Constitutional Limitations

CONSTITUTIONAL LIMITATIONS ON THE REGALIAN DOCTRINE
1st CONSTITUTIONAL LIMIT:

1st & 2nd sentence of Sec 2, Art. 12 GENERAL RULE: All natural resources shall not be alienated. EXCEPTION: Only agricultural lands of the public domain may be alienated.
CLASSIFICATION OF LANDS OF THE PUBLIC DOMAIN: FOREST/ TIMBER MINERAL LANDS NATIONAL PARKS AGRICULTURAL
FOREST/ TIMBER LANDS
a large tract of land covered with a natural growth of trees and underbrush (Ramos vs. Dir. Of Lands; 39 Phil. 176)
MINERAL LANDS
RA 7494- any area where mineral resources are found MINERAL RESOURCE- any concentration of minerals or rocks with potential economic value Excludes energy materials such as coal, petroleum, natural gas, radioactive materials and geothermal energy
SURFACE OWNER NO RIGHT OVER THE MINERALS UNDERNEATH

In the exercise of the States sovereign prerogative, use of the surface land may be discontinued once minerals are discovered underneath. For his loss, the owner is entitled to compensation under the Mining Law or in appropriate expropriation proceedings.
PUBLIC AGRICULTURAL LANDS 1987 Consti- those that are neither timber/ mineral lands 1st Public Land Act- those public lands acquired from Spain which are neither mineral nor timber lands ( Mapa vs. Insular Govt.; 10 Phil 175)
Agricultural lands of the public domain may further be classified according to the use which they may be devoted:
Agricultural (farmland) Residential/ commercial, industrial or for similar productive purposes Educational, charitable or other similar purposes Reclaimed lands, foreshore, marshy lands or lands not included in the foregoing classes
TEST IN DETERMINING WHETHER A PARCEL OF LAND IS AGRICULTURAL:

any parcel of land or building lot whenever susceptible to cultivation & may be converted into a field but& planted with vegetation, or where such land is not mining nor forest in its nature, must of necessity be deemed included within the category of agricultural land, not because it is actually used for purposes of agriculture and may again become so under other circumstances (Krivenko v. ROD; 79 Phil 461)
MODES OF DISPOSITION:
1. 2. 3. 4. 5. 6. HOMESTEAD SETTLEMENT BY SALE BY LEASE BY CONFIRMATION OF IMPERFECT TITLE BY JUDICIAL LEGISLATION BY ADMINISTRATIVE LEGISLATION (FREE PATENT)
PRESUMPTION AS TO NATURE OF PUBLIC LANDS:

In the absence of evidence to the contrary, any land of the public domain may be presumed to be agricultural; There must be some proof of the extent as well as of the present or future value of the land as forest / mineral; It must be shown that the land is more valuable for forestry or the minerals which it contains than it is for agricultural
purposes;
BASIC PRINCIPLES:
LAWS GOVERNING PUBLIC LANDS: Public Land Act; Mining Laws; Forestry Laws & the like OFFICE CHARGED WITH THE ADMINISTRATION OF PUBLIC LANDS: Secretary of Natural Resources >>>> Director of Lands
WHO HAS THE POWER TO CLASSIFY / RECLASSIFY PUBLIC LANDS LANDS?

Exclusive prerogative of the EXECUTIVE DEPT. In Republic v. Reg. of Deeds of Q.C., 244 SCRA 537: The classification of public lands is, thus, an exclusive prerogative of the Executive Department through the Office of the President. Courts have no authority to convert lands of public domain into alienable and disposable lands.
ROLE OF CONGRESS:
Sec. 3, Art. 12- The Congress shall determine by law the size of lands of the public domain which may be acquired, developed, held or leased and the conditions therefore.
PROCEDURE:
Before any public land may be reclassified/ alientated (pub agri lands), it is indispensable that there be a formal declaration of the President upon recommendation of the Secretary; In Sunbeam v. CA, 181 SCRA 443:Before any land may be converted into alienable or disposable land for agricultural or other purposes, there must be positive act from the govt. The mere fact that a title was issued by the Dir. Of Lands does not confer ownership where it is part of the public forest. See also Ituralde v. Falcasantos, G.R. No. 128017, Jan. 20, 1999.
REMEMBER: - ONLY PUBLIC AGRICULTURAL LANDS MAY BE ALIENATED; - ALIENABLE PUBLIC LAND HELD O.C.E.A.N IS CONVERTED TO PRIVATE PROPERTY BY PRESCRIPTION/ LAPSE OF TIME; - TIMBER, MINERAL OR NATL PARKS ARE INALIENABLE & INDOSPOSABLE; - POSESSION OF THE SAME, NO MATTER HOW LONG WILL NOT RIPEN INTO OWNERSHIP
LIMITATIONS ON LANDHOLDINGS: ALIENABLE PUBLIC LANDS Sale/ Grant Lease Indiv. Fil YES YES Fil. Corporation NO YES Foreign Corp. NO NO PRIVATE LANDS Fil Corp YES Alien indiv. NO Foreign Corp. NO
YES YES NO
2ND CONSTITUTIONAL LIMIT:

3rd Sentence,sec 2, Art 12 (Consti); Exploration, Development and Utilization of Natural Resources must be under Full Control and Supervision of the State under the constitutionally allowed modes
CONSTITUTIONALLY ALLOWED MODES IN E.D.U. OF NATURAL RESOURCES

