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 Summary (G.R. No. 137174)

Applicable Law

The case primarily involves the interpretation of Republic Act No. 3931, amended by Presidential Decree No. 984 (the National Pollution Control Decree of 1976), and the subsequent Philippine Mining Act of 1995 (Republic Act No. 7942). The laws govern the regulation of pollution from mining operations and the authority of the Pollution Adjudication Board and the Mines Regional Director.

Background of the Case

Marcopper Mining Corporation was granted a temporary permit to operate a tailings disposal system that expired in February 1987. Following environmental protests, MMC received a cease and desist order from the National Pollution Control Commission (NPCC) to stop discharging mine tailings into Calancan Bay. Subsequent to the NPCC's reorganization into the DENR, MMC was ordered to cease operations, which it had contested, leading to a complicated series of legal proceedings and orders regarding its obligations and compliance.

Legal Proceedings and Findings

After MMC ceased its tailings discharge, the PAB ruled in 1997 that MMC owed daily contributions to the ETF that had been established for the rehabilitation of Calancan Bay. However, the Court of Appeals ultimately set aside this ruling, concluding that the PAB had exceeded its authority under the law due to the transition of regulatory powers to the Mines Regional Director established by the Mining Act.

Discussion on Authority and Jurisdiction

The Court of Appeals asserted that the PAB could not enforce obligations on MMC given that the duties associated with pollution control had largely transitioned to the Mines Regional Director following the enactment of the Philippine Mining Act. The ruling was supported by the observation that the Mining Act established a framework wherein the regional director had significant power to ensure compliance with environmental regulations without an implication of overlapping authority with the PAB.

Cease and Desist Orders and Due Process

MMC contested the cease and desist orders issued by the PAB, arguing violations of procedural rights. However, the law permits ex-parte orders without a public hearing when imminent threats to health and safety are identified. The decision also reaffirmed that the PAB retained jurisdiction over pollution-related complaints prior to the implementation of the Mining Act.

Financial Contributions to the Ecology Trust Fund

The mandatory daily payments by MMC to the ETF were a focal point of dispute, with MMC stopping contributions after ceasing tailings disposal. The

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