LEAGUE OF PROVINCES OF THE PHILIPPINES v. DENR and Secretary approval of said applications.
approval of said applications. Eventually, the Governor issued the small-scale mining
GR. No. 175368 April 11, 2013
Petitioner: League of Provinces - a duly organized league of local governments
incorporated under the Local Government Code; it is composed of 81 provincial
governments, including the Province of Bulacan
Respondent: DENR and DENR Secretary Angelo Reyes
Other parties:
Golden Falcon Mineral Exploration Corporation (Golden Falcon) – applicant for a
Financial and Technical Assistance Agreement (FTAA); filed before Mines and
Geosciences Bureau, Regional Office No. III (MGB-RO); application was denied twice
Mercado, Cruz, Cruz and Sembrano (MCCS) – applicants for Quarry Permit; filed before
the Provincial Environment and Natural Resources Office (PENRO) of Bulacan
Atlantic Mines and Trading Corporation (AMTC) – applicant for Exploration Permit; filed
before the PENRO of Bulacan
FACTS
Golden Falcon applied for FTAA before the MGB-RO. On April 29, 1998, MGB-RO denied
Golden Falcon’s application for FTAA on for failure to secure the required area
clearances from the Forest Management Sector and Lands Management Sector of the
DENR-RO. Golden Falcon appealed the denial with the Mines and Geosciences Bureau-
Central Office (MGB-CO).
On February 10, 2004, pending Golden Falcon's appeal to the MGB-CO, MCCS filed with
the PENRO of Bulacan their applications for quarry permit covering the same area subject
of Golden Falcon's FTAA application. MGB-CO finally denied Golden Falcon’s appeal on
July 16, 2004.
AMTC filed with the PENRO of Bulacan an application for exploration permit covering the
same subject area on September 13, 2004. Confusion of rights resulted from the
overlapping applications of AMTC and the persons applying for quarry permits – the
contention was the date the area of Golden Falcon’s application became open to other
permit applications from other parties
On October 19, 2004, upon query by MGB-RO Director Cabantog, DENR-MGB Director
Ramos stated that the denial of Golden Falcon’s application became final on August 11,
2004, or fifteen days after Golden Falcon received the order of denial of its application.
Hence, the area of Golden Falcon’s application became open to permit applications only
on that date.
Subsequently, the Provincial Legal Officer of Bulacan issued a legal opinion on the issue,
stating that the subject area became open for new applications on the date of the first
denial on April 29, 1998 (MGB-RO’s order of denial), as MGB-CO’s order of denial on July
16, 2004 was a mere reaffirmation of the MGB-RO’s April 29 order; hence, the reckoning
period should be April 29.
Based on this legal opinion, MGB-RO Director Cabantog endorsed the applications for
quarry permit, now apparently converted to applications for small-scale mining permit,
to the Governor of Bulacan. PENRO of Bulacan recommended to the Governor the
permits. AMTC appealed to the DENR Secretary.
The DENR Secretary decided in favor of the AMTC and nullified and cancelled the
governor’s issuance of small-scale mining permits. It agreed with DENR-MGB Director
Ramos that the area was open to mining location only on August 11, 2004 (15 days after
the MGB-CO denial). Hence, the applications for quarry permit filed on February 10, 2004
were null as these were filed when the area was still closed to mining location. On the
other hand, AMTC filed its application when the area was already open to other mining
applicants, hence, its application was valid. The small-scale mining permits were also
issued in violation of Section 4 of R.A. No. 7076 and beyond the authority of the Governor
pursuant to Sec. 43 of RA 7942 because the area was never proclaimed to be under the
small-scale mining program.
The petitioner League of the Provinces of the Philippines filed this petition saying that that
this is not an action of one province alone, but the collective action of all provinces
through the League, as a favorable ruling will not only benefit one province, but all
provinces and all local governments.
ISSUES
1. Whether DENR’s act of nullifying the small-scale mining permits amounts to executive
control, not merely supervision and usurps the devolved powers of all provinces, as the
DENR Secretary substituted the judgment of the Provincial Governor of Bulacan.
2. Whether or not Section 17, b(3)(III) of the Local Government Code and Section 24 of
the Small-Scale Mining Act, which confer upon DENR and the DENR Secretary the power
of control are unconstitutional, as the Constitution states that the President (and Exec
Depts) has the power of supervision only, not control over acts of LGUs
RULING
[The Court finds that petitioner has legal standing to file this petition because it is tasked
under Section 504 of the Local Government Code of 1991 to promote local autonomy at
the provincial level; adopt measures for the promotion of the welfare of all provinces and
its officials and employees; and exercise such other powers and perform such other duties
and functions as the league may prescribe for the welfare of the provinces.]
DENR Sec’s act was valid and authorized pursuant to its power of review under the RA
7076 and its IRR; Assailed statutes did not overcome the presumption of constitutionality,
hence, are not unconstitutional.
Control of the DENR/DENR Secretary over small-scale mining in the provinces is granted
by three statutes: (1) R.A. 7061 or The Local Government Code of 1991; (2) R.A. 7076 or
the People's Small Scale Mining Act of 1991; and (3) R.A. No. 7942 or the Philippine Mining
Act of 1995.
Control is the power of an officer to alter or modify or set aside what a subordinate officer
had done in the performance of his/her duties and to substitute the judgment of the
former for the latter. Supervision is the power of a superior officer to see to it that lower
officers perform their function in accordance with law.
The Constitutional guarantee of local autonomy in the Article X, Sec. 2 of the Constitution
refers to the administrative autonomy of the LGUs or the decentralization of government
authority. It does not make local governments within the State. Administrative autonomy
may involve devolution of powers, but it is still subject to limitations, like following national In Beltran v. Secretary of Health, the Court held that every law has in its favor the
policies or standards and those provided by the Local Government Code, as the presumption of constitutionality. For a law to be nullified, it must be shown that there is a
structuring of LGUs and the allocation of powers/responsibilities/resources among the clear and unequivocal breach of the Constitution. The ground for nullity must be clear
LGUs and local officials are placed by the Constitution to Congress under Article X Section and beyond reasonable doubt. In this case, the grounds raised by the petitioner to
3. challenge the constitutionality of Sec. 17 b(3)(iii) of the LGC and Section 24 of RA 7076
has failed to overcome the constitutionality of the said provisions of the law.
It is the DENR which is in-charge of carrying out the State’s constitutional mandate to
control and supervise the exploration, development and utilization of the country’s Petition was dismissed for lack of merit.
natural resources, pursuant to the provisions of Section 17, b(3)(III) of the LGC. Hence, the
enforcement of the small-scale mining law by the provincial government is subject to the
supervision, control and review of the DENR. The LGC did not fully devolve to the provincial
government the enforcement of the small-scale mining law.

