SAN BEDA UNIVERSITY, College of Law

Subject: Nat Res and Envi Law

Prof: Comm Soriano
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Mid-Term Examinations Review Materials

In the Preamble of the 1987 Constitution, the sovereign Filipino

people declared to “conserve and develop our patrimony,” and in
Section 19 of Article II – it is the policy of the State to “develop a self-
reliant and independent national economy effectively controlled by
Filipinos,” what is your understanding of these two words – patrimony
and national economy?

The word “Patrimony” as mentioned in the Preamble, embraces

practically everything that belongs to the Filipino people, the tangible
and the material, as well as, the intangible and the spiritual assets and
possessions. It refers principally to the natural resources of our country
which, under the Constitution, include all lands of the public domain,
water, minerals, coal, petroleum and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna,
and all marine wealth in its archipelagic waters, territorial sea, and
exclusive marine zone

In the celebrated case of Manila Prince Hotel Corp vs GSIS, 267

SCRA 408, the Supreme Court declared – the Patrimony of the Nation
that should be conserved and developed refers not only to our rich
natural resources but also to the cultural heritage of our race. It also
refers to our intelligence in arts, sciences and letters.

The National Economy mentioned in section 19, Article II, refers

to the entire structure of economic life in a country. It encompasses all
the activities relating to or concerned with the production, distribution,
and consumption of goods and services, and what are called “factors of
production” which are labor or human resources, all natural resources,
and capital, all of which are utilized to carry out economic activities

The general economic policy of the Government under the 1987

Constitution are;

1) More equitable distribution of opportunities, income, and

wealth

2) A sustained increase in the amount of goods and services

produced by the nation for the benefit of the people
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3) Expanding productivity as the key to raising the quality of life

for all, especially the underprivileged

4) State shall promote industrialization and full employment

based on sound agricultural development and agrarian reform
(Art. XII, sec 1)

The government would attain these objectives through the following;

1) In the pursuit of these goals, all sectors of the economy and all
regions of the country shall be given optimum opportunity to
develop

2) Private enterprises, including corporations, cooperatives, and

similar collective organizations, shall be encourage to broaden the
base of their ownership (Art XII, sec 1)

The priority program of the government under the 1987 Constitution is

to promote industrialization, through industries that make full and
efficient use of human and natural resources, and which are competitive
in both domestic and foreign markets

The three-fold goals of the national economy are;

1) Equity – more equitable distribution of opportunities, income

and wealth

2) Growth – sustained increase in the amount of goods and

services produced by the nation for the benefit of the people

3) Productivity – expanding productivity as the key to raising the

quality of life for all, especially the under-privilege

The guidelines in the development of the national economy are;

a) Self-reliant economy – self-reliant simply means that the

Philippines must have the ability to cope with its economic
problems or to implement its development programs by the use of
its own resources with a minimum of dependence from foreign
governments, investors or financing institutions for loans,
investments, or aid
Page three:

b) Independent economy – the national economy must be free from

undue foreign control or intervention. This is especially true in
such vital or strategic industries as the development of natural
resources and public utilities where foreign interference could
cause incalculable harm to the nation

c) Economy effectively controlled by Filipino – the principal

responsibility for development belongs to Filipino citizens. They
must be the principal determinants as well as the chief
beneficiaries of economic progress. While foreign capital is
allowed to come in, the Constitution limits their participation to
major industries but insuring that majority control must belong to
Filipinos

In Section 1 of Article XII, it states that – “The State shall protect

Filipino enterprises against unfair foreign competition and trade
practices.” The government may grant protection through high tariffs,
quantitative restrictions, or even import controls or total ban on
imports of certain products or goods, quarantine regulations for
agricultural products, and standards regulations for industrial products

Read the case of Garcia vs Board of Investment, 191 SCRA 288 (1990)
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Section 2 of Article XII enumerates the natural resources found within

the territory of the Philippines, which are owned by the State, and these
are;

