La Bugal-Blaan Tribal Association, Inc. et al. v. Ramos et al.

FACTS 25 July 1987 EO 279 authorized DENR to accept, consider and evaluate proposals from foreign-owned corporations or foreign investors for contracts or agreements involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, which, upon appropriate recommendation of the Secretary, the President may execute with the foreign proponent. In entering into such proposals, the President shall consider the real contributions to the economic growth and general welfare of the country that will be realized, as well as the development and use of local scientific and technical resources that will be promoted by the proposed contract or agreement. Until Congress shall determine otherwise, large-scale mining, for purpose of this Section, shall mean those proposals for contracts or agreements for mineral resources exploration, development, and utilization involving a committed capital investment in a single mining unit project of at least Fifty Million Dollars in United States Currency (US $50,000,000. 00) 3 March 1995 RA 7942 signed into law 30 March 1995 Government entered FTAA with WMCP 99,387 hectares of land in South Cotabato, Sultan Kudarat, Davao del Sur and North Cotabato . 9 April 1995 30 days after publication on 10 March 1995, RA 7942 took effect 20 December 1996 DENR Secretary Victor Ramos issued DAO 96-40 10 January 1997 counsels for petitioner sent letter to Ramos demanding DENR to stop implementing RA 7942 and DAO 96-40. No response, thus this petition for Mandamus and Prohibition with prayer of TRO and preliminary injunction (denied) claiming that petitioner Ramos acted without or in excess of jurisdiction in implementing the assailed Constitutionality of RA 7942 [1], of DENR Administrative Order 96-40 [2], and of the Financial and Technical Assistance Agreement entered into on 30 March 1995 between the Republic of the Philippines and WMC (Philippines) , Inc.. 23 January 2001 Manifestation of respondents that WMCP is no longer foreign-owned as WMC has sold 100% of its equity to Filipino company Sagittarius Mines, Inc. which is 60% owned by Filipinos or Filipino-owned corporations. WMCP is renamed as Tampakan Mineral Resources Corporation. 18 December 2001 DENR approved the transfer and registration of FTAA to Sagittarius from WMCP. Supreme Court said that this manifestation and transfer does not render the issue moot since the question of validity of the FTAA will affect even that held by Sagittarius. Issue/s Preliminary Issue: Standing of Petitioners 1. WON EO 279 is an invalid law having been issued two days before President Aquinos legislative powers expired with the convening of Regular Congress and having thus took effect after which. 2. WON RA 7942 and DAO 96-40 are unconstitutional and consequently the FTAA entered pursuant to above stated laws is invalid Ratio Decidendi Preliminary Issue: Petitioners have standing since they are residents of the land covered by the FTAA. Since the petition if for mandamus and prohibition and the issue is of constitutionality

of a statute, the Supreme is no longer concerned whether or not petitioners are real parties of interest to the contract/agreement. 1. NO. EO 279 is valid and whether or not the laws effectivity date lies beyond the expiration of the Presidents legislative power is irrelevant since it was still enacted when the president held such power. It does not run counter to EO 200 requiring laws to have 15 days after publication requirement before its effectivity since EO 200 also provides unless it is otherwise provided, EO 279 having stated its own effectivity as shall take effect immediately. In addition, the 15-day post-publication requirement was for the information of the public and does not in any way affect the date of enactment and is not a ground for invalidation. EO 279 nonetheless was published on the Official Gazette on 3 August 1987. 2. Yes. The 1987 Constitution provides The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for largescale exploration, development, or 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 andtechnical resources.The Constitution provides for four modes by which the States may explore, develop, and Utilize Natural Resources (1) State may directly undertake such activities (2) State may enter into co-production, joint-venture or production-sharing agreements with Filipino citizens or qualified corporations (60% Filipino owned) (3) Congress may allow small-scale utilization of natural resources by Filipino citizens (4) For the large-scale exploration, development, or utilization of minerals, petroleum, and other mineral oils, the President may enter into agreements with foreign-owned corporation for technical or financial assistance. The framers of this Constitution expressly omitted the phrase service contracts that was provided for in the 1973 Constitution which allowed foreign companies to manage and operate mining activities and replaced it with technical or financial assistance only. RA 7942, DAO 96-40, and the FTAA between the government and WMCP allows for the management and operation of the foreign-owned corporation for the large-scale exploration, development, or utilization of minerals, petroleum, and other mineral oils. Although counsel for respondents claim that technical is a very broad term that may cover the management and operation of such activities, it is still clear from the deliberation of the Constitutional Commission that they intended to limit the utilization of the natural resources for the sole enjoyment of the Filipinos.