall undertake public information activities for the purpose of stimulating awareness and encouraging involvement in environmental protection.

Section 54. Environmental Research. The Council shall undertake and/or promote continuing studies and research programs on environmental management and shall, from time to time, determine priority areas of environmental research.

Section 55. Monitoring and Dissemination of Environmental Information of Foreign Origin. The Council shall keep itself informed of current environmental developments by obtaining information and literature from foreign sources through the Department of Foreign Affairs, government agencies and other entities, both domestic and foreign. Such information and literature shall be given the widest dissemination possible.

Section 56. Incentives. To operate the installation and the utilization of pollution control facilities, the following incentives are hereby granted:

(a) exemption to the extent of fifty (50) per cent of tariff duties and compensating tax for the importation of pollution control equipment, devices, spare parts and accessories for a period of five (5) years from the effectivity of this Decree subject to the conditions that will be imposed by the Council.

(b) a tax credit equivalent to fifty (50) per cent of the value of the compensating tax and tariff duties that would have been paid on the pollution control equipment, devices, spare parts and accessories had these items been imported shall, within a period of seven (7) years from the effectivity of this Decree be given to the person or firm who or which purchases them from a domestic manufacturer, and another tax credit equivalent to twenty-five (25) per cent thereof shall be given to the said manufacturer subject to such conditions as may be imposed by the Council; and

(c) deductions equivalent to fifty (50) per cent of the expenses actually incurred on research projects undertaken to develop technologies for the manufacture of pollution control equipment which have been proven effective and commercially reproducible, from the taxable income of the person or firm actually undertaking such projects subject to the conditions that may be imposed by the Council.

The pollution control equipment, devices, spare parts and accessories acquired under this Section shall not be sold, transferred or disposed of within five (5) years from the date of acquisition without the prior approval of the Council otherwise the importer or purchaser shall pay twice the amount of the tax exemption or tax credit granted.

Section 57. Financial Assistance/Grant. Financial assistance/grant for the study, design and construction of environmental protection facilities especially for waste disposal in favor of cities, municipalities, small and medium-scale industries may be granted on a case to case basis subject to such conditions as may be imposed by the Council.

Section 58. Participation of Local Government Units and Private Individuals. It shall be the responsibility of local government units as well as private individuals to actively participate in the environmental management and protection programs of the government.

Section 59. Preservation of Historic and Cultural Resources and Heritage. It shall be the duty of every person to help preserve the historic and cultural resources of the country such as sites, structures, artifacts, documents, objects, memorials and priceless trees.

Section 60. Government Offices Performing Environmental Protection Functions. Government agencies vested by law to exercise environmental management powers, shall continue to function as such within their respective jurisdictions. The Council may, however, in the exercise of its powers and functions under Presidential Decree No. 1121, inquire into any action or issue of environmental significance.

Section 61. Public Hearings. The Council may, whenever it deems necessary, conduct public hearings on issues of environmental significance.

Section 62. Definition of Terms. As used in this Code:

(a) "Ambient Air Quality" means the average atmospheric purity as distinguished from discharge measurements taken at the source of pollution. It is the general amount of pollution present in a broad area.

(b) "Emission" means the act of passing into the atmosphere an air contaminant, pollutant, gas stream and unwanted sound from a known source.

(c) "Water Quality" means the characteristics of water which define its use in terms of physical, chemical and biological contents; hence the quality of water for domestic use is different from industrial use.

(d) "Water Quality Surveillance" means a close and continuous supervision of the water quality to detect development movements or changes in the characteristics of the water.

(e) "Water Quality Standard" means a plan that is established by governmental authority as a program for water pollution prevention and abatement. Such a standard may include water use classification and the criteria to support the uses of the water.

(f) "Effluent Standards" means restrictions established to limit levels of concentration of physical, chemical and biological constituents which are discharged from point sources.

(g) "Clean-up Operations" refers to activities conducted in removing the pollutants discharged or spilled in water to restore it to pre-spill condition.

(h) "Accidental Spills" refers to spills of oil or other hazardous substances in water that result from accidents involving the carriers of such substance such as collisions and grounding.

(i) "Areas of Critical Environmental Concern" are areas where uncontrolled development could result in irreparable damage to important historic, cultural, or aesthetic values or natural systems or processes of national significance.

(j) "Hazardous Substances" means elements or compounds which when discharged in any quantity present imminent or substantial danger to public health and welfare.

(k) "Areas Impacted by Public Facilities" refers to areas where the introduction of public facilities may tend to induce development and urbanization of more than local significance or impact.

(l) "Environmental Impact" is the alteration, to any degree, of environmental conditions or the creation of a new set of environmental conditions, adverse or beneficial, to be induced or caused by a proposed project.

(m) "Government Agencies" refers to national, local and regional agencies and instrumentalities including government-owned and controlled corporations.

TITLE VII FINAL PROVISIONS

Section 63. Separability of Provisions. If any provision of this Code, or the application of such provisions to any person or circumstance, is declared unconstitutional, the remainder of the Code or the application of such provision to other persons or circumstances shall not be affected by such declaration.

Section 64. Effectivity. This Code shall take effect upon its approval.

Done in the City of Manila, this 6th day of June in the year of Our Lord, nineteen hundred and seventy-seven.

REQUIRING THE PLANTING OF TREES IN CERTAIN PLACES AND PENALIZING UNAUTHORIZED CUTTING, DESTRUCTION, DAMAGING AND INJURING OF CERTAIN TREES, PLANTS AND VEGETATION

• See IRR here

WHEREAS, the planting of trees on lands adjoining the edge of rivers and creeks in both a measure of beautification and reforestation; and

WHEREAS, the planting of trees along roads and areas intended for the common use of owners of lots in subdivisions will provide shade and healthful environment therein;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. The following shall plant trees:

1. Every person who owns land adjoining a river or creek, shall plant trees extending at least five meters on his land adjoining the edge of the bank of the river or creek, except when such land, due to its permanent improvement, cannot be planted with trees;

2. Every owner of an existing subdivision shall plant trees in the open spaces required to be reserved for the common use and enjoyment of the owners of the lots therein as well as along all roads and service streets. The subdivision owner shall consult the Bureau of Forest Development as to the appropriate species of trees to be planted and the manner of planting them; and

3. Every holder of a license agreement, lease, license or permit from the Government, involving occupation and utilization of forest or grazing land with a river or creek therein, shall plant trees extending at least twenty (20) meters from each edge of the bank of the river or creek.

The persons hereinabove required to plant trees shall take good care of them, and, from time to time, remove any tree planted by them in their respective areas which has grown very old, is diseased, or is defective, and replant with trees their respective areas whenever necessary.

Section 2. Every owner of land subdivided into residential/commercial/industrial lots after the effectivity of this Decree shall reserve, develop and maintain not less than thirty percent (30%) of the total area of the subdivision, exclusive of roads, service streets and alleys, as open space for parks and recreational areas.

No plan for a subdivision shall be approved by the Land Registration Commission or any office or agency of the government unless at least thirty percent (30%) of the total area of the subdivision, exclusive of roads, service streets and alleys, is reserved as open space for parks and recreational areas and the owner thereof undertakes to develop such open space, within three (3) years from the approval of the subdivision plan, in accordance with the development plan approved by the Bureau of Forest Development and to maintain such parks and recreational areas.

Section 3. Any person who cuts, destroys, damages or injures, naturally growing or planted trees of any kind, flowering or ornamental plants and shrubs, or plants of scenic, aesthetic and ecological values, along public roads, in plazas, parks other than national parks, school premises or in any other public ground or place, or on banks of rivers or creeks, or along roads in land subdivisions or areas therein for the common use of the owners of lots therein, or any species of vegetation or forest cover found therein shall, be punished with imprisonment for not less than six months and not more than two years, or a fine of not less than five hundred pesos and not more than five thousand pesos, or with both such imprisonment and fine at the discretion of the court, except when the cutting, destroying, damaging or injuring is necessary for public safety or the pruning thereof is necessary to enhance beauty, and only upon the approval of the duly authorized representative of the head of agency or political subdivision having jurisdiction therein, or of the Director of Forest Development in the case of trees on banks of rivers and creeks, or of the owner of the land subdivision in the case of trees along roads and in other areas therein for the common use of owners of lots therein. If the offender is a corporation, partnership or association, the penalty shall be imposed upon the officer or officers thereof responsible for the offense, and if such officer or officers are aliens, in addition to the penalty herein prescribed, he or they shall be deported without further proceedings before the Commission on Immigration and Deportation. Nothing in this Decree shall prevent the cancellation of a license agreement, lease, license or permit from the Government, if such cancellation is prescribed therein or in Government regulations for such offense.

Section 4. Any person who shall violate any provision of Section one hereof, or any regulation promulgated thereunder, shall be punished with imprisonment for not less than six months but not more than two years, or with a fine of not less than five hundred pesos but not more than five thousand pesos, or with both such imprisonment than fine at the discretion of the court. If the offender is a public officer or employee, he shall, in addition, be dismissed from the public service and disqualified perpetually to hold public office.

Section 5. Any person who shall violate the provision of Section 2 hereof, or any regulation promulgated thereunder, shall be punished with imprisonment for not less than two (2) years but not more than five (5) years, or with a fine equivalent to the value, at current valuation, of the area representing thirty percent (30%) of the total area of the subdivision, or both such fine and imprisonment at the discretion of the Court.

Section 6. The Director of Forest Development shall issue such rules and regulations as may be necessary to carry out the purposes of this Decree.