1) All lands of public domain

2) Waters
3) Minerals
4) Coal
5) Petroleum
6) Mineral oils
7) Fisheries
8) Forests or Timber
9) Wildlife
10) Flora and Fauna
11) All forces of potential energy
12) All other natural resources
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Pursuant to Article XII, section 2, the second sentence provides

that “with the exception of agricultural lands, all other natural resources
shall not be alienated.” The reason why agricultural land may be
alienated so the people can cultivate the lands and produced food for
the sustenance of the population

The reason why other natural resources shall not be alienated,

because they are considered national patrimony of the nation and
therefore must remain with the State and for the benefit of the Filipinos

In order for the people to derive benefit from those natural

resources, the Constitution allows the exploration, development and
utilization under the full control and supervision of the State

The State may either directly undertake the exploration,

development, and utilization, or may enter into co-production, joint
venture, or production sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum of whose capital is
owned by such Filipino citizens

The President of the Philippines may enter into an agreement

with foreign owned corporation involving either technical or financial
assistance on a large-scale exploration, development, and utilization of
minerals, petroleum, and other mineral oils

Relative to this Agreement, there are conditions imposed by the

Constitution, such as;

1) The agreement must involve only technical and financial

assistance

2) It must be for large-scale mining activities involving minerals,

petroleum, and other mineral oils

3) The exploration, development and utilization of the minerals

must be under the full control and supervision of the State

4) The President shall notify Congress of the agreement within

thirty (30) days from its execution

5) The provisions of the agreement must be in accordance with

the general terms and conditions provided by law

6) The agreement must promote the development and use of

local scientific and technical resources
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Cases to be read:

1) La Bugal-Blaan Tribal Association vs DENR Secretary Victor

Ramos, G.R. No. 127882 (Dec 1, 2004)

2) Pedre Lee Hong Hok vs Aniano David, G.R. No. L-30389 (1972)

3) Republic of the Philippines vs Court of Appeals, G.R. No. L-

43938 (1988)

4) Chavez vs Public Estates Authority, G.R. No. 133250 (2002)

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Section 3, Article XII, provides – Lands of the public domain are

classified into;

1) Agricultural
2) Forest or Timber
3) Mineral lands
4) National Parks

Take note that the constitutional classification of the lands of public

domain under section 3 of Article XII is based on the nature of the land

1- Agricultural land is simply known as farmland, the old concept is

that agricultural land is neither timber nor mineral lands. The
modern concept is any land that is susceptible for cultivation for
agricultural purposes

2- Forest land refers to a large tract of land covered with natural

growth of trees and underbrush

3- Timber land refers to a large tract of land planted with trees that
can be processed for woods or lumbers

4- Mineral lands are those that contained a deposits of minerals that

are valuable, useful, or precious, in such quantities as to justify
expenses to extract them

5- National Parks are those places that has cultural value and
declared by law as national parks
Page six:

Section 3 of Article XII grants unto the Congress the power to further
classify lands of the public domain but only with regards to the
agricultural lands and in accordance to the uses they may be devoted,
such as residential, commercial, industrial, resettlement, forest reserves,
grazing lands, and such other classes as may be provided by law

Take note, however, that Congress cannot classify other classes of

lands of the public domain, Congress can only touch agricultural lands
and this, is precisely the reason why immediately the third sentence in
section 3 was provided, that intention of which is to immediately clarify
that only agricultural lands are considered as alienable

The Executive Department, based on the Regalian Doctrine (Julia

Regalia), a legal concept introduced in the Philippine Islands by Spain
copied from England (William the Conqueror decreed that title to lands
in all England belonged to his kingdom). William the Conqueror also
decreed a Rule that private land ownership or title must emanate from
the Crown.

Upon the discovery of the Philippine Islands by Magellan, and

followed by Legaspi, the King of Spain, King Felipe, proclaimed
ownership over all lands of the archipelago. Please take note that the
modes of acquiring ownership of a thing are – 1) Creation; 2) Invention;
3) Discovery; and 4) Conquest

Please bear in mind that while it is declared that only agricultural

lands are alienable, it needs a positive act from the Executive
Department declaring such lands as alienable, otherwise, they remain
part of the lands of the public domain that are inalienable

In keeping with the presumption of State ownership pursuant to

the Regalian Doctrine, there must be a positive act of the government,
such as an official proclamation, declassifying inalienable public land
into disposable land for agricultural or other purposes. This means that
the State is the source of any asserted right to ownership of land.
Therefore, all lands not appearing to be clearly under private ownership
are presumed to belong to the State.

The burden of proof in overcoming the presumption of State

ownership of the land is on the person claiming ownership, who must
prove that the land is alienable or disposable, and must established
incontrovertible evidence that he acquired the right of ownership
through purchase, homestead, grant, or that he and his predecessors-in-
interest had been in open, exclusive, uninterrupted and notorious
possession since time immemorial, and if he is able to comply with all of
these, then the land being claimed would then ceased to be public land
and commences to be a private land
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Another exception on the application of the Regalian Doctrine are

the lands possessed and occupied by religious sects and being used for
religious and educational purposes. These lands are still owned by God
and the religious sects are the designated stewards of these lands. That
is recognized officially by the State that these lands has never been
acquired by the Spanish King, and that is precisely the reason why these
lands are exempted from paying real property taxes (Article VI, Section
28(3) – Charitable institutions, churches and personages or convents
appurtenant thereto, mosques, non-profit cemeteries and all lands,
buildings and improvements, actually, directly, and exclusively used for
religious, charitable, or educational purposes shall be exempt from
taxation)

The modes of acquiring alienable lands of the public domain

Section 3 of Article XII are; 1) Puchase; 2) Grant; and 3) Homestead

The modes of acquiring alienable lands of the public domain

under C.A. No. 141, aka The Public Land Act of 1936, are 1) Homestead
settlement; 2) Sale; 3) Lease; 4) Confirmation of imperfect or
incomplete title; 5) Free Patent; and 6) Judicial Legalization

Under Section 3 of Article XII, only Filipino citizens are eligible to

acquire alienable public lands not more than twelve hectares

Private corporations or associations may not hold such lands of

the public domain except by lease, for a period not exceeding twenty-
five years, renewable for not more than twenty-five years, and not to
exceed one thousand hectares in area

The reason why private corporations are not allowed to acquire

lands is to prevent recurrence of landlordism, which the government
sought to eradicate by proclaiming the “Emancipation of Tenant” under
the Land Reform Program

Under Section 3, a private corporation may hold through a lease

for a period of twenty-five years and renewable for another twenty-five
years

Public corporations are eligible to acquire alienable land of the

public domain. It should be noted that the ban on acquisition of
alienable land of the public domain applies only to private corporations

Private corporation or association may acquire private land

because the State has no more hold on them since they have already
been segregated from the lands of the public domain. The ban is only
with regards to alienable public land
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Please read:

1) Oh Cho vs Director of Lands, G.R. No. L48321 (August 31, 1946)

2) Director of Lands vs Reyes, G.R. No. L-27594 (Nov 28, 1975)

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The second paragraph of Section 3 provides that taking into

account the requirements of conservation, ecology, development, and
subject to the requirement of agrarian reform, 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 therefor

The purpose of the second paragraph is that, it is an authority

given to Congress the discretion to determine the size of lands of the
public domain, which may be acquired, developed, held, or leased by
qualified Filipino citizens, and provide the conditions thereof, in relation
to the preceding paragraph giving the authority to Congress to classify
lands according to the uses to which they may be devoted

In relation to the preceding paragraph, Congress has no authority

over the mineral land, forest or timber, or the national parks. However,
the second paragraph confer unto the Congress the discretion to
determine how much of alienable (agricultural) land of the public
domain may be opened to private acquisition, for development, held, or
leased, and provide the conditions thereof

In other words, there must first be an executive act classifying the

land into an agricultural land and then Congress may now exercise its
authority to further classify lands according to its use and determine the
minimum and maximum area that may be acquired, developed, held or
leased by qualified individuals or private corporations

N.B. - Please take note that in the 1973 Constitution, particularly,

Section 10 of Article XIV, lands of the public domain are classified into
agricultural, industrial, commercial, residential, resettlement, mineral,
timber, forest, and grazing lands

Section 8, Article XIV, aside from agricultural land, industrial,

commercial, residential, and resettlement lands of the public domain,
may be alienated

Section 10 also authorizes Congress to further classify lands of the

public domain, as well as, the authority to determine the size of lands of
the public domain which may be developed, held, acquired, or leased to
any qualified individual, corporation, or association, and the conditions
thereof
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In the 1973 Constitution, the Batasang Pambansa may further

classify almost all classes of lands of the public domain and therefore
the authority to determine the size of lands to be disposed serves as a
limit to their authority

In the 1935 Constitution, particularly, Section 2, Article XIII,

private corporations or associations are qualified to acquire or lease
public agricultural lands not to exceed One Thousand and Twenty Four
Hectares

And, any individual may purchase agricultural land not to exceed

One Hundred Forty Four Hectares, and lease not to exceed One
Thousand and Twenty Four Hectares, or by homestead not to exceed
Twenty Four Hectares

Section 3 authorizes Congress to determine the size of private

agricultural land, which individuals, corporations, or associations may
acquire and hold, subject to rights existing prior to the enactment of
such law

Please read:

1) C.A. No. 452 (1939), The Pasture Land Act

2) P.D. No. 619 (December 20, 1974) Authorizing the classification,

reservation and development of any lands of the public domain
into a grazing reserve for large-scale ranching projects

3) P.D. No. 628 (December 28, 1974), Establishing Zonification Areas

for Tobacco Growing in the Philippines

4) Nicasio I. Alcantara vs DENR Secretary Elisea G. Gozun, G.R.No.

161881 (2008)
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Section 4, Article XII –

“The Congress shall, as soon as possible, determine by law

the specific limits of forest lands and national parks, marking
clearly their boundaries on the ground. Thereafter, said forests
land and national parks shall be conserved and may not be
increased nor diminished, except by law. The Congress shall
provide, for such period as it may determine, measures to prohibit
logging in endangered forests and watershed areas”
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Section 4 is a new provision, which was not provided in the 1935

and 1973 Constitutions, and we could only guess the intention of the
framers in providing this section and for what purpose

Section 4 deals with two classes of public land, forests and

national parks, of which Congress is given the authority to determine
the limits of forest lands and national parks, and once determined and
boundaries are clearly marked on the ground, the same shall be
conserved, however, the limits may be increased or decreased by
Congress as they deemed necessary

The last sentence “the Congress shall provide measures to

prohibit logging in endangered forests” taken in relation to the
preceding sentence would mean that after the Congress has set the limit
of the forest lands and the national parks, exploitation of the forest land
outside of the limit set by Congress is allowed

The authority of Congress to increase or decrease the boundaries

of the forest lands and national parks would mean that Congress has the
discretion to determine the area that may be declared as “an
endangered forests” and therefore, Congress may prohibit logging
inside the endangered forests but allow logging outside of the
endangered forests area

N.B. – On January 14, 1963, President Diosdado P. Macapagal issued

Executive Order No. 30, establishing the National Parks Development
Committee, a government agency under the Officer of the President, is
tasked to oversee national parks in the Philippines, now attached to the
Department of Tourism

N.B. – As of 2013, there are about 240 protected areas covering 54,500
square kilometers, equivalent to a 14% of the total land area of the
Philippine Islands

On October 13, 1999, President Joseph Ejercito Estrada issued

Executive Order No. 160, reorganizing the composition of the
Committee and designating the Secretary of the Department of Tourism
as the Chairman, the Executive Director as Vice Chairman, Members of
the Board are the General Manager of the Philippine Tourism Authority,
Administrator of Intramuros, Mayor of the City of Manila, Executive
Director of the Philippine Convention and Visitors Corporation, and the
Undersecretary of Public Works

National Parks – Rizal (Luneta), Paco Cemetery, Burham, Quezon

Memorial Circle, Pook ni Maria Makiling, Mabing Shrine, House of Emilio
Aguinaldo in Kawit, Cavite, House of Jose Rizal in Calamba, Laguna, etc
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Please read:

1. Act No. 3195, National Parks System (1932)

2. R.A. No. 7586, National Integrated Protected Areas System Act of

1993 (June 1, 1992)

3. R.A No. 11038, Expanded National Integrated Protected Areas

System Act (June 22, 2019)

4. R.A. No. 9486, (June 7,2007), Mt Inayawan Natural Park, Lanao del
Norte

5. R.A. No. 9494, (August 22, 2007), Mimbilisan Protected Area and
Mt Balatukan Natural Park, Misamis Oriental

6. List of Protected Areas of the Philippines, en.wikipedia.org

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Section 5- The State, subject to the provisions of this Constitution

and National Development policies and programs shall protect the
rights of indigenous cultural communities to their ancestral land to
ensure their economic, social, and cultural well-being

The Congress may provide for the applicability of customary

laws governing property rights or relations in determining the
ownership and extent of ancestral domain

This is a new provision, not provided in the 1935 and 1973

Constitution. The purpose of this section is to address the centuries-old
neglect of the Indigenous Peoples by the national government, who,
have long suffered from the dominance of the majority

Resisting the intrusion on their ancestral land and with the

massive exploitation of their ancestral domain, with the government as
an indispensable party, they became marginalized, hence, the State is
called upon to protect their rights over their ancestral lands

There is a similar provision under Section 22 of Article II, which

provides – “the State recognizes and promotes the rights of indigenous
cultural communities within the framework of national unity and
development”
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There is another provision Section 17 of Article XIV, which

provides – “the State shall recognize, respect, and protect the rights of
indigenous cultural communities to preserve and develop their culture,
traditions, and institutions. It shall consider these rights in the
formulation of national plans and policies,”

There is another provision in the 1987 Constitution, particularly

Section 12 of Article XVI, which authorizes Congress to create a
consultative body to advise the President on policies affecting
indigenous cultural communities, the majority of the members of which
shall come from such communities

There are two concepts mentioned in section 5, ancestral lands

and ancestral domain. These two concepts are distinct from each other
and they are defined by section 3 (a) and (b) in R.A. No. 8371 (Oct
1997), aka, Indigenous People’s Rights Act of 1997

Section 3 (a), R.A. No. 8371 defines Ancestral Domain – refer to all
areas generally belonging to Indigenous Cultural Community/
Indigenous people comprising lands, inland waters, coastal areas, and
natural resources therein, held under the claim of ownership, occupied
or possessed by ICCs/IPs by themselves or through their ancestors,
communally or individually since time immemorial, continuously to the
present except when interrupted by war, force majeure or displacement
by force, deceit, stealth or as a consequence of government projects or
any other voluntary dealings entered into by government and private
individuals or corporations, and which are necessary to ensure their
economic, social and cultural welfare

It shall include ancestral land, forests, pasture, residential,

agricultural, and other lands individually owned whether alienable and
disposable or otherwise, hunting grounds, burial grounds, worship
areas, bodies of water, mineral and other natural resources, and lands
which may no longer be exclusively occupied by ICCs/IPs but from
which they traditionally had access to for their subsistence and
traditional activities, particularly the home ranges of ICCs/IPs who are
still nomadic and/or shifting cultivators

Ancestral lands – refers to land occupied, possessed and utilized

by individuals, families, and clans who members of the ICCs/IPs since
time immemorial by themselves or through their predecessors-in-
interest, under claims of individual or traditional group ownership,
continuously to the present except when interrupted by war, force
majeure or displacement by force
Page thirteen:

The phrase “ancestral domain” is broader concept than “ancestral

lands”. Ancestral domain is an all-embracing concept which refers to
lands, inland waters, coastal areas, and natural resources therein and
includes ancestral lands, forests, pasture, residential, agricultural, and
other lands individually owned whether alienable or inalienable,
hunting grounds, burial grounds, worship areas, bodies of waters, and
all other natural resources that may be found therein. They also include
lands which may no longer be exclusively occupied by indigenous
cultural communities but to which they have traditionally had access for
their subsistence and traditional activities

Ancestral land is a narrower concept. It refers to those held under

the same conditions as ancestral domain but limited to lands that are
not merely occupied and possessed but are also utilized by cultural
communities under the claim of individual or traditional group
ownership

Please read:

1) R.A. No. 8371, aka The Indigenous Peoples Rights Act of 1997

1) Isagani Cruz vs Secretary of Environment and Natural Resources, G.R.

