MEMORANDUM OF AGREEMENT:

KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT made and entered into this March 3, 1999

by and between:

The Department of Environment and Natural Resources, a

government agency created under Executive Order No. 192, with
principal offices located at Visayas Avenue, Diliman, Quezon City,
herein represented by its Secretary Antonio H. Cerilles, hereinafter
referred to as “DENR”;

The Province of Rizal, a Local Government Unit, herein

represented by its Provincial Governor Casimiro M. Ynares Jr.,
hereinafter referred to as “Rizal Province”;

- and -

The Philippine National Police Rizal Provincial Police

Office, represented by is Provincial Director, Police
Superintendent Luizo C. Ticman, hereinafter referred to as “PNP
Rizal”;

WITHESSETH: That -

WHEREAS, the DENR is the primary government agency

responsible for the conservation, management, development and
proper use of the State’s mineral resources including those in
reservations, watershed areas and lands of the public domains,
pursuant to Executive Order No. 192 and Republic Act No. 7942;

WHEREAS, the Local Government Units thru the Provincial

Governors/City Mayors are mandated to issue and regulate the
operations under small scale mining permits/contracts and
quarrying permits for areas outside mineral reservations, pursuant
to Republic Act No. 7160 and Republic Act No. 7942;

WHEREAS, The DENR has issues Memorandum Order No. 99-

08 for the Guidelines in the mining/quarrying operations in the
Municipalities of Rodriquez and San Mateo, Province of Rizal
consistent with the pertinent provisions of Executive Order No.
192, Republic Act No. 7942 and Republic Act No. 7160;

WHEREAS, the DENR, RIZAL PROVINCE and PNP RIZAL

recognize the need for a joint effort to implement Memorandum
Order No, 99-08 and ensure success in the attainment of the
objectives of the said Order;

NOW, THEREFORE, the foregoing premises considered, the

DENR, RIZAL PROVINCE and PNP RIZAL hereby enter into this
MEMORANDUM OF AGREEMENT to jointly enforce the
implementation of DENR Memorandum Order No, 99-08 upon its
effectivity, with particular emphasis on the following:

1. Strictly monitor the phasing out process for mining/quarrying

operations in Rodriquez and San Mateo, Rizal by creating and
mobilizing a joint filed monitoring team and deputizing the
Philippine National Police of the locality and/or concerned Local
Government Units;

2. Effect the full stoppage of any mining/quarrying and/or

crushing/processing operations within the Marikina Watershed
Reservation and other mining/quarrying and/or
crushing/processing operations with no mining/processing
permits/contracts and/or Environmental Compliance Certificate
(ECCs) and those covered by Cease and Desist Orders, and;

3. Fully enforce the preconditions for allowing mining/quarrying

and/or crushing/processing operations within the area covered
by Proclamation No. 1636 but outside of the Marikina Watershed
Reservation, in particular the ECC conditionalities and
Environmental Protection and Enhancement Program (EPEP)
requirements, establishment of the Contingent Liability and
Rehabilitation Fund (CLRF), and performance of Best Practice in
environmental management.

Signed at Quezon City, Philippines.

(Sgd.) ANTONIO H. CERILLES

Secretary
Department of Environment and Natural Resources
(Sgd.) CASIMIRO M. YNARES JR.
Governor
Province of Rizal

(Sgd.) LUIZO C. TICMAN

Provincial Director
Rizal Provincial Police Office
Philippine National Police