AUTHORIZING THE ISSUANCE OF ONSHORE SPECIAL MINERALS EXTRACTION PERMITS TO QUALIFIED GOVERNMENT ENTITIES/INSTRUMENTALITIES FOR GOVERNMENT PROJECTS

WHEREAS, the 1987 Constitution provides that all lands of the public
domain, minerals, coal, petroleum and other natural resources are owned
by the state and that their exploration, development and utilization
shall be under the full control and supervision of the State;

WHEREAS, Section 4 of the Republic Act (R.A.) No. 7942, otherwise
known as the “Philippine Mining Act of 1995”, provides that mineral
resources are owned by the State; that the exploration, utilization and
processing thereof shall be under the State’s full control and
supervision, and that the State may directly undertake such activities.

WHEREAS, Section 8 of R.A. No. 7942 provides that the Department of
Environment and Natural Resources (DENR) shall be the primary government
agency responsible for the conservation, management, development and
proper use of the State’s mineral resources, including those in
reservations, watersheds areas and lands of public domain;

WHEREAS, Section 9 of R.A. No. 7942 provides that the Mines and
Geosciences Bureau (MGB) shall have direct charge in the administration
and disposition of mineral lands and mineral resources, both offshore
and onshore;

WHEREAS, pursuant to Executive Order No. 786 dated March 19, 1982,
the Natural Resources Development Corporation (NRDC), as a government
corporation and corporate arm of the DENR, is mandated to help promote
the development of the country’s natural resources, including minerals;

WHEREAS, quarry, sand, gravel, clay and related materials from
onshore areas are highly suitable raw materials for government
infrastructure projects, specially flagship projects, and other related
civil works;

WHEREAS, it is in the national interest to prioritize government
projects in the utilization of these materials to enhance the delivery
of services vital to the Government’s economic and social development
programs;

WHEREAS, it is necessary to ensure adequate, low-cost and continuous
supply of these raw materials in order not to hamper or delay the
implementation of government projects;

WHEREAS, the potential environmental impacts of mining/quarrying
operations require appropriate safeguards and adequate mitigating
measures to be set in place under the strict supervision of the DENR;

WHEREAS, Section 49 of R.A. No. 7942 provides for the issuance of
Government Gratuitous Permit to any government entity/instrumentality
for the extraction of certain minerals for government projects, over an
area of not more than two (2) hectares for a period co-terminous with
the project;

WHEREAS, R.A. No. 7942 does not clearly provide for the appropriate
permitting mechanisms in the extraction of quarry, gravel, sand, clay
and other related materials needed for government projects over an area
exceeding two (2) hectares;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do
hereby order:

SECTION 1. Authority for the Issuance of Special Minerals Extraction Permit (SMEP).—
The DENR is hereby authorized to issue a Special Minerals Extraction
Permit (SMEP), including Interim Permit to NRDC or any qualified
government entity/instrumentality for the exploration, development,
utilization and/or disposition of quarry, sand, gravel, clay and other
related materials needed for a government project from onshore areas
exceeding two (2) hectares, including areas covered by pending mining
application(s). For this purpose, the Permittee may enter into a
Memorandum of Agreement (MOA) with the concerned government
entity/instrumentality and/or avail the services of a qualified service
contractor(s).

SECTION 2. Issuance of Government Gratuitous Permit
. — For the exploration, development, utilization and/or disposition of
quarry, sand, gravel, clay and other related materials needed for a
government project from onshore areas of not more than two (2) hectares,
the issuance of a Government Gratuitous Permit by the concerned
Provincial Governor/City Mayor, thru the Provincial/City Mining
Regulatory Board (P/CMRB), shall be in accordance with the pertinent
provisions of R.A. No. 7942 and its Revised Implementing Rules and
Regulations (DAO No. 96-40); Provided, That in no case shall the
Provincial Governor/City Mayor issue more than one (1) Government
Gratuitous Permit for a single government project.

SECTION 3. Authority of NRDC to Collect Certain Fees.—
In the case where the NRDC is the permittee, it is authorized to
collect management, service, environmental user’s and other fees from
the concerned government entity/instrumentality and/or
contractors/subcontractors. Such fees shall be shared in accordance with
the sharing scheme to be provided for under the Implementing Rules and
Regulations of this Order.

SECTION 4. Implementing Rules and Regulations.— The DENR shall formulate and issue the necessary rules and regulations to implement this Order.

SECTION 5. Repealing and Amending Clause.—
All orders, issuances, rules and regulations or parts thereof which are
inconsistent with any of the provisions of this Order are hereby
repealed or amended accordingly.

SECTION 6. Effectivity . — This Order shall take effect immediately.

Adopted: 17 Jan. 2000

By the President:

(SGD.) RONALDO B. ZAMORA
           Executive Secretary