Section 7. All laws, rules and regulations, or parts thereof, inconsistent herewith are hereby repealed.

Section 8. This Decree shall take effect upon its promulgation.

Done in the City of Manila, this 6th day of July in the year of Our Lord, nineteen hundred and seventy-six.

May 19, 1975

REVISING PRESIDENTIAL DECREE NO. 389, OTHERWISE KNOWN AS THE FORESTRY REFORM CODE OF THE PHILIPPINES

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

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

WHEREAS, it is also imperative to place emphasis not only on the utilization thereof but more so on the protection, rehabilitation and development of forest lands, in order to ensure the continuity of their productive condition;

WHEREAS, the present laws and regulations governing forest lands are not responsive enough to support re-oriented government programs, projects and efforts on the proper classification and delimitation of the lands of the public domain, and the management, utilization, protection, rehabilitation, and development of forest lands;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby revise Presidential Decree No. 389 to read as follows:

Section 1. Title of this Code. This decree shall be known as the "Revised Forestry Code of the Philippines."

Section 2. Policies. The State hereby adopts the following policies:

(a) The multiple uses of forest lands shall be oriented to the development and progress requirements of the country, the advancement of science and technology, and the public welfare;

(b) Land classification and survey shall be systematized and hastened;

(c) The establishment of wood-processing plants shall be encouraged and rationalized; and

(d) The protection, development and rehabilitation of forest lands shall be emphasized so as to ensure their continuity in productive condition.

Section 3. Definitions.

a) Public forest is the mass of lands of the public domain which has not been subject to the present system of classification for the determination of which lands are needed for forest purposes and which are not.

b) Permanent forest or forest reserves refers to those lands of the public domain which have been the subject of the present system of classification and declared as not needed for forest purposes.

c) Alienable or disposable lands refer to those lands of the public domain which have been the subject of the present system of classification and declared as not needed for forest purposes.

d) Forest lands includes the public forest, the permanent forest or forest reserves, and forest reservations.

e) Grazing land refers to that portion of the public domain which has been set aside, in view of the suitability of its topography and vegetation, for the raising of livestock.

f) Mineral lands refer to those lands of the public domain which have been classified as such by the Secretary of Natural Resources in accordance with prescribed and approved criteria, guidelines and procedure.

g) Forest reservations refer to forest lands which have been reserved by the President of the Philippines for any specific purpose or purposes.

h) National park refers to a forest land reservation essentially of primitive or wilderness character which has been withdrawn from settlement or occupancy and set aside as such exclusively to preserve the scenery, the natural and historic objects and the wild animals or plants therein, and to provide enjoyment of these features in such a manner as will leave them unimpaired for future generations.

i) Game refuge or bird sanctuary refers to a forest land designated for the protection of game animals, birds and fish and closed to hunting and fishing in order that the excess population may flow and restock surrounding areas.

j) Marine park refers to any public offshore are delimited as habitat of rare and unique species of marine flora and fauna.

k) Seashore park refers to any public shore area delimited for outdoor recreation, sports fishing, water skiing and related healthful activities.

l) Watershed reservation is a forest land reservation established to protect or improve the conditions of the water yield thereof or reduce sedimentation.

m) Watershed is a land area drained by a stream or fixed body of water and its tributaries having a common outlet for surface run-off.

n) Critical watershed is a drainage area of a river system supporting existing and proposed hydro-electric power, irrigation works or domestic water facilities needing immediate protection or rehabilitation.

o) Mangrove is a term implied to the type of forest occurring on tidal flat along the sea coast, extending along stream where the water is brackish.

p) Kaingin refers to a portion of the forest land which is subjected to shifting and/or permanent slash-and-burn cultivation.

q) Forest product means timber, pulpwood, firewood, bark, tree top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or other forest growth such as grass, shrub, and flowering plant, the associated water, fish, game, scenic, historical, recreational and geologic resources in forest lands.

r) Dipterocarp forest is a forest dominated by trees of the dipterocarp species, such as red lauan, tanguile, tiaong, white lauan, almon, bagtikan and mayapis of the Philippine mahogany group, apitong and the yakals.

s) Pine forest is a forest type predominantly of pine trees.

t) Industrial tree plantation refers to any forest land extensively planted to tree crops primarily to supply raw material requirements of existing or proposed wood processing plants and related industries.

u) Tree farm refers to any small forest land or tract of land purposely planted to tree crops.

v) Agro-forestry is a sustainable management for land which increases overall production, combines agricultural crops, tree crops and forest plants and/or animals simultaneously or sequentially, and applies management practices which are compatible with the cultural patterns of the local population.

w) Multiple-use is the harmonized utilization of the land, soil, water, wildlife, recreation value, grass and timber of forest lands.

x) Selective logging is the systematic removal of the mature, over-mature and defective trees in such manner as to leave adequate number and volume of healthy residual trees of the desired species necessary to assure a future crop of timber, and forest cover for the protection and conservation of soil, water and wildlife.

y) Seed tree system is a silvicultural system characterized by partial clearcutting leaving seed-trees to regenerate the area.

z) Healthy residual refers to a sound or slightly injured tree of the commercial species left after logging.

aa) Sustained-yield management implies continuous or periodic production of forest products in a working unit for the purpose of achieving at the earliest practicable time an approximate balance between growth and harvest or use. This is generally applied to the commercial timber resources and is also applicable to the water, grass, wildlife, and other renewable resources of the forest.

bb) Processing plant is any mechanical setup, device, machine or combination of machines used for the conversion of logs and other forest raw materials into lumber, veneer, plywood, fiberboard, blockboard, paper board, pulp, paper or other finished wood products.

cc) Lease is a privilege granted by the State to a person to occupy and possess, in consideration of specified rental, any forest land of the public domain in order to undertake any authorized activity therein.

dd) License is a privilege granted by the State to a person to utilize forest resources within any forest land, without any right of occupation and possession over the same, to the exclusion of others, or establish and operate a wood-processing plant, or conduct any activity involving the utilization of any forest resources.

ee) License agreement is a privilege granted by the State to a person to utilize forest resources within any forest land with the right of possession and occupation thereof to the exclusion of others, except the government, but with the corresponding obligation to develop, protect and rehabilitate the same in accordance with the terms and conditions set forth in said agreement.

ff) Permit is a short-term privilege or authority granted by the State to a person to utilize any limited forest resources or undertake a limited activity within any forest land without any right of occupation and possession therein.

gg) Annual allowable cut is the volume of materials, whether of wood or other forest products, that is authorized to be cut yearly from a forest.

hh) Cutting cycle is the number of years between two major harvests in the same working unit and/or region.

ii) Forest ecosystem refers to the living and non-living components of a forest and their interaction.

jj) Silviculture is the establishment, development, reproduction and care of forest trees.

kk) Rationalization is the organization of a business or industry using management principles, systems and procedures to attain stability, efficiency and profitability of operation.

ll) Forest officer means any official or employee of the Bureau who has been appointed or delegated by law or by competent authority to execute, implement or enforce the provisions of this Code, other related laws, as well as their implementing regulations.

mm) Private right means or refers to titled rights of ownership under existing laws, and in the case of national minority to rights of possession existing at the time a license is granted under this Code, which possession may include places of abode and worship, burial grounds, and old clearings, but exclude productive forest inclusive of logged-over areas, commercial forests and established plantations of forest trees and trees of economic values.

nn) Person includes natural as well as juridical person.

(Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

The Department Head may, upon recommendation of the Director, reorganize or create such other divisions, sections of units as may be deemed necessary and to appoint the personnel there: Provided, That an employee appointed or designated as officer-in-charge of a newly created division, section or unit, or to an existing vacant position with a higher salary, shall receive, from the date of such appointment or designation until he is replaced or reverted to his original position, the salary corresponding to the position temporarily held by him.

There shall be created at least eleven regional offices. In each region, there shall be as many forest districts as may be necessary, in accordance with the extent of forest area, established work loads, need for forest protection, fire prevention and other factors, the provisions of any law to the contrary notwithstanding: Provided, That the boundaries of such districts shall follow, whenever possible, natural boundaries of watersheds under the river-basin concept of management.

Section 11. Manpower and policy development. — The Bureau shall establish and operate an in-service training center for the purpose of upgrading and training its personnel and new employees.

The Bureau shall also set aside adequate funds to enable personnel to obtain specialized education and training in local or foreign colleges or institutions.

There shall be established in the College of Forestry, University of the Philippines at Los Baños, in coordination with the Department of Natural Resources and the wood industry, a Forestry Development Center which shall conduct basic policy researches in forestry and develop or help develop an effective machinery for forestry policy formulation and implementation. To help defray the cost of operating said Center, it is authorized to receive assistance from the wood industry and other sources. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 12. Performance Evaluation. The Bureau shall devise a system, to be approved by the Department Head, to evaluate the performance of its employees. The system shall measure accomplishment in quantity and quality of performance as related to the funded program of work assigned to each organizational unit. There shall be included a system of periodic inspection of district offices by the regional offices and the regional and district offices by the Central Office in both functional fields and in the overall assessment of how each administrative unit has implemented the laws, regulations, policies, programs, and practices relevant to such unit. The evaluation system shall provide the information necessary for annual progress reports and determination of employee training civil service awards and transfer or disciplinary action.

