Title
Rules for Industrial Forest Management
Law
Denr Administrative Order No. 97-04
Decision Date
Mar 4, 1997
The Department of Environment and Natural Resources establishes rules for the Industrial Forest Management Program to promote sustainable forest management, prioritize community-based strategies, and ensure equitable access to forest resources while encouraging private sector involvement in reforestation and industrial plantation development.
A

Priority of Community-Based Forest Management and Ancestral Domain Recognition

  • Community-based forest management is the national strategy.
  • Prioritization of ancestral domain/land claims, IPAS, and social forestry programs over IFMA if conflicts arise.
  • Proactive pursuit of community projects and protection of indigenous cultural communities.

Definitions

  • Brushland: degraded area with shrubby vegetation.
  • IFMA: production sharing agreement granting development and management rights over specified forestlands.
  • IFMA Holder: qualified person, corporation or cooperative entering into IFMA.
  • Industrial Forest Plantation (IFP): area planted with timber-producing or compatible species supporting industrial needs.
  • Protection Forest: forests not for timber production due to environmental sensitivity.
  • Various other terms defined including DENR, CENRO, PENRO, LGU, NGO, natural forest, open and denuded land.

IFMA Areas: Scope and Size

  • IFMAs cover brushlands, grasslands, and open/denuded forestlands under DENR jurisdiction.
  • Areas with vested rights/licenses require consent of current holders.
  • Natural forest patches too small for separate management are protected by IFMA holders.
  • Minimum IFMA size: 500 hectares; maximum per IFMA: 20,000 hectares.
  • A holder may hold multiple IFMAs but total cannot exceed 40,000 hectares.
  • Social equity principle applies in granting IFMAs.

Prohibited IFMA Areas

  • No IFMAs awarded in NIPAS except buffer zones.
  • Lands under ancestral domain claims, social forestry programs, or with indigenous occupants require priority and consent.
  • Pending ancestral domain applications preclude IFMA until resolved.

Environmental Requirements

  • Project Description or Initial Environmental Examination and Environmental Compliance Certificate (ECC) required before IFMA award.
  • Environmental Impact Statement (EIS) and ECC required for approval of Comprehensive Development and Management Plan (CDMP).

Application and Conversion

  • Applications for Timber License Agreements conversion and IFMA expansion treated as new applications.

Area Identification and Evaluation

  • CENRO identifies and evaluates potential areas using forest data and baseline information.
  • PENRO maintains database including site conditions, community demographics, and environmental factors.
  • Public information dissemination and local government validation required before securing DENR Secretary approval.
  • Register of available IFMA areas maintained accessible to stakeholders.

Applicant Qualifications and Eligibility

  • Applicants must be Filipino citizens or Filipino-controlled corporations/cooperatives.
  • Applicants must demonstrate technical and financial capability, environmental management record, and good community relations.
  • Relevant corporation documentation, financial statements, tax receipts, and application fees required.

Application Processing

  • CENRO verifies area availability, applicant qualifications, and site conditions; forwards recommendation to PENRO.
  • PENRO holds consultations with local communities to assess project acceptability.
  • Regional offices evaluate and recommend applications, forwarding to DENR Central Office.
  • Appeals allowed for denials.

IFMA Award and CDMP Approval

  • Forest Management Bureau (FMB) responsible for document management and endorsing approvals.
  • IFMAs up to 10,000 hectares approved by Undersecretary for Field Operations; over 10,000 hectares approved by DENR Secretary.
  • CDMP approved by the same official who approved the IFMA.

IFMA Terms and Conditions

  • IFMA duration: 25 years renewable for another 25 years upon compliance.
  • IFMA Holders must submit CDMP within 6 months, including EIS and ECC compliance.
  • Boundary delineation of IFMA and protection forests required.
  • Plant mainly timber-producing species; specifics on planting schedule and survival rate.
  • Up to 10% may be used for permanent agriculture if included in CDMP.
  • Protection against forest fires and adherence to environmental safeguards mandated.
  • Restrictions on tree cutting on steep slopes, riverbanks, roads, and protection forests.
  • Reforestation and conservation of rare flora/fauna required.
  • Employment of a registered forester in leadership roles.
  • Rights of indigenous communities respected and workers' rights upheld.
  • Annual reporting and community registers maintained.

DENR Responsibilities

  • Ensure compliance with environmental and consultation procedures.
  • Provide IFMA Holders with relevant area and community information.
  • Assist in developing agreements between holders and communities.

Transfer of IFMA Rights

  • Transfers require DENR Secretary approval following a notice and consultation process.
  • Conditions for transfer include compliance history, qualification of transferee, no speculation intent, and consent of financing institutions if applicable.

Compensation to IFMA Holders

  • Compensation for improvements on termination or reduction of IFMA without just cause.
  • Valuation by a committee of DENR, IFMA Holder, and independent appraiser; costs shared equally.

Enforcement and Remedies

  • Written notice required for breaches with 30-day remedy period.
  • Suspension possible depending on violation severity; right to motion for reconsideration available.
  • Grounds for cancellation include fraud, ECC violations, failure to submit or comply with CDMP, abandonment, and other breaches.
  • Automatic cancellation if awarded in violation of specified sections.

Incentives to IFMA Holders

  • Permitted interplanting of secondary crops if no biodiversity impact.
  • Ownership and harvesting rights of planted trees belong to holder.
  • Export and forest charge exemptions on plantation products.
  • Use of IFMA as loan collateral allowed with approval.

Government Share

  • Negotiated between DENR and IFMA Holder based on costs, schedule, products, volume, market price, and financial factors.
  • Government share fixed for IFMA duration unless mutually renegotiated.

Monitoring and Evaluation

  • Reporting and evaluation system involving FMB, PENRO, CENRO, and LGU/NGO representatives.
  • Indicators include seedling production, area planted, environmental protection, documentation, and issue reporting.

Program Management

  • FMB as national coordinating office responsible for policy development, site evaluation, coordination, evaluation, liaison, and records.
  • Regional and provincial offices responsible for local program implementation, monitoring, reporting, and data maintenance.

Miscellaneous Provisions

  • Existing valid IFMAs and applications are prioritized and governed accordingly; vested rights preserved.
  • Repealing clause nullifies inconsistent prior issuances.
  • Separability clause preserves remainder of order if any provision is invalid.
  • Effectivity upon publication with 15-day lead time.

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