NATURAL RESOURCES

What comprises the Philippine

territory?
According to Article I of the Philippine
Constitution, the Philippine territory or the
national territory comprises the Philippine
archipelago, with all the islands and waters
embraced therein, and all other territories
over which the Philippines has sovereignty or
jurisdiction, consisting of its terrestrial, fluvial
and aerial domains, including its territorial
sea, the seabed, the subsoil, the insular
shelves, and other submarine areas. The
waters around, between, and connecting the
islands of the archipelago, regardless of their
breadth and dimensions, form part of the
internal waters of the Philippines.
State in toto Section 2 of Article XII of
the 1987 Constitution.
Section 2. All lands of the public domain,
waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy,
fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are
owned by the State. With the exception of
agricultural lands, all other natural resources
shall not be alienated. The exploration,
development, and utilization of natural
resources shall be under the full control and
supervision of the State. The State may
directly undertake such activities, or it 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 citizens. Such agreements
may be for a period not exceeding twentyfive years, renewable for not more than
twenty-five years, and under such terms and
conditions as may be provided by law. In
cases of water rights for irrigation, water
supply fisheries, or industrial uses other than
the development of water power, beneficial
use may be the measure and limit of the
grant.
The State shall protect the nation's marine
wealth in its archipelagic waters, territorial
sea, and exclusive economic zone, and
reserve its use and enjoyment exclusively to
Filipino citizens.
The Congress may, by law, allow small-scale
utilization of natural resources by Filipino
citizens, as well as cooperative fish farming,
with priority to subsistence fishermen and

fish- workers in rivers, lakes, bays, and

lagoons.
The President may enter into agreements
with foreign-owned corporations involving
either technical or financial assistance for
large-scale exploration, development, and
utilization of minerals, petroleum, and other
mineral oils according to the general terms
and conditions provided by law, based on
real contributions to the economic growth
and general welfare of the country. In such
agreements, the State shall promote the
development and use of local scientific and
technical resources.
The President shall notify the Congress of
every contract entered into in accordance
with this provision, within thirty days from its
execution.
What are the different classifications of
Lands of the Public domain? Define
each.
Under the 1987 Constitution, lands of the
public domain are classified into:
a.) Agricultural
-

those lands that are neither timber

nor mineral lands

Actually devoted to agriculture but

that is susceptible to cultivation for
agricultural purposes

b.)Forest or timber
-

Large tract of land covered with a

natural growth of trees and
underbrush

A large wood

A tract of land covered with trees,

usually of considerable extent

As an economic factor is by no
means a mere collection of trees,
but an organic whole in which all
parts,
although
apparently
heterogeneous, jumbled together
by accident as it were and
apparently unrelated, bear a close
relation to each other and are as
interdependent as any other beings
and conditions in nature
1

c.) Mineral
-

Land more valuable for mining

purposes than for anything else
Mining operation on such land must
be profitable enough, such that if
the costs to develop and extract
the minerals therefrom would be
more than the proceeds that could
be realized upon the disposition of
the minerals produced, such should
not properly fall in the category of
minerals

d.)National parks
-

The State has control over the real

property within the limits

The State doesnt possess only the

right to determine how title to real
estate may be acquired and proved,
but it is also within its legislative
capacity to establish the method of
procedure

All land that were not acquired from

the government either by purchase or
by grant, belong to the public domain

Oh Cho case: reiterated the rule

enunciated in Carino, which is any
land that has been in possession of an
occupant and of his predecessors-ininterest since time immemorial, as to
which such possession would justify
the presumption that the land had
never been part of the public domain
or that it had been private property
even before the Spanish conquest.

are places of natural or historical

value designated for protection and
sustainable
utilization
by the
Department of Environment and
Natural
Resources
under
the
National Integrated Protected Areas
System Act (1992)

Prior
to
the
1987
Constitution,
Commonwealth Act 141 or the Public
Lands Act classifies land into:
a.) alienable & disposable;

1. THE PUBLIC LAND ACT, CA 141

Governed the disposition of lands of
the public domain

Prescribed rules and regulations for

the homesteading, selling, and leasing
of portions of the public domain of the
Philippine Islands

Lands that are alienable and disposable

are further classified according to their
use and purpose as:

Prescribed the terms and conditions

to enable persons to perfect their titles
to public lands in the Islands

a.) Agricultural;

Provided for the issuance of patents

to certain native settlers upon public
lands for the establishment of
townsites and sale of lots therein, for
the completion of imperfect titles, and
for
the
Islands
> In short, this Act worked on the
assumption that title to public lands in
the Philippines remained in the
government
and
that
the
governments title to public land
sprung from the Treaty of Paris and
other subsequent treaties between
Spain and the US PUBLIC LAND
> Referred to all land of the public
domain whose title still remained in
the government and are thrown open
to
private
appropriation
and
settlement,
and
excluded
the
patrimonial
property
of
the
government and the friar lands

b.) timber,
c.) and mineral

b.) Residential, commercial, industrial or

for similar productive purposes;
c.) Educational, charitable or other similar
purposes; and
d.) Reservations for town site and for
public or quasi-public purposes

Distinguish the Land Registration Act

from the Public Land Act.
A VIEW OF PAST AND PRESENT LEGISLATION
ON LAND REGISTRATION
The State has the power and right to
provide for a procedure for the
adjudication of title to real estate

APPLICATION OF CA 141
Applies to all lands of public domain
which have been declared open to
disposition or concession and officially
delimited and classified
Provisions on the different modes of
government
granthomesteads,
patents, sales, and reservations for
public and semipublic purpose
Has a chapter on judicial confirmation
of imperfect or incomplete titles based
on acquisitive prescription
2. THE LAND REGISTRATION ACT, ACT
NO. 946
> Established the Torrens system of
registration
in
the
country
> Court of Land Registrationexclusive
jurisdiction
over
all
applications
for
registration, with power to hear and
determine all questions arising upon such
applications
> To bring land titles in the Philippines under
one comprehensive and harmonious system,
the
cardinal
features
of
which
are
indefeasibility of title and the intervention of
the State as a prerequisite to the creation
and transfer of titles and interests, with the
resultant increase in the use of land as a
business asset by reason of the greater
certainty
and
security
of
title
> It doesnt create a title nor vest one
> It simply confirms a title already created
and already vested, rendering it forever
indefeasible.
> Before the creation of the Court of Land
Registration, the jurisdiction to determine the
nature, quality, and extent of land titles, the
rival claims of contending parties, and the
legality and effect thereof was vested in the
Courts of First Instance
WITH
THE
PASSAGE
OF
THE
ABOVEMENTIONED
ACT,
TWO
THINGS
OCCURRED WORTHY OF NOTE:
1. A court of limited jurisdiction, with special
subject matter, and with only one purpose
was
created
2. By reason thereof, courts theretofore of
general, original, exclusive jurisdiction, were
shon of some of their attributesin other
words,
powers
were
restricted
> Judicial proceedings were in rem and
based on generally accepted principles
underlying the Torrens system