Section 13. System of Land Classification. The Department Head shall study, devise, determine and prescribe the criteria, guidelines and methods for the proper and accurate classification and survey of all lands of the public domain into agricultural, industrial or commercial, residential, resettlement, mineral, timber or forest, and grazing lands, and into such other classes as now or may hereafter be provided by law, rules and regulations.

In the meantime, the Department Head shall simplify through inter-bureau action the present system of determining which of the unclassified lands of the public domain are needed for forest purposes and declare them as permanent forest to form part of the forest reserves. He shall decree those classified and determined not to be needed for forest purposes as alienable and disposable lands, the administrative jurisdiction and management of which shall be transferred to the Bureau of Lands: Provided, That mangrove and other swamps not needed for shore protection and suitable for fishpond purposes shall be released to, and be placed under the administrative jurisdiction and management of, the Bureau of Fisheries and Aquatic Resources. Those still to be classified under the Present system shall continue to remain as part of the public forest.

Section 14. Existing pasture leases in forest lands. — Forest lands which are not reservations and which are the subject of pasture leases shall be classified as grazing lands and areas covered by pasture permits shall remain forest lands until otherwise classified under the criteria, guidelines and methods of classification to be prescribed by the Department Head: Provided, That the administration, management and disposition of grazing lands shall remain under the Bureau. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 15. Topography. No land of the public domain eighteen per cent (18%) in slope or over shall be classified as alienable and disposable, nor any forest land fifty per cent (50%) in slope or over, as grazing land.

Lands eighteen per cent (18%) in slope or over which have already been declared as alienable and disposable shall be reverted to the classification of forest lands by the Department Head, to form part of the forest reserves, unless they are already covered by existing titles or approved public land application, or actually occupied openly, continuously, adversely and publicly for a period of not less than thirty (30) years as of the effectivity of this Code, where the occupant is qualified for a free patent under the Public Land Act: Provided, That said lands, which are not yet part of a well-established communities, shall be kept in a vegetative condition sufficient to prevent erosion and adverse effects on the lowlands and streams: Provided, further, That when public interest so requires, steps shall be taken to expropriate, cancel defective titles, reject public land application, or eject occupants thereof.

Section 16. Areas needed for forest purposes. The following lands, even if they are below eighteen per cent (18%) in slope, are needed for forest purposes, and may not, therefore, be classified as alienable and disposable land, to wit:

1. Areas less than 250 hectares which are far from, or are not contiguous with, any certified alienable and disposable land;

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

3. Areas which have already been reforested;

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

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

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

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

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

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

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

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

Section 17. Establishment of boundaries of forest lands. — All boundaries between permanent forests and alienable or disposable lands shall be clearly marked and maintained on the ground, with infrastructure or roads, or concrete monuments at intervals of not more than five hundred (500) meters in accordance with established procedures and standards, or any other visible and practicable signs to insure protection of the forest.

In all cases of boundary conflicts, reference shall be made to the Philippine Coast and Geodetic Survey Topo map. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 18. Reservations in forest lands and off-shore areas. The President of the Philippines may establish within any lands of the public domain, forest reserve and forest reservation for the national park system, for preservation as critical watersheds, or for any other purpose, and modify boundaries of existing ones. The Department Head may reserve and establish any portion of the public forest or forest reserve as site or experimental forest for use of the Forest Research Institute.

When public interest so requires, any off-shore area needed for the preservation and protection of its educational, scientific, historical, ecological and recreational values including the marine life found therein, shall be established as marine parks.

Section 19. Multiple use. — The numerous beneficial uses of the timber, land, soil, water, wildlife, grass and recreation or aesthetic value of forest lands and grazing lands shall be evaluated and weighted before allowing their utilization, exploitation, occupation or possession thereof, or the conduct of any activity therein.

Only the utilization, exploitation, occupation or possession of any forest lands and grazing lands, or any activity therein, involving one or more of its resources, which will produce the optimum benefits to the development and progress of the country and the public welfare, without impairment or with the least injury to its resources, shall be allowed.

All forest reservations may be open to development or uses not inconsistent with the principal objectives of the reservation: Provided, That critical watersheds, national parks and established experimental forests shall not be subject to commercial logging or grazing operations, and game refuges, bird sanctuaries, marine and seashore parks shall not be subject to hunting or fishing and other activities of commercial nature. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 20. License agreement, license, lease or permit . — No person may utilize, exploit, occupy, possess or conduct any activity within any forest and grazing land, or establish, install, add and operate any wood or forest products processing plant, unless he had been authorized to do under a license agreement, license, lease or permit: Provided, That when the national interest so requires, the President may amend, modify, replace, or rescind any contract, concession, permit, license, or any other form of privilege granted herein: Provided, further, That upon the recommendation of the appropriate government agency, the President may, pending the conduct of appropriate hearing, order the summary suspension of any such contract, concession, license, permit, lease or privilege granted under this decree for violation of any of the condition therein such as those pertaining but not limited to reforestation, pollution, environmental protection, export limitation or such condition as are prescribed by the Minister of Natural Resources in daily issued regulations.(Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 21. Sustained yield. All measures shall be taken to achieve an approximate balance between growth and harvest or use of forest products in forest lands.

A. TIMBER

Section 22. Silvicultural and harvesting system. — In any logging operation in production forests within forest lands, the proper silvicultural and harvesting system that will promote optimum sustained yield shall be practiced, to wit:

a) For dipterocarp forest, selective logging with enrichment or supplemental planting when necessary.

b) For pine or mangrove forest, the seed tree system with planting when necessary.

Provided, That subject to the approval of the Department Head, upon recommendation of the Director, any silvicultural and harvesting system that may be found suitable as a result of research may be adopted: Provided, further, That no authorized person shall cut, harvest or gather any timber, pulpwood, or other products of logging unless he plants three times of the same variety for every tree cut or destroyed by such logging or removal of logs. Any violation of this provision shall be sufficient ground for the immediate cancellation of the license, agreement, lease or permit. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 23. Timber inventory. The Bureau shall conduct a program of progressive inventories of the harvestable timber and young trees in all forest lands, whether covered by any license agreement, license, lease or permit, or not, until a one hundred per cent (100%) timber inventory thereon has been achieved.

Section 24. Required inventory prior to timber utilization in forest lands. No harvest of timber in any forest land shall be allowed unless it has been the subject of at least a five per cent (5%) timber inventory, or any statistically sound timber estimate, made not earlier than five (5) years prior to the issuance of a license agreement or license allowing such utilization.

Section 25. Cutting cycle. The Bureau shall apply scientific cutting cycle and rotation in all forest lands, giving particular consideration to the age, volume and kind of healthy residual trees which may be left undisturbed and undamaged for future harvest and forest cover indipterocarp area, and seed trees and reproduction in pine area.

Section 26. Annual allowable cut. — The annual allowable cut or harvest of any particular forest land under a license agreement, license, lease or permit shall be determined on the basis of the size of the area, the volume and kind of harvestable timber or forest products and healthy residuals, seed trees and reproduction found therein, and the established cutting cycle and rotation thereof.

No person shall cut, harvest and gather any particular timber, pulpwood, firewood and other forest products unless he has been authorized under Section 20 hereof to do so and the particular annual allowable cut thereof has been granted.

In the public interest and in accordance with Section 21 hereof, the Department Head shall review all existing annual allowable cut and thereupon shall prescribe the level of annual allowable cut for the common dipterocarp timber, softwood and hardwood timber cutting of which is not prohibited, pulpwood, firewood and other forest products using as bases the factors as well as the updated aerial photographs and field inventories of such forest land: Provided, That pending the completion of such review and appropriate amendment of the annual allowable cut in existing license agreement, license, lease or permit, existing annual allowable cut that not sufficiently supports wood or forest products processing plant or that will support duly approved processing expansion program or new processing projects may be allowed to continue without change: Provided, further, That no additional or adjustment in annual allowable cut shall be made until after such a review has been made. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 27. Duration of license agreement or license to harvest timber in forest lands. The duration of the privilege to harvest timber in any particular forest land under a license agreement or license shall be fixed and determined in accordance with the annual allowable cut therein, the established cutting cycle thereof, the yield capacity of harvestable timber, and the capacity of healthy residuals for a second growth.

The privilege shall automatically terminate, even before the expiration of the license agreement of license, the moment the harvestable timber have been utilized without leaving any logged-over area capable of commercial utilization.

The maximum period of any privilege to harvest timber is twenty-five (25) years, renewable for a period, not exceeding twenty-five (25) years, necessary to utilize all the remaining commercial quantity or harvestable timber either from the unlogged or logged-over area.

It shall be a condition for the continued privilege to harvest timber under any license or license agreement that the licensee shall reforest all the areas which shall be determined by the Bureau.

Section 28. Size of forest concessions. Forest lands shall not be held in perpetuity.

The size of the forest lands which may be the subject of timber utilization shall be limited to that which a person may effectively utilize and develop for a period of fifty (50) years, considering the cutting cycle, the past performance of the applicant and his capacity not only to utilize but, more importantly, to protect and manage the whole area, and the requirements of processing plants existing or to be installed in the region.

Forest concessions which had been the subject of consolidations shall be reviewed and re-evaluated for the effective implementation of protection, reforestation and management thereof under the multiple use and sustained yield concepts, and for the processing locally of the timber resources therefrom.

B. WOOD-PROCESSING

Section 29. Incentives to the wood industry. The Department Head, in collaboration with other government agencies and the wood industry associations and other private entities in the country, shall evolve incentives for the establishment of an integrated wood industry in designated wood industry centers and/or economic area.

