Authority, Legal Basis, and Purpose
- DENR Administrative Order No. 2002-04 is promulgated pursuant to Section 4 (8), Chapter 1, Title XIV, Book IV of the Administrative Code of 1987.
- The Order is also promulgated pursuant to Executive Order No. 35 (dated 17 September 2001), which transfers the function of issuing permits for treasure hunting and shipwreck recovery from the Office of the President to DENR.
- The State policy requires that discovery/recovery of hidden treasures, shipwrecks/sunken vessels, and/or valuable cargoes and their disposition must be undertaken under full control and supervision of the State.
- The State policy is implemented to ensure protection of the Government’s interest, rehabilitation of disturbed areas, and preservation of important cultural properties and national cultural treasures.
- The Order’s objectives are to rationalize evaluation of permit applications and provide guidelines for hunting hidden treasures, shipwreck/sunken vessel recovery, and disposition to protect Government interests and preserve cultural heritage.
Coverage and Exclusions
- The Order governs the issuance of permits for:
- Treasure hunting activities in government land or private land.
- Shipwreck/sunken vessel recovery activities.
- Disposition of recovered hidden treasures or things of value hoarded in secret/undisclosed places prior to the effectivity of these rules, including the transport and/or sale of hoarded items such as gold bars, gold coins, platinum, silver, nickel babbits, jewelries, gemstones, and so-called “Yamasita Treasures.”
- The Order does not cover permits for discovery/recovery exclusively for materials of cultural and historical values such as objects of arts, archeological artifacts, ecofacts, relics, and other materials embodying cultural and natural heritage, including those of foreign origin.
- Materials of cultural and historical value governed by Republic Act No. 8492 (National Museum Act of 1998) are covered under that law instead.
- The Order covers both inland activities (treasure hunting) and underwater activities (shipwreck recovery) for purposes of permitting.
Definitions of Key Terms
- “Area Clearance” refers to a clearance issued by the concerned agency/ies allowing an applicant to conduct treasure hunting or shipwreck/sunken vessel recovery activities as shown in the submitted technical and environmental work programs.
- “Artifacts” refers to articles that are products of human skills or workmanship, especially those representing past eras or periods.
- “Bureau” refers to the Mines and Geosciences Bureau (MGB).
- “Department” or “Department of Environment and Natural Resources” refers to the Department of Environment and Natural Resources of the Republic of the Philippines.
- “Digging” refers to excavating hidden treasures buried underground for years or centuries.
- “Director” means the Director of the Mines and Geosciences Bureau.
- “Environmental Compliance Certificate (ECC)” refers to a document issued by the Secretary or the concerned Regional Executive Director of DENR certifying that the proposed project/undertaking will not cause significant negative environmental impact and that the proponent is committed to undertake mitigation measures stated in the Initial Environmental Examination.
- “Environmental Impact Assessment” refers to predicting likely environmental consequences and designing preventive, mitigating, and enhancement measures.
- “Environmental Work Program” refers to a comprehensive and strategic management plan to achieve environmental objectives and protect/rehabilitate the disturbed environment during and after treasure hunting or shipwreck/sunken vessel recovery.
- “Hidden Treasure” refers to any hidden and unknown deposit of mineral products, money, jewelry, or other precious objects whose lawful ownership does not appear.
- “Initial Environmental Impact Examination (IEE)” refers to the document required of proponents describing the environmental impact, mitigation, and enhancement measures for projects or undertakings located in an Environmentally Critical Area.
- “Permit” refers to the permit issued for treasure hunting or shipwreck/sunken vessel recovery.
- “Permit Holder” refers to the holder of a permit for treasure hunting or shipwreck recovery.
- “Private Land” refers to titled land belonging to any private person or entity, including alienable and disposable land claimed by a holder/claimant/occupant who has already acquired a vested right under law, even if the corresponding certificate or evidence of title or patent has not been issued.
- “Relics” refers to objects possessing cultural properties left behind after the destruction or decay of the rest of the parts, intimately associated with important beliefs, practices, customs and traditions, periods, and personages.
- “Secretary” refers to the Secretary of DENR.
- “Shipwreck” refers to a sunken vessel due to acts of war, rough sea conditions, or maritime accident that possesses treasures and valuable cargoes.
- “Shipwreck Recovery” refers to underwater activities including surveying, locating, exploring, salvaging and recovery, including securing, preservation, documentation, and disposition of salvaged/recovered valuables.
