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Miners Assoc Vs Factoran

The petitioner challenged the validity of administrative orders that required mining entities to convert existing mining leases into production-sharing agreements within a certain period and submit letters of intent and agreements. The Supreme Court ruled the administrative orders were valid. It found the orders applied prospectively under the 1987 Constitution, which allowed the state to assume a more active role in natural resource management through agreements instead of leases. The court also noted that prior mining leases remained subject to reasonable alterations by the state in exercising its police powers, given natural resources are vital to public interest.

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92 views

Miners Assoc Vs Factoran

The petitioner challenged the validity of administrative orders that required mining entities to convert existing mining leases into production-sharing agreements within a certain period and submit letters of intent and agreements. The Supreme Court ruled the administrative orders were valid. It found the orders applied prospectively under the 1987 Constitution, which allowed the state to assume a more active role in natural resource management through agreements instead of leases. The court also noted that prior mining leases remained subject to reasonable alterations by the state in exercising its police powers, given natural resources are vital to public interest.

Uploaded by

claude
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MINERS ASSOCIATION OF THE PHILIPPINES, INC.

,
petitioner,
vs.

HON. FULGENCIO S. FACTORAN, JR., Secretary of


Environment and Natural Resources, and JOEL D. MUYCO,
Director of Mines and Geosciences Bureau, respondents.

By
Roque Armentano Jr.
Article XII, Section 2 of the 1987 Constitution introduced change on the
system of exploration, development and utilization of the country's natural
resources disallowing utilization of such through "license, concession or
lease" under the 1935 and 1973 Constitutions

Former Pres. C. Aquino issued Executive Order Nos. 211 and 279
granting the DENR Secretary authority to negotiate and conclude
joint-venture, co-production, or production- sharing agreements
for the exploration, development, and utilization of mineral
resources.
all existing mining leases or agreements which were granted after the
effectivity of the 1987 Constitution pursuant to Executive Order No.
AO 57 211, except small scale mining leases and those pertaining to sand and
gravel and quarry resources covering an area of twenty (20) hectares or
less, shall be converted into production-sharing agreements within one
(1) year from the effectivity of these guidelines

required entities to submit Letter of Intent (LOIs) and Mineral


Production Sharing Agreement (MPSAs) within two (2) years from the
AO 82 effectivity of DENR Administrative Order No. 57 or until July 17, 1991.
Failure to do so within the prescribed period shall cause the
abandonment of mining, quarry and sand and gravel claims.
(Petitioner's contention)
PD 453 must apply!!!

ISSUE
Whether or not the assailed Administrative Orders are valid.
RULING:
NO

The administrative orders are valid.

Petitioner's insistence on provisions of PD 453 as the governing law is erroneous as


such law pertains to the old system of of exploration, development and utilization of
natural resources through "license, concession or lease" (now deemed repealed).

Under the 1987 Constitution, the State assumed a more dynamic role - exploration,
development and utilization of natural resources shall be under the full control and
supervision of the State.
RULING:
NO
The administrative orders apply prospectively, that is, after the effectivity of the 1987
Constitution.

Well-settled is the rule, however, that regardless of the reservation clause, mining
leases or agreements granted by the State, such as those granted pursuant to
Executive Order No. 211, are subject to alterations through a reasonable exercise of the
police power of the State

The exploration, development and utilization of the country's natural


resources are matters vital to the public interest and the general welfare
of the people.

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