Law Summary
Definition of Terms
- Foreshore Lands: Shore areas alternately covered and uncovered by tides.
- Foreshore Lease Application: Application to lease foreshore, marshy lands, or water-covered lands adjoining navigable water bodies for commercial/industrial use excluding agriculture.
- Foreshore Lease Agreement (FLA): Contract between DENR and lessee for occupation and use of foreshore and related lands.
- Marshy Land: Wetlands with water-saturated soil and vegetation dominated by grasses or sedges.
- Riparian Owner: Owner of land adjoining foreshore or water-bordered lands, including riverbanks and littoral owners.
- Salvage Zone: 20-meter landward strip from shoreline reserved for easement.
Scope
- Applies to all foreshore lands, including marshy lands and lands bordering navigable lakes or rivers.
Eligibility to Apply for Foreshore Lease Agreement
- Filipino citizens of legal age.
- Corporations/associations/partnerships with at least 60% Filipino capital ownership.
Inventory and Survey
- CENRO tasked to survey and inventory foreshore and marshy lands within one year from the Order's approval.
- Determine current use, availability, extent, and number of settlers.
Preference Right of Riparian Owners
- Riparian owners have preference to apply for leases adjoining their property.
- Must apply within 60 days upon receipt of notice of preferential rights.
Transfer of Rights
- Rights under Foreshore Lease may be succeeded by lawful heirs or successors upon death or incapacity of the original applicant.
- Successors must comply with all lease conditions and obligations.
Filing of Application
- Applications for new or renewal of Foreshore Lease Agreement filed at CENRO with jurisdiction over the area.
Application Requirements
- Application form submitted under oath by applicant or authorized representative.
- Supporting documents include:
- Naturalization certificate (if applicable).
- Corporate documents including Articles of Incorporation and SEC registration.
- Board Resolution authorizing application.
- Registration of trade name, if used.
- Approved plan and technical description of the land.
- Certifications from relevant agencies confirming land not needed for public use.
- Development plan demonstrating financial and technical capability.
Application Fees
- Php 1,000 for corporations/partnerships; Php 500 for individuals plus documentary stamps.
- Fees are non-refundable.
Terms of Lease Agreement
- Lease duration: 25 years with a possible renewal of another 25 years.
Processing Procedures and Timeframes
- Filing and acceptance (1 day)
- Referral for investigation and inspection (1 day)
- Preliminary investigation report (7 days)
- Appraisal submission (5 days)
- Approval for appraisal and bidding:
- PENR Officer (3 days)
- Regional Executive Director (5 days)
- Secretary (10 days)
- Publication of lease notice (45 days)
- Public bidding and report (2 days)
- Issuance of Order/Award and agreement preparation (3 days)
- Signing and approval:
- PENR Officer (3-5 days)
- RED (7 days)
- Secretary (15 days)
- Notarization and delivery (1 day)
Authorized Approving Officials
- PENR Officer: leases of 1 hectare or less.
- Regional Executive Director: more than 1 up to 5 hectares.
- Secretary: more than 5 hectares.
- Public bidding conducted in compliance with relevant sections of C.A. 141.
Appraisal Requirements
- Appraisals performed as prescribed by DAO 98-20.
- Re-appraisal every 10 years or sooner if new improvements introduced.
- Rentals paid at the CENR Office and remitted to the National Treasury.
Lease Conditions
- No assignment, encumbrance, or subletting without prior official consent.
- Prohibition against leasing to unauthorized persons/entities.
- Prohibition on unauthorized removal of natural resources within leased area.
- Environmental Impact Assessment required for all projects.
- Annual rental payment deadlines specified.
- Lessees must adhere to approved development plans.
- Salvage zone excluded from lease; subject to easements under water laws and C.A. 141 provisions.
- No right granted for reclamation work on or adjoining leased area.
Grounds for Cancellation
- Violation of applicable laws and lease conditions.
- Failure to pay annual lease rent for two consecutive years.
Effect of Lease Termination or Cancellation
- All permanent improvements revert to government ownership upon lease expiration or cancellation.
Repealing Clause
- Repeals or modifies inconsistent rules, particularly DAO 99-34 and similar issuances.
Effectivity
- Order takes effect 15 days after publication in a newspaper of general circulation.