3. THE CADASTRAL ACT, ACT NO. 2259

> When, in the option of the President, the
public interest requires that title to any lands
be settled and adjudicated, he shall order the
Director of Lands to make a survey thereof,
with notice to all persons claiming interest
therein
> Thereafter, the Director of Lands,
represented by the Solicitor General, shall
institute registration proceedings by filing a
petition in the proper court against the
holders, claimants, possessors, or occupants
of such lands, stating that the public interest
requires that the titles to such lands be
settled and adjudicated
Notice of the filing of the petition is
published twice in successive issues of
the Official Gazette

Decree shall be the basis for the

issuance of the certificate of title
which shall have the same effect as a
certificate of title granted under the
Property Registration Decree

A cadastral proceeding is in rem,

hence, binding generally upon the
whole world
4. THE PROPERTY REGISTRATION DECREE, PD
1529
> In order to update the Land Registration
Act
> To codify the various laws relative to the
registration
of
property
and
> To facilitate effective implementation of
said
laws
> Supercedes all laws relative to the
registration
of
property
> RTC: jurisdiction over applications for
registration and all subsequent proceedings
relative thereto, subject to judicial review
> Substantially incorporated the substantive
and procedural requirements of its precursor,
the
Land
Registration
Act
of
1902
> It has expanded the coverage to include
judicial combination of imperfect and
incomplete titles in its Section 14 (1),
cadastral registration proceedings in Section
35 to 38, voluntary proceedings in Sections
51 to 68, involuntary proceedings in Sections
69 to 77, certificates of land transfer and
emancipation patents issued pursuant to PD
No. 27 in Sections 104 to 106, and
reconstruction of lost or destroyed original
Torrens
titles
in
Section
110.
> Judicial proceedings are in rem and are
based on general principles underlying the
Torrens system
3

REGISTRATION
UNDER
THE
TORRENS
SYSTEM IS A PROCEEDING IN REM
> Main principle of registration: to make
registered
titles
indefeasible
> All occupants, adjoining owners, adverse
claimants, and other interested persons are
notified of the proceedings, and have a right
to appear in opposition in such application
> Proceeding against the whole world
> Proceedings shall be in rem and based on
generally accepted principles under the
Torrens system
Modes of Disposition of Public Lands
a.) For homestead settlement
b.) By sale
c.) By lease
d.) by confirmation
e.) by judicial legalization
f.) by administrative legalization (free patent)

Define homestead.

Who are qualified to apply?

1. Citizens of the Philippines.
2. Over 18 years old or head of the
family.
3. Not the owner of more than 12
hectares of land pursuant to the 1987
constitution
Can a married woman make a
Homestead entry?
A married woman can now apply for a patent
application under DAO-2002-13 dated June
24, 2002 issued by the then Secretary of the
Department of Environment and Natural
Resources Heherzon T. Alvarez. This is in
accordance with Article II, Section 14 of the
Constitution and Republic Act No. 7192
otherwise known as the "Women in
Development and Nation Building Act" as
implemented by DAO No. 98-15 of May 27,
1998 on "Revised Guidelines on the
Implementation of Gender and Development
(GAD) Activities in the DENR". This
Administrative Order gives women, equal
right as men in filing, acceptance, processing
and approval of public land applications.
Legal Requirements

Homestead is the home, the house and the

adjoining land where the head of the family
dwells; the home farm; the fixed residence of
the head of the family, with the land and
buildings surrounding the main house.
Under modern homestead laws, it is an
artificial estate in land, devised to protect the
possession and enjoyment of the owner
against the claims of his creditors, by
withdrawing the property from execution and
forced sale, so long as the land is occupied
as a home.
HOMESTEAD PATENT
Homestead Patent is a mode of acquiring
alienable and disposable lands of the public
domain for agricultural purposes conditioned
upon actual cultivation and residence.
Where Homestead Application should
be filed?
A Homestead application like any other
public land applications should be filed at the
DENR-Community Environment and Natural
Resources Office where the land being
applied for is located.

1. Application fee of P50.00;

2. Entry fee of P5.00;
3. Final fee of P5.00;
4. Approved plan and technical
description of the land applied for;
5. Actual occupation and residence by
the applicant;
Steps leading to the issuance of a
Homestead patent
1. Filing of application;
2. Preliminary Investigation;
3. Approval of application;
4. Filing of final proof which consists of
two (2) parts;
a. Notice of intention to make Final
Proof which is posted for 30
days.

b. Testimony of the homesteader

corroborated by two (2)
witnesses mentioned in the
notice. The Final Proof is filed
not earlier than 1 year after the
approval of the application but
within 5 years from the said
date.
5. Confirmatory Final Investigation;
6. Order of Issuance of Patent;
7. Preparation of patent using Judicial
Form No. 67 and 67-D and the
technical description duly inscribed at
the back thereof;
8. Transmittal of the Homestead patent
to the Register of Deeds concerned.
Signing and Approving Authority For
Homestead and Free Patents:
1. Up to 5 hectares (has.) - PENRO
2. More than 5 Has. to 10 Has. - RED