The President of the Philippines, upon the recommendations of the National Economic Development Authority and the Department Head, may establish wood industry import-export centers in selected locations: Provided, That logs imported for such centers shall be subject to such precaution as may be imposed by the Bureau, in collaboration with proper government agencies, to prevent the introduction of pests, insects and/or diseases detrimental to the forests.

Section 30. Rationalization of the wood or forest products industry. — While the expansion and integration of existing wood or forest products processing plants, as well as the establishment of new processing plants shall be encouraged, their locations and operations shall be regulated in order to rationalize the whole industry.

No expansion or integration of existing processing plant nor establishment of new processing plant shall be allowed unless environmental considerations are taken into account and adequate raw material supply on a sustained-yield basis is assured.

A long-term assurance of raw material source from forest concessions and/or from industrial tree plantations, tree farms or agro-forest farms whose annual allowable cut and/or whose harvest is deemed sufficient to meet the requirement of such processing plant shall govern, among others, the grant of the privilege to establish, install additional capacity or operate a processing plant.

Henceforth within one year from the date of this law, as a condition to exercise of the privileges granted them under a license agreement, license, lease or permit, wood or forest products processors without forest concessions or areas that may be developed into industrial tree plantations, tree farms or agro-forest farms and licensees, lessees or permittees without processing plants shall jointly adopt any feasible scheme or schemes, other than log supply contract, for the approval of the Department Head: Provided, That no license agreement, license, lease or permit, including processing plant permit, shall be granted or renewed unless said scheme or schemes are submitted to, and approved by, the Department Head.

All processing plants existing, to be expanded, to be integrated or to be established shall obtain operating permits, licenses and/or approval from the Bureau or the Department, as the case may be, and shall submit themselves to other regulations related to their operation.

The Department Head may cancel, suspend, or phaseout all inefficient, wasteful, uneconomical or perennially short in raw material wood or forest products processing plants which are not responsive to the rationalization program of the government. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 31. Wood wastes, weed trees and residues. Timber licensees shall be encouraged and assisted to gather and save the wood wastes and weed trees in their concessions, and those with processing plants, the wood residues thereof, for utilization and conversion into wood by-products and derivatives.

Section 32. Log production and processing. — Unless otherwise directed by the President, upon recommendation of the Department Head, the entire production of logs by all timber licensees shall, beginning January 1, 1976 be processed locally: Provided, That the following conditions must be complied with by those who apply be allowed to export a portion of their log production to be determined by the Department Head such that the total log export of these timber licensees shall not exceed twenty-five percent (25%) of the total national allowable cut:

1) Timber licensees with existing viable processing plants or

2) Timber licensees with processing projects duly approved by the Department Head or

"3) Timber licensees who have acquired viable processing machinery and equipment which will be installed and will become operational in accordance with the schedule approved by the Department Head; and

4) Timber licensees whose log export support, or are in line with, government-approved trade agreement;

Provided, further, That no person shall be given a permit to export if he has not complied with the requirements on replanting and reforestation. Provided, That the President may, upon recommendation of the Department Head, whenever the export price of logs falls to unreasonably low level or whenever public interest so requires, cancel log exportation or reduce the maximum allowable proportion for log exports.

All timber licensees who have no processing plant and who have no plan to establish the same shall, jointly with wood processors, adopt a scheme or schemes for the processing of the log production in accordance with Section 30 hereof. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

C. REFORESTATION

Section 33. Lands to be reforested and/or afforested. — Lands to be reforested and/or afforested are as follows:

1. Public forest lands. —

a) Bare or grass-covered tracts of forest lands;

b) Brushlands or tracts of forest lands generally covered with brush, which need to be developed to increase their productivity;

c) Open tracts of forest lands interspersed with patches of forest;

d) Denuded or inadequately timbered areas proclaimed by the President as forest reserves and reservations as critical watersheds, national parks, game refuge, bird sanctuaries, national shrines, national historic sites;

e) Inadequately-stock forest lands within forest concessions;

f) Portions of areas covered by pasture leases or permits needing immediate reforestation;

g) River banks, easements, road right-of-ways, deltas, swamps, former river beds, and beaches.

2. Private Lands. —

a) Portions of private lands required to be reforested or planted to trees pursuant to Presidential Decree Nos. 953 and 1153 and other existing laws.

(Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 34. Industrial tree plantations, tree farms and Agro-forestry farms. — A lease for a period of fifty (50) years for the establishment of an industrial tree plantations, tree farm or agro-forestry farm, may be granted by the Department Head, upon recommendation of the Director, to any person qualified to develop and exploit natural resources, over timber or forest lands of the public domain categorized in Section 33 (1) hereof except those under paragraphs (d) and (g) with a minimum area of one hundred (100) hectares for industrial tree plantations and agro-forestry farms and ten (10) hectares for tree farms: Provided, That the size of the area that may be granted under each category shall, in each case, depend upon the capability of the lessee to develop or convert the area into productive condition within the term of the lease.

The lease may be granted under such terms and conditions as the Department Head may prescribe, taking into account, among others, the raw material needs of forest based and other industries and the maintenance of a wholesome ecological balance.

Trees and other products raised within the industrial tree plantation, tree farm or agro-forestry farm belong to the lessee who shall have the right to sell, contract, convey, or dispose of said planted trees and other products in any manner he sees fit, in accordance with existing laws, rules and regulations.

Reforestation projects of the Government, or portion thereof, which, upon field evaluation, are found to be more suitable for, or can better be developed as industrial tree plantations, tree farms or agro-forestry farms, in terms of benefits to the Government and the general surrounding area, may be the subject of a lease under this section. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 35. Priority. — Over any suitable area covered by a timber license agreement or permit, the priority to establish industrial tree plantation, tree farms or agro-forestry farm shall be given to the holder thereof after the Bureau had determined the suitability of such area and has set aside the same for the purpose.

The priority herein granted must, however, be availed of within a reasonable period otherwise the area shall be declared open to any qualified person and consequently segregated from the licensee's or permittee's area.

Priority shall also be given to the establishment of communal industrial tree plantations by barangays, municipalities or cities and provinces. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 36. Incentives. — To encourage qualified persons to engage in industrial tree plantation, tree farm and/or agro-forest farm, the following incentives are granted:

a) Payment of a nominal filing fee of fifty centavos (P0.50) per hectare.

b) No rental shall be collected during the first five (5) years from the date of the lease; from the sixth year to the tenth year, the annual rental shall be fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be one peso (1.00) per hectare: Provided, That lessees of areas long denuded, as certified by the Director and approved by the Department Head, shall be exempted from the payment of rental for the full term of the lease which shall not exceed twenty-five (25) years; for the first five (5) years following the renewal of the lease, the annual rental shall be fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be one pesos (1.00) per hectare: Provided, further, That notwithstanding the foregoing, no rental shall be collected from a lessee who, upon verification by the Bureau, substantially meets the schedule of development of the industrial tree plantation, the tree farm, or agro-forestry farm, as the case may be, as prescribed in the development plan submitted to, and approved by the Ministry Head, upon recommendation of the Director;

c) The forest charges payable by a lessee on the timber and other forest products grown and cut or gathered in an industrial tree plantation, tree farm, or agro-forestry farm shall only be twenty-five percent (25%) of the regular forest charges prescribed in the National Internal Revenue Code;

d) Exemption from the payment of the percentage tax levied in Title V of the National Internal Revenue Code when the timber and forest products are sold, bartered or exchanged by the lessee, whether in their original state or not, as well as exemption from all forms of sales tax, local and municipal taxes, and from the real property tax under the provisions of Presidential Decree No. 853;

e) A lessee shall not be subject to any obligation prescribed in, or arising out of, the provisions of the National Internal Revenue Code on withholding of tax at source upon interest paid on borrowings incurred for development and operation of the industrial tree plantation, tree farm, or agro-forestry farm;

f) Except when public interest demands, the boundaries of an area covered by an industrial tree plantation, tree farm, or agro-forestry farm lease, once establish on the ground, shall not be altered or modified;

g) Amounts expended by a lessee in the development and operation of an industrial tree plantation, tree farm, or agro-forestry farm prior to the time when the production state is reached, may, at the option of the lessee, be regarded as ordinary and necessary business expenses or as capital expenditures;

h) The Board of Investments shall, notwithstanding its nationality requirement on projects involving natural resources, classify industrial tree plantations, tree farms and agro-forestry farms as pioneer areas of investment under its annual priority plan, to be governed by the rules and regulations of said Board;

In addition to the incentives under this section, private landowners who engage in tree farming on areas fifty hectares or below by planting their lands with Ipil-Ipil and other fast-growing trees shall be exempt from the inventory requirement and other requirements before harvest as provided in this Decree for lessees of forest lands of the public domain: Provided, That the transport of trees cut shall be accompanied by the corresponding certificate of origin duly issued by the authorized forest officer. (Amendment to Section 36 of P.D. No. 705 (Revised Forestry Code), Batas Pambansa Blg. 701, [April 5, 1984])

i) Approved industrial tree plantations, tree farms, and agro-forestry farms shall be given priority in securing credit assistance from the government and government-supported financing institutions which shall set aside adequate funds for lending to the lessee and/or investor at reasonable interest rates;

j) The lessee and its field employees and workers shall be exempted from the provisions of Presidential Decree No. 1153;

k) Government institutions administering or financing programs and projects requiring wood materials shall specify the purchase of, or utilize, manufactured products derived from trees grown and harvested from industrial tree plantations, tree farms or agro-forestry farms, whenever possible;

l) No wood, wood products or wood-derivated products including pulp, paper and paperboard shall be imported if the same are available in required quantities and reasonable prices, as may be certified by the Department Head, from artificial or man-made forests, or local processing plants manufacturing the same;

m) No processing plant of whatever nature or type, made of, or utilizing, wood as primary materials shall be allowed to be established, expanded or integrated, and operated without a long-term assurance of raw materials source from forest concessions and/or from industrial tree plantations, tree farms or agro-forestry farms in accordance with Section 30 hereof;

n) Timber grown and harvested from industrial tree plantations, tree farms and agro-forestry farms may be exported without restriction in quantity or volume, and if the exporter is the same person or firm qualified and allowed to export logs under the provisions of this Decree, such timber from plantations/farms may be exported exclusive of the quantity or volume authorized under Section 32 hereof: Provided, That the rentals on the forest land and the forest charges on the plantation timber shall have been paid: Provided, further, That the export of the plantation timber shall be covered by a certificate to export issued by the Department Head on a yearly basis: Provided, finally, That the Department Head may at any time review the exportation of timber harvested from the plantations/farms and either reduced or totally suspend the export of such plantation timber whenever public interest so requires; and

o) Free technical advice from government foresters and farm technicians.

