Law Summary
Definition of Terms
- Foreshore Lands: Shore segments alternately covered/uncovered by tides.
- Foreshore Lease Application: Application to lease foreshore/marshy lands for non-agricultural productive uses.
- Foreshore Lease Contract: Agreement between DENR and lessee stipulating terms/conditions.
- Marshy Lands: Wetlands with soil saturated by water, dominated by grasses or sedges.
Scope
- Covers all foreshore and marshy lands bordering navigable lakes or rivers.
- Excludes mangrove areas from coverage.
Maximum Lease Area
- Individuals or entities may lease up to 144 hectares.
Application for Lease
- Lease contracts issued only if application is filed.
- Renewals must be filed at least 60 days prior to expiration.
Transfer of Rights
- Rights and obligations pass to heirs if applicant dies before or during lease.
- Heirs must comply with requirements to succeed to contract.
Eligibility to Apply
- Filipino citizens of legal age.
- Corporations/associations/partnerships with at least 60% Filipino ownership.
Application Requirements
- Application form with detailed particulars on land and project.
- Sworn statement by applicant or authorized officer.
- Written permission if applicant is government official.
- Certified naturalization certificate and Solicitor General certification if naturalized citizen.
- For corporations: Articles of Incorporation, By-laws, meeting minutes, resolutions certified by Secretary.
- Certificate of trade name registration if applicable.
- Income tax returns if previously existing.
Filing Location
- Applications filed at the Community Environment and Natural Resources Office (CENRO) with jurisdiction.
Application Process
- Numbered, stamped, recorded upon receipt.
Application Fees
- Fee of P100 plus documentary stamp required for new and renewal applications.
- Fees are non-refundable.
Lease Term
- Twenty-five (25) years initial term.
- Renewable for an additional twenty-five (25) years.
Processing Procedures
- Filing at CENRO.
- Preliminary investigation and appraisal.
- Survey and boundary determination.
- Recommendations and request for authority to lease via bidding.
- Approval and publication of notice for six weeks.
- Public auction and submission of bidding report.
- Issuance of order of award.
- Preparation and execution of lease contract upon payment.
- Notarization and approval of contract.
Requirements for Lease Execution
- Official receipt of application fee.
- Approved land plan and technical description.
- Spousal consent if married.
- Corporate certification documents if applicable.
- Certification that land is not needed for public use.
- Feasibility study showing financial and technical capability.
- Environmental Compliance Certificate (ECC).
Authorized Officials to Issue Lease Contracts
- PENRO: Areas up to 1,000 sqm.
- RED: Areas over 1,000 sqm up to 30,000 sqm.
- Secretary: Areas over 30,000 sqm.
Bidding Procedures
- Lease awarded to highest bidder through bidding.
- Sealed bidding if prior improvements were made under permit.
User Fees
- Minimum annual fee: 3% of land value plus 1% of improvements.
- Reappraisal every ten years or immediately if new improvements occur.
Conditions of Lease
- No assignment, encumbrance, or subletting without prior written consent.
- Contract does not convey rights to remove timber except as allowed by forestry laws.
- Violation results in forfeiture and immediate dispossession.
Administration, Management, and Development
- Managed by Natural Resources Development Corporation (NRDC).
- NRDC authorized to collect user fees.
- Up to 60% of collections may be used for coastal resource protection and environmental programs with Secretary’s approval.
Expiration of Contract
- All permanent improvements revert to DENR upon lease expiration or cancellation.
- NRDC may manage/administrate these properties in accordance with the law.
Repealing Clause
- All inconsistent prior orders, rules, and issuances are revoked, amended, or modified.
Effectivity
- Order effective fifteen (15) days after publication in Official Gazette or newspaper of general circulation.