- “Technical Work Program” refers to a detailed outline of activities and financial plan for treasure hunting or shipwreck/sunken vessel recovery.
- “Treasure Hunting” refers to inland activities including locating, digging/excavating, securing, transporting, and disposition of recovered treasures.
- “Site” refers to the actual ground location of diggings, excavations, or shipwreck/sunken vessel recovery activities.
Who May Apply and Where to File
- The following persons may apply for a treasure hunting or shipwreck/sunken vessel recovery permit:
- Individuals must be Filipino citizens, of legal age, with capacity to enter into contract, and capable of conducting the activities.
- Partnerships, associations, or corporations must be organized or authorized for treasure hunting or shipwreck/sunken vessel recovery, duly registered, and must have technical and financial capability.
- All permit applications must be made under oath.
- Applications must be filed with the Bureau (MGB) for evaluation of legal, technical, financial, and operational requirements.
- An application fee of PHP 10,000.00 must be paid to the Bureau.
- The Bureau evaluates applications for completeness and compliance with all required documents.
Application Requirements and Submission
- Applications must include legal and administrative requirements:
- A prescribed personal and/or corporate information sheet.
- For partnerships/associations/corporations:
- Certified true copy of Certificate of Registration issued by the Securities and Exchange Commission (SEC) or concerned authorized government agency.
- Certified true copy of Articles of Incorporation/Partnership/Association and By-laws.
- Organizational and operational structure.
- Consent of landowner(s) concerned when activities affect private lands, or consent of concerned government buildings, dams, watersheds, and other areas/sites reserved/used for vital national interest, military or naval camps/bases/reservations, shrines and other hallowed places; or consent of concessionaires when the permit area affects aquaculture or fishery projects or beach/marine recreational areas, if applicable.
- Area Clearance from concerned government agency when activities affect public land or when the area is near submarine cables, pipelines, ports and harbors, or within protected seascape/areas or marine parks, if applicable.
- Certified true copy of Joint Venture Agreement(s), if any.
- Free and prior informed consent of indigenous cultural community in areas covered by ancestral land/domain.
- Applications must include technical requirements:
- A technical description of the site expressed in latitude and longitude, not more than one (1) hectare for land or twenty (20) hectares for bodies of water, with a vicinity and location map prepared and certified by a licensed Geodetic Engineer.
- A larger area may be allowed on a case to case basis subject to prior approval by the Secretary.
- A Technical Work Program with appropriate technology, manpower, equipment, and cost estimate.
- An Environmental Work Program including predicted damages (if any), and proposed restoration/rehabilitation program and budget, which serves as the basis for assessment of the required surety bond for restoration/rehabilitation works.
- ECC, if applicable.
- Curriculum vitae of technical person/s who will undertake the technical and environmental work programs.
- Applications must include financial requirements:
- Latest income/corporate tax return, if applicable.
- Certified true copies of the latest audited financial statements, if applicable.
- Bank guarantees/references, credit lines, cash deposits, and other proofs of the sources of funding.
Evaluation, Committee Role, and Approvals
- After payment of the non-refundable application fee and submission of complete requirements to the Bureau, applications must be processed and evaluated within thirty (30) working days.
- Evaluation is undertaken by a Technical Review Committee whose members are constituted by the Director.
- The Technical Review Committee assists the Director with:
- Plotting the area applied for in control maps.
- Evaluation and review of applications.
- Determination of the amount of surety bond to be posted.
- Monitoring compliance with permitting terms and conditions.
- Recommending measures related to authorized activities.
- Preparation of progress reports on authorized activities.
- Evaluation may include field assessment/verification of location and public or private structures that may be affected based on submitted technical and environmental work programs.
- Applicants must pay a field verification fee of PHP 2,000.00 per man per day if field assessment/verification is necessary.
- The Director endorses technical evaluation results to the Secretary for consideration and approval, including the recommended surety bond amount.
- After approval, the Permit is forwarded to the Bureau for numbering and releasing.
Bond, Permit Term, and Permit Conditions
The applicant must post a surety bond upon approval but before the release of the Permit.
The surety bond answers for and guarantees payment for whatever actual damages may be incurred during locating, digging, and excavating activities.
The surety bond must be posted in the Government Service Insurance System (GSIS) or, if GSIS fails to provide it, through any reputable bonding company.
Proof of posting the surety bond must be submitted to the Bureau prior to numbering and release of the Permit.
The Permit term is:
- One (1) year, renewable once for one (1) year, for standard permits.
