Constitutional and legal basis
- The Order is issued pursuant to Section 3, Article 12 of the Constitution (Pursuant clause).
- The Order is also issued pursuant to the Public Land Act (C.A. 141 as amended), Sections 3, 4, 5 and 58 (Pursuant clause).
- The Order governs foreshore lands administration and management through rules on utilization and occupation (Pursuant clause; Section 1).
Policy, objectives, and guiding principles
- The DENR shall tap all resources to generate economic opportunities and promote social equity (Section 1(a)).
- The DENR shall promote sustainable use of foreshore/marshy lands through effective and efficient management schemes and strategies (Section 1(b)).
- The DENR shall institutionalize a cohesive partnership among national government agencies, local government units, and foreshore leaseholders for conservation and maintenance of an ecologically-balanced environment without compromising financial benefits from user fees and similar fees (Section 1(c)).
- The DENR shall provide an accepted scheme to ensure access to the sea and water bodies for emergency purposes and benefit of the general public (Section 1(d)).
- The DENR shall establish an automated system of foreshore lands related data/information (Section 1(e)).
Core definitions for foreshore lands
- Foreshore Lands means the part of the shore that is alternately covered and uncovered by the ebb and flow of the tide (Section 2(a)).
- Foreshore Lease Application covers foreshore lands and may also cover marshy lands or lands covered with water bordering upon shores or banks of navigable lakes or rivers for commercial, industrial or other productive purposes other than agriculture (Section 2(b)).
- Foreshore Lease Agreement (FLA) is an agreement executed by the DENR and the applicant to occupy, develop, utilize, and manage foreshore lands and may also cover marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers (Section 2(c)).
- Marshy Land means a wetland whose soil is inundated by water and whose vegetation is dominated by grasses or sedges (Section 2(d)).
- Riparian Owner is the owner of property adjoining foreshore lands, marshy lands, or lands covered with water bordering shores or banks of navigable lakes or rivers; it includes owners on river banks as well as littoral owners (Section 2(e); citing Lands General Circular No. 37 dated Feb. 7, 1978).
- Salvage Zone means lands measuring twenty (20) meters measured landward from the interior limit of the shoreline for easement purposes (Section 2(f)).
Coverage: lands and who may apply
- The Order covers all foreshore lands, including marshy lands or lands covered with water bordering upon shores or banks of navigable lakes or rivers (Section 3).
- A Foreshore Lease Agreement may be applied for by any Filipino citizen of legal age (Section 4(1)).
- A Foreshore Lease Agreement may be applied for by corporations, associations or partnerships duly constituted and organized under Philippine laws, if at least sixty percent (60%) of the capital is owned by Filipino citizens (Section 4(2)).
Inventory, preference rights, and transfers
- Foreshore and marshy lands shall be inventoried and surveyed by the CENRO to determine existing/appropriate uses, availability of open areas, extent of the area, and the number of settlers (Section 5).
- The inventory and survey shall be completed within one (1) year from approval of the Order (Section 5).
- The riparian owner shall be given preference to apply within sixty (60) days upon receipt of a “notice of preferential rights” for foreshore/marshy lands or lands covered with water bordering his property (Section 6).
- If the applicant dies, or cannot continue through no fault of the applicant after issuance of the Order/Award or during the life of the lease or while obligations pending toward the government, successors-in-interest are entitled to be issued the contract.
- The successors-in-interest’s entitlement is subject to compliance with required conditions and includes subrogation of all rights and obligations under the law and existing DENR policies, rules and regulations (Section 7).
Application filing, form, fees, and documents
- Applications (or renewal thereof) must be filed with the Community Environment and Natural Resources Office (CENRO) that has jurisdiction over the area (Section 8).
- An application must be filed in due form and substance (Section 9(1)).
- Acceptance requires that the application is properly filled-out under oath by the applicant, or by its President, General Manager, or duly authorized representative(s) for juridical persons (Section 9(1)).
- The application must include documentary requirements, including:
- A copy of the naturalization certificate for naturalized Filipino citizens (Section 9(2)(a)).
- For corporations/associations/partnerships: Articles of Incorporation and Certificate of Registration from the SEC (Section 9(2)(b.1)) and three (3) copies of the Board Resolution authorizing the President or representatives to apply for a foreshore lease agreement (Section 9(2)(b.2)).
- If using a name, style or trade name other than the true name: three (3) copies of the Certificate of Registration from the Department of Trade and Industry (DTI) and the SEC (Section 9(2)(c)).
- An approved plan and technical description of the land applied for (Section 9(2)(d)).
- A certification, whenever applicable, from the regional heads of agencies/offices with jurisdiction that the land applied for is not needed for public use, including: Department of Tourism, Philippine Ports Authority (PPA), Municipal/District/City Engineer’s Office with concurrence of the Regional Director of DPWH, and/or Public Estates Authority (PEA) (Section 9(2)(e); Section 9(2)(e.1–e.4)).
- A development plan stating, among others, the applicant’s financial and technical capability to undertake the project (Section 9(2)(f)).
- Application fees are required for acceptance of applications for new and renewal:
- PHP 1,000.00 for corporations, associations, or partnerships (Section 10).
- PHP 500.00 for individuals, plus documentary stamps (Section 10).
- The application fee is non-refundable (Section 10).
