Title
Province of Occidental Mindoro vs. Agusan Petroleum and Mineral Corporation
Case
G.R. No. 248932
Decision Date
Jan 14, 2025
Occidental Mindoro's ordinances banning large-scale mining violated national law and were declared unconstitutional. The court upheld the validity of mining under Republic Act No. 7942 while emphasizing local government limits.

Case Digest (G.R. No. 248932)
Expanded Legal Reasoning Model

Facts:

  • Background and Parties
    • The Province of Occidental Mindoro, through Governor Eduardo B. Gadian, enacted a set of ordinances and resolutions between 2008 and 2009 imposing a 25-year moratorium on all large-scale mining activities within its territorial boundaries.
    • Key enactments include Municipal Ordinance No. 106-2008 (Municipality of Abra de Ilog), Provincial Ordinance No. 34-09, and Provincial Resolutions No. 109 (2008) and 140 (2009).
    • Agusan Petroleum and Mineral Corporation (Agusan Petroleum) held a Financial or Technical Assistance Agreement (FTAA) with the Philippine Government, granting it exclusive rights to explore and mine minerals in specific areas within Oriental and Occidental Mindoro, including Abra de Ilog.
  • Content of the Ordinances and Resolutions
    • The ordinances placed a blanket 25-year ban on all forms of large-scale mining operations within the Province and Municipality.
    • The municipal ordinance excluded exploration and extraction activities for oil and natural gas.
    • Violations of the moratorium were subject to penalties including fines and imprisonment.
  • Legal Challenge
    • Agusan Petroleum filed a Petition for Declaratory Relief in the Regional Trial Court (RTC) in 2014 challenging the validity and constitutionality of the ordinances and resolutions.
    • Agusan Petroleum contended the local government units (LGUs) exceeded their authority, violated the non-impairment of contracts, and intruded on the State’s ownership and regulatory powers over mineral resources under Republic Act No. 7942 (Philippine Mining Act of 1995).
    • The Province and Municipality defended the ordinances as valid exercises of police power and local autonomy under the Local Government Code (RA 7160).
  • RTC Decision and Subsequent Proceedings
    • In 2018, the RTC issued an Order declaring the ordinances and resolutions unconstitutional and invalid.
    • The Province and Municipality moved for reconsideration, which was denied in 2019.
    • The Province filed a Petition for Review with the Supreme Court, and the parties filed their memoranda.

Issues:

  • Procedural Issue
    • Whether the Petition filed by the Province's provincial legal officer without the Office of the Solicitor General's (OSG) authorization should be dismissed for lack of authority.
  • Substantive Issues
    • Whether the ordinances and resolutions imposing a moratorium on large-scale mining activities constitute a valid exercise of police power by the LGUs.
    • Whether the moratorium ordinances violate Article XII, Section 2 of the 1987 Constitution and Republic Act No. 7942 regarding State ownership and control over mineral resources.
    • Whether the moratorium ordinances violate the constitutional guarantee on non-impairment of contracts concerning the FTAA executed by Agusan Petroleum.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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