3. More than 10 Has. - DENR Secretary

COMMONWEALTH ACT NO. 456 - AN ACT TO
AMEND SECTIONS NINETEEN, TWENTY, AND
ONE HUNDRED AND EIGHTEEN OF
COMMONWEALTH ACT NUMBERED ONE
HUNDRED FORTY-ONE, COMMONLY KNOWN
AS THE PUBLIC LAND ACT
Section 1. Sections nineteen, twenty, and
one hundred and eighteen of Commonwealth
Act Numbered One hundred and forty-one
are amended to read as follows:
"Section 19. Not more than one homestead
entry shall be allowed to any one person,
and no person to whom a homestead patent
has been issued by virtue of the provisions of
this Act regardless of the area of his original
homestead, may again acquire a homestead;
Provided, however, That any previous
homesteader who has been issued a patent
for less than twenty-four hectares and
otherwise qualified to make a homestead
entry, may be allowed another homestead
which, together with his previous homestead
shall not exceed an area of twenty-four
hectares.
"Section 20. If at any time after the approval
of the application and before the patent is
issued, the applicant shall prove to the
satisfaction of the Director of Lands that he
has complied with all the requirements of the
law, but cannot continue with his homestead,

through no fault of his own, and there is a

bona fide purchaser for the rights and
improvements of the applicant on the land,
and that the conveyance is not made for
purposes of speculations, then the applicant,
with the previous approval of the Secretary
of Agriculture and Commerce, may transfer
his rights to the land and improvements to
any person legally qualified to apply for a
homestead, and immediately after such
transfer, the purchaser shall file a homestead
application to the land so acquired and shall
succeed the original homesteader in his
rights and obligations beginning with the
date of the approval of said application of the
purchaser. Any person who has so
transferred his rights may not again apply for
a new homestead. Every transfer made
without the previous approval of the
Secretary of Agriculture and Commerce shall
be null and void and shall result in the
cancellation of the entry and the refusal of
the patent."
"Section 118. Except in favor of the
Government or any of its branches, units, or
institutions, lands acquired under free patent
or homestead provisions shall not be subject
to encumbrance or alienation from the date
of the approval of the application and for a
term of five years from and after the date of
issuance of the patent or grant, nor shall
they become liable to the satisfaction of any
debt contracted prior to the expiration of
said period, but the improvements or crops
on the land may be mortgaged or pledged to
qualified
persons,
associations,
or
corporations.
"No alienation, transfer, or conveyance of
any homestead after five years and before
twenty-five years after issuance of title shall
be valid without the approval of the
Secretary of Agriculture and Commerce,
which approval shall not be denied except on
constitutional and legal grounds."
Section2. This Act shall take effect upon its
approval.
Approved, June 8, 1939.
FREE PATENT
A free patent is a mode of acquiring a parcel
of alienable and disposable public land which
is suitable for agricultural purposes, thru the
administrative confirmation of imperfect and
incomplete title. Agricultural public lands
classified as alienable and disposable are
subject for disposition under Free Patent.
The applicant for a free patent must comply
with the following qualifications:
5

1. He must be a natural born citizen of the

Philippines.
2. He must not be the owner of more than
twelve (12) hectares of land.
3. The land must have been occupied and
cultivated for at least thirty (30) years prior
to April 16, 1990 by the applicant or his
predecessors-in-interest and shall have paid
the real estate tax thereon.
4. A minor can apply for a free patent,
provided he is duly represented by his
natural parents or legal guardian and has
been occupying and cultivating the area
applied for either by himself or his
predecessor-in-interest
The following are the steps leading to the
approval and issuance of a free patent:
1. Filing of application;
2. Investigation;
3. Posting of notice for two (2) consecutive
weeks in the provincial capitol or municipal
building and barangay hall concerned;
4. Order of approval of application and
issuance of patent;
5. Preparation of Patent in Judicial Form 54
and 54-D and the technical description duly
transcribed at the back thereof;
6. Transmittal of the Free Patent to the
Register of Deeds concerned for the issuance
of the corresponding Original Certificate of
Title.
The following officials of the Department of
Environment and Natural Resources (DENR)
are authorized to approve applications for
homestead and free patents:
1. Up to 5 hectares Provincial Environment
and Natural Resources Officer (PENRO)
2. More than 5 Ha. to 10 Ha. Regional
Executive Director of the DENR.
HOMESTEAD VS. FREE PATENT
Homestead Patent and Free Patent are some
of the land patents granted by the
government under the Public Land Act. While
similar, they are not exactly the same.
A Homestead Patent is one issued to: any
citizen of this country; over the age of 18

years or the head of a family; who is not the

owner of more than twenty-four (24)
hectares of land in the Philippines or has not
had the benefit of any gratuitous allotment
of more than twenty- four (24) hectares of
land since the occupation of the Philippines
by the United States. The applicant must
show that he has complied with the
residence and cultivation requirements of the
law; must have resided continuously for at
least one year in the municipality where the
land is situated; and must have cultivated at
least one-fifth of the land applied for.
On the other hand, a Free Patent may be
issued where the applicant is a natural-born
citizen of the Philippines; not the owner of
more than twelve (12) hectares of land; that
he has continuously occupied and cultivated,
either
by
himself
or
through
his
predecessors-in-interests, a tract or tracts of
agricultural
public
lands
subject
to
disposition for at least 30 years prior to the
effectivity of Republic Act No. 6940; and that
he has paid the real taxes thereon while the
same has not been occupied by any person.
What are the rights and obligations of a
lessee of Public Agricultural Lands?
Agricultural Lessee is a person who, by
himself and with the aid available from within
his immediate farm household, cultivates the
land belonging to, or possessed by another,
with the latters consent for purposes of
production, for a price certain in money or in
produce
or
both.
What
are
rights
of
the
lessee?
1. To have possession and peaceful
enjoyment
of
the
land;
2. To manage and work on the land in a
manner and method of cultivation and
harvest which conform to proven farm
practices;

3. To mechanize all or any phase of his farm

work;

4. To deal with millers and processors and

attend to the issuance of quedans and
warehouse receipts of the produce due
him/her;

5. To continue in the exclusive possession

and enjoyment of any home lot the lessee
6

may have occupied upon the effectivity of RA

3844;

lessor to the extent of the damage caused

thereby; and

6. To be indemnified for the costs and

expenses incurred in the cultivation and for
other
expenses
incidental
to
the
improvement of the crop in case the lessee
surrenders, abandons for a just cause or is
ejected without DARAB/court order from the
landholding;

5. To pay the lease rental to the lessor when

it falls due.
RIGHTS,
PROHIBITIONS
RESPONSIBILITES OF LESSOR

AND

What is an agricultural lessor?

