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 Summary (G.R. No. 248932)

Applicable Law

The primary legal framework pertinent to this case includes the 1987 Philippine Constitution, the Local Government Code (Republic Act No. 7160), and the Philippine Mining Act of 1995 (Republic Act No. 7942). The particular focus is on local government autonomy and the limits of local police power when it contradicts national legislation.

Ordinances and Resolutions in Question

The challenge arose from Municipal Ordinance No. 106-2008 and Provincial Ordinance No. 34-09, both of which declare a 25-year moratorium on large-scale mining activities across the relevant jurisdictions. These ordinances aim to regulate mining operations by excluding large-scale activities while allowing small-scale mining operations under certain conditions.

Background of the Dispute

Agusan Petroleum, having entered into a Financial or Technical Assistance Agreement (FTAA) with the government, contested the validity of the provincial and municipal ordinances, arguing they infringe upon its rights under the FTAA and violate various legal provisions. The Provincial Government, in contrast, asserted its right to enact such ordinances as a valid exercise of police power to protect the environment and public health.

Legal Proceedings

Upon filing a Petition for Declaratory Relief, the Regional Trial Court ruled in favor of Agusan Petroleum, declaring the ordinances unconstitutional. The Province of Occidental Mindoro filed an appeal after an unsuccessful Motion for Reconsideration, leading to the current Supreme Court decision.

Court’s Analysis of Representation

Initially, the case examined whether the provincial legal officer had the authority to file the appeal. The Supreme Court noted that while the Office of the Solicitor General (OSG) is generally tasked with representing the government, exceptions allow local government legal officers to represent their units in court proceedings. The Court ultimately resolved to hear the case despite this procedural issue due to its significance.

Constitutional and Legal Framework on Local Autonomy

The case highlighted the constitutional framework that grants local governments autonomy while also clearly delineating the limitations of such powers. Under the law, local governments cannot impose regulations that are counter to state laws or prohibit activities authorized by the national legislature, such as large-scale mining.

Findings on Police Power and Local Ordinances

The Supreme Court determined that the ordinances enacted by the Province exceeded the proper scope of local police power. The Court underscored that while local governments are empowered to legislate for the welfare of their constituen

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