The Department Head may provide other incentives in addition to those hereinabove granted to promote industrial tree plantations, tree farms and agro-forestry farms in special areas such as, but not limited to, those where there are no roads or where roads are inadequate, or areas with rough topography and remote areas far from processing plants. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

D. FOREST PROTECTION

Section 37. Protection of all resources. All measures shall be taken to protect the forest resources from destruction, impairment and depletion.

Section 38. Control of concession area. In order to achieve the effective protection of the forest lands and the resources thereof from illegal entry, unlawful occupation, kaingin, fire, insect infestation, theft, and other forms of forest destruction, the utilization of timber therein shall not be allowed except through license agreements under which the holders thereof shall have the exclusive privilege to cut all the allowable harvestable timber in their respective concessions, and the additional right of occupation, possession, and control over the same, to the exclusive of all others, except the government, but with the corresponding obligation to adopt all the protection and conservation measures to ensure the continuity of the productive condition of said areas, conformably with multiple use and sustained yield management.

If the holder of a license agreement over a forest area expressly or impliedly waives the privilege to utilize any softwood, hardwood or mangrove species therein, a license may be issued to another person for the harvest thereof without any right of possession or occupation over the areas where they are found, but he shall, likewise, adopt protection and conservation measures consistent with those adopted by the license agreement holder in the said areas.

Section 39. Regulation of timber utilization in all other classes of lands and of wood-processing plants. The utilization of timber in alienable and disposable lands, private lands, civil reservations, and all lands containing standing or felled timber, including those under the jurisdiction of other government agencies, and the establishment and operation of saw-mills and other wood-processing plants, shall be regulated in order to prevent them from being used as shelters for excessive and unauthorized harvests in forest lands, and shall not therefore be allowed except through a license agreement, license, lease or permit.

Section 40. Timber inventory in other lands containing standing or felled timber. The Bureau shall conduct a one hundred per cent (100%) timber inventory in alienable and disposable lands and civil reservations immediately upon classification or reservation thereof.

No harvest of standing or felled timber in alienable and disposable lands, private lands, civil reservation, and all other lands, including those under the jurisdiction of other government agencies, shall be allowed unless a one hundred per cent (100%) timber inventory has been conducted thereon.

Section 41. Sworn timber inventory reports. All reports on timber inventories of forest lands, alienable and disposable lands, private lands, civil reservations, and all lands containing standing or felled timber must be subscribed and sworn to by all the forest officers who conducted the same.

Section 42. Participation in the development of alienable and disposable lands and civil reservations. The privilege to harvest timber in alienable and disposable lands and civil reservations shall be given to those who can best help in the delineation and development of such areas in accordance with the management plan of the appropriate government exercising jurisdiction over the same.

The extent of participation shall be based on the amount of timber which may be harvested therefrom.

Section 43. Swamplands and mangrove forests. Strips of mangrove forest bordering numerous islands which protect the shoreline, the shoreline roads, and even coastal communities from the destructive force of the sea during high winds and typhoons, shall be maintained and shall not be alienated. Such strips must be kept from artificial obstruction so that flood water will flow unimpeded to the sea to avoid flooding or inundation of cultivated areas in the upstream.

All mangrove swamps set aside for coast-protection purposes shall not be subject to clear-cutting operation.

Mangrove and other swamps released to the Bureau of Fisheries and Aquatic Resources for fishpond purposes which are not utilized, or which have been abandoned for five (5) years from the date of such release shall revert to the category of forest land.

Section 44. Visitorial power. The Department Head may, by himself or thru the Director or any qualified person duly designated by the Department Head, investigate, inspect and examine records, books and other documents relating to the operation of any holder of a license agreement, license, lease, or permit, and its subsidiary or affiliated companies, to determine compliance with the terms and conditions thereof, this Code and pertinent laws, policies, rules and regulations.

Section 45. Authority of forest officers. When in the performance of their official duties, forest officers, or other government officials or employees duly authorized by the Department Head or Director, shall have free entry into areas covered by a license agreement, license, lease or permit.

Forest officers are authorized to administer oath and take acknowledgment in official matters connected with the functions of their office, and to take testimony in official investigations conducted under the authority of this Code and the implementing rules and regulations.

Section 46. Scaling stations. In collaboration with appropriate government agencies, the Bureau shall establish control or scaling stations at suitably located outlets of timber and other forest products to insure that they were legally cut or harvested.

Section 47. Mining operations. Mining operations in forest lands shall be regulated and conducted with due regard to protection, development and utilization of other surface resources.

Location, prospecting, exploration, utilization or exploitation of mineral resources in forest reservations shall be governed by Mining laws, rules and regulations. No location, prospecting, exploration, utilization, or exploitation of mineral resources inside forest concessions shall be allowed unless proper notice has been served upon the licensees thereof and the prior approval of the Director, secured.

Mine tailings and other pollutants affecting the health and safety of the people, water, fish, vegetation, animal life and other surface resources, shall be filtered in silt traps or other filtration devices and only clean exhausts and liquids shall be released therefrom.

Surface-mined areas shall be restored to as near its former natural configuration or as approved by the Director prior to its abandonment by the mining concern.

Section 48. Mineral Reservations. Mineral reservations which are not the subject of mining operations or where operations have been suspended for more than five (5) years shall be placed under forest management by the Bureau.

Mineral reservations where mining operations have been terminated due to the exhaustion of its minerals shall revert to the category of forest land, unless otherwise reserved for other purposes.

Section 49. Roads and other infrastructure. Roads and other infrastructure in forest lands shall be constructed with the least impairment to the resource values thereof.

Government agencies undertaking the construction of roads, bridges, communications, and other infrastructure and installations inside forest lands, shall coordinate with the Bureau, especially if it will involve the utilization or destruction of timber and/or other forest resources, or watershed disturbance therein, in order to adopt measures to avoid or reduce damage or injury to the forest resource values.

They shall likewise extend assistance in the planning and establishment of roads, wharves, piers, port facilities, and other infrastructure in locations designated as wood-processing centers or for the convenience of wood-based industries.

In order to coincide and conform to government plans, programs, standards, and specifications, holders of license agreements, licenses, leases and permits shall not undertake road or infrastructure construction or installation in forest lands without the prior approval of the Director, or in alienable and disposable lands, civil reservations and other government lands, without the approval of the government agencies having administrative jurisdiction over the same.

All roads and infrastructure constructed by holders of license agreements, licenses, leases and permits belong to the State and the use and administration thereof shall be transferred to the government immediately upon the expiration or termination thereof. Prior thereto the Bureau may authorize the public use thereof, if it will not be detrimental to forest conservation measures.

Where roads are utilized by more than one commercial forest user, the Bureau shall prescribe the terms and conditions of joint use including the equitable sharing of construction and/or maintenance costs, and of the use of these roads by other parties and the collection of such fees as may be deemed necessary.

Section 50. Logging roads. There shall be indiscriminate construction of logging roads.

Such roads shall be strategically located and their widths regulated so as to minimize clear-cutting, unnecessary damage or injury to healthy residuals, and erosion. Their construction must not only serve the transportation need of the logger but, most importantly, the requirement to save as many healthy residuals as possible during cutting and hauling operations.

Section 51. Management of occupancy in forest lands. Forest occupancy shall henceforth be managed. The Bureau shall study, determine and define which lands may be the subject of occupancy and prescribed therein, an agro-forestry development program.

Occupants shall undertake measures to prevent and protect forest resources.

Any occupancy in forest land which will result in sedimentation, erosion, reduction in water yield and impairment of other resources to the detriment of community and public interest shall not be allowed.

In areas above 50% in slope, occupation shall be conditioned upon the planting of desirable trees thereon and/or adoption of other conservation measures.

Section 52. Census of kaingineros, squatters, cultural minorities and other occupants and residents in forest lands. Henceforth, no person shall enter into forest lands and cultivate the same without lease or permit.

A complete census of kaingineros, squatters, cultural minorities and other occupants and residents in forest lands with or without authority or permits from the government, showing the extent of their respective occupation and resulting damage, or impairment of forest resources, shall be conducted.

The Bureau may call upon other agencies of the government and holders of license agreement, license, lease and permits over forest lands to participate in the census.

