MODES OF UTILIZING FORESTS RESOURCES:

Under the 1987 Constitution Article 12:

Section 2. All lands of the 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.

Section 4. The Congress shall, as soon as possible, determine, by law, the specific limits of forest lands and national parks, marking clearly
their boundaries on the ground. Thereafter, such forest lands and national parks shall be conserved and may not be increased nor
diminished, except by law. The Congress shall provide for such period as it may determine, measures to prohibit logging in endangered
forests and watershed areas.

PRESIDENTIAL DECREE No. 705 - REVISING PRESIDENTIAL DECREE NO. 389, OTHERWISE KNOWN AS THE FORESTRY REFORM CODE OF THE
PHILIPPINES

 Creation of, and merger of all forestry agencies into, the Bureau of Forest Development

(a) Public forest is the mass of lands of the public domain which has not been the subject of the present system of classification for the
determination of which lands are needed for forest purposes and which are not.

(b) Permanent forest or forest reserves refer to those lands of the public domain which have been the subject of the present system of
classification and determined to be needed for forest purposes.

d) Forest lands include the public forest, the permanent forest or forest reserves, and forest reservations.

(e) Grazing land refers to that portion of the public domain which has been set aside, in view of the suitability of its topography and vegetation,
for the raising of livestock.

(g) Forest reservations refer to forest lands which have been reserved by the President of the Philippines for any specific purpose or purposes.

o) Mangrove is a term applied to the type of forest occurring on tidal flat along the sea coast, extending along streams where the water is
brackish.

(p) Kaingin is a portion of the forest land, whether occupied or not, which is subjected to shifting and/or permanent slash-and-burn cultivation
having little or no provision to prevent soil erosion.

r) Dipterocarp forest is a forest dominated by trees of the dipterocarp species, such as red lauan, tengile, tiaong, white lauan, almon, bagtikan
and mayapis of the Philippine mahogany group, apitong and the yakals.

(s) Pine forest is a forest composed of the Benguet Pine in the Mountain Provinces or the Mindoro pine in Mindoro and Zambales provinces.

Section 13. System of Land Classification. The Department Head shall study, devise, determine and prescribe the criteria, guidelines and
methods for the proper and accurate classification and survey of all lands of the public domain into agricultural, industrial or commercial,
residential, resettlement, mineral, timber or forest, and grazing lands, and into such other classes as now or may hereafter be provided by
law, rules and regulations.

In the meantime, the Department Head shall simplify through inter-bureau action the present system of determining which of the unclassified
lands of the public domain are needed for forest purposes and declare them as permanent forest to form part of the forest reserves. He shall
decree those classified and determined not to be needed for forest purposes as alienable and disposable lands, the administrative
jurisdiction and management of which shall be transferred to the Bureau of Lands: Provided, That mangrove and other swamps not needed for
shore protection and suitable for fishpond purposes shall be released to, and be placed under the administrative jurisdiction and management
of, the Bureau of Fisheries and Aquatic Resources. Those still to be classified under the Present system shall continue to remain as part of the
public forest.
Section 14. Existing Pasture Leases and Permits in Forest Lands. Forest lands which have been the subject of pasture leases and permits shall
remain classified as forest lands until classified as grazing lands under the criteria, guidelines and methods of classification to be prescribed
by the Department Head: Provided, That the administration, management and disposition of grazing lands shall remain under the Bureau.

Section 15. Topography. No land of the public domain eighteen per cent (18%) in slope or over shall be classified as alienable and disposable,
nor any forest land fifty per cent (50%) in slope or over, as grazing land.