Lease terms and renewal
- Every Foreshore Lease Agreement is for a period of twenty-five (25) years (Section 11).
- The agreement is renewable for another twenty-five (25) years at the option of the lessor (Section 11).
Application processing timeline steps
- The DENR implements fast-tracked processing of foreshore lease applications through the following steps:
- Filing and acceptance of an application with complete requirements at the CENRO, including verification of records, numbering, foldering and recording (1 day) (Section 12(1)).
- Referral to the Land Investigator/Deputy Public Land Inspector for investigation and ocular inspection (1 day) (Section 12(2)).
- Conduct of preliminary investigation and submission of the report by the investigator to the CENR Officer (7 days) (Section 12(3)).
- Appraisal report submission by the CENR Officer to the PENR Officer, Regional Executive Director (RED), or Secretary, as applicable (5 days) (Section 12(4)).
- Approval of appraisal and grant of authority to conduct public bidding by the following:
- PENR Officer (3 days) (Section 12(5)),
- RED (5 days) (Section 12(5)),
- Secretary (10 days) (Section 12(5)).
- Publication/posting of the notice of right to lease and submission of proofs of publication by the CENR Officer to the PENR Officer (45 days) (Section 12(6)).
- Public bidding and submission of report of bidding by the CENR Officer to the PENR Officer (2 days) (Section 12(7)).
- Issuance of Order/Award and preparation of the foreshore lease agreement by the CENR Officer (3 days) (Section 12(8)).
- Signing of the agreement by the awardee and approval by the officials concerned upon receipt of the instrument:
- PENR Officer (3–5 days) (Section 12(9)(a)),
- RED (7 days) (Section 12(9)(b)),
- Secretary (15 days) (Section 12(9)(c)).
- Notarization and transmittal of the approved foreshore lease agreement to the applicant by the CENR Officer/Record Officer concerned (1 day) (Section 12(10)).
Who approves appraisal and public bidding
- The following officials approve appraisal (or re-appraisal), conduct of public bidding, and Foreshore Lease Agreements, based on area size (Section 13):
- PENR Officer for 1 hectare and below (Section 13(1)).
- RED for more than 1 hectare up to 5 hectares (Section 13(2)).
- Secretary for more than 5 hectares (Section 13(3)).
- Public bidding must be conducted in accordance with Sections 34, 35, 36 and 37 of C.A. 141 (Section 13).
Appraisal, rentals, and remittance to treasury
- Appraisal and/or re-appraisal must follow the manner prescribed in DAO 98-20 (Section 14(1)).
- The area and improvements must be re-appraised every ten (10) years from the approval of the lease contract (Section 14(1)).
- When new improvements/development are introduced before the tenth-year, an immediate appraisal must be effected (Section 14(1)).
- Rentals are paid at the CENR Office having jurisdiction over the leased land (Section 14(2)).
- All rentals paid must be remitted to the National Treasury (Section 14(3)).
Lease conditions: assignment, resources, EIA, payments
- The lessee shall not assign, encumber, or sublet lease rights without prior consent issued by the PENRO/RED/Secretary, as applicable (Section 15(1)).
- No provision allows assignment, encumbrance, or subletting of foreshore lands to persons or entities not authorized to lease such lands under C.A. 141 as amended and other pertinent laws (Section 15(2)).
- The lessee is strictly prohibited from removing or disposing of any timber except as provided under P.D. 705 as amended, or any stone, oil, coal, salts, or other minerals or medicinal mineral waters existing within the leased area (Section 15(3)).
- Violation of the prohibition on resource removal/disposal causes forfeiture of rights under the lease agreement and renders the lessee liable to immediate dispossession and suit for damages (Section 15(3)).
- All projects introduced by the lessee are subject to the Environmental Impact Assessment (EIA) System (Section 15(4)).
- Rental payment obligations for the annual lease rental are mandatory as follows:
- For the first year, the lessee must pay within fifteen (15) days after receipt of the approved lease contract (Section 15(5)).
- For succeeding years, annual lease rental must be paid on or before the fifth day of the first month of the year during the life of the lease without need of notice of demand (Section 15(5)).
- The lessee must strictly follow the implementation of the approved development plan (Section 15(6)).
- The salvage zone defined in the Order shall not form part of the agreement (Section 15(7)).
- The lease is subject to easement reserved by the Law on Waters, and to Sections 41, 109, 110, 111, 112, 113 and 114 of C.A. 141 as amended (Section 15(7)).
- The lease grants no right for the lessee to conduct reclamation work within or adjoining the leased area (Section 15(8)).
Cancellation grounds and legal effect
- The agreement may be cancelled for:
- Any violation of C.A. 141 as amended regarding foreshore lands and the additional conditions under Section 15 (Section 16(1)).
- Non-payment of annual lease rental for two (2) consecutive years (Section 16(2)).
- Upon expiration of the lease or its cancellation, all buildings and other permanent improvements made by the lessee and by the lessee’s heirs, executors, administrators, successors, or assigns accrue to the government (Section 17).
Repeal, amendment, and effectivity
- DAO 99-34, and other issuances, rules and regulations governing foreshore lands of this nature that are inconsistent with this Order, are repealed/amended/modified accordingly (Section 18).
- The Order takes effect after fifteen (15) days from publication in any newspaper of general circulation (Section 19).