7. To have the right of pre-emption and
redemption; and

8. To be paid disturbance compensation in

case the conversion in the land use of the
farm
holding
has
been
approved.
What are the duties and responsibilities of
the
lessee?
The lessee shall at all times perform the
following pursuant to Section 26 of RA 3844,
as amended:

1. Cultivate and take care of the farm,

growing crops, and other improvements on
the land and perform all the work therein in
accordance with proven farm practices;

2. Inform the lessor within a reasonable time

of any trespass committed by third persons
on the farm, without prejudice to his/her
direct action against the trespasser;

3. Take reasonable care of the work animals

and farm implements delivered to him/her by
the lessor and see to it that they are not
used for purposes other than those intended,
or used by another without the knowledge
and
consent
of
the
lessor;
If any of such work animals or farm
implements gets lost or damaged due to the
lessees negligence, he/ she shall pay the
lessor the equivalent value of the work
animals or farm implements at the time of
the loss or damage;

4. Keep the farm and growing crops attended

to during the work season. In case of
unjustified abandonment or neglect of
his/her farm, any or all of the expected
produce may, upon order of the appropriate
body or court, be forfeited in favor of the

Agricultural Lessor is a person, natural or

juridical, who, either as owner, civil law
lessee, usufructuary, or legal possessor, lets
or grants to another the cultivation and use
of his land for a certain price in money or in
produce
or
both.
What are the rights of the agricultural
lessor?
Section 29 of RA 3844 provides that it shall
be the right of the lessor to:

1. Inspect and observe the extent of

compliance with the terms and conditions of
the leasehold contract;

2. Propose a change in the use of the

landholding to other agricultural purposes, or
in the kind of crops planted;

3.
Require
the
lessee,
taking
into
consideration his/her financial capacity and
the credit facilities available to him/her, to
adopt proven farm practices necessary to the
conservation of the land, improvement of the
fertility and increase in productivity; and

4. Mortgage expected rentals.

What are the duties and responsibilities
of a lessor?

The lessor shall, at all times, keep the

agricultural lessee in peaceful possession
and cultivation of his/her landholding. In
addition, he/she shall keep intact useful
improvements existing on the landholding at
the start of the leasehold relationship such
as irrigation and drainage system and
marketing allotments, which in the case of
7

sugar quotas shall refer both to domestic and

export quotas, provisions of existing laws to
the
contrary
notwithstanding.
What are the prohibitions on the lessor?
1. To dispossess the lessee of his/her
landholding except upon authorization by the
DARAB/Court under Section 36, RA 3844;

2. To require the lessee to assume, directly or

indirectly, the payment of the taxes or part
thereof levied by the government on the
landholding;

3. To require the lessee to assume, directly or

indirectly any rent of obligation of the lessor
to a third party;

4. To deal with millers or processors without

written authorization of the lessee in cases
where the crop has to be sold in processed
form before payment of the lease rental;

displacement by force, deceit, stealth or as a

consequence of government projects or any
other voluntary dealings entered into by
government
and
private
individuals/corporations, and which are
necessary to ensure their economic, social
and cultural welfare. It shall include ancestral
lands,
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.1
The laws concept of ancestral domains,
therefore,
transcends
physical
and
residential territories to include areas of
spiritual, cultural and traditional practices.

6. To allow or cause the indiscriminate

cutting of coconut trees which is deemed a
prima facie evidence of intent to dispossess
the tenant of his/her landholding unless
there is verified written consent of the lessee
and there is certification by the Philippine
Coconut Authority (PCA), copy of the finding
and recommendations of which shall be
furnished the affected tenants or lessees, or
a resolution from the Municipal Board,
allowing the cutting for valid reasons

Ancestral lands, which are part of ancestral

domains, are defined in the same Act as
lands occupied, possessed and utilized by
individuals, families and clans who are
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, deceit, stealth or as a
consequence of government projects and
other voluntary dealings entered into by
government
and
private
individuals/corporations, including, but not
limited to, residential lots, rice terraces or
paddies, private forests, swidden farms and
tree lots.2

What are ancestral domains and lands?

IPs rights to ancestral domains which

include:

5. To discourage, directly or indirectly, the

formation, maintenance or growth of unions
or organizations of lessee in his/her
landholding; and

Ancestral domains, as defined in the IPRA,

refer to all areas generally belonging to
[Indigenous Cultural Communities] ICCs/IPs
comprising lands, inland waters, coastal
areas, and natural resources therein, held
under a 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

1. the right of ownership,

2. right to develop lands and natural
resources,
3. right to stay in the territories,
4. right in case of displacement
(temporary or permanent resettlement
and right to return),
5. right to regulate entry of migrants,
6. right to safe and clean air and water,
7. right to claim parts of reservations
(except those intended for common
public welfare and service) and
8

8. the right to resolve conflict.

For ancestral lands, in particular, IPs
have the :
1. right to transfer land/property rights
to/among members of the same
ICCs/IPs and
2. the right to redeem the property in
case of transfers that raise questions
on consent given by IPs and transfers
made with unjust considerations
and/or prices.
Puno said that the provisions of the IPRA
do not contravene with the [Philippine]
Constitution and that ancestral domains
and ancestral lands are the private property
of Indigenous Peoples and do not constitute
part of the land of the public domain. The
SC votes on the case, Isagani Cruz and Cesar
Europa vs. the Secretary of Environment and
Natural Resources, Secretary of Budget and
Management
and
Chairman
and
Commissioners of the NCIP, questioning the
constitutionality of the IPRA, were equally
divided. After another deliberation, the votes
remained the same. Following the Rules of
Civil Procedure, the case was dismissed.

Claiming ancestral domains and lands

IPs in the Philippines can claim ownership in
two ways:
1.) by virtue of a native title, getting formal
recognition of ownership by acquiring a
certificate of ancestral domain title (CADT) or
certificate of ancestral land title (CALT) from
the National Commission on Indigenous
Peoples (NCIP)-Ancestral Domains Office
(ADO),
2.) or by securing a certificate of title by
virtue of Commonwealth Act 141, as
amended, or the Land Registration Act 496.
A native title
-

according to RA No. 8371, refers

to pre-conquest rights to land and
domains, which , as far back as
memory reaches, have been held
under a claim of private ownership
by ICCs/IPs, have never been public
lands and are thus indisputably
presumed to have been held that
way since before the Spanish
Conquest. A CALT or CADT, on the
other hand, is granted by the

government and is provided for by

law to those IPs who wish to obtain
these titles. The IPRA, specifically
Section 12, also states that IPs
have
the
option
to
acquire
certificates of title under the
provisions
of
the
amended
Commonwealth Act No. 141. This
Act follows the Torrens System of
land registration and titles issued
under this system are called
Torrens titles