Lands eighteen per cent (18%) in slope or over which have already been declared as alienable and disposable shall be reverted to the
classification of forest lands by the Department Head, to form part of the forest reserves, unless they are already covered by existing titles
or approved public land application, or actually occupied openly, continuously, adversely and publicly for a period of not less than thirty (30)
years as of the effectivity of this Code, where the occupant is qualified for a free patent under the Public Land Act: Provided, That said lands,
which are not yet part of a well-established communities, shall be kept in a vegetative condition sufficient to prevent erosion and adverse
effects on the lowlands and streams: Provided, further, That when public interest so requires, steps shall be taken to expropriate, cancel
defective titles, reject public land application, or eject occupants thereof.

Section 16. Areas needed for forest purposes. The following lands, even if they are below eighteen per cent (18%) in slope, are needed for
forest purposes, and may not, therefore, be classified as alienable and disposable land, to wit:

1. Areas less than 250 hectares which are far from, or are not contiguous with, any certified alienable and disposable land;

2. Isolated patches of forest of at least five (5) hectares with rocky terrain, or which protect a spring for communal use;

3. Areas which have already been reforested;

4. Areas within forest concessions which are timbered or have good residual stocking to support an existing, or approved to be established,
wood processing plant;

5. Ridge tops and plateaus regardless of size found within, or surrounded wholly or partly by, forest lands where headwaters emanate;

6. Appropriately located road-rights-or-way;

7. Twenty-meter strips of land along the edge of the normal high waterline of rivers and streams with channels of at least five (5) meters wide;

8. Strips of mangrove or swamplands at least twenty (20) meters wide, along shorelines facing oceans, lakes, and other bodies of water, and
strips of land at least twenty (20) meters wide facing lakes;

9. Areas needed for other purposes, such as national parks, national historical sites, game refuges and wildlife sanctuaries, forest station sites,
and others of public interest; and

10. Areas previously proclaimed by the President as forest reserves, national parks, game refuge, bird sanctuaries, national shrines, national
historic sites:

Provided, That in case an area falling under any of the foregoing categories shall have been titled in favor of any person, steps shall be taken, if
public interest so requires, to have said title cancelled or amended, or the titled area expropriated.

Section 17. Establishment of boundaries of forest lands. All boundaries between permanent forests and alienable and disposable lands shall be
clearly marked and maintained on the ground, with infrastructure or roads, or concrete monuments at intervals of not more than five hundred
(500) meters in accordance with established procedures and standards, or any other visible and practicable signs to insure protection of the
forest.

Section 18. Reservations in forest lands and off-shore areas. The President of the Philippines may establish within any lands of the public
domain, forest reserve and forest reservation for the national park system, for preservation as critical watersheds, or for any other purpose,
and modify boundaries of existing ones. The Department Head may reserve and establish any portion of the public forest or forest reserve as
site or experimental forest for use of the Forest Research Institute.

When public interest so requires, any off-shore area needed for the preservation and protection of its educational, scientific, historical,
ecological and recreational values including the marine life found therein, shall be established as marine parks.

UTILIZATION AND MANAGEMENT

Section 19. Multiple use. The numerous beneficial uses of the timber, land, soil, water, wildlife, recreation value and grass of forest lands
shall be evaluated and weighted before allowing the utilization, exploitation, occupation or possession thereof, or the conduct of any
activity therein.

Only the utilization, exploitation, occupation or possession of any forest land, or any activity therein, involving one or more or its resources,
which will produce the optimum benefits to the development and progress of the country and the public welfare, without impairment or with
the least injury to its other resources, shall be allowed.

All forest reservations may be open to uses not inconsistent with the principal objectives of the reservation: Provided, That critical watersheds
and national parks shall not be subject to logging operations.

Section 20. License agreement, license, lease or permit. No person may utilize, exploit, occupy, possess or conduct any activity within any
forest land, or establish and operate any wood-processing plant, unless he has been authorized to do so under a license agreement, lease,
license, or permit.

F. QUALIFICATIONS

Section 58. Diffusion of benefits. The privilege to utilize, exploit, occupy, or possess forest lands, or to conduct any activity therein, or to
establish and operate wood-processing plants, shall be diffused to as many qualified and deserving applicants as possible.

Section 59. Citizenship. In the evaluation of applications of corporations, increased Filipino equity and participation beyond the 60%
constitutional limitation shall be encouraged. All other factors being equal, the applicant with more Filipino equity and participation shall be
preferred.

Section 60. Financial and technical capability. No license agreement, license, lease or permit over forest lands shall be issued to an applicant
unless he proves satisfactorily that he has the financial resources and technical capability not only to minimize utilization, but also to
practice forest protection, conservation and development measures to insure the perpetuation of said forest in productive condition.

Section 61. Transfers. Unless authorized by the Department Head, no licensee, lessee, or permittee may transfer, exchange, sell or convey his
license agreement, license, lease or permit, or any of his rights or interests therein, or any of his assets used in connection therewith.

The licensee, lessee, or permittee shall be allowed to transfer or convey his license agreement, license, lease or permit only if he has not
violated any forestry law, rule or regulation; has been faithfully complying with the terms and conditions of the license agreement, license,
lease or permit; the transferee has all the qualifications and none of the disqualifications to hold a license agreement, license, lease or
permit; there is no evidence that such transfer or conveyance is being made for purposes of speculation; and the transferee shall assume all
the obligations of the transferor.

The transferor shall forever be barred from acquiring another license agreement, license, lease or permit.

Section 62. Service contracts. The Department Head, may in the national interest, allow forest products licensees, lessees, or permittees to
enter into service contracts for financial, technical, management, or other forms of assistance, in consideration of a fee, with any foreign
person or entity for the exploration, development, exploitation or utilization of the forest resources, covered by their license agreements,
licenses, leases or permits. Existing valid and binding service contracts for financial, technical, management or other forms of assistance are
hereby recognized as such.

Section 63. Equity sharing. Every corporation holding a license agreement, license, lease or permit to utilize, exploit, occupy or possess any
forest land, or conduct any activity therein, or establish and operate a wood-processing plant, shall within one (1) year after the effectivity of
this Code, formulate and submit to the Department Head for approval a plan for the sale of at least twenty percent (20%) of its subscribed
capital stock in favor of its employees and laborers.

The Department Head shall promulgate the necessary rules and regulations to carry out the provisions of this section, particularly on the
determination of the manner of payment, factors affecting the selling price, establishment of priorities in the purchase of the shares of stock,
and the capability of the deserving employees and laborers. The industries concerned shall extend all assistance in the promulgation of policies
on the matter, such as the submission of all data and information relative to their operation, personnel management, and asset evaluation.

FOREST PROTECTION: EO 23 SERIES OF 2011

Section 2. Moratorium on the Cutting and Harvesting of Timber in the Natural Forests – A moratorium on the cutting and harvesting of timber
in the natural and residual forests of the entire country is hereby declared unless lifted after the effectivity of this Executive Order. In order to
implement this policy, the following are hereby instituted:

2.1 The DENR is henceforth hereby prohibited from issuing logging contracts/agreements in all natural and residual forests, such as
Integrated Forest Management Agreements (IFMA), Socialized Integrated Forest Management Agreements (SIFMA), Community-Based Forest
Management Agreement (CBFMA) and other agreements/contracts with logging components in natural and residual forests;

2.2 The DENR is likewise prohibited from issuing/renewing tree cutting permits in all natural and residual forests nationwide, except for
clearing of road right of way by the DPWH, site preparation for tree plantations, silvicultural treatment and similar activities, provided that
all logs derived from the said cutting permits shall be turned over to the DENR for proper disposal. Tree cutting associated with cultural
practices pursuant to the indigenous Peoples Right Act (IPRA Law) may be allowed only subject to strict compliance with existing guidelines
of the DENR;

2.3 The DENR shall review/evaluate all existing IFMAs, SIFMAs, CBFMAs and other forestry agreements/contacts and immediately
terminate/cancel the agreements of those who have violated the terms and conditions of their contracts/agreements as well as existing
forest laws, rules and regulations at least twice. Furthermore, said agreements shall likewise be immediately terminated/cancelled if the
holders thereof engage in logging activities in any natural or residual forest or abet the commission of the same;

2.4 The DENR shall strictly implement a forest certification system in accordance with the United Nations standard/guidelines to ascertain
the sustainability of legal sources and chain of custody of timber and wood products, nationwide;

2.5 The DENR shall close and not allow to operate all sawmills, veneer plants and other wood processing plants who are unable to present
proof of sustainable sources of legally cut logs for a period of at least five (5) years within one month from effectivity of this Executive Order:

2.6 The DENR through the DA-DENR-DAR Convergence Initiative, shall develop a National Greening Program NGP in cooperation with the
Department of Education (DepEd) and the Commission on Higher Education (CHED) to initiate the educational drive campaign; the
Department of Interior and Local Government (DILG) to help in establishing communal tree farms for firewood and other purposes; the
Department of Social Welfare and Development (DSWD) to identify the upland farmers covered by the NGP as priority beneficiaries of the
conditional cash transfer program; the Department of Budget and Management (DBM) to provide the funds for the production of quality
seedlings for the NGP from available funds of the government; and the private sector and other concerned agencies/institutions to raise
funds and resources for tree planting.

2.7 The Department of Education shall be given priority in the use of all confiscated logs.

Section 3. Creation of the Anti-Illegal Logging Task Force. To enforce the moratorium and lead the anti-illegal logging campaign, an Anti-Illegal
Logging Task Force is hereby created. The Task Force shall be composed of the DENR Secretary or his duly authorized representative as
Chairman and the Secretary of the Department of the Interior and Local Government, the Secretary of the Department of National Defense, the
Chief of the Philippine National Police, the Chief of Staff of the Armed Forces of the Philippines of their respective authorized representatives ,
as members.

3.1 Mandate. The Task Force is hereby mandated to take the lead in the anti-illegal logging campaign and ensure the implementation of this
Executive Order under the supervision of the DENR. It shall also assist the DENR in the enforcement of other environmental laws.

H. PROHIBITED ACTS

ACT NO. 2812 - AN ACT TO PROHIBIT THE CUTTING OR UTILIZATION OF FRUIT TREES AND BUSHES IN THE PUBLIC OR COMMUNAL FORESTS
WITHOUT A SPECIAL PERMIT BY THE BUREAU OF FORESTRY

Section 1. It shall be unlawful for any person, not in possession of a special permit by the Bureau of Forestry, to cut in the public or communal
forests, for use as lumber of firewood, any of the following trees ad bushes:

Syzgium spp.: Tampui, Makopa, Yambu, etc.; Euphoria didyma and E. Rranciles: Alupag, Boboa; Garcinia spp.: Pili; Diplodiscus paniculatus:
Balobo; Mangifera caesia: Baluno; Artocarpus elastica: Bunnihao; Artocarpus odoratissima: Marang; Lansium domesticum: Lansones; Diospyros
discolor: Mabolo or Camagon; Litchi Philippinensis: Alupag-amo; Mangifera altisima: Paho or pahutan; Psidium guajava: Guayabas, Guaba or
Bayabas; Durio Zibethinus: Durian or Dulain and others the fruits of which can be used as food for human beings.
Sec. 2. Any violation of this Act shall be punished for the first offense, a fine double the amount of the charges and penalties on the wood of
other forestry products unlawfully cut or removed and for each subsequent offense by such fine and by imprisonment not to exceed thirty days
in the discretion of the court

