Rules on Special Uses of Forestlands

Defines critical terms such as Abandonment, Entry Fee, Environmental Compliance Certificate (ECC), Environmental Impact Statement (EIS), Forestlands, Foreshore area, Government share, Improvement (Permanent and Temporary), Initial Environmental Examination (IEE), Protected Areas, Reservation, Secretary (DENR Secretary), Special Forest Landuse Agreement (FLAg), Special Uses, and Zonal Value.

FLAg applies to suitable forestlands not classified as protected areas or encumbered by vested rights.
Free and prior informed consent (FPIC) required if area overlaps ancestral domain/land claims.
Right-of-way and vital public facilities may be allowed in protected areas subject to agreement and existing laws.

Various types of FLAg are authorized including warehouse sites, shipyards, industrial processing, herbal plantations, fish drying sites, communication stations, and more, with specified maximum area limits.
Larger areas require Secretary approval.

FLAg term is 25 years, renewable for another 25 years.
Qualified applicants include Filipino citizens and juridical entities majority-owned by Filipinos financially capable of development.

Preferred bidding method is competitive bidding with exceptions for ancillary areas and adjoining land uses.
Applicants must submit proofs of identity, Indicative Management Plan, and necessary clearances.

CENROs identify potential areas using control maps and local plans, verifying absence of conflicts.
A composite team validates area suitability including consultations with communities and political subdivisions.
Final delineated maps are registered and disseminated to DENR offices and LGUs.

A registry listing technical details and evaluations is maintained and publicly accessible through DENR offices and website.

The RED forms a committee responsible for evaluating applications, conducting bidding, and recommending awards.
Committee includes technical and legal officers and a Commission on Audit observer.

Public invitation to prequalify with publication and posting requirements.
Submission of documents including prequalification and Indicative Plan.
Evaluation of completeness and financial capacity.
Award based on highest entry fee bid with provisions for tie bids and minimum bidding amounts (not less than 5% zonal value).
Issuance of Notice of Award and FLAg document upon payment.

FLAg holders must prepare an Environmental Impact Statement or Initial Environmental Examination.
ECC issuance basis.

Existing Special Land Use Permits can convert to FLAg if performance is satisfactory.

Confines use to specified area and purpose.
Boundary delineation within six months.
Submission and adherence to Comprehensive Development and Management Plan (CDMP).
Utilization only for approved purposes; changes require prior approval.
Specific rules on improvements, harvesting, protection from forest destruction, reporting, public access, infrastructure construction, and environmental safeguards.
Prohibits tree cutting near waterways and roads without reforestation.
Allows DENR inspection.
Requires notifying change in management or ownership.
Provides for agreement surrender, termination on corporation abolition, and transfer upon holder's death under conditions.

Limits right-of-way widths for telecommunications, power, and roads with compensation and environmental safeguards.
Saltworks and tidal flat uses require replanting of unused areas.

Monitoring through reports, evaluations by composite teams, and potential central DENR validation.
Government share is at least 5% of zonal value, payable upon issuance and annually with surcharges for late payment.

Suspension permissible for non-payment, failure to protect area, unauthorized transactions, encroachment, unauthorized use, and others until remedied.
Cancellation grounds include violation of terms, fraud, abandonment, failure to develop, national interest requirements, and repeated violations.
Government to compensate for permanent structures if agreement is cancelled for national interest.

Transfers allowed with Secretary's approval after meeting conditions including compliance, transferee qualifications, and financing institution concurrence if applicable.
Conversion of existing Special Land Use Permits to FLAg allowed upon satisfactory performance evaluation.

Exempts existing permit holders from bidding upon payment of fees.
Repeals inconsistent rules, affirms severability, and sets effectivity 15 days post-publication.