Responsibilities of
Ancestral Domains

ICCs/IPs

to

their

1.) Maintain ecological balance

2.) Restore denuded areas
3.) Observe laws
Who has priority over natural resources
within ancestral domains?
The ICCs/IPs shall have priority rights in the
harvesting, extraction, development or
exploitation of any natural resources within
the ancestral domains. A non-member of the
ICCs/IPs concerned may be allowed to take
part in the development and utilization of the
natural resources for a period of not
exceeding twenty-five (25) years renewable
for not more than twenty-five (25) years,
provided that a formal and written
agreement is entered into with the ICCs/IPs
concerned or that the community, pursuant
to its own decision making process, has
agreed to allow such operation.
Do the ICCs/IPs have the righ to selfgovernance?
Yes. ICCs/IPs have the inherent right to selfgovernance and self-determination. The
State respects the integrity of their values,
practices and institutions. The State shall
guarantee the right of ICCs/IPs to freely
pursue their economic, social and cultural
development. The ICCs/IPs shall have the
right to use their own commonly accepted
justice
systems,
conflict
resolution
institutions, peace building processes or
mechanisms and other customary laws and
practices within their respective communities
and as be compatible with the national legal
system and with internationally recognized
human rights.
Are lands lands certified to be ancestral
domains covered by real estate taxes?
9

These lands are exempt from real property

taxes, special levies, and other forms of
exaction except such portion of the ancestral
domains as are actually used for large-scale
agriculture, commercial forest plantation and
residential purposes or upon titling by private
persons.
What are the applicable laws?
Customary laws, traditions and practices of
the ICCs/IPs of the land where the conflict
arises shall be applied first with respect to
property rights, claims and ownerships,
hereditary succession and settlement of land
disputes. Any doubt or ambiguity in the
application and interpretation of laws shall
be resolved in favor of the ICCs/IPs.
What is the process of delineation of
ancestral domains?
The identification and delineation of
ancestral domains shall be done in
accordance with the following general
procedure:
a. Petition for delineation. The process of
delineating a specific perimeter may be
initiated by the National Commission on
Indigenous Cultural Communities/Indigenous
Peoples (NCIP) with the consent of the ICC/IP
concerned, or through a Petition for
Delineation filed with the NCIP, by a majority
of the members of the ICCs/IPs.
b. Delineation proper. The official delineation
of ancestral domain boundaries including
census of all community members therein,
shall be immediately undertaken by the
Ancestral Domains Office upon filing of the
application by the ICCs/IPs concerned.

shall be posted in a prominent place therein

for at least 15 days. A copy of the document
shall also be posted at the local, provincial
and regional offices of the NCIP, and shall be
published in a newspaper of general
circulation once a week for 2 consecutive
weeks to allow other claimants to file
opposition thereto within 15 days from date
of such publication. In areas where no such
newspaper exists, broadcasting in a radio
station will be a valid substitute. Mere
posting shall be deemed sufficient if both
newspaper and radio station are not
available.
f. Endorsement to NCIP. Within 15 days from
publication, and of the inspection process,
the Ancestral Domains Office shall prepare a
report to the NCIP endorsing a favorable
action upon a claim that is deemed to have
sufficient proof. However, if the proof is
deemed insufficient, the Ancestral Domains
Office shall require the submission of
additional evidence. The Ancestral Domains
Office shall reject any claim that is deemed
patently false or fraudulent after inspection
and verification.
g. Issuance of Certificate of Ancestral
Domain Title (CADT). ICCs/IPs whose
ancestral domains have been officially
delineated and determined by the NCIP shall
be issued a CADT in the name of the
community concerned, containing a list of all
those identified in the census.
h. Registration of CADTs. The NCIP shall
register issued certificates of ancestral
domain titles and certificates of ancestral
lands titles before the Register of Deeds in
the place where the property is situated.
What are not covered by this process?

c. Preparation of maps. On the basis of

such investigation and the findings of fact
based thereon, the Ancestral Domains Office
of the NCIP shall prepare a perimeter map,
complete with technical descriptions, and a
description of the natural features and
landmarks embraced therein.
d. Report of investigation and other
documents. A complete copy of the
preliminary census and a report of
investigation, shall be prepared by the
Ancestral Domains Office of the NCIP.

The delineation process shall not apply to

ancestral domains/lands already delineated
according to DENR Administrative Order No.
2, series of 1993, nor to ancestral lands and
domains delineated under any other
community/ancestral domain program prior
to the enactment of R.A. 8371. ICCs/IPs
whose ancestral lands/ domains were
officially delineated prior to the enactment of
the law shall have the right to apply for the
issuance of a Certificate of Ancestral Domain
Title (CADT) over the area without going
through the process.

e. Notice and publication. A copy of each

document, including a translation in the
native language of the ICCs/IPs concerned
10

National Commission
People (NCIP)

on

Indigenous

the environment and protect the rights of

affected communities.
Definition of terms:

MANDATE
The National Commission on Indigenous
People (NCIP) is mandated to protect and
promote the interest and well being of
indigenous peoples with due regard to their
beliefs, customs, traditions and institutions.
As such, it shall serve as the primary
government agency responsible for the
formulation and implementation of pertinent
and appropriate policies and programs to
carry out the policies set forth in the new
law.
VISION
As enabling partner and lead advocate, the
NCIP
envisions
genuinely
empowered
Indigenous Cultural Communities/Indigenous
Peoples (ICCs/IPs) whose rights and multidimensional well-being are fully recognized,
respected and promoted towards the
attainment
of
national
unity
and
development.

MISSION
The NCIP is the primary government agency
that formulates and implements policies,
plans and programs for the recognition,
promotion and protection of the rights and
well-being of IPs with due regard to their
ancestral
domains
and
lands,
selfgovernance and empowerment, social justice
and human rights, and cultural integrity.

