BRIEFER: QUARRYING IN THE PHILIPPINES

QUARRYING IN THE PHILIPPINES1

Background

Mining and Quarrying accounts for P134.5 billion in Gross Domestic Product (GDP) for the
country’s national accounts for the year 2017.2 This amount is an incre It is 0.7 percent of the total
Gross National Product of the Philippines, which has been steady in the past two years.

Quarrying: Prevailing Legal Bases

 Section 2, Article XII of the 1987 Constitution:

All lands of public domain, waters, minerals, coal, petroleum, and other mineral oils, all
forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
resources are owned by the State. With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration, development, and utilization of natural
resources shall be under the full control and supervision of the State. The State may directly
undertake such activities, or it may enter into co-production, joint venture or production-sharing
agreements with Filipino citizens, or corporations or associations at least sixty per centum of
whose capital is owned by such citizens. Such agreements may be for a period not exceeding
twenty-five years, renewable for not more than twenty-five years, and under such terms and
conditions as may be provided by law. In cases of water rights for irrigation, water supply,
fisheries, or industrial uses other than the development of water power, beneficial use may be
the measure and limit of the grant.

The State shall protect the nation’s marine wealth in the archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.

The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens,
as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in
rivers, lakes, bays, and lagoons.

The President may enter into agreements with foreign-owned corporations involving either
technical or financial assistance for large-scale exploration, development, and utilization of
minerals, petroleum and other mineral oils, according to the general terms and conditions
provided by law, based on real contributions to the

 Section 16, Article II of the 1987 Constitution provides that the State shall protect and advance
the right of the Filipino people to a balanced and healthful ecology in accordance with the
rhythm and harmony of nature.

 Section 1, Article Xii of the 1987 Constitution seeks a more equitable distribution of
opportunities, income and wealth; a sustained increase in the amount of goods and services
produced by the nation for the benefit of the people; an expanding productivity as the key to
raising the quality of life for all, especially the underprivileged; and that in the pursuit of these
goals, all sectors of the economy and all regions of the country shall be given optimum
opportunity to develop.

1
First updated 18 April 2018.
2
At current prices.

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 Section 2 Article XII of the 1987 Constitution provides that exploration, development and
utilization of mineral resources shall be under the full control and supervision of the State.

 Section 2, Article XII of the 1987 Constitution, which recognizes the small-scale utilization of
resources by Filipino citizens, small-scale mining shall be recognized as a formal sector of the
industry.

 Section 22, Article II of the 1987 Constitution provides that the State recognizes and promotes
the rights of indigenous cultural communities within the framework of national unity and
development, and Republic Act No, 8371, or the Indigenous Peoples Rights Act (IPRA) of 1997,
recognizes further the indigenous peoples’ (IPs) right to develop their lands and natural
resources within their ancestral domains, subject to their free, prior, and informed consent
(FPIC).

 Section 7, Article X of the 1987 Constitution provides that local government units (LGUs) are
entitled to an equitable share in the proceeds of the utilization and development of the national
wealth within their jurisdiction, and the Local Government Code of 1991 provides that LGUs
have the duty and authority to protect and co-manage the environment and enhance the right of
the people to a balanced ecology.

 Republic Act No. 7942 entitled An Act Instituting a New System of Mineral Resources
Exploration, Development, Utilization, and Conservation, also known as “The Philippine Mining
Act of 1995”

o Section 2 provides that it shall be the responsibility of the State to promote the
rational exploration, development, utilization, and conservation of the country’s
mineral resources through the combined efforts of government and the private sector
in order to enhance national growth in a way that effectively safeguards th
environment and protects the rights of affected communities.

 Section 129 of the Local Government Code of 1991provides that each local government unit
shall exercise its power to create its own sources of revenue and to levy taxes, fees, and
charges subject to the provisions therein, consistent with the basic policy of local autonomy.

 Section 25 of the LGC provides that national agencies and offices with project implementation
functions shall coordinate with one another and with the LGUs concerned in th discharge of
those functions and to ensure the participation of the LGUs both in the planning and
implementation of said national projects.

 DPWH Memorandum Order No. 15 s. 2014 provides that clearances from the Provincial
Treasurer certifying that corresponding sand and gravel fees have been paid is no longer
required in the final billing of civil works projects thereby resulting to potential loss of quarry
revenue due to the possible proliferation of illegal quarry to the damage and prejudice of local
government units.