Direct Undertaking Co-Production Agreement Joint-Venture Agreement Production-Sharing Agreement Financial or Technical Assistance Agreement (FTA)
MEANING OF FULL CONTROL

LaBugal-Blaan Tribal Assn. vs. Ramos, G.R. 127882, Dec. 1, 2004full control and supervision cannot be taken literally to mean that the State controls and supervises everything down to the minutest details and makes all required actions, as this would rendeR impossible the legitimate exercise by the contractor of a reasonable degree of management prerogative and authority, indispensable to the proper functioning of the mining enterprise
Control, as utilized in Section 2 of Article XII, must be taken to mean a degree of control sufficient to enable the State to direct, restrain, regulate and govern the affairs of the extractive enterprises.
MEANING OF CO-PRODUCTION AGREEMENT

An agreement between the Government and the contractor wherein the Government shall provide inputs to the mining operations other than the mineral resource.(Sec. 26[b], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF JOINT VENTURE AGREEMENT

An agreement where a joint-venture company is organized by the Government and the contractor with both parties having equity shares. Aside from earnings in equity, the Government shall be entitled to a share in the gross output.(Sec. 26 [c], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF PRODUCTION SHARING AGREEMENT

An agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement. (Sec. 26 [c], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF FTAA
Sec. 3[r], R.A. 7942: Financial or technical assistance agreement means a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources.
FTAA CONSTRUED IN LA BUGAL (G.R. No. 127882 DEC. 1, 04)

The agreements involving either technical or financial assistance referred to in paragraph 4 are in fact service contracts, but such new service contracts are between foreign corporations acting as contractors on the one hand, and on the other hand government as principal or owner (of the works), whereby the foreign contractor provides the capital, technology and technical know-how, and managerial expertise in the creation and operation of the largescale mining/extractive enterprise, and government through its agencies (DENR, MGB) actively exercises full control and supervision over the entire enterprise.
Such service contracts may be entered into only with respect to minerals, petroleum and other mineral oils. The grant of such service contracts is subject to several safeguards, among them: (1) that the service contract be crafted in accordance with a general law setting standard or uniform terms, conditions and requirements; (2) the President be the signatory for the government; and (3) the President report the executed agreement to Congress within thirty days.
ARE FTAAs SOLELY FOR FOREIGN CORPORATIONS?

No. There is no basis to believe that the framers of the Constitution, a majority of whom were obviously concerned with furthering the development and utilization of the countrys natural resources, could have wanted to restrict Filipino participation in that area. This point is clear, especially in the light of the overarching constitutional principle of giving preference and priority to Filipinos and Filipino corporations in the development of our natural resources.
WHO AREQUALIFIED TO UNDERTAKE EDU?
Filipino citizens Private Corp./Assn. at leash 60% of whose capital is owned by Filipino citizens
CONSTITUTIONAL LIMITS ON JURA REGALIA NO. 3

All agreements with respect to EDU of Natural Resources should not exceed 25 years Renewable for another 25 years; WATER RIGHTS NOT COVERED BY THE 25-YR LIMIT Last sentence, 1st par., Sec. 2, Art. XII IN CASES OF WATER RIGHTS FOR IRRIGATION, WATER SUPPLY, FISHERIES, OR INDUSTRIAL USES OTHER THAN DEVELOPMENT OF WATER POWER --MEASURE AND LIMIT OF THE GRANT: BENEFICIAL USE

The use and enjoyment of the MARINE WEALTH of the archipelagic waters, territorial sea and EEZ reserved for FILIPINO CITIZENS ONLY.

Utilization of natural resources in rivers, lakes, bays and lagoons. Allowed only on a small scale to Filipino citizens or cooperative. Priority given to subsistence fishermen and fisherfolk.
TANO V.SOCRATES, G.R. NO. 110249,AUG. 21, 1997 The so-called "preferential right" of subsistence or marginal fishermen to the use of marine resources is not at all absolute. Under the general welfare clause of the LGC, local government units have the power, inter alia, to enact ordinances to enhance the right of the people to a balanced ecology.

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CONSTITUTIONAL LIMITATIONS ON THE REGALIAN DOCTRINE

1st CONSTITUTIONAL LIMIT:

FOREST/ TIMBER LANDS

SURFACE OWNER NO RIGHT OVER THE MINERALS UNDERNEATH

TEST IN DETERMINING WHETHER A PARCEL OF LAND IS AGRICULTURAL:

PRESUMPTION AS TO NATURE OF PUBLIC LANDS:

WHO HAS THE POWER TO CLASSIFY / RECLASSIFY PUBLIC LANDS LANDS?

2ND CONSTITUTIONAL LIMIT:

CONSTITUTIONALLY ALLOWED MODES IN E.D.U. OF NATURAL RESOURCES

MEANING OF FULL CONTROL

MEANING OF CO-PRODUCTION AGREEMENT

MEANING OF JOINT VENTURE AGREEMENT

MEANING OF PRODUCTION SHARING AGREEMENT

FTAA CONSTRUED IN LA BUGAL (G.R. No. 127882 DEC. 1, 04)

ARE FTAAs SOLELY FOR FOREIGN CORPORATIONS?

WHO AREQUALIFIED TO UNDERTAKE EDU?

CONSTITUTIONAL LIMITS ON JURA REGALIA NO. 3

CONSTITUTIONAL LIMITS ON JURA REGALIA NO. 4

CONSTITUTIONAL LIMITS ON JURA REGALIA NO. 5

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