Title
Guidelines on Water Permit Cancellation
Law
No. 18-0118
Decision Date
Jul 10, 2018
The National Water Resources Board establishes guidelines for the cancellation of water permits due to non-use, allowing for revocation after three consecutive years of inactivity while outlining exceptions for unforeseen circumstances and compliance evaluation processes.
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Grounds for Revocation of Water Permit

  • Water permits may be revoked for:
    • Non-use of water for the stipulated purpose for three (3) consecutive years.
    • Gross violation of permit conditions.
    • Unauthorized sale of water.
    • Willful failure or refusal to comply with lawful orders or regulations.
    • Pollution, public nuisance, or acts detrimental to public health and safety.
    • Disqualification under laws governing natural resource exploitation.
    • Conversion of irrigated land to non-agricultural use.
    • Other similar grounds.

Non-Use and Cancellation Policy

  • Cancellation applies when:
    • Permittee has not used water for three (3) consecutive years from the permit's issuance or from the completion of diversion works.
    • Construction of diversion works and necessary structures is unfinished or abandoned.
    • Non-compliance is verified by the Monitoring and Enforcement Division (MED).

Procedural Requirement: Show Cause Order

  • Before cancellation, the NWRB issues a Show Cause Order requiring a written explanation from the permit holder.
  • The MED evaluates the explanation to determine justification.
  • If justification is accepted, no cancellation occurs.
  • If rejected, a Cease and Desist Order (CDO) is issued followed by permit cancellation.

Exceptions to Cancellation

  • Exceptions are granted on a case-by-case basis for delays caused by:
    • Force majeure events (major earthquakes, floods, volcanic eruptions).
    • Geopolitical issues (armed conflicts, terrorism).
    • Technical reasons (on-going feasibility studies, extended project duration) with possible one-year extensions.
    • Legal impediments (litigation exceeding three years, right-of-way acquisition, pending cancellation cases, contract disputes).
    • Institutional issues (failure to secure necessary permits, political or civic interventions).
    • Financial reasons (investor withdrawal).
  • Extensions and exceptions must be approved by NWRB.

Restriction on Re-application After Cancellation

  • If permit is cancelled upon permittee's request:
    • No re-application for the same diversion point for one (1) year.
    • No re-application for other diversion points for six (6) months.
  • If cancelled due to non-use after three (3) years:
    • No re-application for the same diversion point for five (5) years.
    • No re-application for other diversion points for one (1) year.
  • These restrictions apply even if the former permittee forms a partnership or company owning 50% or more shares.
  • If ownership is less than 50%, new application rules apply.

Legal Basis and Implementation

  • The policy is anchored on provisions of the Water Code of the Philippines, specifically Articles 13 and 29, and Section 15(h) of Implementing Rules and Regulations.
  • Monitoring and Enforcement Division conducts compliance checks and enforces cancellations.
  • Approved by the NWRB Board on January 24, 2018.

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