Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE RESOLUTION No. 72

____________________________________________________________________________________
Introduced by Reps. TEODORO A. CASIÑO and NERI JAVIER COLMENARES

RESOLUTION
DIRECTING THE COMMITTEE ON NATURAL RESOURCES TO CONDUCT AN
INVESTIGATION, IN AID OF LEGISLATION, ON THE CONTROVERSIAL AWARD OF
COAL OPERATING CONTRACTS TO MONTE ORO RESOURCES ENERGY INC. THAT
WILL LIKELY RESULT IN THE PERMANENT DAMAGE TO AT LEAST THREE TOWNS
IN THE PROVINCE OF CATANDUANES

WHEREAS, it is an established fact that mining for coal has severe adverse effects on the environment and
on human health. Surface mining for coal, wherein the horizontal contours of a mountainside are stripped,
entails the complete elimination of vegetation and results in the destruction of soil profile. Forests are wiped
out by the removal process of coal mining, leading to the destruction and displacement of wildlife, pollution
of any existing water bodies, and degradation of air quality;

WHEREAS, coal refuse in mine sites can seep into the ground and poison water aquifers while coal soot
causes lung diseases like cancer. This is why environmentalists push for alternative sources of power like
wind, sunlight and biomass;

WHEREAS, despite the dangers that coal mining poses to the environment and public health, Department
of Energy (DOE) Secretary Angelo Reyes signed Small-Scale Coal Mining Permit No. 2008-018 issued to
Policarpio Torres on Oct. 30, 2008 covering a parcel of coal-bearing land in Barangay San Miguel,
Panganiban, Catanduanes;

WHEREAS, under the said permit valid for five years, Torres can extract 7,333 metric tons a year at
Campo Ermitaño under the supervision of Monte Oro Resources Energy Inc. when its coal operating
contract (COC) is converted into development and production COC. All coal produced by Torres will be
sold to Monte Oro, according to the permit;

WHEREAS, a coal production of 1.5 million metric tons in five years would earn Monte Oro P6.2 billion
in gross revenues. Local governments are expected to get a mere P9 million in taxes and workers, a measly
P10 million. These projected benefits do not outweigh the permanent damage to environment of the town
and province in the long run;

WHEREAS, in a resolution dated Nov. 17, 2008, the municipal council however, said there were no
records showing that the DOE and other agencies had complied with the provisions of the Local
Government Code requiring prior consultation with local government units, non-government organizations
and other sectors to be affected by the proposed coal mining project;

WHEREAS, the total land area assigned to Monte Oro in the towns of San Andres, Caramoran and
Panganiban is three times bigger than Makati City;

WHEREAS, the Catholic Church, Federation of Irrigators Associations of Catanduanes (FIAC), United
Katandunganons Against Graft and Corruption (UKAGC), and Kalikasan-People’s Network for the
Environment (KPNE) also oppose any kind of mining in the province and the plan of the DOE to award
an additional 8,000 hectares in the towns of Caramoran, Panganiban and Viga to a private firm for the
mining of some P9.4 billion worth of coal deposits;

WHEREAS, the areas identified by the DOE for coal mining encroach on the remaining 60,000 hectares
of forest land of Catanduanes. Additionally, a report by provincial consultant Manuel Mapa said any
disturbance of the ground surface and forested areas during mining operations would increase soil erosion
and cause flooding in the towns of Viga, Panganiban, Bagamanoc, San Miguel, Bato, and Barangays
Manambrag in San Andres, and Hitoma and Milaviga in Caramoran;

WHEREAS, Mapa said that coal mining would open the remaining forests to massive exploitation from
swidden farmers, “farm-and-run” settlers and illegal loggers, which Could result in the loss of forest cover
capable of absorbing 8.7 million tons of carbon dioxide;

WHEREAS, Department of Environment and Natural Resources (DENR) Secretary Lito Atienza said the
Monte Oro project in Catanduanes does not have an Environmental Compliance Certificate (ECC) as
mandated by the country’s environmental laws;

WHEREAS, all coal mining projects bigger than 20 hectares need an ECC and permits authorizing the
transfer of trees, water rights and endorsements from local government units;

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Committee

on Natural Resources conduct an investigation, in aid of legislation, on the controversial award of coal
operating contracts to Monte Oro Resources Energy Inc. that will likely result in the permanent damage to
at least three towns in the province of Catanduanes.

Adopted,

TEODORO A. CASIÑO NERI JAVIER COLMENARES

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