Section 53. Criminal prosecution. — Kaingineros, squatters, cultural minorities and other occupants who entered into forest lands and grazing lands before May 19, 1975, without permit or authority, shall not be prosecuted: Provided, That they do not increase their clearings: Provided, further, That they undertake, within two (2) months from notice thereof, the activities to be imposed upon them by the Bureau in accordance with management plan calculated to conserve and protect forest resources in the area: Provided, finally, That kaingineros, squatters, cultural minorities and other occupants shall whenever the best land use of the area so demands as determined by the Director, be ejected and relocated to the nearest accessible government resettlement area. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

E. SPECIAL USES

Section 54. Pasture in forest lands. No forest land 50% in slope or over may be utilized for pasture purposes.

Forest lands which are being utilized for pasture shall be maintained with sufficient grass cover to protect soil, water and other forest resources.

If grass cover is insufficient, the same shall be supplemented with trees or such vegetative cover as may be deemed necessary.

The size of forest lands that may be allowed for pasture and other special uses shall be determined by rules and regulations, any provision of law to the contrary notwithstanding.

Section 55. Wildlife. — All measures shall be adopted to conserve wildlife. The Director shall regulate the hunting of wildlife in forest lands in order to maintain an ecological balance of flora and fauna. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 56. Recreation. The Bureau shall, in the preparation of multiple-use management plans, identify and provide for the protection of scenic areas in all forest lands which are potentially valuable for recreation and tourism, and plan for the development and protection of such areas to attract visitors thereto and meet increasing demands therefor.

The construction and operation of necessary facilities to accommodate outdoor recreation shall be done by the Bureau with the use of funds derived from rentals and fees for the operation and use of recreational facilities by private persons or operators, in addition to whatever funds may be appropriated for such purposes.

Section 57. Other special uses of forest lands. Forest lands may be leased for a period not exceeding twenty-five (25) years, renewable upon the expiration thereof for a similar period, or held under permit, for the establishment of sawmills, lumber yards, timber depots, logging camps, rights-of-way, or for the construction of sanatoria, bathing establishments, camps, salt works, or other beneficial purposes which do not in any way impair the forest resources therein.

F. QUALIFICATIONS

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

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

Section 60. Financial and technical capability. No license agreement, license, lease or permit over forest lands shall be issued to an applicant unless he proves satisfactorily that he has the financial resources and technical capability not only to minimize utilization, but also to practice forest protection, conservation and development measures to insure the perpetuation of said forest in productive condition.

Section 61. Transfers. — Unless authorized by the Department Head, no licensee, lessee, or permittee may transfer, exchange, sell or convey his license agreement, license, lease or permit, or any of his rights or interests therein, or any of his assets used in connection therewith.

The licensee, lessee or permittee shall be allowed to transfer or convey his license agreement, license, lease or permit only if the license, lease or permit has been in existence for at least three (3) years; the licensee, lessee or permittee has not violated any forestry law, rule or regulation and has been faithfully complying with the terms and conditions of the license agreement, license, lease or permit; the transferee has all the qualifications and none of the disqualifications to hold a license agreement, license, lease or permit; there is no evidence that such transfer or conveyance is being made for purposes of speculation; and the transferee shall assume all the obligations of the transferor.

As used in this section, the term "assets" shall not include cattle and other livestocks or animals raised in grazing lands and forest lands, and planted trees and other products raised in industrial tree plantations, tree farms and agro-forestry farms (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 62. Service contracts. The Department Head, may in the national interest, allow forest products licensees, lessees, or permittees to enter into service contracts for financial, technical, management, or other forms of assistance, in consideration of a fee, with any foreign person or entity for the exploration, development, exploitation or utilization of the forest resources, covered by their license agreements, licenses, leases or permits. Existing valid and binding service contracts for financial, technical, management or other forms of assistance are hereby recognized as such.

Section 63. Equity sharing. — Every corporation holding a license agreement, license, lease or permit to utilize, exploit, occupy or possess any forest land, or conduct any activity therein, or establish and operate a wood-processing plant, shall within one (1) year after the effectivity of this amendatory Decree, formulate and submit to the Department Head for approval a plan for the sale of at least ten percent (10%) of its subscribed capital stock in favor of employees, laborers and the general public.

The plan shall be so implemented that the sale of the shares of stock shall be effected by the corporation not later than the sixth year of its operation, or the first year of the effectivity of this amendatory Decree, if the corporation has been in operation for more than five (5) years prior to such effectivity.

No corporation shall be issued any license agreement, license, lease or permit after the effectivity of this amendatory Decree, unless it submits such a plan and the same is approved for implementation within the sixth year of its operation.

The Department Head shall promulgate the necessary rules and regulations to carry out the provisions of this section, particularly on the determination of the manner of payment, factors affecting the selling price, establishment of priorities in the purchase of the shares of stock, and the preparation of a fund to ensure the financial capability of the deserving employees and laborers. The industries concerned shall extend all assistance in the promulgation of policies on the matter, such as the submission of all data and information relative to their operation, personnel management and asset evaluation. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

G. REGULATORY FEES

Section 64. Charges, fees and bonds. The Department Head, upon recommendation of the Director, shall fix the amount of charges, rental, bonds and fees for the different kinds of utilization, exploitation, occupation, possession, or activity inside forest lands, the filing and processing of applications therefor, the issuance and renewal of license agreements, licenses, leases and permits, and for other services; Provided, That all fees and charges presently being collected under existing laws and regulations shall continue to be imposed and collected until otherwise provided; Provided, further, That timber taken and removed from private lands for commercial purposes shall be exempt from the payment of forest charges.

Section 65. Authority of Department Head to impose other fees. In addition to the fees and charges imposed under existing laws, rules and regulations, the Department Head is hereby authorized, upon recommendation of the Director and in consultation with representatives of the industries affected, to impose other fees for forest protection, management, reforestation, and development, the proceeds of which shall accrue into a special deposit of the Bureau as its revolving fund for the aforementioned purposes.

Section 66. Collection and Disbursement. The collection of the charges and fees above-mentioned shall be the responsibility of the Director or his authorized representative. The Director shall remit his monthly collection of fees and charges mentioned in Section 64 to the Treasurer of the Philippines within the first ten (10) days of the succeeding month; Provided, That the proceeds of the collection of the fees imposed under Section 65 and the special deposit heretofore required of licensees shall be constituted into a revolving fund for such purposes and be deposited in the Philippine National Bank, as a special deposit of the Bureau. The Budget Commissioner and the National Treasurer shall effect the quarterly releases out of the collection accruing to the general fund upon request of the Director on the basis of a consolidated annual budget of a work program approved by the Department Head and the President.

In the case of the special deposit revolving fund, withdrawals therefrom shall be effected by the Department Head on the basis of a consolidated annual budget prepared by the Director of a work program for the specific purposes mentioned in Section 65.

Section 67. Basis of Assessment. Tree measurement shall be the basis for assessing government charges and other fees on timber cut and removed from forest lands, alienable or disposable lands, and the civil reservations; Provided, That until such time as the mechanics of tree measurement shall have been developed and promulgated in rules and regulations, the present scaling method provided for in the National Internal Revenue Code shall be used.

The Director may, with the approval of the Department Head, prescribe a new method of assessment of forest products and collection of charges thereon based upon the result of production cost and market studies undertaken by the Bureau; Provided, That such charges shall not be lower than those now imposed.

H. UTILIZATION AND MANAGEMENT

(Incorporating Sections 230 to 238 and 297 of the NIRC of 1977 into P.D. No. 705, Republic Act No. 7161, [October 10, 1991])

SECTION 68. Measuring of Forest Products and Invoicing and Collection of Charges Thereon. – The duties incident to the measuring of forest products shall be discharged by the Forest Management Bureau under regulations of the Department of Environment and Natural Resources. The invoicing and collection of the charges thereon shall be done by the Forest Management Bureau under regulations approved by the Secretary of Environment and Natural Resources.

SECTION 69. Mode of Measuring Timber. – except as hereinbelow provided, all timber shall be measured and manifested in the round or squared, before being sawn or manufactured. The volume of all round timber shall e ascertained by multiplying the area of the small end by the length of the log, the diameter of the log to be measured exclusive of the bark; but if the end of a log is irregular the average diameter shall be used; and in order to ascertain the volume of a log more than eight meters long, the diameter of the middle of said log, or the average of the diameters at both ends thereof shall be used as basis. If a log in the round cut under license, is measured and manifested by forest officers, the Director of the Forest Management Bureau in this respect, an appeal shall lie to his Department head, whose decision shall be final. The manifest of timber cut by licensees operating sawmills in or near the forest shall be attested by forest officers whenever practicable.

The volume of squared timber shall be ascertained by multiplying the average of the cross section measured by the length, to which forty per centum shall be added for loss in squaring: Provided, however, that if squared timber cut under license is measured and manifested by forest officers, the Director of the Forest Management Bureau shall make due allowance for rot, cavities, or other natural defects; but from any decision of the Director of the Forest Management Bureau in this respect, an appeal shall lie to his Ministry Head, whose decision shall be final.The privilege of manifesting timber after squaring shall however, be granted only to licensees who have squared their logs in the forests with the ax and intend to take it to the market in this form.

If sawn or otherwise manufactured timber is found which has not been manifested in accordance with the provisions hereof, the corresponding forest charges shall be assessed ontwice the volume of the actual contents of such sawn or manufactured timber.

