LA BUGAL-B'LAAN vs DENR Jan. 21, 2004 Facts: 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. Petitioners filed the present petition for prohibition and mandamus, with a prayer for a temporary restraining order alleging that at the time of the filing of the petition, 100 FTAA applications had already been filed, covering an area of 8.4 million hectares, 64 of which applications are by fully foreign-owned corporations covering a total of 5.8 million hectares, and at least one by a fully foreign-owned mining company over offshore areas. Issue: Are foreign-owned corporations in the large-scale exploration, development, and utilization of petroleum, minerals and mineral oils limited to technical or financial assistance only? Ruling: Only technical assistance or financial assistance agreements may be entered into, and only for large-scale activities. These are contract forms which recognize and assert our sovereignty and ownership over natural resources since the foreign entity is just a pure contractor and not a beneficial owner of our economic resources. The proposal recognizes the need for capital and technology to develop our natural resources without sacrificing our sovereignty and control over such resources by the safeguard of a special law which requires two-thirds vote of all the members of the Legislature. It is true that the word technical encompasses a broad number of possible services. However, the law follows the maxim casus omisus pro omisso habendus est which means a person, object or thing omitted from an enumeration must be held to have been omitted intentionally. LA BUGAL-B'LAAN vs DENR Dec. 1, 2004 Facts: On January 27, 2004, the Court en banc promulgated its Decision granting the Petition and declaring the unconstitutionality of certain provisions of RA 7942, DAO 96-40, as well as of the entire FTAA executed between the government and WMCP, mainly on the finding that FTAAs are service contracts prohibited by the 1987 Constitution. The Decision struck down the subject FTAA for being similar to service contracts, which, though permitted under the 1973 Constitution, were subsequently denounced for being antithetical to the principle of sovereignty over our natural resources, because they allowed foreign control over the exploitation of our natural resources, to the prejudice of the Filipino nation. Issue: Are foreign-owned corporations in the large-scale exploration, development, and utilization of petroleum, minerals and mineral oils limited to technical or financial assistance only? Ruling: Only technical assistance or financial assistance agreements may be entered into, and only for large-scale activities. Full control is not anathematic to day-to-day management by the contractor, provided that the State retains the power to direct overall strategy; and to set aside, reverse or modify plans and actions of the contractor. The idea of full control is similar to that which is exercised by the board of directors of a private corporation: the performance of managerial, operational, financial, marketing and other functions may be delegated to subordinate officers or given to contractual entities, but the board retains full residual control of the business.