Republic Act No. 8371 - AN ACT TO RECOGNIZE, PROTECT AND PROMOTE THE RIGHTS OF INDIGENOUS CULTURAL COMMUNITIES/INDIGENOUS
PEOPLE, CREATING A NATIONAL COMMISSION OF INDIGENOUS PEOPLE, ESTABLISHING IMPLEMENTING MECHANISMS, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

a) Ancestral Domains - Subject to Section 56 hereof, refer to all areas generally belonging to ICCs/IPs comprising lands,inland waters, coastal
areas, and natural resources therein, held under a claim of ownership, occupied or possessed by ICCs/IPs, themselves or through their
ancestors, communally or individually since time immemorial, continuously to the present except when interrupted by war, force majeure or
displacement by force, deceit, stealth or as a consequence of government projects or any other voluntary dealings entered into by government
and private individuals, corporations, and which are necessary to ensure their economic, social and cultural welfare. It shall include ancestral
land, forests, pasture, residential, agricultural, and other lands individually owned whether alienable and disposable or otherwise, hunting
grounds, burial grounds, worship areas, bodies of water, mineral and other natural resources, and lands which may no longer be exclusively
occupied by ICCs/IPs but from which their traditionally had access to for their subsistence and traditional activities, particularly the home
ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;

Section 10. Unauthorized and Unlawful Intrusion. - Unauthorized and unlawful intrusion upon, or use of any portion of the ancestral domain, or
any violation of the rights herein before enumerated, shall be punishable under this law. Furthermore, the Government shall take measures to
prevent non-ICCs/IPs from taking advantage of the ICCs/IPs customs or lack of understanding of laws to secure ownership, possession of land
belonging to said ICCs/IPs.

PD 705: Section 77. Unlawful possession of implements and devices used by forest officers. Imprisonment for a period of not less than (2)
nor more than four (4) years and a fine of not less than one thousand pesos (P1,000.00), nor more than ten thousand (P10,000.00) pesos in
addition to the confiscation of such implements and devices, and the automatic cancellation of the license agreement, lease, license or
permit, if the offender is a holder thereof, shall be imposed upon any person who shall, without authority from the Director or his authorized
representative, make, manufacture, or has in his possession any government marking, hatchet or other marking implement, or any marker,
poster, or other devices officially used by officers of the Bureau for the marking or identification of timber or other products, or any duplicate,
counterfeit, or imitation thereof, or make or apply a government mark on timber or any other forest products by means of any authentic or
counterfeit device, or alter, deface, or remove government marks or signs, from trees, logs, stumps, firewoods or other forest products, or
destroy, deface, remove or disfigure any such mark, sign, poster or warning notices set by the Bureau to designate the boundaries of cutting
areas, municipal or city forest or pasture, classified timber land, forest reserve, and areas under the national park system or to make any false
mark or imitation of any mark or sign herein indicated; Provided, That if the offender is a corporation, partnership or association, the officers
and directors thereof shall be liable.

Section 32. Log production and processing. Unless otherwise decreed by the President, upon recommendation of the National Economic
Development Authority, the entire production of logs by all licensees shall, beginning January 1, 1976, be processed locally.

A licensee who has no processing plant may, subject to the approval of the Director, enter into a contract with a wood processor for the
processing of his logs. Wood processors shall accept for processing only logs cut by, or purchased from, licensees of good standing at the time
of the cutting of logs.

Section 33. Forest lands to be reforested. The following shall be reforested and covered with suitable and sufficient trees, to wit:

(a) Bare or grass-covered tracts of forest lands with at least fifty per cent (50%) slope;

(b) Bare or grass-covered tracts of forest lands with less than fifty per cent (50%) slope, but with soil so highly erodible as to make grass cover
inadequate for soil erosion control;

(c) Brushlands or tracts of forest lands generally covered with brush, which need to be developed to increase their productivity;

(d) Open tracts of forest lands with slopes or gradients generally exceeding fifty per cent (50%), interspersed with patches of forest each of
which is less than two hundred fifty (250) hectares in area;

(e) Denuded or inadequately-timbered areas proclaimed by the President as forest reserves and reservations as critical watersheds, national
parks, game refuge, bird sanctuaries, national shrines, national historic sites;
(f) Inadequately-stocked forest lands within forest concessions;

(g) Portions of areas covered by pasture leases or permits having a slope of at least fifty per cent (50%); and

(h) River banks, easements, road rights-of-ways, deltas, swamps, former river beds, and beaches.

