Title
Supreme Court
Republic vs. Marcopper Mining Corporation
Case
G.R. No. 137174
Decision Date
Jul 10, 2000
Marcopper Mining Corp. contested PAB's cease-and-desist order and daily ₱30,000 payment obligation for tailings discharge. SC upheld PAB's jurisdiction but ruled no arrears after discharge cessation.

Case Digest (G.R. No. 98069)
Expanded Legal Reasoning Model

Facts:

Background of the Case
Respondent Marcopper Mining Corporation (MMC) was issued a temporary permit to operate a tailings sea disposal system (TPO No. POW-85-454-EJ) from October 31, 1985, to October 21, 1986. Before the permit expired, MMC applied for renewal with the National Pollution Control Commission (NPCC). However, on September 20, 1986, MMC received a telegraphic order from the NPCC directing it to cease discharging tailings into Calancan Bay. This order was prompted by protests from religious groups. MMC requested the NPCC to postpone the implementation of the directive until it could adopt an alternative tailings disposal system. The NPCC agreed and formed an Environmental Technical Committee to study alternative systems.

Issuance of a New Temporary Permit
On November 11, 1986, the NPCC issued a new temporary permit (TPO No. POW-86-454-EJ) to MMC, valid until February 10, 1987, with the condition that the tailings disposal system be relocated to San Antonio Pond within two months. MMC sought to remove this condition, citing the need to mine ore deposits beneath the San Antonio Pond. On February 5, 1987, MMC requested an extension of the permit and the indefinite suspension of the condition, pending the resolution of a related case.

Abolition of NPCC and Creation of PAB
On June 10, 1987, Executive Order No. 192 abolished the NPCC, transferring its functions to the Environmental Management Bureau and the Pollution Adjudication Board (PAB). On April 11, 1988, the PAB issued an order directing MMC to cease discharging tailings into Calancan Bay, as the temporary permit had expired on February 10, 1987, and MMC had not applied for renewal.

Appeal to the Office of the President
MMC appealed the PAB’s cease and desist order to the Office of the President. On May 13, 1988, the Office of the President granted MMC’s motion for reconsideration, directing MMC to maintain the status quo and contribute ₱30,000 daily to the Calancan Bay Rehabilitation Project (CBRP) under the supervision of the PAB. MMC complied until June 30, 1991, when it stopped both tailings discharge and payments to the Ecology Trust Fund (ETF).

Decision of the Office of the President
On February 5, 1993, the Office of the President dismissed MMC’s appeal, affirming the PAB’s cease and desist order and lifting the temporary restraining order issued in 1988. The Office of the President ruled that the PAB had the authority to issue ex-parte orders under Presidential Decree No. 984 when there was prima facie evidence of a threat to public health or the environment.

PAB’s 1997 Order and Court of Appeals Decision
On April 23, 1997, the PAB ordered MMC to pay ₱30,000 daily from July 1, 1991, to February 5, 1993, for failing to continue payments to the ETF. MMC contested this order before the Court of Appeals, which ruled in favor of MMC on January 7, 1998, setting aside the PAB’s order. The Court of Appeals held that under the Philippine Mining Act of 1995 (R.A. No. 7942), the PAB had no jurisdiction over pollution-related matters in mining operations.

Issues:

  • Whether the PAB, under R.A. No. 3931 as amended by P.D. No. 984, retained jurisdiction over pollution cases connected with mining operations after the enactment of R.A. No. 7942 (Philippine Mining Act of 1995).
  • Whether MMC was obligated to continue paying ₱30,000 daily to the ETF after it ceased discharging tailings into Calancan Bay.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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