QuestionsQuestions (DENR ADMINISTRATIVE ORDER NO. 99-34)
DAO No. 99-34 (10 Aug 1999) aims to rationalize and regulate utilization and occupation of foreshore areas, marshy lands, and other lands bordering bodies of water, consistent with the DENR mandate to conserve natural resources and protect the coastal environment while promoting sustainable use. Key objectives include tapping resources that generate income, improving and sustainably using foreshore areas through effective management, building partnership with foreshore contract holders for conservation without compromising user-fee benefits, and ensuring free access for recreation, educational and sports purposes.
‘Foreshore lands’ are the part of the shore alternately covered and uncovered by the ebb and flow of the tide. ‘Marshy lands’ are wetlands whose soil is permanently or protractedly saturated by water with vegetation dominated by grasses or sedges.
DAO 99-34 covers all foreshore and marshy lands or lands covered with water bordering shores or banks of navigable lakes or rivers. Mangrove areas are excluded.
Any person, corporation, association, or partnership may lease not more than 144 hectares.
The applicant’s heirs succeed to the applicant’s rights and obligations and may be entitled to the contract, subject to requirements and compliance with law, including subordination to the heirs’ obligations under the government’s conditions.
Any Filipino citizen of lawful age; or corporations, associations, or partnerships duly constituted under Philippine law, provided at least 60% of the capital is owned by Filipino citizens.
The application form must include: the nature of the proposed utilization/development/activity; location and size of the area; sketch and boundaries; and a brief description of the area, plus such other information the DENR may require.
DAO 99-34 requires (as stated): three copies each of articles of incorporation and by-laws; minutes of the latest organizational meeting of stockholders/general assembly electing the present Board of Directors; resolution adopting election of the Board certified by the Secretary; minutes of Board organizational meeting electing present officers certified by the Secretary; and minutes indicating authority of the officer to file the application. It also requires compliance with the citizenship/capital-structure undertaking and certifications by appropriate government agencies.
The articles of incorporation must show an undertaking that there will be no transfer of stock/shares that changes the citizenship and capital structure of the corporation. If any transfer of stock/share occurs, it shall not be effected without approval of the DENR Secretary upon recommendation of the concerned Regional Executive Director.
The application is filed with the Community Environment and Natural Resources Office (CENRO) which has jurisdiction over the area. Applications are numbered, stamped, and recorded in the book provided for the purpose in chronological order showing the number, date, and time of receipt.
An application for new and renewal of FLA is accepted only with an application fee of P100.00 plus documentary stamp, and the fee is non-refundable.
The lease is for 25 years and renewable for another 25 years.
Key steps include: (1) filing at the CENRO; (2) preliminary investigation and appraisal; (3) survey; (4) recommendation for approval of appraisal and authority to lease through bidding; (5) approval of appraisal and authority to lease by bidding; (6) if appraised value is more than P240, publication expenses; (7) publication in Official Gazette and/or two newspapers weekly for six consecutive weeks, plus posting for six consecutive weeks at CENRO, city/municipal halls, barangay hall, and on-site; (8) public auction and submission of bidding report and proof of payment of at least three months’ user’s fee plus publication/posting proofs; (9) Order of Award; (10) preparation of lease contract upon payment of one user’s fee; (11) issuance/forwarding for signature/notarization and approval; (12) transmittal of approved lease contract to applicant.
These include: official receipt of application fee; approved plan and technical description; spouse consent if married; corporate documents if applicable; certification that the land is not needed for public use by specified agencies/offices (provincial tourism, Philippine Ports Authority, municipal/district/city engineer’s office with concurrence of DPWH Regional Director); feasibility study; and Environmental Compliance Certificate (ECC).
Annual user fee shall not be less than 3% of the value of the land plus 1% of the improvements, if any, in accordance with appraisal/re-appraisal under DAO 98-20. The land area and improvements are re-appraised every 10 years from approval of the lease, with immediate appraisal if new improvements/developments are introduced.
Lessee cannot assign, encumber, or sublet rights without prior DENR consent (PENRO/RED/Secretary depending on authority). Unauthorized assignment/subletting/encumbrance voids the contract and causes forfeiture and possible immediate dispossession and damages. The contract must not confer the right to remove timber except as provided under revised forestry laws.
Upon final expiration, extension expiration, or cancellation, buildings and other permanent improvements made by the lessee (and heirs/successors/assigns) accrue to DENR, and NRDC may be allowed to manage/administer them in accordance with law.
Management, administration, and development are assigned to the Natural Resources Development Corporation (NRDC). NRDC may be authorized to collect user fees and other fees from foreshore usage, and subject to the DENR Secretary’s approval, may utilize 60% of such collections for protection of coastal resources/environment, advancement of people’s rights to balanced and healthful ecology and coastal biodiversity, and other necessary expenses.