Mineral Resources Mining Act of 1995

Declaration of Policy
- All mineral resources in public and private
lands within the territory and exclusive
economic zone of the Republic of the
Philippines are owned by the State. It shall
be the responsibility of the State to promote
their rational exploration, development,
utilization and conservation through the
combined efforts of government and the
private sector in order to enhance national
growth in a way that effectively safeguards

"Block" or "meridional block" means an

area bounded
by one-half (1/2) minute of latitude and onehalf (1/2)
minute of longitude, containing
approximately eightyone hectares (81 has).
Contiguous zone" refers to water, sea
bottom and substratum measured twentyfour nautical miles (24 n.m.) seaward from
the base line of the Philippine
archipelago.
"Environmental compliance certificate
(ECC)"
refers to the document issued by the
government agency concerned certifying
that the project under consideration will not
bring about an unacceptable environmental
impact and that the proponent has complied
with the requirements of the environmental
impact statement system.
"Environmental impact statement (EIS)"
is the document which aims to identify,
predict, interpret, and
communicate information regarding changes
in environmental quality associated with a
proposed project and which examines the
range of alternatives for the objectives of the
proposal
and
their
impact
on
the
environment.
"Exclusive economic zone" means the
water, sea bottom and subsurface measured
from the baseline of the Philippine
archipelago up to two hundred nautical miles
(200 n.m.) offshore.
"Existing mining/quarrying right" means
a valid and
subsisting mining claim or permit or quarry
permit or any mining lease contract or
agreement covering a mineralized area
granted/issued under pertinent mining laws.
"Exploration" means the searching or
prospecting for mineral resources by
geological, geochemical or geophysical
surveys, remote sensing, test pitting,
trenching, drilling, shaft sinking, tunneling or
any other means for the purpose of
determining the existence, extent, quantity
and quality thereof and the feasibility of
mining them for profit.
"Financial
or
technical
assistance
agreement" means a contract involving
11

financial or technical assistance for largescale

exploration,
development,
and
utilization of mineral resources.
"Force
majeure"
means
acts
or
circumstances beyond the reasonable control
of contractor including, but not limited to,
war, rebellion, insurrection, riots, civil
disturbance, blockade, sabotage, embargo,
strike, lockout, any dispute with surface
owners and other labor disputes, epidemic,
earthquake, storm, flood or other adverse
weather conditions, explosion, fire, adverse
action
by
government
or
by
any
instrumentality or subdivision thereof, act of
God or any public enemy and any cause that
herein describe over which the affected party
has no reasonable control.
"Foreign-owned corporation" means any
corporation, partnerships, association, or
cooperative duly registered in accordance
with law in which less than fifty per centum
(50%) of the capital is owned by
Filipino citizens.
"Mineral processing" means the milling,
beneficiation
or upgrading of ores or minerals and rocks or
by similar
means to convert the same into marketable
products.
"Mine wastes and tailings" shall mean soil
and rock materials from surface or
underground mining and milling operations
with no economic value to the generator of
the same.
"Minerals" refers to all naturally occurring
inorganic substance in solid, gas, liquid, or
any intermediate state excluding energy
materials such as coal, petroleum, natural
gas, radioactive materials, and geothermal
energy.
"Mineral agreement" means a contract
between the government and a contractor,
involving
mineral
production-sharing
agreement, co-production agreement, or
joint-venture agreement.
"Quarrying" means the process of
extracting, removing
and disposing quarry resources found on or
underneath the surface of private or public
land.
"Quarry permit" means a document
granted to a qualified person for the
extraction and utilization of
quarry resources on public or private lands.
"Quarry resources" refers to any common
rock or other mineral substances as the

Director of Mines and Geosciences Bureau

may declare to be quarry resources such as,
but not limited to, andesite, basalt,
conglomerate, coral sand, diatomaceous
earth, diorite, decorative stones, gabbro,
granite, limestone, marble, marl, red burning
clays for potteries and bricks, rhyolite, rock
phosphate, sandstone, serpentine, shale,
tuff, volcanic cinders, and volcanic glass:
Provided, that such quarry resources do not
contain metals or metallic constituents
and/or
other
valuable
minerals
in
economically workable quantities: Provided,
further, That non-metallic minerals such as
kaolin, feldspar, bull quartz, quartz or silica,
sand and pebbles, bentonite, talc, asbestos,
barite,
gypsum,
bauxite,
magnesite,
dolomite, mica, precious and semi-precious
stones, and other non-metallic minerals that
may later be discovered and which the
Director declares the same to be of
economically workable quantities, shall not
be classified under the category of quarry
resources.
Areas Closed to Mining Applications. - Mineral
agreement or financial or technical
assistance agreement applications shall not
be allowed:
(a) In military and other government
reservations, except upon prior written
clearance by the government agency
concerned;
(b) Near or under public or private buildings,
cemeteries, archeological and historic
sites, bridges, highways, waterways,
railroads, reservoirs, dams or other
infrastructure projects, public
or private works including plantations or
valuable crop
s, except upon written consent of the
government
agency or private entity concerned;
(c) In areas covered by valid and existing
mining rights;
(d) In areas expressly prohibited by law;
(e) In areas covered by small-scale miners as
defined by law unless with prior consent of
the small-scale miners,
in which case a royalty payment upon the
utilization of
minerals shall be agreed up on by the
parties, said
royalty forming a trust fund for the
socioeconomic
development of the community concerned;
and
(f) Old growth or virgin forests, proclaimed
watershed
12

forest reserves, wilderness area, mangrove

forests,
mossy forests, national parks,
provincial/municipal
forests, parks, greenbelts, game refuge and
bird
sanctuaries as defined by law and in areas
expressly
prohibited under the National Integrated
Protected
Area System (NIPAS) under Republic Act No.
7586, Department Administrative Order No.
25, series of
1992 and other laws.
Exploration Permit
- An exploration permit grants the right to
conduct exploration for all minerals in
specified areas. The Bureau shall have the
authority to grant an exploration
permit to a qualified person.
Rights and Obligations of the Permittee
An exploration permit shall grant to the
permittee, his heirs or successors-in-interest,
the right to enter, occupy and explore the
area: Provided, That if private or other
parties are affected, the permittee shall first
discuss with the said parties the extent,
necessity, and manner of his entry,
occupation and exploration and in case of
disagreement, a panel of arbitrators shall
resolve the conflict or disagreement.
The permittee shall undertake an exploration
work on the area as specified by its permit
based on an approved work program. Any
expenditure in excess of the yearly budget of
the approved work program may be carried
forward and credited to the succeeding years
covering the duration of the permit. The
Secretary, through the Director, shall
promulgate rules and regulations governing
the terms and conditions of the permit.
The permittee may apply for a mineral
production sharing agreement, joint venture
agreement, co-production agreement or
financial or technical assistance agreement
over the permit area, which application shall
be granted if the permittee meets the
necessary qualifications and the terms and
conditions of any such agreement: Provided,
That the exploration period covered by the
exploration permit shall be included as part
of the exploration period of the mineral
agreement
or
financial
or
technical
assistance agreement.
Modes of Mineral Agreement
For purposes of mining operations, a mineral
agreement may take the following forms as
herein defined:
(a)
Mineral
production
sharing
agreement - is 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.
(b) Co-production agreement - is an
agreement between the Government and the
contractor wherein the Government shall
provide inputs to the mining operations other
than the mineral resource.
(c) Joint-venture agreement - is 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.
AUXILIARY MINING RIGHTS
1.) Timber Rights
Any provision of law to the contrary
notwithstanding, a contractor may be
granted a right to cut trees or timber within
his mining area as may be necessary for
his mining operations subject to forestry
laws, rules and
regulations: Provided, That if the land
covered by the mining area is already
covered by existing timber concessions, the
volume of timber needed and the
manner of cutting and removal thereof shall
be determined by the mines regional
director,
upon
consultation
with
the
contractor,
the
timber
concessionaire/permittee and the Forest
Management Bureau of the Department:
Provided, further,
That in case of disagreement between the
contractor and the timber concessionaire,
the matter shall be submitted to the
Secretary whose decision shall be
final.
The
contractor
shall
perform
reforestation work within his mining area in
accordance with forestry laws, rules and
regulations.
2.) Water Rights
A contractor shall have water rights for
mining operations upon approval of
application with the appropriate government
agency in accordance with existing water
laws, rules and regulations promulgated
thereunder: Provided, That water rights
already granted or vested through long use,
recognized and acknowledged by local
customs, laws, and decisions of courts shall
not thereby be impaired: Provided, further,
That the Government reserves the right to
regulate water rights and the reasonable and
13

