Use of offshore areas for gov't reclamation projects

Republic Act No. 7942 (Philippine Mining Act of 1995) confirms that mineral resources are State-owned.
The State retains full control over the exploration, development, utilization, and processing of mineral resources.
The State may directly undertake mining activities.

Section 8 of R.A. No. 7942 designates DENR as the primary agency responsible for conservation, management, development, and appropriate use of the State’s mineral resources.
This responsibility extends to reservations, watershed areas, and public domain lands.

Executive Order No. 786 (1982) establishes NRDC as a government corporation and DENR’s corporate arm.
NRDC is tasked with promoting the development of the country’s natural resources.

Under Section 9 of R.A. No. 7942, MGB administers and disposes of mineral lands and resources, both inland and offshore.

Presidential Decrees Nos. 3 and 3-A restrict reclamation of underwater areas to the National Government or authorized persons.
Public Estates Authority (PEA) is created under P.D. No. 1084 and Executive Order No. 525 to manage reclamation projects for the National Government.
PEA is empowered to reclaim land, foreshore, and submerged areas through dredging, filling, or other methods and acquire the reclaimed land.

Sand, gravel, and other dredgefill materials extracted from offshore submerged lands are critical raw materials for government-led reclamation and civil projects.

Prioritization of government projects is essential to support economic and social development.
Ensuring adequate, low-cost, and continuous supply of raw materials is crucial to prevent delays in government and large-scale state projects.

Offshore areas are fragile environments potentially impacted by mining activities.
DENR supervises activities in these areas closely to ensure environmental protection.

Government agencies (DENR, NRDC, PEA) may use offshore areas not covered by approved mining permits or contracts, including areas with pending applications, as sources of dredgefill materials.
Activities such as surveys, sampling, site selection, and dredging are monitored by DENR for compliance with mining, environmental laws, and guidelines.

PEA approves bids for contracts on reclamation projects.
Winning bidders get priority in using identified borrow areas, subject to qualifications under R.A. No. 7942.
If the winning bidder is disqualified, NRDC (under DENR) conducts quarry operations, possibly using service contractors.
Identification of borrow areas may be done by PEA or its contractors but requires DENR verification and approval.
Borrow areas unused for reclamation fall under DENR jurisdiction, and DENR-MGB processes mining right applications there.

Generally, permittees and contractors pay taxes and royalties, except where laws provide otherwise.
DENR or NRDC collects various fees, including management, service, and environmental user fees.
Revenue sharing: 41% to NRDC, 40% to PEA, 20% to concerned Local Government Units.

DENR and PEA must formulate and promulgate necessary rules and regulations to implement the order.

All inconsistent orders, rules, and regulations are repealed or amended in accordance with this Order.

The Order becomes effective fifteen (15) days after its publication in a newspaper of general circulation.