RA 7076 or the People’s Small-Scale Mining program was established to be implemented

by the DENR Secretary in coordination with other government agencies (Section 4, RA
7076). Section 24 of the law makes the Provincial/ Mining Regulatory Board under the
direct supervision and control of the Secretary, its powers and functions subject to review
by the same.

Under Section 123 of DENR AO No. 23, small-scale mining applications should be filed with
the PMRB and the permits shall be issued by the provincial governor, for applications
outside the mineral reservations.

DENR Administrative Order No. 34 (1992) which contains the IRR of RA 7076 likewise
provides that the DENR Secretary shall exercise direct supervision and control over the
People’s Small-Scale Mining Program, and that the Provincial/City Mining Regulatory
Board’s (PMRB) powers and functions shall be subject to review by the DENR Secretary.
DENR Administrative Order No. 96-40 or the Revised IRR of the Philippine Mining Act of
1995 provides that applications for Small-Scale Mining Permits shall be filed with the
Provincial Governor/City Mayor through their respective Mining Regulatory Boards for
areas outside the Mineral Reservations, and further, that the LGUs in coordination with the
Bureau/Regional Offices shall approve applications for small-scale mining, sand and
gravel, quarry xxx and gravel permits not exceeding 5 hectares.

Petitioner’s contention that the aforementioned laws and rules did not confer upon DENR
and DENR Secretary the power to reverse, abrogate, nullify, void, cancel the permits
issued by the Provincial Governor or small-scale mining contracts entered into by the
Board are without merit because the DENR Secretary was granted the power of review in
the PMRB’s resolution of disputes under Sec. 24 of RA 7076 and Section 22 of its IRR. The
decision of the DENR Secretary to nullify and cancel the Governor’s issuance of permits
emanated from its power of review under RA 7076 ad its IRR. Its power to review and
decide on the validity of the issuance of the Small-Scale Mining Permits by the Provincial
Governor is a quasi-judicial function which involves the determination of what the law is
and what the legal rights of the contending parties are, with respect to the matter in
controversy and on the basis thereof and the facts obtaining, the adjudication of their
respective rights.

The DENR Secretary exercises quasi-judicial function under RA 7076 and its IRR to the
extent necessary in settling disputes, conflicts, or litigations over conflicting claims. This
quasi-judicial power of the DENR can neither be equated with “substitution of judgment”
of the Provincial Governor in issuing Small-Scale Mining Permits nor “control” over the said
act of the Provincial Governor as it is a determination of the rights of the AMTC over
conflicting claims based on the law.