Natural Resources

o Refer to the material objects of economic value and utility to man

produced by nature.
o They constitute the patrimony of the nation.
o Manila Prince Hotel vs GSIS
National patrimony refers not only to the natural resources of the
Philippines but also to the cultural heritage of theFilipinos.
Laws Governing the Subject
o PLA
o The Petroleum Act
o Revised Forestry Code
o Fisheries Code
o Water Code
o Philippine Mining Act
o IPRA Law
o Coal Land Act
Doctrine of Constitutional Supremacy
o Means that when a law or contract violates the norm of the constitution
whether promulgated by the legislative or executive or entered into by
private persons is null and void and without any force or effect. Since the
Constitution is paramount, fundamental and supreme law of the nation, it
is deemed written in every statute.
Jura Regalia or Regalian Doctrine
o Section 2, Article XII of 1987 Constitution
1st sentence
All lands of public domain,
Water,
Minerals,
Coal,
Petroleum and other
Mineral oils,
All forces of potential energy,
Fisheries,
Forest or timber,
Wildlife
Flora and fauna and
Other natural resources are owned by the state
o 2nd sentence
Exception of Agricultural Lands
rd
o 3 sentence
EDU under full control and supervision of the State

o 4th sentence
State may enter into CP, JV, PSA with FC, corp., asso., with 60%
owned capital
o 5th sentence
Period of not more than 25 years renewable for another 25 years
o 6th sentence
Limitation of Grant in Water Rights for
Irrigation
Water supply
Fisheries
Industrial uses other development of water power
o 2nd paragraph
Protection of Marine wealth
rd
o 3 paragraph
Small scale utilization of NR
Cooperative fish farming
th
o 4 paragraph
Large scale EDU
Entered into by the president with foreign-owned
corporations involving either technical or financial
assistance.
subject to general terms and conditions provided by the law
in such condition the State shall promote the development
and use of local scientific and technical resources
o 5th paragraph
Notification of President to Congress
Within 30 days from its execution
Imperium
o is the government authority possessed by the State which is expressed in
the concept of Sovereignty.
Dominium
o is the capacity of the State to acquire property.
Presumption of State Ownership
o GR All lands that were not acquired from the government either by
purchase or grant belong to the public domain
o EXP possession since time immemorial
Nature of possession by the natives
o Ancestral domain and ancestral lands are not part of lands of the PD.
Ancestral Domain

o All embracing concept which refers to lands, inland waters, coastal areas
and natural resources therein.
o It includes lands which may no longer be exclusively occupied by the
indigenous cultural cxs but to which they had traditionally had access for
their subsistence and traditional activities.
Ancestral Lands
o Narrower in concept
o Refers to those lands held under the same conditions of ancestral domain
o But limited to lands that are not merely occupied and possessed but are
also utilized by cultural cxs under the claim of individual or traditional
group ownership.
Executive Prerogative
o The classification of public lands is, thus, an exclusive prerogative of the
Executive Department through the Office of the President
o Courts have no authority to convert lands of public domain into alienable
and disposable lands.
o Title over land part of forest is void.
Constitutional Limits #1
o GR: all natural resources shall not be alienated
o EXP: only agricultural lands of the PD may be alienated
Government lands are not all public lands
Friar lands are not included as public lands
o Friar Lands are those lands of certain haciendas acquired by US
government from religious organizations acquired on July 5, 1903 at a
price of 6M in gold.
Disposition of Friar Lands
o Under Act No. 1120 which governs the administration and disposition of
friar lands
The purchase by an actual occupant and bona fide settler of any
portion of FL shall be agreed upon by the purchaser and the DL
subject to the approval of Sec of ANR.
Absence of approval will render the sale null and void ab initio
because the approval is an indispensable requisite for its validity.
Classification of Lands in PD
o Agricultural;
o Forest or timber;
o National parks;
o Mineral.
no mixed classification (Republic vs CA 1988)

 Surface owner has no right over the minerals underneath

o For the loss, the owner is entitled to compensation under the Mining Law
or in appropriate expropriation proceedings.
Mangrove Swamps are forest lands
o Under the administrative code.
Rules on disposition of ALP
o Private Corp./assn.
cannot acquire ALP
may lease maximum area of 1000 hectares
o Qualified Individuals
Can acquire 12 hectares
May lease up to 500 hectares
Term of lease is for 25 years, renewable for another 25 years.
o Purpose
To equitably diffuse ownership or to encourage ownercultivatorship and the economic family-size farm.
Huge lanholdings by the corporations or private persons had sown
social unrest.
o Exception:
Under parity agreement (tidings-McDuffie)
Americans may own ALP of maximum area of 1024 hectares
as appended in 1935 Constitution and revised by the LaurelLangley Agreement.
Under parity agreement, US citizen and corporations may
acquire lands of the public domain but they cannot
acquire private lands.
Their rights is until July 3, 1974.
Vested rights has to be respected. It could not be abrogated
by the new Constitution. (Lausan Ayog vs Cusi, 1982)
Rights of natural-born Filipino who have lost their Citizenship
o Under RA 8179 former natural-born Filipino may acquire the ff:
500sq.m- urban land
3000 sq.m- rural land
For business or other purposes

