Revised Rules on Foreshore Lands Management

DAO No. 2004-24 directs DENR to (1) tap resources to generate economic opportunities and promote social equity; (2) promote sustainable use through effective foreshore/marshy land management; (3) institutionalize partnership among national agencies, LGUs, and foreshore leaseholders for ecological balance while preserving user fees/financial benefits; (4) provide an accepted scheme for public access to the sea/water bodies for emergency and general public purposes; and (5) establish an automated system for foreshore data/information.

"Foreshore Lands" are the part of the shore which is alternately covered and uncovered by the ebb and flow of the tide.

"Marshy Land" is a wetland whose soil is inundated by water and whose vegetation is dominated by grasses or sedges.

The "Salvage Zone" is the area measuring twenty (20) meters landward from the interior limit of the shoreline for easement purposes. DAO No. 2004-24 further provides that the salvage zone shall not form part of the foreshore lease agreement (i.e., it remains reserved/easement area under the law).

Any Filipino citizen of legal age; and corporations, associations, or partnerships duly organized under Philippine law where at least 60% of the capital is owned by Filipino citizens.

The owner of property adjoining foreshore/marshy lands (or lands covered with water bordering shores/navigable lakes or rivers) is given preference to apply within 60 days upon receipt of a "notice of preferential rights."

It must be filed with the Community Environment and Natural Resources Office (CENRO) having jurisdiction over the area.

DAO No. 2004-24 requires: (1) Articles of Incorporation and SEC Certificate of Registration; and (2) three (3) copies of the Board Resolution authorizing the President or authorized representative/s to apply for the foreshore lease agreement.

An approved plan and technical description of the applied land; and a development plan that includes, among others, the financial and technical capability of the applicant to undertake the project.

For applicable cases, the regional heads must certify that the land applied for is not needed for public use. Agencies/offices specifically mentioned: (1) Department of Tourism; (2) Philippine Ports Authority (PPA); (3) Municipal/District/City Engineer’s Office with DPWH regional director concurrence; and/or (4) Public Estates Authority (PEA).

The FLA is for 25 years and renewable for another 25 years at the option of the lessor.

DAO No. 2004-24 lists a fast-tracked sequence: (1) Filing/acceptance and record verification (1 day); (2) referral to investigator/ocular inspection (1 day); (3) preliminary investigation report (7 days); (4) appraisal report submission (5 days); (5) approval of appraisal and authority to conduct public bidding by officials (3 days PENR Officer; 5 days RED; 10 days Secretary); (6) publication/posting and proof submission (45 days); (7) public bidding and report (2 days); (8) issuance of Order/Award and preparation of FLA (3 days); (9) signing/approval by PENR (3-5 days), RED (7 days), Secretary (15 days); and (10) notarization/transmittal (1 day).

Application fee is P1,000.00 for corporations/associations/partnerships, and P500.00 for individuals plus documentary stamps. The fee is non-refundable.

Important conditions include: (1) no assignment/encumbrance/subletting without prior consent of the proper authority; (2) prohibition on permitting assignment/subletting to unauthorized persons/entities under C.A. 141; (3) strict prohibition on removing/dispose timber except as provided under P.D. 705 as amended, and prohibition on extracting stone/oil/coal/salts/minerals/medicinal mineral waters within the leased area; (4) projects are subject to the Environmental Impact Assessment System; (5) annual lease rental due within 15 days after receipt of approved lease for first year, then annually on or before the 5th day of the first month; (6) strict implementation of approved development plan; (7) salvage zone not part of agreement; lease subject to easement reserved by law on waters and specified sections of C.A. 141; and (8) lease does not grant right to conduct reclamation within or adjoining the leased area.

Cancellation may be based on (1) violation of C.A. 141 provisions regarding foreshore lands and the additional conditions in DAO 2004-24; and (2) non-payment of annual lease rental for two (2) consecutive years.

All buildings and other permanent improvements made by the lessee (and those made by heirs/executors/administrators/successors/assigns) accrue to the government.