equitable distribution of water supply so as

to prevent the monopoly of the use thereof.
3.) Right to Possess Explosives
A contractor/exploration permittee have the
right to possess and use explosives within his
contract/permit area as may be necessary for
his mining operations
upon approval of an application with the
appropriate government agency in
accordance with existing laws,
rules and regulations promulgated
thereunder: Provided, That the Government
reserves the right to regulate and control the
explosive accessories to ensure safe mining
operations.
4.) Easement Right
When mining areas are so situated that for
purposes of more convenient mining
operations it is necessary to build, construct
or install on the mining area or lands owned,
occupied or leased by other persons, such
infrastructure as roads, railroads, mills, waste
dump sites, tailings ponds, warehouses,
staging or storage areas and port facilities,
tramways, runways, airports, electric
transmission, telephone or telegraph lines,
dams and their normal flood and catchment
areas,
sites for water wells, ditches, canals, new
river beds, pipelines, flumes, cuts, shafts,
tunnels, or mills, the contractor, upon
payment of just compensation shall be
entitled to enter and occupy said mining
areas or lands.
5.) Entry into Private Lands and
Concession Areas
Subject to prior notification, holders of
mining rights shall not be prevented from
entry into private lands and concession areas
by surface owners, occupants, or
concessionaires when conducting mining
operations therein: Provided, That any
damage done to the property of the surface
owner, occupant, or concessionaire as a
consequence of such operations
shall be properly compensated as may be
provided for in the implementing rules and
regulations: Provided, further, That to
guarantee such compensation, the
person authorized to conduct mining
operations shall, prior thereto, post a bond
with the regional director based on the type
of properties, the prevailing prices
in and around the area where the mining
operations are
to be conducted, with surety or sureties
satisfactory to the regional director.
GROUND FOR CANCELLATION,
REVOCATION, AND
TERMINATION

Late or Non-filing of Requirements ground for the

suspension of any permit or agreement
provided
under this Act.
Violation of the Terms and Conditions of
Permits
or Agreements - sufficient ground for
cancellation of
the same.
Non-payment of Taxes and Fees - for Two
(2) consecutive years shall cause the
cancellation of the exploration permit,
mineral agreement, financial or technical
assistance agreement and other agreements
and the re-opening of the area subject
thereof to new applicants.
Suspension or Cancellation of Tax
Incentives and Credits - Failure to abide by
the terms and conditions of tax incentives
and credits shall cause the suspension or
cancellation of said incentives and credits.
Falsehood or Omission of Facts in the
Statement
- All statements made in the exploration
permit, mining agreement and financial or
technical assistance agreement shall be
considered as conditions and essential parts
thereof and any falsehood in said statements
or omission of facts therein which may alter,
change or affect substantially the facts set
forth in said statements may cause the
revocation and termination of the exploration
permit, mining agreement and financial or
technical assistance agreement.
DIFFERENT PERMITS GRANTED UNDER
THE PHILIPPINE MINING ATC OF 1991
1.) Exploration permit grants the right to
conduct exploration for all minerals in
specified areas. The Bureau shall have the
authority to grant an exploration Permit to a
qualified person.
2.) Any qualified person may apply to the
provincial/city mining regulatory board for a
quarry permit on privately-owned lands
and/or public lands for building and
construction materials such as marble,
basalt, andesite, conglomerate, tuff, adobe,
granite, gabbro, serpentine, inset filling
materials, clay for ceramic tiles and building
bricks, pumice, perlite and other similar
materials that are extracted by quarrying
from the ground.
3.) Commercial Sand and Gravel Permit
14

Any qualified person may be granted a

permit by the provincial governor to extract
and remove sand and gravel or other loose
or unconsolidated materials which are used
in their natural state, without undergoing
processing from an area of not more than
five hectares (5 has.) and in such quantities
as may be specified in the permit.

provincial governor to extract sand and

gravel, quarry or loose unconsolidated
materials needed in the construction of
building and/or infrastructure for public use
or other purposes over an area of not more
than two hectares (2 has.) for a period
coterminous with said construction.

4.) Industrial Sand and Gravel Permit

7.) Private Gratuitous Permit
Any qualified person may be granted an
industrial sand and gravel permit by the
Bureau for the extraction of sand and gravel
and other loose or unconsolidated materials
that necessitate the use of mechanical
processing covering an area of more than
five hectares (5 has.) at any one time. The
permit shall have a term of five (5) years,
renewable for a like period but not to exceed
a total term of twenty-five (25) years.

