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LA BUGAL-B'LAAN TRIBAL ASSOCIATION, INC.

vs.
VICTOR O. RAMOS, SECRETARY, DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES (DENR)
Facts:
On July 25, 1987, then President Corazon C. Aquino issued Executive Order
(E.O.) No. 279 authorizing the DENR Secretary 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.
The large-scale exploration, development, and utilization was suppose to be
construed as a project of at least Fifty Million US Dollars.
On March 3, 1995, then President Fidel V. Ramos approved R.A. No. 7942 to
"govern the exploration, development, utilization and processing of all mineral
resources." R.A. No. 7942 defines the modes of mineral agreements for mining
operations, outlines the procedure for their filing and approval, assignment/transfer
and withdrawal, and fixes their terms. Similar provisions govern financial or
technical assistance agreements. This is an act Instituting a New System of Mineral
Resources Exploration, Development, Utilization and Conservation.
On April 9, 1995, 30 days following its publication on March 10, 1995 in Malaya and
Manila Times, two newspapers of general circulation, R.A. No. 7942 took effect. 33
Shortly before the effectivity of R.A. No. 7942, however, or on March 30,
1995, the President entered into an FTAA with WMCP covering 99,387
hectares of land in South Cotabato, Sultan Kudarat, Davao del Sur and North
Cotabato.
On August 15, 1995, then DENR Secretary Victor O. Ramos issued DENR
Administrative Order (DAO) No. 95-23, s. 1995, otherwise known as the
Implementing Rules and Regulations of R.A. No. 7942. This was later repealed by
DAO No. 96-40, s. 1996 which was adopted on December 20, 1996.
Issues:

The petitioners claim that:

A.) In signing and promulgating DENR Administrative Order No. 96-40


implementing Republic Act No. 7942, the latter being unconstitutional in
that it allows fully foreign owned corporations to explore, develop, utilize
and exploit mineral resources in a manner contrary to Section 2,
paragraph 4, Article XII of the Constitution;
B.) In recommending approval of and implementing the Financial and
Technical Assistance Agreement between the President of the Republic of
the Philippines and Western Mining Corporation Philippines Inc. because
the same is illegal and unconstitutional
Issues related to lesson: The Respondents argued that the requisites for a judicial
inquiry were not met. Thus, they were implying that the said grievances were all
political questions.

Note: In the case, the petitioners gave 7 grievances or claims but the court only
considered the first and the last to be Justiciable and disregarded the other 5. Pls.
refer to the 4th page of the case regarding the other 5 claims of the petitioner.

The respondents further argued that the three requisites for a judicial review are
not present in the case at bar which are:
1. An actual case or controversy
2. Locus Standi
3. Exercise of judicial review is pleaded at the earliest moment.

The court contended that the challenge of the constitutionality of RA 7942 and
DAO 96-40 fulfills the requisite of justiciability, that the petioners have locus standi.
The respondents also argued that the case is moot considering the fact that the
petitioners filed a complaint only 2 years after the effectivity of RA 7942, but the
court contended that the said case was ripe for adjudication since it was only then
that they felt the effect of the said act.

The petition was GRANTED. The court declared the following unconstitutional and
void:
(1) The following provisions of Republic Act No. 7942:
(a) The proviso in Section 3 (aq),
(b) Section 23,
(c) Section 33 to 41,
(d) Section 56,
(e) The second and third paragraphs of Section 81, and
(f) Section 90.
(2) All provisions of Department of Environment and Natural Resources Administrative
Order 96-40, s. 1996 which are not in conformity with this Decision, and
(3) The Financial and Technical Assistance Agreement between the Government of the
Republic of the Philippines and WMC Philippines, Inc.

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