No. 135385 (December 6, 2000)

2) The Province of North Cotabato vs The Government of the Philippines

Peace Panel on Ancestral Domain, G.R. No. 183591 (October 14, 2008)

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Section 6 – The use of property bears a social function, and all

economic agents shall contribute to the common good. Individuals
and private groups, including cooperatives, and similar collective
organizations, shall have the right own, establish, and operate
economic enterprises, subject to the duty of the State to promote
distributive justice and to intervene when the common good so
demands

There are three aspects in this section, first – it embodies

guidelines to the private property owners of their responsibility to the
community in enjoying the use of their property; second – that the
citizens are encourage to establish their own enterprises; and third –
that the State is called upon to intervene in their operation and
management for the common good to promote distributive justice

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Page fourteen:

Section 7, Article XII – Save in cases of hereditary succession,

no private lands shall be transferred or conveyed except to
individuals, corporations, or associations qualified to acquire or
hold lands of the public domain

Section 7 is intended to assure that the limitation in the

disposition of alienable lands of the public domain under section 2 and
3 is not defeated or rendered nugatory when such lands are converted
into private lands. It is an expression of public policy to conserve lands
for the Filipinos

The capacity to acquire private land is made dependent upon the

capacity to acquire alienable land of the public domain. Private land
may be transferred or conveyed only to individuals or entities qualified
to acquire alienable lands of the public domain

Also a natural born Filipino citizen who have lost their Philippine
citizenship by acquiring another citizenship is likewise qualified to
acquire private land

The time in determining whether a person acquiring private land

is qualified is at the time the right to own the land is acquired and not at
the time of the application to register ownership

The phrase “hereditary succession” in section 7 which enable

aliens to acquire private lands should be interpreted to mean intestate
succession (by operation of law, when a person died without a will); and
not a testamentary succession (with a testament or will)

Otherwise, the prohibition will be for naught and meaningless.

Any alien would be able to circumvent the prohibition by offering large
money to a Filipino land-owner in exchange for a will bequeathing his
land to the foreigner
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Section 8. Notwithstanding the provisions of Section 7 of this

Article, a Natural-Born Citizen of the Philippines who has lost his
Philippine Citizenship may be a transferee of private lands, subject
to limitations provided by law

Section 8 was culled from a 1981 amendment to the 1973

Constitution, which allows a natural born citizen who lost his
citizenship to be a transferee of private land for use by as his residence,
Page fifteen:

Under the new Section 8, due to the clamor of Filipinos who were
living abroad to be given the opportunity not only to own a residential
land but also to participate in the development of the country, the
requirement that only for residential use and a maximum area of one
thousand hectares was deleted in the new section 7, and instead it was
left to Congress to set the parameters and limitations

The current law on the subject is R.A. No. 8179, amending the
Foreign Investment Act, particularly section 5, which provides - “Any
former natural born citizen who has the legal capacity to enter into a
contract under Philippine laws may be a transferee of a private land up
to a maximum area of five thousand square meters in the case of urban
land or three hectares in the case of rural land to be used by him for
business or other purposes

In the case of married couples, one of them may avail of the

privilege herein granted; provided that, if both of them shall avail of the
same, the total area acquired shall not exceed the maximum herein
fixed”

Please read:

Llantino vs Co Liong Chong, G.R. No. L-29663 (1990)

Cheesman vs Intermediate Appellate Court, 193 SCRA 92 (1991)

Celso R. Halili vs Court of Appeals, G.R. No. 113539 (March 12, 1998)

United Church Board of World Ministries vs Sebastian

De Castro vs Tan, 129 SCRA 85 (April 30, 1984)

Philippine Banking Corporation vs Lui She, G.R. No. L-17587

(September 12, 1967)