G.R. No. 162243 - Alvarez vs. PICOP Resources, Inc.

PICOP Resources, Inc. (hereafter PICOP) — successor to Bislig Bay Lumber Co., Inc., holder of Timber License Agreement (TLA) No. 43 originally granted 24 May 1952 and amended 26 April 1953 and 4 March 1959 covering 75,545 hectares in Surigao del Sur, Agusan del Sur, Compostela Valley, and Davao Oriental; TLA as amended expired 26 April 1977 and was renewed 7 October 1977 to terminate on April 25, 2002.
Heherson T. Alvarez, subsequently substituted by Elisea G. Gozun and later Angelo T. Reyes, in their official capacities as Secretary of the Department of Environment and Natural Resources (hereafter DENR).
Presidential Warranty dated 29 July 1969 allegedly issued to PICOP’s predecessor by then President Marcos, purportedly confirming boundaries and tenure in TLA No. 43.
DENR Administrative Order No. 99-53 (DAO No. 99-53) dated 23 December 1999, governing the Integrated Forest Management Program (IFMP), including provisions for conversion of TLAs into Integrated Forest Management Agreements (IFMAs) per Section 9, Chapter III.

PICOP sent a letter of intent dated 28 August 2000 to CENRO, DENR-Region XIII-D4, Bislig, signifying intent to convert TLA No. 43 into an IFMA under DAO No. 99-53; regional and central DENR offices coordinated performance evaluation and review.
RED Elias R. Seraspi, Jr. submitted a 31 July 2001 Memorandum recommending “proper evaluation” to consider automatic conversion upon TLA expiration; attached performance-evaluation reports (11 July 2001 and 27 July 2001) reported violations, including non-submission of five-year forest protection plan and seven-year reforestation plan.
FMB investigations (SFMS Ignacio Evangelista) documented late and unpaid forest charges, unpaid silvicultural fees, penalties, interest, and surcharges, and arrears totaling (as of 30 August 2002) P167,592,440.90 (including P150,169,485.02 in overdue/unpaid forest charges and P2,366,901 in silvicultural fees).

DENR constituted a negotiating team (Special Order No. 2001-698, 23 October 2001) and requested PICOP designate representatives (25 October 2001 letter); PICOP delayed participation until March 2002.
Negotiating Team issued Resolution No. 1 (9 April 2002) creating a Technical Working Committee (TWC) with DENR and PICOP representatives to evaluate conversion requirements and performance.
TWC meetings (10, 15, 19 April 2002) discussed PICOP’s noncompliance with required plans, the need for NCIP clearance under R.A. 8371 (IPRA), and other documentation; PICOP later sent letters asserting that conversion had already been completed and declined participation in the TWC process.

TWC and FMB concluded PICOP had not satisfied DAO No. 99-53 requirements; DENR directed further action and requested PICOP compliance with conditions including NCIP clearance.
NCIP Chairperson (Atty. Evelyn S. Dunuan) informed DENR (6 August 2002) that NCIP had no record of any certification issued to PICOP and reported overlap of 47,420 hectares of TLA No. 43 with ancestral domains of the Manobos, urging revocation of permits pending compliance with IPRA.
On 25 November 2002 President issued Proclamation No. 297 excluding approximately 8,100 hectares from TLA No. 43 as mineral reservation and environmentally critical area.

DENR letters (25 October 2001 and 24 April 2002) informed PICOP that conversion could be cleared subject to discussion of IFMA conditions and granted a one-year Transition Development and Management Plan (TDMP) “pending the formal approval of your IFMA,” while reiterating the requirement to submit outstanding requisites.
DENR issued Integrated Annual Operations Plan (IAOP) for 2001–2002 subject to conditions, but DENR evidence showed no corresponding official receipts for certain periods of alleged production and payment.

MANDAMUS CASE — PICOP filed Petition for Mandamus in Quezon City RTC (Civil Case No. Q-02-47764) against then Secretary Alvarez seeking an order to sign and deliver IFMA documents, issue IFMA assignment number, permit harvesting to meet mill requirements, and to honor Presidential Warran...(Subscriber-Only)

WHETHER THE PRESIDENTIAL WARRANTY IS A CONTRACT WHICH CONSTITUTES A LEGAL BAR TO THE EXERCISE BY THE STATE OF ITS FULL CONTROL AND SUPERVISION REGARDING THE EXPLORATION, DEVELOPMENT AND UTILIZATION OF ITS NATURAL RESOURCES.
WHETHER PICOP HAD ACQUIRED A VESTED RIGHT OVER ITS FOREST CONCESSION AREA BY VIRTUE OF THE AFORESAID PRESIDENTIAL WARRANTY.
WHETHER THE TRIAL COURT HAD JURISDICTION TO TAKE COGNIZANCE OF THIS CASE BECAUSE THE SUBJECT MATTER THEREOF PERTAINS TO THE EXCLUSIVE ADMINISTRATIVE DOMAIN OF THE DENR SECRETARY.
WHETHER PICOP’S PETITION FOR MANDAMUS SHOULD HAVE BEEN DISMISSED (1) FOR LACK OF CAUSE OF ACTION; AND (2) BECAUSE THE SUBJECT MATTER THEREOF IS NOT CONTROLLABLE BY MANDAMUS.
WHETHER PICOP HAS FAITHFULLY COMPLIED WITH ALL THE ADMINISTRATIVE AND OTHER STATUTORY REQUIREMENTS ENTITLING IT TO AN IFMA CONVERSION.
WHETHER PRESIDENTIAL DECREE NO. 605 HAS BEEN PARTLY REPEALED BY REPUBLIC ACT NO. 8975.

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