Constitutional Limit #2
o EDU of NR must be under full control and supervision of the State under the
constitutionally allowed modes

Allowed modes of EDU

o Direct undertaking
o Co-production
Govt shall provide inputs to the mining operations other than the
mineral resource
o Joint Venture Agreement
Both parties having equity share
Aside from earnings in equity, Govt is entitled to share on the gross
output.
o Production sharing agreement
Contractor provide the financing, technology, management and
personnel to conduct mining operations
Shares in gross output
o Financial or technical assistance agreement
Financial assistance for large scale EDU of mineral resources.
Only to mineral, petroleum, and other mineral oils.
Safeguards:
o Service contract must be in accordance with general
law setting standard terms;
o The president be the signatory for the govt
o The president report the executed agreement to
congress within 30 days.

Full control is not a mathematic day to day management by the contractor,

provided that the State retains the power to direct overall strategy;
o and to set aside , reverse or modify plans and actions of the contractor.
Control by the State means to regulate the conduct of affairs in various
enterprises and restrain activities deemed not desirable or beneficial with
the end view of ensuring that these enterprises
Contribute to economic development and general welfare of the
country,
Conserve the environment,
Uplift the well-being of the local affected communities.
Constitutional limit #3
o All agreements in respect to EDU of natural resources should not exceed
25 years
o Renewable for another 25 years
o Water rights not covered by the 25 year limit
Constitutional limit #4
o use and enjoyment of the marine wealth of the archipelagic waters,
territorial sea and EEZ reserved for FC only.

o Archipelagic waters- water around, between and connecting islands of

archipelago
o Territorial sea- belt of the sea located between the coast and internal
waters of the coastal state on the one hand and the high seas on the other
extending up to 12 NM from the low water mark
o Contiguous Zone- area of the sea extending up to 12NM from the
territorial sea
o EEZ- area of the sea extending up to 200 NM from the low water mark.
Constitutional limit #5
o Utilization of NR in rivers, lakes, bays and lagoons
o Allowed only on a small scale to FC or cooperative
o Priority given to subsistence fishermen and fishworkers.
o It is only a preferential right but not an absolute right.
This can be regulated for the right of the people to a balanced
ecology by LGUs. (tano vs Socrates, 1997)

Public Land Act

CA 141
November 7, 1936

Coverage: Lands of the PD

Excludes: timber and mineral lands; friar lands
DENR secretary- Executive officer to carry out the act
Director of Lands- has direct executive control of the survey, classification, lease,
sale or any other land of PD

Doctrine of Indefeasibility of Torrens title (PD 1529)

GR: the decree of registration and the certificate of title issued shall
become inconvertible after the lapse of one year form date of entry.
EXP: when the State bring an action for reversion of PL even after 1 year
if procured through
o Fraud and
o Misrepresentation.
Actions for reversion do not prescribe.
o Prescription and laches will not bar actions filed by the State to
recover its property acquired through fraud by private individuals.
o The RP is the real party in interest.
Pre-requisite for disposition of ALP
o Formal declaration by the President
Upon recommendation of the DENR Secretary to effect that such
lands are open to disposition or concession
and whenever practicable the lands should have been previously
surveyed.
Excluded from disposition
o Those reserved for public or quasi-public uses
o Those that have become private property or subject to private right.

Alienation
o Disposition or concession
o Means methods authorized by CA 141 for acquisition, lease, use or benefit
of the lands of the PD other than timber or mineral lands.

Modes of disposition
o Homestead
o Sale
o Lease
o Confirmation of imperfect or incomplete title
By judicial legalization
By administrative legalization or free patent

Material allegations in applications for grant of PL

o Legal qualifications
o Purpose for the use of land according to the object specified in the
application and the land is suitable for the purpose contemplated
o For the exclusive use of applicant
o Description and location of the land
o Occupancy, cultivation, improvements on land, in any
o Allegation that the land is not timber or mineral land and does not contain
deposits of salt or coal.
o Applicant is prohibited to make any clearing on or utilize the easement
area for ordinary farming

Requirement on personal tillage

o Applicant or transferee must enter and work to improve and cultivate the
land by himself within the periods prescribed for the various modes of
concession under the PLA.
o Share tenancy is prohibited: violation will result to cancellation of the
grant and forfeiture of improvements in favor of the government.

Remedies from decision of BL director

o Motion for reconsideration
o Appeal to the DENR secretary
o If affirmed by the DENR secretary
File a motion for reconsideration
o If denied, file special civil action on certiorari under R65
o Decision of th BL cannot be collaterally attacked.

Mode 1
Homestead
o It is a home, the house and the adjoining land where the head of the family
dwells,
o the home farm; fixed residence of the head of a family with the land and
buildings surrounding main house.
Statutory privileges accorded to Homestead land
o Exempt from execution
o Cannot be held liable for the satisfaction of an obligation within 5 years
from issuance of patent
o If validly mortgage under act 3135
Right of redemption
The mortgagor may redeem the property within 1 year from
the registration of the certificate of sale.
If he fails to do so, he or his heirs may repurchase the
property within 5 years from the date of sale not from the
date of registration at the ROD.
The 5 year period to be reckoned from the date of
expiration of the one year period.
o If validly mortgage to a rural bank
5 year period to commence to run after the expiration of the 2 year
period redemption allowed under Rural Banks Act.
Rural bank of Davao vs CA, 1993
The mortgagor may redeem the property within 2 years from
the date of foreclosure.
If the mortgagor failed to exercise the right

He or his heirs may still repurchase the property

within 5 years from the date of expiration of the 2 year
redemption period.

Homestead lands are not exempt from coverage of agrarian reform law (Paris vs
Alfeche, 2001)
the right to retain 7 hectares of land is subject to condition that the
landowner is actually cultivating that area or will cultivate upon the
effectivity of the law.

Qualification to obtain homestead

FC
18 years or head of the family
Must not own more than 12 hectares of land
Nor has any gratuitous allotment of more than 12 hectares of land
o If applicant is married woman
She must be living separately from her husband
Not dependent for support
Her husband is insane or physically incapacitated to work;
Husband is in prison

Mandatory requirements in homestead application

Homesteader must start to improve and cultivate the land within 6
months after the approval;
Homesteader must have cultivated at least 1/5 of the land within a period
of not less than 1 year or more than 5 years from date of approval of
application;
Continuous residency in the same municipality where homestead is
located or in adjacent municipality for at least 1 year; and
Abandonment for more than 6 months at any one time during period of
required residency and occupation.

Conditions before applicant may validly transfer his rights BEFORE

the issuance of patent
He has already complied with all the requirements;
His non-continuance is of no fault of his own;
Made to a bona fide purchaser legally qualified to apply homestead;
Not for speculative purpose; and
Approved by the BL director

Restrictions:

Homestead cannot encumbered or alienated during the period from date

of approval up to the date of issuance of patent;
Encumbrance or alienation within 5 years from the date of issuance of
patent or grant is prohibited;
Homestead cannot be held liable to the satisfaction of any debt contracted
prior to the expiration of said period;
Exp: improvements or crops on the homestead land
Alienation, transfer, or conveyance after 5 years and before 25 years
requires approval of the DENR secretary.

Rules on right of redemption/repurchase of homestead land

o 5 years
if mortgage or sold to a Private person
o 6 years
if mortgaged covered under Act 3135
o 7 years
If mortgaged to a Rural Bank
o None
if sold to family member
o None
if not devoted for agriculture
patentee is already 71 years old not anymore residing in the
property and his motivation for the repurchase was purely for
profit.
o Period must be reckoned from date of sale or conveyance.

Mode 2
Sales of Public Agricultural Lands

Qualifications
o FC
o Legal age or head of the family
o Maximum of 12 hectares

Conditions:
o ALP must not be located:
Within 10 kms from the boundaries of the city proper in chartered
cities;
Within 5 kms from municipal hall or town plaza of any municipality
o There must actual occupation on the lands
o Total landholdings must not exceed 5 hectares

Excess landholding
o Qualified individuals:
The area in excess of 12 hectares
o For corporations:
Any land acquired by virtue of foreclosure is deemed in excess of
landholding

Hence, must be disposed of within 5 years

Procedure in Sale of ALP

o Filing of application
o Appraisal conducted by the BL director and approved by the DENR
secretary
o Publication of the notice of sale
Once a week for 3 consecutive weeks in the OG and
2 newspapers
One published in Manila and
Other municipality or province where the land is situated.
o Posting
in the Bulletin Board of the LMB QC and
in 3 conspicuous places in the provincial capitol and the municipal
hall where the the land is situated
o Submission of bids in sealed envelope
Addressed to the BL Director
together with the 10% amount of the bid in
cash,
certified check
treasury warrant
postal money order
o Opening of bids and awarding to the highest bidder

Rules in Bidding
o 2 or more highest equal bids
And one belongs to the applicant
Applicant wins
o If highest bid is not that of applicant
Oral bidding is called
Instances:
Two or more of such sealed bids turn out to be equal
and the highest, and that of the applicant is not one
of them
ALP to be sold has been declared to be vacant and no
applicant is recognized to have preferential rights
over it.
And highest oral bidder wins
o In all instances
Applicant is given the option to equal the highest bidder.

Payment
o May be in FULL or
o In 10 equal annual installments
Reckoned from the date of the award
Overdue installment is subject to 4% interest

Requisites before sales patent is issued

o he must have occupied the land applied for;
o he must have cultivated at least 1/5 of the land within 5 years after the date
of the reward;
o when the application is for pasture
he must have grazed on the land with his own cattle numbering at
the rate of one head for every 2 hectares;
failure to comply or any voluntary abandonment for more than one year at any
given time, the land may be reverted and all prior payments forfeited.

Valid conveyance of land prior to issuance of sales patent

o Sec 29 allows applicant to convey or encumber his rights after cultivation
has started
o Conditions:
It does not affect the interest of the government
Transferor is not delinquent in paying the installment due
There must be prior approval of the DENR Secretary.
Without approval violates sec 29
The effect is annulment of the sales application as if none
had been filed.
Joint venture
o is allowed in sale of public land
Barreo v Rivera
Where one person contributes his capital, consisting oh his duly
approved sales application and another contributes his labor and
money to finalize the cultivation of same land a joint venture or
partnership is formed under A 1767 of CC.
o Is not allowed in homestead
A homestead applicant is required by law to occupy and cultivate
the land for
his own and
his family benefit, and
not for the benefit of someone else.
If homesteader occupies and cultivates the land on behalf of
another person and obtains title on the understanding that a
portion would be transferred to him

o It is invalid, hence bars issuance of the patent.

Restrictions in sale of public land

o Survey plan must be made before issuance of sales patent;
o Mineral deposits not included in conveyance;
o Land subject to legal servitudes;
o Subject to ROW not exceeding 60m in width for public highways, railroad,
irrigation canals;
o After the grant of title
Subsequent transfer within 10 years from grant or cultivation is not
valid without consent from the State.

When land becomes of private ownership

o it is only upon issuance of the sales patent that the Government is divested
with its title.
o Approval of the application merely authorizes applicant to take
possession of the land in order for him to comply with the requirements
set by law
o Meanwhile the government still remains the owner
The application can be cancelled if it shown the requirements are
not complied with.
Annulment of Patent
o Director of lands can investigate violations even while the patent and
corresponding title have already been issued.
o He cannot render decision annulling the sales patent since annulment is a
judicial process.
Mode 4
Lease of ALP

Qualifications:
o FC of legal age (500 hectares)
o Private corporation or association registered under the laws of the Phils
whose capital stock of at least 60% is owned by the Filipinos (1000Hec)

Limitations:
o Any officer, employee, stockholder, etc of a corp/assn already holding ALP
may not apply for lease of such land.
In case it may be allowed
It must be necessary to carry out on his business

Procedure in Sale of ALP

o Filing of application

o Appraisal conducted by the BL director and approved by the DENR

secretary
o Publication of the notice of sale
Once a week for 3 consecutive weeks in the OG and
2 newspapers
One published in Manila and
Other municipality or province where the land is situated.
o Posting
in the Bulletin Board of the LMB QC and
in 3 conspicuous places in the provincial capitol and the municipal
hall where the the land is situated
o Submission of bids in sealed envelope
Addressed to the BL Director
together with the 10% amount of the bid in
cash,
certified check
treasury warrant
postal money order
o Opening of bids and awarding to the highest bidder

No bid will be considered

o If proposed rent is less than 3% of the appraised value of the land
o The bidder did not deposit rental equivalent to at least the first 3 months
of the lease.
o If the land applied for is for grazing, annual rental must not be less than
2%.

Conditions in lease of ALP

o Rental:
To be paid in advance starting from the date of approval of the lease
subject to automatic increase if the rent falls below 3 % in case of
re-appraisal
o Period:
25 years
Renewable for another 25 years
Extension is not a matter of right.
Lessee must justify the extension by showing he has
introduced important improvements on the leased land
o Cultivation:
Applicant must have broken and cultivated at least 1/3 of the land
within 5 years from approval.

Restrictions:
o Lessee cannot assign, encumber, or sublet his right over the leased land
without approval from the DENR secretary.
o Reason: to avoid speculation purposes or situation where the land is used
by other persons not legally qualified to lease ALP.
o Lessee cannot sublease the improvements on the land without consent
from the government (Barach Motors vs Universal Trading, 1966)
Breach thereof by the lessee the govt may declare the lease forfeited
and take possession of the premises and all improvements thereon.
o Lessee cannot remove or dispose of any valuable timber, stone, oil, coal,
salts or other minerals including medicinal mineral waters.
o The leased land is subject to the same conditions and restriction imposed
on sale of ALP regarding taxes, servitudes, easements, mines and water
rights.

Preference of lessee to buy leased land.

Lessee has legal standing to oppose registration of ALP.
o He is considered a party interest entitled to file opposition for registration
of the same land.
It is not necessary to register the lease contract.
o Law contemplates are those transfers of ownership not documents
transferring mere possession.

Mode 4
Confirmation of imperfect or incomplete title

Judicial legalization
o When to file:
until dec 31, 2020
o Where to file:
RTC in the province or city where the land lies
o Procedure:
notice of the application with the survey plan must be furnished to
the OSG, the Bureau of Lands.
Publication of notice:

initial hearing once a week for 3 consecutive weeks in the OG

and 2 newspapers
one published in Manila
and other in the municipality or province where the
land is situated
posting in the Bulletin Board of the LMB, QC
and in 3 conspicuous places in the provincial capitol and the
municipal hall where the land is situated.

Person entitled to Judicial legalization

o Those who prior to the transfer of sovereignty from Spain to the US have
applied for the purchase.
o Those who by themselves or through their predecessors-in-interest have
been in open, continuous, exclusive and notorious possession and
occupation of the AL of the public domain
Under a bona fide claim of acquisition of ownership since JUNE 12,
1945, immediately preceding the filing of the application of
confirmation of title
EXP when prevented by war or force majeure.
These shall be conclusively presumed to have performed all
the conditions essential to a Government grant
o Members of the national cultural minorities
o Who by themselves or through their predecessors-in-interest have
been in OCEN possession and occupation of lands of the public
domain since June 12, 1945.

Registration under LRA vs PLA

o LRA
Presumption that title already exists and the court is there only to
confirm;
Dismissal may be with or without prejudice to refilling; and
Applicant does not risk losing his property
o PLA
land applied for presumed to belong to the State and applicant is
claiming it by virtue of OCEN possession amounting to imperfect
title;
in court hearing, the application has jurisdiction and power to
adjudicate the land in favor of the conflicting claimants
if none is entitled land is declared in favor of the Govt
applicant runs risk of losing the land applied for without
opportunity of refilling the application.

Prescription:
o 30 years in possession without title and in bad faith
o In ALP possession must be traced since June 12, 1945.

Administrative Legalization/ free patent

o Person entitled:
Natural born Filipino
Not owner of more than 12 hectares
In OCEN possession of the land since july 4, 1945
Has paid real estate taxes on the property for the same period and
the land has not been occupied by other person.

Procedure:
o Filing of application with Bureau of Lands
Accompanied by map and technical description of the land and
affidavits subscribed by two disinterested persons residing the same
municipality or barangay where the land lies;
Posting of notices in conspicuous places
in the provincial capital
the municipality and barangay where the land is situated for
2 consecutive weeks
action to the BL
o when free patent becomes final and conclusive:
o GR: 1 year after issuance of the free patent
Title becomes indefeasible and inconvertible
o EXP: where the land granted is not part of the public domain but
private land.
o the patent and torrens title issued are nullity.

Restrictions:
o Land cannot encumbered or alienated within 5 years from the date of
issuance
Except in favor of the government or its instrumentalities.
o Improvements or crops not covered
o After 5 years the land may be alienated without need of approval from the
DENR.
o Any alienation is subject to right of repurchase by the patentee, his heirs
within 5 years from date of sale.

Alienable Public Lands other than timber, mineral or agricultural

o Reclaimed lands

o Foreshore
o Marshy land or land covered with water bordering upon the shores or
banks of navigable lakes or rivers and
o Other lands not included in above classification.
The foregoing may be disposed of for residential, commercial,
industrial or other productive purposes.