6. Utilization of natural resources A. Miners Association vs Factoran Jr. Facts: The petition seeks a ruling from this court on the validity of two Administrative Orders 57 and 82 issued by the Secretary of the Department of Environment and Natural Resources to carry out the provisions of Executive Orders 279 and 211. This petition aros arosee from from the the fact fact that that the the 1987 1987 Cons Consti titu tuti tion on provi provide ded d for for a diff differ eren entt syst system em of exploration, development and utilization of the country’s natural resources. Unlike the 1935 and 1973 Constitutions that allow the utilization of inalienable lands of public domain through “license, concession or lease”, the 1987 Constitution provides for the full control and supervision by the state of the exploration, development and utilization of the country’s natural resources. Pres. Cory Aquino promulgated EO 211, which prescribes the interim procedures in the processing and approval of applications for the exploration, develop developmen mentt and utiliz utilizati ation on of minera minerals ls in accord accordanc ancee to the 1987 1987 Consti Constitut tution ion.. In addition, Pres. Aquino also promulgated EO 279 authorizing the DENR Secretary to negotiate and conclude joint venture, co-production or production-sharing agreements for the exploration, development and utilization of mineral resources and prescribing the guidelines for such agreements and those agreements involving technical or financial assistance by foreign-owned corporations for large-scale exploration, development, and util utiliz izat atio ion n of mine minera rals ls.. In line line with with EO 279, 279, the the DENR DENR Secre Secreta tary ry issu issued ed AO 57 “Guidel “Guideline iness of Minera Minerall Product Production ion Sharing Sharing Agreem Agreement ent under under EO 279” 279” and AO 82 “Procedural Guidelines on the Award of Mineral Production Sharing Agreement (MPSA) through negotiation. Petitioner, Miners Association of the Philippines, mainly contend that the DENR Secretary issued both AOs 57 and 82 in excess of his rule-making power because these are inconsistent with the provisions of EO 279. Issue: whether AO Nos. 57 and 82, which are promulgated by the DENR, are valid and constitutional Held: AO Nos. 57 and 82 are both constitutional and valid. This is due to the fact that EO 279, in effect, gave the Secretary of Natural Resources the authority to conclude joint ventu venture re,, co-p co-pro roduc ducti tion on,, or prod produc ucti tion on shar sharin ing g agree agreeme ment ntss for for the the expl explor orat atio ion, n, development and utilization of mineral resources. Furthermore, the constitutionality of these administrative orders goes to show that the utilization of inalienable lands of public domain is not merely done through “license, concession or lease” since the options are now also open to the State through direct undertaking or by entering into co-production, joint venture, or production sharing agreements.