5.) Exclusive Sand and Gravel Permit

Any qualified person may be granted an
exclusive sand and gravel permit by the
provincial governor to quarry and utilize sand
and gravel or other loose or unconsolidated
materials from public lands for his own use,
provided that there will be no commercial
disposition thereof.
A mineral agreement or a financial technical
assistance agreement contractor shall,
however, have the right to extract and
remove sand and gravel and other loose
unconsolidated materials without need of a
permit within the area covered by the mining
agreement for the exclusive use in the
mining operations: Provided, That monthly
reports of the quantity of materials extracted
therefrom shall be submitted to the mines
regional office concerned: Provided, further,
That said right shall be coterminous with the
expiration of the agreement.
Holders of existing mining leases shall
likewise have the same rights as that of a
contractor: Provided, That said right shall be
coterminous with the expiry dates of the
lease.
6.) Government Gratuitous Permit
Any government entity or instrumentality
may be granted a gratuitous permit by the

Any owner of land may be granted a private

gratuitous permit by the provincial governor.

8.) Guano Permit

Any qualified person may be granted a
guano permit by the provincial governor to
extract and utilize loose unconsolidated
guano and other organic fertilizer materials
in any portion of a municipality where he has
established domicile. The permit shall be for
specific caves and/or for confined sites with
locations verified by the Department's field
officer in accordance with existing rules and
regulations.

9.) Gemstone Gathering Permit

Any qualified person may be granted a nonexclusive gemstone gathering permit by the
provincial governor to gather loose stones
useful as gemstones in rivers and other
locations.

10.) Ore Transport Permit

A permit specifying the origin and quantity of
non-processed mineral ores or minerals shall
be required for their transport. Transport
permits shall be issued by the mines regional
director who has jurisdiction over the area
where the ores were extracted. In the case of
mineral ores or minerals being transported
from the small-scale mining areas to the
custom mills or processing plants, the
Provincial Mining Regulatory Board (PMRB)
concerned shall formulate their own policies
to govern such transport of ores produced by
small-scale miners. The absence of a permit
shall be considered as prima facie evidence
15

of illegal mining and shall be sufficient cause

for the Government to confiscate the ores or
minerals being transported, the tools and
equipment
utilized,
and
the
vehicle
containing the same. Ore samples not
exceeding two metric tons (2 m.t.) to be
used exclusively for assay or pilot test
purposes shall be exempted from such
requirement.

(b) The recognition of prior existing rights

and productivity;
(c) The encouragement of the formation of
cooperatives;
(d) The extension of technical and financial
assistance, and other social services;
(e) The extension of assistance in processing
and marketing;

11.) Mineral Trading Registration

No person shall engage in the trading of
mineral
products,
either
locally
or
internationally, unless registered with the
Department of Trade and Industry and
accredited by the Department, with a copy of
said registration submitted to the Bureau.

12.) Minerals Processing Permit

No person shall engage in the processing of
minerals without first securing a minerals
processing permit from the Secretary.
Minerals processing permit shall be for a
period of five (5) years renewable for like
periods but not to exceed a total term of
twenty-five (25) years. In the case of mineral
ores or minerals produced by the small-scale
miners, the processing thereof as well as the
licensing of their custom mills, or processing
plants shall continue to be governed by the
provisions of Republic Act No. 7076.

Small-Scale Mining Act of 1991

Declaration of Policy. It is hereby
declared of the State to promote, develop,
protect and rationalize viable small-scale
mining activities in order to generate more
employment opportunities and provide an
equitable sharing of the nation's wealth and
natural resources, giving due regard to
existing rights as herein provided.

(f) The generation of ancillary livelihood

activities;
(g) The regulation of the small-scale mining
industry with the view to encourage growth
and productivity; and
(h) The efficient collection of government
revenue.

Rights Under a People's Small-scale

Mining Contract
A people's small-scale mining contract
entitles the small-scale mining contractor to
the right to mine, extract and dispose of
mineral ores for commercial purposes. In no
case shall a small-scale mining contract be
subcontracted, assigned or otherwise
transferred.
Terms and Conditions of the Contract.
A contract shall have a term of two (2) years,
renewable subject to verification by the
Board for like periods as long as the
contractor complies with the provisions set
forth in this Act, and confers upon the
contractor the right to mine within the
contract area: provided, that the holder of
a small-scale mining contract shall have
the following duties and obligations:
(a) Undertake mining activities only in
accordance with a mining plan duly approved
by the Board;
(b) Abide by the Mines and Geosciences
Bureau and the small-scale Mining Safety
Rules and Regulations;

The People's Small-scale Mining Program

shall include the following features:

(c) Comply with his obligations to the holder

of an existing mining right;

(a) The identification, segregation and

reservation of certain mineral lands as
people's small-scale mining areas;

(d) Pay all taxes, royalties or government

production share as are now or may
hereafter be provided by law;
16

(e) Comply with pertinent rules and

regulations on environmental protection and
conservation, particularly those on treecutting mineral-processing and pollution
control;
(f) File under oath at the end of each month a
detailed production and financial report to
the Board; and
(g) Assume responsibility for the safety of
persons working in the mines.
Rights of Claimowners. In case a site
declared and set aside as a people's-scale
mining area is covered by an existing mining
right, the claimowner and the small-scale
miners therein are encouraged to enter into
a voluntary and acceptable contractual
agreement with respect to the small-scale
utilization of the mineral values from the
area under claim. In case of disagreement,
the claimowner shall be entitled to the
following rights and privileges:
(a) Exemption from the performance of
annual work obligations and payment
of occupation fees, rental, and real
property taxes;
(b) Subject to the approval of the
Board, free access to the contract area
to conduct metallurgical tests,
explorations and other activities,
provided such activities do not unduly
interfere with the operations of the
small-scale miners; and

(c) Royalty equivalent to one and one

half percent (1 1/2%) of the gross
value of the metallic mineral output or
one percent (1%) of the gross value of
the nonmetallic mineral output to be
paid to the claimowner: provided, that
such rights and privileges shall be
available only if he is not delinquent
and other performance of his annual
work obligations and other
requirements for the last two (2) years
prior to the effectivity of this Act.
Rights of Private Landowners. The
private landowner or lawful possessor shall
be notified of any plan or petition to declare
his land as a people's small-scale mining
area. Said landowner may oppose such plan
or petition in an appropriate proceeding and
hearing conducted before the Board.
If a private land is declared as a people's
small-scale mining area, the owner and the
small-scale mining contractors are
encouraged to enter into a voluntary and
acceptable contractual agreement for the
small-scale utilization of the mineral values
from the private land: provided, that the
owner shall in all cases be entitled to the
payment of actual damages which he may
suffer as a result of such declaration:
provided, further, that royalties paid to the
owner shall in no case exceed one percent
(1%) of the gross value of the minerals
recovered as royalty.

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