Title
Interim Procedures for Forestland Utilization
Law
Executive Order No. 278
Decision Date
Jul 25, 1987
Executive Order No. 278 establishes interim procedures for the development and utilization of forestlands and resources in the Philippines, emphasizing state control and supervision, while allowing for agreements with Filipino citizens or corporations, and outlining minimum terms and conditions for sustainable and responsible use.
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Application Processing Scope

  • Applications for the development or utilization of forestlands/resources can be accepted and processed.
  • Timber licenses for commercial purposes are governed by a specific section (Section 4) within the order.

Governing Laws and Regulations

  • Application processing, evaluation, and approval are subject to Presidential Decree No. 705 (as amended), other forestry laws, orders, issuances, and their implementing rules.
  • The privileges granted and terms/conditions may be modified by Congress pursuant to constitutional provisions.

Validity of Existing Permits and Licenses

  • Existing and recognized forest permits, licenses, and leases remain valid and effective.
  • Such existing grants remain subject to the original terms and conditions unless Congress decides otherwise.

Authorization for Agreements

  • The Secretary of the Department of Environment and Natural Resources (DENR) can negotiate and enter into joint venture, co-production, or production-sharing agreements for forestlands/resources development.
  • Agreement partners must be Filipino citizens or entities with at least 60% Filipino ownership.
  • Agreements may last up to 25 years and can be renewed for another 25 years.
  • Agreements must adhere to minimum terms and conditions specified in Section 5.

Minimum Terms and Conditions for Agreements

  • Agreements must require holders to provide management, technology, and financial services when needed.
  • A share of revenue and payment method must be stipulated.
  • Provisions on consultation and arbitration concerning agreement interpretation are mandatory.
  • Environmental protection and anti-pollution measures must be included.
  • Restoration and protection of the forest must be provided.
  • An effective monitoring scheme by the DENR must be implemented including periodic inspections.
  • Holders must commit to community development.
  • A management and development plan must be submitted for DENR Secretary approval.

Rulemaking Authority

  • The DENR Secretary has the power to promulgate rules and regulations needed for effective implementation of this Executive Order.

Severability Clause

  • If any provision of this order is found unconstitutional, other provisions remain unaffected.

Repeal and Modification of Inconsistent Laws

  • Laws, decrees, orders, or parts inconsistent with this order are repealed or modified accordingly.

Effectivity

  • The Executive Order takes effect immediately upon issuance.

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