Title
League of Provinces of the Philippines vs. Department of Environment and Natural Resources
Case
G.R. No. 175368
Decision Date
Apr 11, 2013
Golden Falcon's FTAA denied; small-scale mining permits issued by Bulacan Governor nullified by DENR, upheld by SC as constitutional exercise of state control over natural resources.
A

Case Digest (A.M. No. 14-11-350-RTC)

Facts:

  • Golden Falcon’s FTAA Application and Denial
    • March 28, 1996: Golden Falcon Mineral Exploration Corporation (Golden Falcon) filed an Application for Financial and Technical Assistance Agreement (FTAA) covering 61,136 ha in Bulacan.
    • April 29, 1998: DENR–Mines and Geosciences Bureau Regional Office No. III (MGB R-III) denied the FTAA for lack of required DENR clearances.
    • November 11, 1998: Golden Falcon appealed the denial to the DENR–MGB Central Office.
    • July 16, 2004: MGB Central Office denied the appeal, affirming the April 29, 1998 decision.
  • Concurrent and Subsequent Permit Applications
    • February 10, 2004: Four individuals filed Applications for Quarry Permit (AQP) with PENRO Bulacan over the same area.
    • September 13, 2004: Atlantic Mines and Trading Corporation (AMTC) filed an Application for Exploration Permit (AEP) with PENRO Bulacan covering 5,281 ha.
    • October 19, 2004: DENR–MGB Central Office certified finality of the July 16, 2004 denial, effective August 11, 2004.
    • May–June 2005: AMTC notified PENRO and MGB R-III of its prior AEP; PENRO’s legal officer opined that the area opened for mining on April 29, 1998.
    • July 22, 2005: AMTC formally protested the AQPs (converted to Small-Scale Mining Permit [SSMP] applications) before the Provincial Mining Regulatory Board (PMRB).
    • August 8–10, 2005: PMRB endorsed, and Governor dela Cruz issued, four SSMPs to the original quarry applicants.
  • Appeal and DENR Secretary’s Decision
    • AMTC appealed to DENR Secretary, arguing:
      • PMRB failed to resolve its protest before recommending SSMPs.
      • The area was under AMTC’s prior AEP and only opened August 11, 2004.
      • SSMPs covered non-declared People’s Small-Scale Mining Program areas and iron ore isn’t a quarry resource.
    • August 8, 2006: DENR Secretary ruled in favor of AMTC, declaring its AEP valid and nullifying and canceling the four SSMPs.
  • Petition to the Supreme Court
    • League of Provinces of the Philippines filed a Rule 65 petition seeking:
      • Declaration of unconstitutionality of Section 17(b)(3)(iii) LGC and Section 24 RA 7076.
      • Prohibition of DENR control over provinces.
      • Declaration that DENR Secretary’s nullification of SSMPs is illegal.

Issues:

  • Constitutionality of Granting “Control”
    • Whether Section 17(b)(3)(iii) of RA 7160 (Local Government Code) and Section 24 of RA 7076 (People’s Small-Scale Mining Act) unconstitutionally confer executive “control” over provinces, infringing local autonomy.
  • Extent of DENR Secretary’s Authority
    • Whether the DENR Secretary’s act of nullifying, voiding, and canceling SSMPs issued by a Provincial Governor amounts to unconstitutional executive control and usurps devolved provincial powers.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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