Ssuupprreem Mee C Coouurrtt: Republic of The Philippines
Ssuupprreem Mee C Coouurrtt: Republic of The Philippines
Ssuupprreem Mee C Coouurrtt: Republic of The Philippines
Supreme Court
Manila
FIRST DIVISION
B O N AV E N T U R E M I N I N G
C O R P O R AT I O N ,
Petitioner,
Present:
- versus -
JJ.
V. I . L . M I N E S , I N C O R P O R AT E D ,
Represented by its Corpora te
Promulgated:
S e c r e t a r y, R O X A N N A S . G O ,
August 13, 2008
Respondent.
x-----------------------------------------------x
DECISION
PUNO, C.J.:
Before us is a Petition for Review under Rule 45 of the Rules of
Court filed by the petitioner Bonaventure Mining Corporation (BMC),
[1]
to set aside the Decision of the Court of Appeals dated August 29,
[2]
of the Mines
2006 (CA Decision) which reversed the Decision
[3]
of the
Adjudication Board (MAB) and reinstated the Decision
Panel of Arbitrators upholding the EPA-IVA-63 of respondent V.I.L.
Non-impairment
of
Existing
x x x
All pending applications for MPSA/FTAA and exploration
permits issued prior to the promulgation of these implementing
rules and regulations shall be governed by the provisions of the
Act and these implementing rules and regulations; Provided,
however, that where the grant of such FTAA application/proposals
would exceed the maximum contract area restrictions contained in
Section 34 of the Act, t h e a p p l i c a n t / p r o p o n e n t s h a l l hhaav e o n e
y e a r, f r o m t h e e ff e c t i v i t y o f t h eesse i m p l e m e n t i n g r u l e s a n d
r e g u l a t i o n s , t o d i v e s t o r r e l i n qquui s h a p p l i c a t i o n s o r p o r t i o n s
t h e r e o f w h i c h , i f g r a n t e d , w o u l d e xxcce e d t h e m a x i m u m
c o n t r a c t a r e a a l l o w a n c e p r o v i ddeed u n d e r t h e A c t ; Provided,
finally, that this provision is applicable only to all FTAA
applications filed under DAO 63 prior to the approval of the Act.
(Emphasis supplied)
x x x
of
Existing
x x x
All pending applications for MPSA/FTAA covering forest
land and other government reservations shall not be required to
re-apply for exploration permit p r o v i d e d , t h a t w h e r e t h e g r aannt o f
s u c h F TA A a p p l i c a t i o n s / p r o p o ssaal s w o u l d e x c e e d t h e
m a x i m u m c o n t r a c t a r e a r e s ttrri c t i o n s c o n t a i n e d i n S e c t i o nn 3 4 o f
t h e A c t , t h e a p p l i c a n t / p r o p o n eennt s h a l l b e g i v e n a n e x t e n s i o n
o f o n e y e a r, r e c k o n e d f r o m S e p t e m b e r 1 3 , 1 9 9 6 , t o d i v e s t o r
relinquish in favor of governmen t, areas in excess of the
m a x i m u m a r e a a l l o w a n c e p r oovvi d e d u n d e r t h e A c t . (Emphasis
supplied)
of
Existing
x x x
All pending applications for MPSA/FTAA covering forest
land and Government Reservations shall not be required to
re-apply for Exploration Permit: Provided, That where the grant of
such FTAA applications/proposals would exceed the maximum
contract area restrictions contained in Section 34 of the Act,, t h e
a p p l i c a n t / p r o p o n e n t s h a l l b e ggiiv e n a n e x t e n s i o n o f o n e ( 1 )
y e a r, r e c k o n e d f r o m S e p t e m b e rr 1 3 , 1 9 9 6 , t o d i v e s t o r
relinquish pursuant to Depar tment Administrative Order No.
96-25 in favor of the Governm ent, areas in excess of the
m a x i m u m a r e a a l l o w a n c e p r oovvi d e d u n d e r t h e A c t . For this
purpose, a Special Exploration Permit of limited applications and
activities shall be issued by the Secretary upon the
recommendation of the Director, subject to the terms and
conditions specified in the Permit and pertinent provisions of
Chapter V hereof: Provided, That an area permission shall be
granted likewise by the Secretary to undertake limited exploration
activities in non-critical forest reserves and forest reservations and
such other areas within the jurisdiction of the Department. In other
areas, however, the applicant/proponent shall secure the necessary
area clearances or written consent by the concerned agencies or
parties, as provided for by law: Provided, further, That the time
period shall be deducted from the life of the MPSA/FTAA and
exploration costs can be included as part of pre-operating expenses
for purposes of cost recovery should the FTAA be approved:
Provided, finally, That this provision is applicable only to all
FTAA/MPSA applications filed under Department Administrative
Order No. 63 prior to the effectivity of the Act and these
implementing rules and regulations. (Emphasis supplied)
x x x
[15]
MAB rendered its Decision,
modifying the decision of the Panel
of Arbitrators. The MAB gave due course to BMCs application for
an exploration permit but allowed VMIs application to proceed, sans
the areas covered by BMCs application.
From this decision, VMI filed its Petition for Review with the
Court of Appeals. The Court of Appeals reversed and set aside the
decision of the MAB and reinstated the decision of the Panel of
Arbitrators.
Hence, BMC now comes to this Court raising the following issues:
A.
WHETHER THE COURT OF APPEALS COMMITTED A
GRAVE AND REVERSIBLE ERROR WHEN IT RULED THAT
FAILURE TO COMPLY WITH DENR MEMORANDUM
ORDER NO. 97-07 ON RETENTION REQUIREMENTS
WOULD CAUSE THE CANCELLATION OF THE FTAA
APPLICATION BY OPERATION OF LAW.
B.
WHETHER THE COURT OF APPEALS COMMITTED A
GRAVE AND REVERSIBLE ERROR WHEN IT RULED THAT
THE DISPUTED AREA IS OPEN FOR MINING
APPLICATIONS AFTER 30 OCTOBER 1997 AND
CONSEQUENTLY UPHOLDING THE MINING APPLICATION
[16]
OF RESPONDENT AND CANCELING PETITIONERS.
[35]
R E Y N ATO S . P U N O
Chief Justice
WE CONCUR:
A N TO N I O T. C A R P I O
Associate Justice
R E N ATO C . C O R O N A
S. AZCUNA
Associate Justice
Justice
ADOLFO
Associate
T E R E S I TA J . L E O N A R D O - D E C A S T R O
Associate Justice
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, I certify
that the conclusions in the above decision had been reached in
consultation before the case was assigned to the writer of the opinion
of the Courts Division.
R E Y N ATO S . P U N O
Chief Justice
[1]
Id. at 44.
Id. at 45.
Id. at 47.
Id. at 48-49.
Rollo, pp. 76-89.
Id. at 91-105.
Id. at 16. (Boldfaced in the original)
Id. at 110.
Id. at 222.
Id. at 244-245.
Id. at 245.
Id. at 253-254.
Id. at 255-266.
Id. at 267-268.
Id. at 450.
Id. at 246-247.
Karen and Kristy Fishing Industry v. Court of Appeals, G.R. Nos.
172760-61, October 15, 2007, 536 SCRA 243, 250.
Cubar, et al. v. Hon. Mendoza, etc., et al., 205 Phil. 672, 676 (1983).
CA rollo, pp. 232-240; dated June 11, 2002.
[30]
[31]
[32]
[33]
[34]
[35]
[36]
[37]
[38]
[39]
Rollo, p. 66.