SECTION 70. Charges on Timber Cut in Forestland. – There shall be collected charges on each cubic meter of timber cut in forestland, whether belonging to the first, second, third or fourth group, twenty-five percent (25%) of the actual FOB market price based on species and grading: Provided, however, That, in the case of pulpwood and matchwood cut in forestland, forest charges on each cubic meter shall be ten percent (10%) of the actual FOB market price.

SECTION 71. Charges on Firewood, Branches and Other Recoverable Wood Wastes of Timber. – Except for all mangrove species whose cutting shall be banned, there shall be collected forest charges on each cubic meter of firewood cut in forestland, branches and other recoverable wood wastes of timber, such as timber ends, tops and stumps, when used as raw materials for the manufacture of finished products, Ten pesos (P10.00).

Only third or fourth group wood can be taken for firewood. However, if jointly authorized by the Secretaries of both the Departments of Environment and Natural Resources, and Agriculture, first and second group woods may be removed for firewood purposes from land which is more valuable for agricultural than for forest purposes.

SECTION 72. Charges on Minor Forest Products. – All other forest products of forestland which are not covered by the preceding sections shall be exempt from any of all forest charges, except rattan, gums and resins, beeswax, guta-percha, almaciga resin and bamboo which shall be charged at ten percent (10%) of the actual FOB market price.

SECTION 73. Effectivity and Application of Forest Charges and Determination of Market Price of Forest Products. – The rates of forest charges provided for in Sections 70, 71 and 72 hereof shall be effective upon approval of this Act. The new rates shall be published in the Official Gazette or in two (2) newspapers of national circulation and shall also be posted in conspicuous places in the different Department of Environment and Natural Resources field offices.

The actual FOB market price of forest products shall be justly determined once a year by the Secretary of Environment and Natural Resources: Provided, That he shall cause the creation of a committee to be composed of representatives of the Department of Environment and Natural Resources, the National Economic and Development Authority, the Department of Trade and Industry, the Bureau of Internal Revenue and the wood and furniture industry and consumers sectors which shall formulate the criteria and/or guidelines in the determination of the actual FOB market price to be used as the basis for the assessment of the ad valorem tax, taking into consideration production cost (developing cost, contingencies and miscellaneous cost), species and grade of timber, government share, reforestation, tariff duties, taxes, risk involved and a reasonable margin of profit for domestic and export market prices for wood and wood products.

These forest charges shall be applied to naturally growing timber and forest products gathered within public forestlands, alienable and disposable lands and private lands. Forest charges collected shall be in lieu of the administrative charge on environment and other fees and charges imposed thereon: Provided, That planted trees and other forest products harvested from industrial tree plantations and private lands covered by existing tiller or by approved land application are exempted from payment of forest charges.

SECTION 74. Tax Exemptions of Forest Products Lawfully Removed under Gratuitous License. – No charges shall be collected on forest products removed in conformity with the terms of a gratuitous license of the Forest Management Bureau and in compliance with the law and the regulations of such Bureau.

SECTION 75. Tax Exemption of Trees and Products Removed from Public Lands Under a Tree Farm Lease. – No charges shall be collected on trees and products removed from public lands planted to ipil-ipil and/or falcata under a tree farm lease with the Government.

SECTION 76. Time, Manner and Place of Payment of Forest Charges. – The charges on forest products herein imposed shall be payable at the time of the removal from or utilization of the same within the concession area.

Before removing any forest product subject to forest charges, the person liable to the said tax shall file, in duplicate, a return setting forth the quantity, volume and the specie of the forest product to be removed and pay the forest charges due thereon to the revenue district officer, collection agent, or duly authorized treasurer of the municipality of the place where the timber concession is located or where the forest products were gathered and removed, except as hereinbelow provided.

With the approval of the Director, lumber may be removed from a sawmill situated on a licensed citing area upon the giving of a bond conditioned upon the monthly payment of the charges due on the output of such mill. He may also authorize the shipment of forest products under auxiliary invoices without the prepayment of charges in special cases where the prepayment of the charges at the point of origin would result in undue hardship, if the owner or concessionaire shall first file a bond with the Forest Management Bureau in the form and amount and with such sureties as the Director may require, conditioned upon the payment of the forest charges at the point of destination or at such time and place as the Director may direct. However, if any forest products are removed, the Director of the Forest Management Bureau or his duly authorized representatives shall first be notified of such removal on a form prescribed for the purpose to be filed with the revenue district officer of the place where the concession is located or where the forest products were gathered and removed. It shall be the duty of every licensee to make a true and complete return in duplicate setting forth the quantity, volume and the specie of the forest product removed during each calendar quarter, or the balance, if any, in cases where payment are made upon removal, and pay the taxes due thereon within twenty days after the end of each quarter to the revenue district officer, collection agent, or duly authorized treasurer of the municipality of the place where the timber concession is located or where the forest products were gathered and removed.

In case the taxes are not paid within the period prescribed above, there shall be added thereto a surcharge of twenty-five per centum, the increment to be a part of the tax and the entire unpaid amount shall be subject to interest at the rate of twenty per centum per annum. Where a false or fraudulent return is made, there shall be added to the taxes a surcharge of fifty per centum of their amount, and the entire unpaid amount shall be subject to interest at the rate of twenty per centum per annum. The amounts so added shall be collected in the same manner and as part of the taxes, as the case may be.

Section 77 (68). Cutting, Gathering and/or collecting Timber or Other Forest Products Without License. — Any person who shall cut, gather, collect, remove timber or other forest products from any forest land, or timber from alienable or disposable public land, or from private land, without any authority, or possess timber or other forest products without the legal documents as required under existing forest laws and regulations, shall be punished with the penalties imposed under Articles 309 and 310 of the Revised Penal Code: Provided, That in the case of partnerships, associations, or corporations, the officers who ordered the cutting, gathering, collection or possession shall be liable, and if such officers are aliens, they shall, in addition to the penalty, be deported without further proceedings on the part of the Commission on Immigration and Deportation.

The court shall further order the confiscation in favor of the government of the timber or any forest products cut, gathered, collected, removed, or possessed, as well as the machinery, equipment, implements and tools illegally used in the area where the timber or forest products are found. (Amending Section 68 of P.D. No. 705 As Amended (Forestry Code of the Philippines), Executive Order No. 277, [July 25, 1987])

Section 77-A (68-A).Administrative Authority of the Department Head or His Duly Authorized Representative to Order Confiscation. — In all cases of violations of this Code or other forest laws, rules and regulations, the Department Head or his duly authorized representative, may order the confiscation of any forest products illegally cut, gathered, removed, or possessed or abandoned, and all conveyances used either by land, water or air in the commission of the offense and to dispose of the same in accordance with pertinent laws, regulations or policies on the matter.

Section 77-B (68-B).Rewards to Informants. — Any person who shall provide any information leading to the apprehension and conviction of any offender for any violation of this Code or other forest laws, rules and regulations, or confiscation of forest products shall be given a reward in the amount of twenty per centum (20%) of the proceeds of the confiscated forest products. (Amending Section 68 of P.D. No. 705 As Amended (Forestry Code of the Philippines), Executive Order No. 277, [July 25, 1987])

• See IRR of Sec 77-B (68-B) here

Section 78 (69). Unlawful occupation or destruction of forest lands and grazing lands. — Any person who enters and occupies or possesses, or makes kaingin for his own private use or for others, any forest land or grazing land without authority under a license agreement, lease, license or permit, or in any manner destroys such forest land or grazing land or part thereof, or causes any damage to the timber stand and other products and forest growth found therein, or who assists, aids or abets any other person to do so, or sets a fire, or negligently permits a fire to be set in any forest land or grazing land, or refuses to vacate the area when ordered to do so, pursuant to the provisions of Section 53 hereof shall, upon conviction, be fined in an amount of not less than five hundred pesos (P500.00), nor more than twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) months nor more than two (2) years for each such offense, and be liable to the payment to ten (10) times the rental fees and other charges which would have accrued had the occupation and use of the land been authorized under a license agreement, lease, license or permit: Provided, That in the case of an offender found guilty of making kaingin, the penalty shall be imprisonment for not less than two (2) nor more than four (4) years and a fine equal to eight (8) times the regular forest charges due on the forest products destroyed, without prejudice to the payment of the full cost of production of the occupied area as determined by the Bureau: Provided, further, That the maximum of the penalty prescribed herein shall be imposed upon the offender who repeats the same offense and double the maximum of the penalty upon the offender who commits the same offense for the third time.

In all cases the Court shall further order the eviction of the offender from the land and the forfeiture to the government of all improvements made and all vehicles, domestic animals and equipment of any kind used in the commission of the offense. If not suitable for use by the Bureau, said vehicles, domestic animals, equipment and improvements shall be sold at public auction, the proceeds of which shall accrue to the Development Fund of the Bureau.

In case the offender is a government official or employee, he shall, in addition to the above penalties be deemed automatically dismissed from office and permanently disqualified from holding any elective or appointive position. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 79 (70). Pasturing Livestock. Imprisonment for not less than six (6) months nor more than two (2) years and a fine equal to ten (10) times the regular rentals due, in addition to the confiscation of such livestock and all improvement introduced in the area in favor of the government, shall be imposed upon any person, who shall, without authority under a lease or permit, graze or cause to graze livestock in forest lands, grazing lands and alienable and disposable lands which have not as yet been disposed of in accordance with the Public Land Act; Provided, That in case the offender is a corporation, partnership or association, the officers and directors thereof shall be liable.