 Office of the Governor of Catanduanes Executive Order No. 20 s. 2017 requires all contractors
of government infrastructure projects in the province of Catanduanes to secure clearance from
the office from the provincial governor before procuring sand, gravel and other quarry resources
from legitimate quarry permit holders in and out of the province

Section 3 (p)

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p. Existing mining/quarrying right means a valid and subsisting mining

claim or permit or quarry permit or any mining lease contract or
agreement covering a mineralized area granted/issued under pertinent
mining laws.

ar. Quarrying means the process of extracting, removing and disposing

quarry resources found on or underneath the surface of private or
public land.

as. Quarry permit means a document granted to a qualified person for

the extraction and utilization of quarry resources on public or private
lands.

at. Quarry resources refers to any common rock or other mineral

substances as the Director of Mines and Geosciences Bureau may
declare to be quarry resources such as, but not limited to, andesite,
basalt, conglomerate, coral sand, diatomaceous earth, diorite,
decorative stones, gabbro, granite, limestone, marble, marl, red
burning clays for potteries and bricks, rhyolite, rock phosphate,
sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic glass:
Provided, That such quarry resources do not contain metals or metallic
constituents and/or other valuable minerals in economically workable
quantities: Provided, further, That non-metallic minerals such as
kaolin, feldspar, bull quartz, quartz or silica, sand and pebbles,
bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite,
mica, precious and semi-precious stones, and other non-metallic
minerals that may later be discovered and which the: Director declares
the same to be of economically workable quantities, shall not be
classified under the category of quarry resources.

Section 5
Mineral Reservations

When the national interest so requires, such as when there is a need to

preserve strategic raw materials for industries critical to national
development, or certain minerals for scientific, cultural or ecological
value, the President may establish mineral reservations upon the
recommendation of the Director through the Secretary. Mining
operations in existing mineral reservations and such other reservations
as may thereafter be established, shall be undertaken by the
Department or through a contractor: Provided, That a small scale-
mining cooperative covered by Republic Act No. 7076 shall be given
preferential right to apply for a small-scale mining agreement for a
maximum aggregate area of twenty-five percent (25%) of such mineral
reservation, subject to valid existing mining/quarrying rights as
provided under Section 112 Chapter XX hereof. All submerged lands
within the contiguous zone and in the exclusive economic zone of the
Philippines are hereby declared to be mineral reservations.

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A ten per centum (10%) share of all royalties and revenues to be

derived by the government from the development and utilization of the
mineral resources within mineral reservations as provided under this
Act shall accrue to the Mines and Geosciences Bureau to be allotted for
special projects and other administrative expenses related to the
exploration and development of other mineral reservations mentioned
in Section 6 hereof.

Section 28
Maximum Areas for Mineral Agreement

The maximum area that a qualified person may hold at any time under
a mineral agreement shall be: chanrobles virtuallawlibr ary

a. Onshore, in any one province

1. for individuals, ten (10) blocks; and

2. for partnerships, cooperatives, associations, or corporations, one

hundred (100) blocks.

b. Onshore, in the entire Philippines

1. for individuals, twenty (20) blocks; and

2. for partnerships, cooperatives, associations, or corporations, two

hundred (200) blocks.

c. Offshore, in the entire Philippines

1. for individuals fifty (50) blocks;

2. for partnerships, cooperatives, associations, or corporations, five

hundred (500) blocks; and

3. for the exclusive economic zone, a larger area to be determined

by the Secretary.
The maximum areas mentioned above that a contractor may hold under
a mineral agreement shall not include mining/quarry areas under
operating agreements between the contractor and a
claimowner/lessee/permittee/licensee entered into under Presidential
Decree No. 463.

CHAPTER VIII
QUARRY RESOURCES
Section 43
Quarry Permit

Any qualified person may apply to the provincial/city mining regulatory

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board for a quarry permit on privately-owned lands and/or public lands

for building and construction materials such as marble, basalt,
andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset
filling materials, clay for ceramic tiles and building bricks, pumice,
perlite and other similar materials that are extracted by quarrying from
the ground. The provincial governor shall grant the permit after the
applicant has complied with all the requirements as prescribed by the
rules and regulations.
The maximum area which a qualified person may hold at any one time
shall be five hectares (5 has.): Provided, That in large-scale quarry
operations involving cement raw materials, marble, granite, sand and
gravel and construction aggregates, a qualified person and the
government may enter into a mineral agreement as defined herein.
A quarry permit shall have a term of five (5) years, renewable for like
periods but not to exceed a total term of twenty-five (25) years. No
quarry permit shall be issued or granted on any area covered by a
mineral agreement or financial or technical assistance agreement.