REPUBLIC ACT NO. 7227 - Bases Conversion and Development Act of 1992 It is hereby declared the policy of the Government to accelerate the
sound and balanced conversion into alternative productive uses of the Clark and Subic military reservations and their extensions (John Hay
Station, Wallace Air Station, O'Donnell Transmitter Station, San Miguel Naval Communications Station and Capas Relay Station), to raise funds
by the sale of portions of Metro Manila military camps, and to apply said funds as provided herein for the development and conversion to
productive civilian use of the lands covered under the 1947 Military Bases Agreement between the Philippines and the United States of
America, as amended.

It is likewise the declared policy of the Government to enhance the benefits to be derived from said properties in order to promote the
economic and social development of Central Luzon in particular and the country in general.

Sec. 7. Transfer of Properties. — Pursuant to paragraph (a), Sec. 4 hereof, the President shall transfer forthwith to the Conversion Authority:

(a) Station Area in has.

(more or less)

John Hay Air Station 570

Wallace Air Station 167

O'Donnell Transmitter Station 1,755

San Miguel Naval Communications Station 1,100

Mt. Sta. Rita Station (Hermosa, Bataan)

(b) Such other properties including, but not limited to, portions of Metro Manila military camps, pursuant to Sec. 8 of this Act: provided,
however, that the areas which shall remain as military reservations shall be delineated and proclaimed as such by the President.

Sec. 8. Funding Scheme. — The capital of the Conversion Authority shall come from the sales proceeds and/or transfers of certain Metro
Manila military camps, including all lands covered by Proclamation No. 423, series of 1957, commonly known as Fort Bonifacio and Villamor
(Nicholas) Air Base, namely:

Camp Area in has.

(more or less)

Phase I (for immediate disposal)

1. Camp Claudio 2.0

2. Camp Bago Bantay 5.0

3. Part of Villamor Air Base 135.10

4. Part of Fort Bonifacio 498.40

————

Total 640.50

=======

Phase II
1. Camp Ver 1.9

2. Camp Melchor 1.0

3. Camp Atienza 4.9

4. Part of Villamor Air Base 37.9

5. Part of Fort Bonifacio 224.90

6. Fort Abad .60

————

Total 271.20

=======

Provided, that the following areas shall be exempt from sale:

(a) Approximately 148.80 hectares in Fort Bonifacio for the National Capital Region (NCR) Security Brigade, Philippine Army (PA) officers'
housing area, and Philippine National Police (PNP) jails and support services (Presently Camp Bagong Diwa);

(b) Approximately 99.91 hectares in Villamor Air Base for the Presidential Airlift Wing, one squadron of helicopters for the NCR and respective
security units;

The President is hereby authorized to sell the above lands, in whole or in part, which are hereby declared alienable and disposable pursuant
to the provisions of existing laws and regulations governing sales of government properties: provided, that no sale or disposition of such
lands will be undertaken until a development plan embodying projects for conversion shall be approved by the President in accordance with
paragraph (b), Sec. 4 of this Act. However, six (6) months after approval of this Act, the President shall authorize the Conversion Authority
tTo adopt, prepare and implement a comprehensive and detailed development plan embodying a list of projects including but not limited to
those provided in the Legislative-Executive Bases Council (LEBC) framework plan for the sound and balanced conversion of the Clark and
Subic military reservations and their extensions consistent with ecological and environmental standards, into other productive uses to
promote the economic and social development of Central Luzon in particular and the country in general; )o dispose of certain areas in Fort
Bonifacio and Villamor as the latter so determines. The Conversion Authority shall provide the President a report on any such disposition or
plan for disposition within one (1) month from such disposition or preparation of such plan.