Section 80 (71). Illegal occupation of national parks system and recreation areas and vandalism therein. — Any person who, shall, without permit, occupy for any length of time any portion of the national parks system or shall, in any manner cut, destroy, damage or remove timber or any species of vegetation or forest cover and other natural resources found therein, or shall mutilate, deface or destroy objects of natural beauty or of scenic value within areas in the national parks system, shall be fined not less than five hundred (P500.00) pesos or more than twenty thousand (P20,000.00) pesos exclusive of the value of the thing damaged: Provided, That if the area requires rehabilitation or restoration as determined by the Director, the offender shall also be required to restore or compensate or the restoration of the damage: Provided, further, That any person who, without proper permit shall hunt, capture or kill any kind of bird, fish or wild animal life within the area in the national parks system shall be subject to the same penalty: Provided, finally, That the Court shall order eviction of the offender from the land and the forfeiture in favor of the government of all timber or any species or vegetation and other natural resources collected or removed, and any construction or improvement made thereon by the offender. If the offender is an association or corporation, the president or manager shall be directly responsible and liable for the act of his employees or laborers.

In the event that an official or employee of a city or municipal government is primarily responsible for detecting and convicting the violator of the provisions of this section, fifty per centum (50%) of the fine collected shall accrue to such municipality or city for the development of local parks. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 81 (72). Destruction of wildlife resources. Any person violating the provisions of Section 55 of this Code, or the regulations promulgated thereunder, shall be fined not less than one hundred (P100.00) pesos for each such violation and in addition shall be denied a permit for a period of three (3) years from the date of the violation.

Section 82 (73). Survey by unauthorized person. Imprisonment for not less than two (2) nor more than four (4) years, in addition to the confiscation of the implements used in the violation of this section including the cancellation of the license, if any, shall be imposed upon any person who shall, without permit to survey from the Director, enter any forest lands, whether covered by a license agreement, lease, license, or permit, or not, and conduct or undertake a survey for whatever purpose.

Section 83 (74). Misclassification and survey by government official or employee. Any public officer or employee who knowingly surveys, classifies, or recommends the release of forest lands as alienable and disposable lands contrary to the criteria and standards established in this Code, or the rules and regulations promulgated hereunder, shall, after an appropriate administrative proceeding, be dismissed from the service with prejudice to re-employment, and upon conviction by a court of competent jurisdiction, suffer an imprisonment of not less than one (1) year and a fine of not less than one thousand, (P1,000.00) pesos. The survey, classification or release of forest lands shall be null and void.

Section 84 (75). Tax declaration on real property. Imprisonment for a period of not less than two (2) nor more than four (4) years and perpetual disqualification from holding an elective or appointive office, shall be imposed upon any public officer or employee who shall issue a tax declaration on real property without a certification from the Director of Forest Development and the Director of Lands or their duly designated representatives that the area declared for taxation is alienable and disposable lands, unless the property is titled or has been occupied and possessed by members of the national cultural minorities prior to July 4, 1955.

Section 85 (76). Coercion and influence. — Any person who coerces, influences, abets or persuades the public officer or employee referred to in Sections 74 and 75 commit any of the acts mentioned therein shall suffer imprisonment of not less than one (1) year and pay a fine of five hundred (P500.00) pesos for every hectare or a fraction thereof so improperly surveyed, classified or released.

In all other cases, any person who coerces, influences, abets or persuades the public officer or employee by using power and influence in deciding any pending case or matter in his favor shall be punished by a fine of not more than five thousand pesos (P5,000.00) and imprisonment of not less than one (1) year. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 86 (77). Unlawful possession of implements and devices used by forest officers. Imprisonment for a period of not less than (2) nor more than four (4) years and a fine of not less than one thousand pesos (P1,000.00), nor more than ten thousand (P10,000.00) pesos in addition to the confiscation of such implements and devices, and the automatic cancellation of the license agreement, lease, license or permit, if the offender is a holder thereof, shall be imposed upon any person who shall, without authority from the Director or his authorized representative, make, manufacture, or has in his possession any government marking, hatchet or other marking implement, or any marker, poster, or other devices officially used by officers of the Bureau for the marking or identification of timber or other products, or any duplicate, counterfeit, or imitation thereof, or make or apply a government mark on timber or any other forest products by means of any authentic or counterfeit device, or alter, deface, or remove government marks or signs, from trees, logs, stumps, firewoods or other forest products, or destroy, deface, remove or disfigure any such mark, sign, poster or warning notices set by the Bureau to designate the boundaries of cutting areas, municipal or city forest or pasture, classified timber land, forest reserve, and areas under the national park system or to make any false mark or imitation of any mark or sign herein indicated; Provided, That if the offender is a corporation, partnership or association, the officers and directors thereof shall be liable.

Section 87 (78). Payment, collection and remittance of forest charges. Any person who fails to pay the amount due and payable under the provisions of this Code, the National Internal Revenue Code, or the rules and regulations promulgated thereunder, shall be liable to the payment of a surcharge of twenty-five per centum (25%) of the amount due and payable.

Any person who fails or refuses to remit to the proper authorities said forest charges collectible pursuant to the provisions of this Code or the National Internal Revenue Code, or who delays, obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of the funds for purposes other than those specified in this Code, for each such offense shall, upon conviction, be punished by a fine of not exceeding one hundred thousand pesos (P100,000.00) and/or imprisonment for a period of not exceeding six (6) years in the discretion of the Court. If the offender is a government official or employee, he shall, in addition, be dismissed from the service with prejudice to reinstatement and with disqualification from holding any elective or appointive office.

If the offender is a corporation, partnership or association, the officers and directors thereof shall be liable.

Section 88 (79). Sale of wood products. No person shall sell or offer for sale any log, lumber, plywood or other manufactured wood products in the international or domestic market unless he complies with grading rules and established or to be established by the Government.

Failure to adhere to the established grading rules and standards, or any act of falsification of the volume of logs, lumber, or other forest products shall be a sufficient cause for the suspension of the export, sawmill, or other license or permit authorizing the manufacture or sale of such products for a period of not less than two (2) years.

A duly accredited representative of the Bureau shall certify to the compliance by the licensees with grading rules.

Every dealer in lumber and other building material covered by this Code shall issue an invoice for each sale of such material and such invoice shall state that the kind, standard and size of material sold to each purchaser in exactly the same as described in the invoice. Any violation of this Section shall be sufficient ground for the suspension of the dealer's license for a period of not less than two (2) years and, in addition thereto, the dealer shall be punished for each such offense by a fine of not less than two hundred pesos (P200.00) or the total value of the invoice, whichever is greater.

Section 89 (80).Arrest: institution of criminal actions. — A forest officer or employee of the Bureau or any personnel of the Philippine Constabulary/Integrated National Police shall arrest even without warrant any person who has committed or is committing in his presence any of the offenses defined in this Chapter. He shall also seize and confiscate, in favor of the Government, the tools and equipment used in committing the offense, and the forest products cut, gathered or taken by the offender in the process of committing the offense. The arresting forest officer or employee shall thereafter deliver within six (6) hours from the time of arrest and seizure, the offender and the confiscated forest products, tools and equipment and file the proper complaint with, the appropriate official designated by law to conduct preliminary investigation and file information in Court.

If the arrest and seizure are made in the forest, far from the authorities designated by law to conduct preliminary investigations, the delivery to, and filing of the complaint with, the latter shall be done within a reasonable time sufficient to the place of delivery. The seized products, materials and equipment shall be immediately disposed of in accordance with forestry administrative orders promulgated by the Department Head.

The Department Head may deputized any agency, barangay or barrio official, or any qualified person to protect the forest and exercise the power or authority provided for in the preceding paragraph.

Reports and complaints regarding the commission of any of the offenses defined in this Chapter, not committed in the presence of any forest officer or employee, or any personnel of the Philippine Constabulary/Integrated National Police or any of the deputized officers or officials, shall immediately be investigated by the forest officer assigned in the area or any personnel of the Philippine Constabulary/Integrated National Police where the offense was allegedly committed, who shall thereupon receive the evidence supporting the report or complaint.

If there is a prima facie evidence to support the complaint or report, the investigating forest officer and/or members of the Philippine Constabulary/Integrated National Police shall file the necessary complaint with the appropriate official authorized by law to conduct a preliminary investigation of criminal case and file an information in Court. (Amending Section 80 of P.D. No. 705 As Amended (Revised Forestry Code of the Philippine), Presidential Decree No. 1775, [January 14, 1981])

Section 89-A (80-A). The Armed Forces of the Philippines shall organize a special force in every region to help enforce the provisions of this act under such rules and regulations as may be agreed upon by the Secretaries of National Defense and Natural Resources. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 89-B (80-B). Administrative authority of the Director to impose fines. — In all cases of violations of this Code and other forest laws, rules and regulations where fine is the principal penalty, the Director is hereby authorized to impose administratively the penalty consisting of the fine. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 90 (81). Separability Clause. Should any provision herein be subsequently declared unconstitutional, the same shall not affect the validity or the legality of the other provisions.

Section 91 (82). Repealing Clause. Presidential Decree Nos. 330, and 389, C.A. No. 452, R.A. No. 4715 and all laws, orders, rules and regulations or any part thereof which are inconsistent herewith are hereby repealed or amended accordingly.

Section 92 (83). Date of Effectivity. This Code shall take effect immediately upon promulgation.

Done in the City of Manila, this 19th day of May, in the year of Our Lord, nineteen hundred and seventy-five.