Section 44
Quarry Fee and Taxes

A permittee shall, during the term of his permit, pay a quarry fee as
provided for under the implementing rules and regulations. The
permittee shall also pay the excise tax as provided by pertinent laws.

Section 45
Cancellation of Quarry Permit

A quarry permit may be cancelled by the provincial governor for

violations of the provisions of this Act or its implementing rules and
regulations or the terms and conditions of said permit: Provided, That
before the cancellation of such permit, the holder thereof shall be given
the opportunity to be heard in an investigation conducted for the
purpose.

Section 46
Commercial Sand and Gravel Permit

Any qualified person may be granted a permit by the provincial

governor to extract and remove sand and gravel or other loose or
unconsolidated materials which are used in their natural state, without
undergoing processing from an area of not more than five hectares (5
has.) and in such quantities as may be specified in the permit.

Section 47
Industrial Sand and Gravel Permit

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Any qualified person may be granted an industrial sand and gravel

permit by the Bureau for the extraction of sand and gravel and other
loose or unconsolidated materials that necessitate the use of
mechanical processing covering an area of more than five hectares (5
has.) at any one time. The permit shall have a term of five (5) years,
renewable for a like period but not to exceed a total term of twenty-
five (25) years.

Section 48
Exclusive Sand and Gravel Permit

Any qualified person may be granted an exclusive sand and gravel

permit by the provincial governor to quarry and utilize sand and gravel
or other loose or unconsolidated materials from public lands for his
own use, provided that there will be no commercial disposition thereof.
A mineral agreement or a financial technical assistance agreement
contractor shall, however, have the right to extract and remove sand
and gravel and other loose unconsolidated materials without need of a
permit within the area covered by the mining agreement for the
exclusive use in the mining operations: Provided, That monthly reports
of the quantity of materials extracted therefrom shall be submitted to
the mines regional office concerned: Provided, further, That said right
shall be coterminous with the expiration of the agreement.
Holders of existing mining leases shall likewise have the same rights as
that of a contractor: Provided, That said right shall be coterminous with
the expiry dates of the lease.

Section 49
Government Gratuitous Permit

Any government entity or instrumentality may be granted a gratuitous

permit by the provincial governor to extract sand and gravel, quarry or
loose unconsolidated materials needed in the construction of building
and/or infrastructure for public use or other purposes over an area of
not more than two hectares (2 has.) for a period coterminous with said
construction.

Section 50
Private Gratuitous Permit

Any owner of land may be granted a private gratuitous permit by the

provincial governor.

Section 51
Guano Permit

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Any qualified person may be granted a guano permit by the provincial

governor to extract and utilize loose unconsolidated guano and other
organic fertilizer materials in any portion of a municipality where he
has established domicile. The permit shall be for specific caves and/or
for confined sites with locations verified by the Department’s field
officer in accordance with existing rules and regulations.

Section 52
Gemstone Gathering Permit

Any qualified person may be granted a non-exclusive gemstone

gathering permit by the provincial governor to gather loose stones
useful as gemstones in rivers and other locations.

Section 65
Mine Supervision

All mining and quarrying operations that employ more than fifty (50) workers
shall have at least one (1) licensed mining engineer with at least five (5)
years of experience in mining operations, and one (1) registered foreman.

Section 67
Power to Issue Orders

The mines regional director shall, in consultation with the Environmental

Management Bureau, forthwith or within such time as specified in his order,
require the contractor to remedy any practice connected with mining or
quarrying operations, which is not in accordance with safety and anti-
pollution laws and regulations. In case of imminent danger to life or property,
the mines regional director may summarily suspend the mining or quarrying
operations until the danger is removed, or appropriate measures are taken by
the contractor or permittee.

CHAPTER XX
TRANSITORY AND MISCELLANEOUS PROVISIONS
Section 112
Non-Impairment
of Existing Mining/Quarrying Rights

All valid and existing mining lease contracts, permits/licenses, leases

pending renewal, mineral production-sharing agreements granted
under Executive Order No. 279, at the date of effectivity of this Act,
shall remain valid, shall not be impaired, and shall be recognized by the
Government: Provided, That the provisions of Chapter XIV on
government share in mineral production-sharing agreement and of
Chapter XVI on incentives of this Act shall immediately govern and
apply to a mining lessee or contractor unless the mining lessee or

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contractor indicates his intention to the secretary, in writing, not to

avail of said provisions: Provided, further, That no renewal of mining
lease contracts shall be made after the expiration of its term: Provided,
finally, That such leases, production-sharing agreements, financial or
technical assistance agreements shall comply with the applicable
provisions of this Act and its implementing rules and regulations.

Section 113
Recognition of Valid and Existing Mining Claims and Lease/Quarry
Applications

Holders of valid and existing mining claims, lease/quarry applications

shall be given preferential rights to enter into any mode of mineral
agreement with the government within two (2) years from the
promulgation of the rules and regulations implementing this Act.

Section 114
Separability Clause

If any of the provision of this Act is held or declared to be

unconstitutional or invalid by a competent court, the other provisions
hereof shall continue to be in force as if the provision so annulled or
voided had never been incorporated in this Act.

Section 115
Repealing and Amending Clause

All laws, executive orders, presidential decrees, rules and regulations

or parts thereof which are inconsistent with any of the provisions of
this Act are hereby repealed or amended accordingly.

Section 116
Effectivity Clause

This Act shall take effect thirty (30) days following its complete
publication in two (2) newspapers of general circulation in the
Philippines.

Approved: March 3, 1995

Quarrying in the Province of Catanduanes

 House Bill No. 116, also known as the Divorce Bill, introduced by Rep. Edcel C. Lagman

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SEC. 4. Grounds for Absolute Divorce. — The following are the grounds for a
judicial decree of absolute divorce:

A. The grounds for legal separation under Article 55 of the Family Code of the Philippines, which
are restated as follows:

1. Repeated physical violence or grossly abusive conduct directed against the petitioner, a
common child, or a child of the petitioner;
2. Physical violence or moral pressure to compel the petitioner to change religious or political
affiliation;
3. Attempt of respondent to corrupt or induce the petitioner, a common child, or a child of the
petitioner, to engage in prostitution, or connivance in such corruption or inducement;
4. Final judgment sentencing the respondent to imprisonment of more than six years, even if
pardoned;
5. Drug addiction or habitual alcoholism of the respondent;
6. Lesbianism or homosexuality of the respondent;
7. Contracting by the respondent of a subsequent bigamous marriage, whether in the
Philippines or abroad;
8. Sexual infidelity or perversion;
9. Attempt by the respondent against the life of the petitioner;
10. Abandonment of petitioner by respondent without justifiable cause for more than one year.

B. Grounds for annulment of marriage under Article 45 of the Family Code of the Philippines, which
are restated as follows:

1. That the party in whose behalf it is sought to have the marriage annulled was eighteen years
of age or over but below twenty-one, and the marriage was Solemnized without the consent
of the parents, guardian or person having substitute parental authority over the party, in that
order, unless after attaining the age of twenty-one, such party freely cohabited with the other
and both lived together as husband and wife;
2. That either party was of unsound mind, unless such party after coming to reason, freely
cohabited with the other as husband and wife;
3. That the Consent of either party was obtained by fraud, unless such party afterwards, with
full knowledge of the facts constituting the fraud, freely Cohabited with the other as husband
and wife;
4. That the consent of either party was obtained by force, intimidation or undue influence,
unless the same having disappeared or ceased, such party thereafter freely cohabited with
the other as husband and wife;
5. That either party was physically incapable of Consummating the marriage with the other,
and such incapacity continues and appears to be incurable; or
6. That either party was afflicted with a sexually transmissible disease found to be Serious and
appears to be incurable.
7. The grounds mentioned in numbers 2, 5 and 6 may either be existing at the time of the
marriage or supervening after the marriage.

C. Psychological incapacity of either spouse as provided for in Article 36 of the Family Code of the
Philippines, whether or not the incapacity was present at the time of the celebration of the
marriage or later.

Explanation

Provincial Legal Officer's Scope of Authority:

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The provincial legal officer is appointed by the governor, as the local chief executive (LCE)
of the provincial government (Section 463 of Republic Act (RA) No. 7160, otherwise known as the
“Local Government Code of 1991” (LGC)) and their term of office is co-terminus with the appointing
authority (Section 481 (a) of the LGC).