- Two (2) years for exploration required for shipwreck/sunken vessel recovery when the applied area is more than twenty (20) hectares, with:
- The first year allotted for exploration.
- The second year allotted for shipwreck/sunken vessel recovery.
- The permit area for shipwreck/sunken vessel recovery must be reduced to not more than twenty (20) hectares after the first year of exploration.
Permit terms and conditions include:
- The permit for treasure hunting and/or shipwreck/sunken vessel recovery is for the exclusive use and benefit of the permit holder and shall not be transferred or assigned.
- The Secretary or authorized representatives may inspect and examine the Permit Area at any time; other concerned agencies may inspect in coordination with the Department/Bureau.
- Shipwreck/sunken vessel recovery Permit Area boundaries must be properly marked with buoys or beacons visible at reasonable distance to prevent maritime accident.
- The Permit Holder must commence activities within three (3) months from Permit issuance.
- The Permit Holder must not destroy any building or structure in the Permit Area without the owner’s consent.
- The Permit Holder must submit a quarterly activity report detailing accomplishments/progress not later than ten (10) days after the end of each quarter.
- Upon discovery of valuable items, the Permit Holder must notify the Department/Bureau within twenty-four (24) hours.
- The Permit Holder assumes full responsibility and is liable for damages occasioned by its operations under the Permit.
- The Secretary may suspend or revoke the Permit upon recommendation of the Director when public interest requires, or upon the Permit Holder’s failure to comply with permitting terms/conditions or relevant laws/rules/regulations and local ordinances; the Government has no responsibility for expenditures incurred or other damages suffered by the Permit Holder.
- The Permit Holder must conform to applicable laws, rules and regulations.
- Withdrawal from the Permit Area does not release the Permit Holder from financial, environmental, legal, or other obligations.
- The Secretary or Director may impose additional terms and conditions, and the Department or Bureau may prescribe additional requirements.
Recovery Valuation, Oversight, and Sharing
Upon discovery of valuable items resulting from treasure hunting and shipwreck/sunken vessel recovery, the National Museum must determine whether discovered items have cultural and/or historical value.
Items deemed culturally and/or historically valuable must be turned over to the National Museum for appropriate action.
Items not deemed to have historical/cultural value must be turned over to the Oversight Committee for valuation and disposition.
All treasures found are allowed for export only upon approval by the National Heritage Commission and other concerned government agencies.
An Oversight Committee is created within thirty (30) days from the effectivity date to oversee diggings, excavations, and/or shipwreck recoveries and to take possession for valuation and eventual disposition of monies, things, and articles of value without historical and cultural value.
The Oversight Committee is chaired by the Secretary or his duly authorized representative.
Members include technical personnel from the MGB, National Museum, Central Bank, and the Permit Holder or his representative.
A representative from the Philippine Coast Guard becomes a member of the Oversight Committee when the activity involves shipwreck/sunken vessel recovery.
Net proceeds sharing is governed as follows after an audited report of expenses is evaluated and approved by the Oversight Committee:
- For treasure hunting within public lands: Seventy-five percent (75%) to the Government and twenty-five percent (25%) to the Permit Holder.
- For treasure hunting in private lands: sharing is to be agreed upon among the Government, Permit Holder, and landowner(s).
- For shipwreck/sunken vessel recovery: fifty percent (50%) to the Government and fifty percent (50%) to the Permit Holder.
Government Rights, Confidentiality, and Penalties
- Intellectual property rights arising from documentation or recording of discovery, recovery, and related activities—through still photography, film, video, or other electronic media; publication; and other forms of reproduction or dissemination—belong to the Government and are governed by appropriate laws.
- Submitted information supporting applications and other data supplied by the Permit Holder must be treated as confidential by the Government from submission/supply to the Bureau, Department, and/or Oversight Committee up to two (2) years from the expiration of the permit.
- Any violation of the provisions of these rules and regulations is penalized in accordance with existing applicable laws, rules, and regulations.
Transitory Provisions, Separability, and Amendments
- Existing treasure hunting and shipwreck/sunken vessel recovery permits previously issued by the Office of the President and by the Secretary remain valid, unimpaired, and recognized by the Government.
- Pending new and renewal applications must be endorsed to the Bureau for processing, evaluation, and approval by the Secretary.
- If any provision is held or declared unconstitutional or invalid by a competent court, the remaining provisions continue in force as if the invalid provision had never been incorporated.
- The Order amends and/or revokes orders, rules, and regulations inconsistent with it.