Case Digest (G.R. No. 248932) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
The petitioner, Province of Occidental Mindoro, represented by Governor Eduardo B. Gadiano, enacted multiple ordinances and resolutions between 2008 and 2009, including Municipal Ordinance No. 106-2008 and Provincial Ordinance No. 34-09, imposing a 25-year moratorium on all large-scale mining activities within the Province, including the Municipality of Abra de Ilog. These ordinances completely banned large-scale exploration, drilling, excavation, and related mining operations under the Philippine Mining Act of 1995 (Republic Act No. 7942). In contrast, Agusan Petroleum and Mineral Corporation, the respondent, secured a Financial or Technical Assistance Agreement (FTAA) with the Republic of the Philippines dated October 16, 2008, granting exclusive rights to explore and develop minerals over a large area encompassing parts of Oriental and Occidental Mindoro, including Abra de Ilog. Agusan Petroleum challenged the validity of the moratorium ordinances in the Regional Trial Court Case Digest (G.R. No. 248932) Expanded Legal Reasoning Model
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)