Section 481 (b) of the LGC enumerates the duties and responsibilities of the provincial
legal officer:

“(b) The legal officer, the chief legal counsel of the local government unit, shall take charge of the
office of legal services and shall:

(1) Formulate measures for the consideration of the sanggunian and provide legal assistance
and support to the governor or mayor, as the case may be, in carrying out the delivery of basic
services and provisions of adequate facilities as provided for under Section 17 of this Code;

(2) Develop plans and strategies and upon approval thereof by the governor or mayor, as the
case may be, implement the same, particularly those which have to do with programs and
projects related to legal services which the governor or mayor is empowered to implement and
which the sanggunian is empowered to provide for under this Code;

(3) In addition to the foregoing duties and functions, the legal officer shall:

(i) Represent the local government unit in all civil actions and special proceedings wherein the
local government unit or any official thereof, in his official capacity, is a party: Provided,
That, in actions or proceedings where a component city or municipality is a party adverse to
the provincial government or to another component city or municipality, a special legal
officer may be employed to represent the adverse party;

(ii) When required by the governor, mayor or sanggunian, draft ordinances, contracts, bonds,
leases and other instruments, involving any interest of the local government unit and
provide comments and recommendations on any instrument already drawn;

(iii) Render his opinion in writing on any question of law when requested to do so by the
governor, mayor or sanggunian;

(iv) Investigate or cause to be investigated any local official or employee for administrative
neglect or misconduct in office, and recommend appropriate action to the governor, mayor
or sanggunian, as the case may be;

(v) Investigate or cause to be investigated any person, firm or corporation holding any
franchise or exercising any public privilege for failure to comply with any term or condition
in the grant of such franchise or privilege, and recommending appropriate action to the
governor, mayor or sanggunian, as the case may be;

(vi) When directed by the governor, mayor, or sanggunian, initiate and prosecute in the
interest of the local government unit concerned any civil action on any bond, lease or other
contract upon any breach or violation thereof; and

(vii) Review and submit recommendations on ordinances approved and execute orders issued
by component units;

(3) Recommend measures to the sanggunian and advise the governor or mayor as the case may
be on all other matters related to upholding the rule of law;

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(4) Be in the frontline of protecting human rights and prosecuting any violations thereof,
particularly those which occur during and in the aftermath of man-made or natural disasters or
calamities; and

(5) Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance.”

In addition to the above enumerated responsibilities, they can also render a provincial
legal opinion on queries coming from local government units (LGUs) within the territorial jurisdiction
of the province concerned (Section 31 and 407 of the LGC).

Whether a Provincial Legal Officer may appear before a criminal case.

Said Legal Officer may appear before a criminal case provided that:

(a) he/she had already secured a prior written authorization from the Head of Agency to engage in
the private practice of one's profession, in this case a written authorization from the Provincial
Governor pursuant to Section 12, Rule XVII of the Revised Civil Service Rules (DILG Legal
Opinion No. 2, s. 2018);

(b) the case herein does not involve a component city or municipality of the concerned province as
an adverse party (Section 481 (b) (3) (i) of the LGC);

(b) the practice of one's profession will not conflict or tend to conflict with their official functions
(Section 7 (b) (2) of RA 6713, otherwise known as the “Code of Conduct and Ethical Standards
for Public Officials and Employees”).

Attached herein is a copy of our Legal Opinion No. 2, s. 2018

Committee Updates

 The basic issue presented to the jurisdiction of the Committee pertains to the power of LGUs to
impose taxes under RA 7160 or the Local Government Code 1991 particularly on the issuance
of quarry permits and collection of fees which the authors alleged that the Province of Nueva
Ecija violated. He said the mandate of the Committee is to determine whether laws were
violated and whether or not concerned officials and employees may be held liable therefrom
and to finally determine remedial legislation to address the issues raised during the inquiry.

House Resolution No. 1505

Rep. Rossana “Ria” V. Vergara said that her resolution tackles quarrying as a major source of
corruption by local chief executives. She said that in her study on the issue, she came to realize
that the temptation for corruption in the quarry business is great for the following reasons:
o The huge demand for quarry translates to millions of pesos a year
o The steady supply of quarry sources as they are replenished by nature
o Quarry operations are done in relatively remote places far from public scrutiny which
makes connivance conducive among quarry operators and public officials

 She noted the effects of corruption in the quarry business as

o The taxes are not properly collected and not used for the public but instead went to
the pockets of public officials
o The venture is treated purely for money making and the protection for the
environment is sidelined and environmental laws are totally disregarded

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 She opined that while taxes are not properly collected, the quarry operations left traces of
the under declaration citing that the volume of sand extracted always end up in
infrastructure

Quarry permits are the sole responsibility of the provincial governor. The role of the DENR is merely
in the issuance of the Environment Compliance Certificate (ECC) as a requirement for the granting
of quarry permit

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