ESTABLISHING AGRO-FOREST RESERVES WITHIN THE AGUSAN VALLEY FOR THE IMPLEMENTATION OF THE NATIONWIDE COCONUT REPLANTING PROGRAM

WHEREAS, it is the policy of the State, as enunciated in PD
No. 705 and PD No. 1153, to vigorously undertake a forest renewal program;

WHEREAS, it is also the declared policy of the State under
PD No. 1468 to promote the rapid integrated development and growth of the
coconut industry, and pursuant to that policy, PD No. 1468 requires the
Philippine Coconut authority (“PCA”) to, among others, formulate and implement a
nationwide replanting program using precocious high-yielding hybrid seednuts,
which program may include the planting of new areas;

WHEREAS, the PCA has formulated a nationwide coconut
replanting program and has recommended the inclusion in said program of the
planting of hybrid coconut in sizeable, contiguous new areas;

WHEREAS, the PCA has identified that among the new areas
suitable for the planting of the hybrid seednuts are the logged-over, denuded
and inadequately stocked forest lands, particularly in the Agusan Valley;

WHEREAS, the planting of coconut trees in forest lands shall
support the national forest renewal program and encourage public participation
in agro-forest activities;

WHEREAS, the establishment of large scale coconut
plantations logged-over, denuded and inadequately stocked forest lands shall
create employment opportunities in support of the socio-economic and
resettlement programs of the Government;

WHEREAS, such overriding national interest requires,
therefore, that existing timber license agreements be reviewed so that
logger-over, denuded and inadequately stocked forest lands within timber
concessions may be established as agro-forest reserves and opened as new areas
for the planting of hybrid coconuts and other suitable agricultural crops, tree
crops, and forest plants;

WHEREAS, it is desirable that the owners of landed estates
which were acquired by the Government thru voluntary agreement or thru
expropriation proceedings, who were to be compensated for such lands under
Republic Act No. 926 but have not received the full compensation agreed upon, be
permitted to avail of tae benefits under this Decree;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President/Prime
Minister of the Philippines, by virtue of the powers vested in me by the
Constitution and the laws, do hereby order and decree:

SECTION 1. In the exercise or the Presidential prerogative
provided by Article XVII, Sec. 12 of the Constitution, as enforced
through Section 20 of PD No. 705, the Revised Forestry Code, as amended, and
finding the exercise of said presidential prerogative to be required by the
national interest, I do hereby withdraw the denuded, logged-over and
inadequately stocked areas, the boundaries of which are delineated in Attachment
A to this Decree, from the following concessions:

1. Liberty Forest, Inc. concession located at the Municipalities of
   Prosperidad, Esperanza and Bayugan, Province of Agusan del Sur.
2. CVC Forest Industries concession located at the Municipalities of Bunawan
   and Trento, Province of Agusan del Sur.
3. Ago Timber Corporation concession located at the Municipalities of
   Prosperidad, Province of Agusan del Sur.
4. CBL Timber Corporation concession located at Municipality of Prosperidad,
   Province of Agusan del Sur.

I hereby establish said delineated denuded, logged-over and inadequately
stocked areas as agro-forest reserves to be used as the new areas for the
planting of hybrid coconut seednuts, provided that the same may be also
be planted to other agro-forest products, tree crops, and forest plants.

SECTION 2. PCA is hereby authorized to enter into
agreements, for the development of the areas referred to in Section 1 above, by
way of agro-forest lease, with the coconut farmers of the Philippines, acting
thru the Coconut Industry Investment Fund and/or the Coconut industry
Development Fund, and/or with the persons or entities who have availed of the
provisions of Republic Act No. 926. The lease shall be for a period of
twenty-five (25) years or such longer period as may hereafter be allowed by law,
renewable for another twenty-five (25) years or such longer period as may
hereafter be allowed by law. After the expiration of the term of the lease, if
the programs is in the process of implementation, the awardees shall be given
priority in the further utilization of the leased areas for agro-forest
purposes. Other forest areas as may, from time to time, be identified by the PCA
as suitable for the coconut replanting program may be incorporated in such
agreements. All agreements entered into by PCA by virtue of this section shall
be subject to the approval of the President/ Prime Minister.

SECTION 3. The agro-forest reserves established by .This
Decree shall be incorporated in the nationwide coconut replanting program as
formulated and implemented by the PCA, under such terms and conditions as may be
determined by the PCU to be necessary for the protection of the interests of the
Government, the coconut farmers, end the sellers and kaingeros in the area.

SECTION 4. To support the socio-economic and resettlement
thrusts of the project, the Ministry of Public Highways shall include in its
program the construction and maintenance of the required infrastructure, such as
roads and bridges, for the development of the areas and extend such assistance
as may be required by the PCA.

SECTION 5. Persons and entities qualified to avail of the
benefits under this Decree, as well as the agreements entered into with them in
the implementation of this Decree, shall be excepted from the operation of
existing laws which may otherwise disqualify them or render the agreements
invalid.

SECTION 6. If any provision herein is held invalid, the
other provisions shall continue to be operative.

SECTION 7. This Decree shall take effect immediately.

Done in the City of Manila, this 12th day of January, in the year of Our
Lord, nineteen hundred and eighty one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant