153 - "Authorizing The Utilization of

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DENR Administrative Order

No. 2000-25
March 09, 2000

SUBJECT : Implementing Rules and


Regulations of Executive Order No.
153 - "Authorizing the Utilization of
Offshore Areas Not Covered by
Approved Mining Permits and
Contracts as Sources of Dredgefill
Materials for Government
Reclamation Projects and for Other
Purposes”.

Pursuant to Section 4 of Executive Order No. 153


“Authorizing the Utilization of Offshore Areas Not Covered by
Approved Mining Permits and Contracts as Sources of Dredgefill
Materials for Government Reclamation Projects and for Other
Purposes”, the following Implementing Rules and Regulations are
hereby promulgated:

SECTION I. Rationale

It is in the public interest to prioritize government projects to


enhance the delivery of services vital to the Government’s economic
and social development programs, and that it is very necessary to
ensure adequate, low cost and continuous supply of raw materials in
order not to hamper or delay the implementation of projects by the
Government, or of large scale projects that involve the interests of the
State, such that sand, gravel and other dredgefill materials from offshore
submerged lands which are highly suitable raw materials for
Government Reclamation Projects and other civil works related to
government projects, may be developed and utilized by the State.

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Section 2. Definition of Terms

The following terms whether singular or plural shall mean:

a. "Aggregates" refer to unconsolidated or loose sand, gravel or


boulder on the seafloor that is suited for reclamation, concreting and
other engineering works.
b. “Borrow area" refers to an area that had been technically
delineated or Identified as source area of Seabed Quarry
Resources.
c. "DAO 96-37 as revised refers to the DENR Administrative Order
No. 96-37 of' 1996 which revises and strengthens the
Implementing rules and regulations of the Environmental Impact
System (EIS).
d. “DAO 96-40 refers to the revised implementing rules and
regulations of RA 7942 otherwise known as the Philippine Mining
Act of 1995.
e. "Dredgefill Materials" refer to suitable materials taken from the
seabed which may be used for reclamation without undergoing
processing.
f. “Environmental Compliance Certificate (ECC)” refers to the
document issued by the Secretary or the Regional Executive
Director certifying that based on the representations of the
proponent and the preparers (the proponent's technical staff or the
competent professional group commissioned by the proponent to
prepare the environmental impact statement and other related
documents), as reviewed and validated by the Environmental
Impact Assessment Review Committee (EIARC), the proposed
project or undertaking will not cause a significant negative
environmental impact; that the proponent has complied with all the
requirements of the Environmental Impact System; and that the
proponent is committed to implement its approved Environmental
Management Plan in the Environmental Impact Statement or
mitigation measures in the Initial Environmental Examination.

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g. "Environmental Impact Assessment (EIA)" refers to the
process of predicting the likely environmental consequences of
implementing projects or undertakings and designing the
appropriate preventive, mitigating and enhancement measures.
h. “Environmental Protection and Enhancement Program
(EPEP)" refers to the comprehensive and strategic environmental
management plan for the life of the offshore mining project on which
the EPEP's are based and implemented to achieve the
environmental objectives, criteria and commitments including
protection and rehabilitation of the disturbed environment.
i. "Environmental User's Fee" refers to the fee to be collected
from any Contractor or Permittee/Permit Holder who makes use of
the nearshore/offshore areas or its tributary rivers and streams for
the purpose of seabed quarrying/dredging operations.
j. "Environmental Work Program (EnWP)" refers to the
comprehensive and strategic Coastal and Offshore environmental
management plan to achieve the environmental objectives, criteria
and commitments including protection and rehabilitation of the
disturbed environment during the exploration period.
k. "Exploration Work Program (ExWP)" refers to the detailed
outline of activities and financial plan to be followed in searching or
prospecting for marine mineral resources by geophysical,
geological, drilling and other means for the purposes of determining
their existence, extent, quality and quantity and the feasibility of
mining them for profit.
l. "Government Reclamation Projects" refer to reclamation of
areas under water whether foreshore, offshore or inland being or to
be undertaken by the National Government by and through the
Public Estates Authority (PEA) or by any person or entity
authorized by the latter under a proper contract including
reclamation projects of any government units or agencies or
corporations authorized to reclaim under existing laws. All these
reclamation projects are undertaken with the approval of the
President of the Philippines and in consultation with PEA pursuant
to P.D. 3-A and E.O. 525.
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m. "Government Seabed Quarry Permit" refers to permit issued
by the Secretary, upon the recommendation of the Director, to a
Qualified Person or Government Agency/Instrumentality, to utilize
the areas not covered by approved mining permits/contracts,
including areas covered by pending mining rights applications, In
connection with Government Reclamation Projects and for other
purposes.
n. "Law of Seas" refers to the International covenant approved by
UNCLOS in 1982 that establishes the comprehensive framework
for the regulation of all ocean spaces and contains provisions
governing the limits of national jurisdiction over ocean spaces,
access to the seas, navigation, protection and preservation of
marine environment, and exploitation of its living and non-living
resources, scientific research and seabed mining.
o. "Marine Habitat" refers to the natural breeding, spawning and
feeding places of marine organisms that are ecologically important
for their preservation and propagation such as fish sanctuary, refuge
and protected areas.
p. "Mineral Reservations" refer to areas established and
proclaimed as such by the President upon recommendation of the
Director through the Secretary, including all submerged lands
within the Philippine Territory and Exclusive Economic Zone.
q. "Mineral Resources" mean any concentration of ores, minerals
and/rocks with proven or potential economic value.
r. "Mining Operations" mean mining activities involving exploration,
feasibility study, development and utilization of mineral resources.
s. "NIPAS Act (R.A. 7586)" refers to Republic Act No. 7586 of
1992, an Act providing for the establishment and management of
the National Integrated Protected Areas System.

t. "Qualified Person" means any Filipino Citizen of legal age and


with capacity to contract; or a corporation, partnership, association
or cooperative organized or authorized for the purpose of engaging
in mining, with technical and financial capability to undertake
mineral resources development, duly registered in accordance with
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law, at least 60% of the capital of which is owned by Filipino
Citizens, with a minimum authorized capitalization of 10 Million
pesos and a minimum paid up capital of 2.5 Million Pesos, with a
satisfactory environmental and community relations track record, if
applicable.
u. "PD 1152" refers to the Philippine Environmental Code of 1977
v. "PD 1586" refers to the Presidential Decree establishing an
Environmental Impact System including environmental management
related measures and for other purposes.
w. "R.A. 7942" refers to the Philippine Mining Act of 1995, An act
institutionalizing a new system, of mineral resources exploration,
development, utilization and conservation.
x. “Seabed Quarry Resources" refer to sand, gravel, boulders and
other aggregates or loose materials from the seabed which may be
used without undergoing processing : Provided, That such seabed
quarry resources do not contain metals or metallic constituents
and/or other valuable minerals in economically workable quantities:
Provided, further, That nonmetallic minerals such as, bull quartz,
quartz or silica, sand, sand and pebbles, precious and semiprecious
stones and other nonmetallic minerals that may later be discovered
and which the Director declares to be of economically workable
quantities, shall not be classified under the category of "Seabed
Quarry Resources".
y. "Seabed Quarrying" means the process of extracting, removing
and/or disposing quarry resources found in offshore areas.

z. "Special Exploration Permit" a permit issued by the Secretary,


upon recommendation by the Director to an applicant of a GSQP
who has not conducted any exploration work, or to a qualified
Government Entity/Instrumentality that is going to conduct
exploration over the offshore/submerged land area.
aa. “Winning Bidder/Awardee" refers to an entity duly accredited
under Philippine Laws who is financially and technically capable to
finance and undertake a reclamation project in accordance with

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PEA approved guidelines, and is an awardee of a government
reclamation project.

All other terms which are not defined herein, shall have the
same meaning as those in Sec. 5 of DENR-DA 0 96-40.

SECTION 3. Authority of DENR/NRDC

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
marine mineral resources including those in reservations, watershed
areas and public domain.

Mineral exploration and development in existing Mineral


Reservations and such other reservations that may thereafter be
established, shall be undertaken by the DENR or through a Qualified
Per.-;on in accordance with the DAO 96-40. The right to explore,
develop and utilize the minerals therein shall be awarded by the
Secretary of DENR under such terms and conditions as recommended
by the Director of the Mines and Geosciences Bureau (MGB) and
approved by the Secretary of the DENR.

The DENR shall issue the permits, to include those providing


for the exploration and utilization of Borrow Areas covered by
Government Reclamation Projects. Likewise, the DENR shall regularly
monitor, verify, validate and regulate all exploration and dredging
activities of Government Reclamation Projects, subject to all applicable
valid and existing rules and regulations;

The Natural Resources Development Corporation (NRDC), as


the corporate arm of the DENR, is responsible to help promote the
development of the country's natural resources. NRDC, as a
Government Corporation, may conduct Mining Operation for the
development of Mineral Resources, including seabed quarrying in
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existing Mineral Reservations, offshore areas and submerged lands
within the Philippine Territory.

If applicable, the DENR, or through NRDC, shall collect the


management fees, service fees, environmental user's fees and other fees
in connection with Government Reclamation Projects.

SECTION 4: Authority of the MGB

The Mines and Geosciences Bureau (MGB) shall have the


direct charge in the administration and disposition of mineral lands and
mineral resources, and shall undertake geological, mining, metallurgical,
chemical and other researches as well as geological and exploration
surveys.

The management of Mineral Reservations established by law


and those declared by the President, and the manner of disposition of
the minerals found therein shall be under the jurisdiction of the MGB.

The MGB shall promulgate the necessary rules and regulations


for the implementation of the Philippine Mining Act (R.A. 7942),
including the procedural guidelines that shall govern offshore mining and
seabed quarrying.

SECTION 5: Authority of PEA

All Government Reclamation Projects shall be undertaken by


the Public Estates Authority (PEA) or through a proper contract
executed by it with any person or entity: Provided, That reclamation
projects of any National Government Entity/instrumentality authorized
under its charter or other existing laws shall be undertaken in
consultation with and under the supervision and regulation of PEA.

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All Government Reclamation Projects shall be approved by the
President of the Philippines upon recommendation by the PEA. PEA
shall also be responsible for the identification of Borrow Areas as
sources of Dredgefill Materials for all Government Reclamation
Projects, subject to verification by DENR with respect to environmental
concerns.

The PEA shall be responsible for the approval of bids or


awards for contracts of work for Government Reclamation Projects.
The winning bidder or Project Contractor/Awardee shall have priority
for the use of PEA-identified borrow areas not covered by approved
mining permit/contract including those offshore areas covered by
pending mining application, subject to the qualification requirements
under R.A. 7942 regarding the right to explore, develop, utilize and
dispose of mineral resources. .

SECTION 6: Authority to Utilize Areas Not covered by


Approved Mining Permits/Contracts as
Borrow Areas for Government Reclamation
Projects

The Government thru the DENR, NRDC and PEA, has the right to
utilize offshore areas not covered by approved mining permits/contracts,
including areas covered by pending mining applications, as borrow
areas for dredgefill materials for existing and future Government
Reclamation Projects.

Surveys, sampling, site selection, dredging, and related


operations in borrow areas shall be subject to monitoring by the DENR,
for compliance with R.A. 7942, DAO 96-40, PD 1152, PD 1586,
DAO 96-37 as revised, NIPAS Act (R.A. 8556), UN Law of the Seas
and all their implementing rules and regulations.

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SECTION 7: Authority to Utilize Areas Not covered by
Approved Mining Permits/Contracts as
Borrow Areas for Government Projects Other
than Government Reclamation Projects

When public interest so requires, to ensure adequate, low-cost


and continuous supply of raw materials, and in order not to hamper or
delay the implementation of its priority projects, the Government may
exercise its right to utilize the areas not covered by approved mining
permits/contracts, including areas covered by pending mining rights
applications. Provided, That the proposed permit/borrow area(s) shall
be first subjected to technical and environmental evaluation/verification
by the Bureau at the expense of the concerned Government
Entity/instrumentality or a Qualified Project Contractor.

SECTION 8: Scope of Seabed Quarrying

The following areas are open to Seabed Quarrying applications:

a. Offshore areas not covered by valid and existing mining rights;


b. Offshore areas covered by expired/abandoned/cancelled offshore
mining and quarrying rights;

In addition to the areas closed to Mining Applications (MA)


under Sec. 15(a) of DAO 96-40, the following offshore areas are also
excluded from seabed quarrying/dredging applications:

a. Less than 1,500 meters (m) distance from the nearest coastline
(mean low tide level) of land or island(s) and where the seabed
depth is less than 30 m measured at mean sea level;

b. Less than 1,000 m distance from the nearest boundary of a


declared National Integrated Protected Area System (NIPAS)
component or Protected Area such as marine park/reserve, fish
sanctuary, etc.;
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c. Less than 500 n from all sides of production oil rigs and platforms,
piers/ports, navigational sea lanes;

d. Less than 2,000 m distance from both sides of submarine cables,


pipelines, bridges and other facilities/infrastructures, unless written
consent is obtained from the concerned party;

e. Less than 1,000 m distance from coral reefs, shoals and banks with
endangered Marine Habitat as delineated by PAWB-DENR; and,

f. Exclusion/buffer corridors of 15 seconds of geographic coordinates,


approximately measuring 450 m wide, as reckoned from the
boundary/perimeters of valid and existing Permit/Contract Mining
Areas.

Areas closed to mining application, however, may be declared


open by the President, upon recommendation of the Secretary, for the
expedient delivery of priority government programs/projects of national
interest with due consideration to technical, environmental antisocial
aspects.

SECTION 9: Special Exploration Permit

The Secretary, upon recommendation by the Director; may


issue a Special Exploration Permit (SEP) to an applicant of a GSQP
who has not conducted any exploration work over the applied area or
to a Qualified Government Entity/instrumentality that is going to conduct
exploration over the offshore/submerged land area: Provided, That the
applicant has paid the required filing and processing fees: Provided,
further, That the Applicant shall submit to the Bureau a location map
on 1:50,000 scale, an Exploration Work Program (ExWP) and an
Environmental Work Program (EnWP), proof of technical and financial

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capability, and a certificate of environmental and community track
records, if applicable.

The term of an SEP shall be for a period of two (2) years from
date of issuance thereof, renewable for like period: Provided, That no
renewal of Permit shall be allowed unless the Permittee has complied
with all the terms and conditions of the Permit and has not been found
guilty of violation of any provision of the Mining Act and these
implementing rules and regulations

SECTION 10: Mandatory Requirement of SEP

Any Qualified Person may apply for an SEP with the Bureau,
through payment of the required fees and submission of five (5) sets of
the following mandatory requirements:

a. Location map/sketch plan of the proposed Permit Area showing


its geographic coordinates/meridional block(s) and boundaries in
relation to major environmental features and other projects using
National Mapping and Resource Information Authority (NAMRIA)
topographic map in scale of 1:50,000 duly prepared, signed and
sealed by a deputized Geodetic Engineer;

b. Two-year Exploration Work Program (ExWP) (MGB Form No.


5-4) duly prepared, signed and sealed by a licensed Mining
Engineer or Geologist;

c. When applicable, a satisfactory Environmental Management record


and Community Relations Record as determined by the Bureau in
consultation with the environmental Management Bureau and/or the
Department Regional Office. The detailed guidelines for the
determination and applicability of such records shall be specified by
the Secretary upon the recommendation of the Director;

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d. Environmental Work Program (EnWP) (MGB Form No. 16-1 or
16-lA) as provided for in Section 168 of DAO 96-40,

e. Proof of Technical Competence including, among others, curricula


vitae and track records in exploration and environmental
management of the technical personnel who shall undertake the
activities in accordance with the submitted Exploration an
Environmental Work Programs;

f. Proof of financial capability to undertake the Exploration and


Environmental work Programs such as the following:

1. For Individuals - Statement of assets and liabilities duly sworn in


accordance with existing laws, credit lines and income tax return
for the preceding year and

2. For corporations, partnerships, associations or cooperatives -


Latest Audited Financial Statement and where applicable,
Annual Report, for the preceding year, credit lines. bank
guarantees and/or similar negotiable instruments.

g. Photocopy of Articles of Incorporation/Partnership/ Association,


By-Laws and Certificate of registration, duly certified by the
Securities and Exchange Commission (SEC), or concerned
authorized Government agency(ies), for corporations, partnership,
associations or cooperatives;

h. A stipulation that the Permittee shall undertake exploration work on


the area as specified in its Agreement based on an approved Work
Program: Provided, That a negative variance of at least twenty
percent (20%) in the Work Program and corresponding
expenditures shall be subject to approval of the Director;

i. The name, port of registry, tonnage, type and class of survey


vessel(s)lplatform(s): Provided, That if a foreign vessel is to be
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used, the expected date of first entry or appearance and final
departure of the survey vessel shall be provided and all the
necessary clearances obtained;

j. A certification from the Coast and Geodetic Survey Department of


the NAMRIA that the proposed Exploration work Program was
duly registered to provide update in the publication of "Notice to
Mariners" together with a list of safety measures to be regularly
undertaken to ensure the safety of navigation at sea and prevent
accident;

k. An Agreement to:

• Properly identify all installations, vessels and other crafts


involved in exploration recognizable to all vessels within
reasonable distance;

• Notify the Bureau thirty (30) calendar days prior to the intention
to remove all scientific installations or equipment and apparatus;
and

• Allow the Bureau's authorized personnel, Philippine Coast


Guard and other authorized persons during reasonable hour to
board the vessel(s) while within the Exclusive Economic Zone.

l. Other supporting papers as the Bureau may require or the applicant


may submit.

If the applicant conducts or has conducted exploration in a


foreign county(ies), the DENR shall verify the relevant requirements
through the Philippines Embassy(ies) or Consulate(s) based in such
county(ies).

Section 11: Area Status/Clearance for SEP/GSQP Applications

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The applicant of an SEP/GSQP in connection with a
Government Reclamation Project, shall secure area clearances for the
proposed borrow sites from the following agencies:

a. Mines and geosciences Bureau (MGB);


b. Public Estates Authority (PEA);
c. Bureau of Fisheries & Aquatic Resources (BFAR) Office
concerned;
d. Department of Transportation and Communications (DOTC) office
concerned;
e. Local Government Unit(s) concerned if within municipal waters;
f. Department of Energy (DOE); and,
g. Other government agencies/entities concerned, if applicable.

Within fifteen (15) working days from the receipt of the SEP
Application, the Bureau shall check in the control maps if the area is
free/open for seabed quarrying applications. The Bureau shall also
transmit a copy of the location map/sketch plan of the applied area to
the pertinent Department sector(s) affected by the application for area
status, copy furnished the concerned municipality(ies)/city(ies) and other
relevant offices or agencies of the government for their information.
Upon notification of the applicant by the Bureau as to the transmittal of
said document to the concerned Department sector(s) and/or
Government agency(ies), it shall be the responsibility of the same
applicant to secure the necessary area status/consent/clearance from
said Department sector(s) and/or Government agency(ies). The
concerned Department sector(s)/government agency(ies) must submit
the status/consent/clearance on the proposed borrow area within thirty
(30) working days from receipt of the notice: Provided, that the
concerned Department sector(s)/government agency(ies) can not
unreasonably deny area clearance/consent without legal and/or technical
basis. Any denial on Area clearance by the concerned Department
sector(s)/government agency(ies) shall be appealable to the DENR
Secretary/Office of the President.

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If the proposed Permit Area is open for Seabed Quarrying
applications, the Bureau shall give written notice to the applicant to
pay the corresponding Bureau clearance fee: Provided: That if a
portion of the area applied for is not open for quarrying/mining
applications, the Bureau shall, within fifteen (15) working days from
receipt of said written notice, exclude the same from the coverage of the
SEP application.

SECTION 12: Postings of SEP/GSQP Applications

Within fifteen (15) working days from receipt of the necessary


area clearances, the Bureau shall issue to the applicant the Notice of
Application for SEP/GSQP for posting which shall be done within
fifteen (15) working days from receipt of the Notice. The Notice must
contain, among others, the name and complete address of the applicant,
duration of the agreement applied for, extent of operation to be
undertaken, area location, geographical coordinates/meridional block(s)
of the proposed Permit Area and location map/sketch plan with index
map relative to major environmental features and projects and to the
nearest municipalities.

The Bureau shall cause the posting for one (1) week of the
Notice on the bulletin boards of the Bureau and concerned Regional
Office(s).

Within fifteen (15) calendar days from the last date of posting
the authorized officer(s) of the concerned office(s) shall issue a
certification(s) that the posting have been complied. Any adverse claim,
protest or opposition shall be filed directly, within fifteen (15) calendar
days from the last date of posting with the Bureau for purposes of its
resolution by the Panel of Arbitrators pursuant to the provisions of the
Act and these implementing rules and regulations. Upon final resolution
of any adverse claim, protest or opposition, the Panel of Arbitrators
shall issue a Certification to that effect within five (5) working days from
the date of finality of resolution thereof. Where no adverse claim,
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protest or opposition is filed after the lapse of the period for filing the
adverse claim, protest or opposition, the Panel of Arbitrators shall
likewise issue a Certification to that effect within five (5) working days
therefrom.

No SEP/GSQP shall be approved unless the requirements


under this Section are fully complied with and any adverse claim or
dispute involving rights to mining areas and concessionaires thereto is
finally resolved by the Panel of Arbitrators.

SECTION 13: General terms and Conditions of the SEP

a. Conduct a preliminary ecological profiling to establish pre-quarrying


conditions and submit a preliminary environmental examination of
the area.

b. The Permit shall be for the exclusive use and benefit of the
Permittee or its duly authorized representative and, shall under no
circumstances, be used by the Permittee for purposes other than
exploration.

c. The term of the SEP shall be for a period of two (2) years from
date of issuance and registration thereof, renewable for a like
period. Renewal of the permit shall cause the relinquishment of at
least fifty percent (50%) of the permit area.

d. The Permittee shall post a Financial Performance Surety of P l


million to cover any accidental damages of property, loss of lives, or
destruction of seabed during the conduct of the exploration work.

e. The Permittee shall submit to the Bureau a separate report on the


relinquishment with a detailed geologic report of the relinquished
area incorporating therein borehole and sampling data, seismic
data/profiles and geophysical/oceanographic data accompanied by
maps at a scale of 1:50,000, results of analyses and corresponding
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expenditures, among others. The minimum exploration expenditures
for the remaining area after relinquishment shall be based on the
approved ExWP.

f. The Permittee shall submit to the Bureau within thirty (30) calendar
days after the end of each semester a status report under oath on its
compliance with ExWP implementation and expenditures showing
discrepancies/deviations including the results of the survey,
laboratory reports, geological reports/maps subject to semiannual
inspection and verification by the Bureau at the expense of the
Applicant: Provided, That any negative deviation of at least twenty
percent (20%) in the Work Program and corresponding
expenditures shall be subject to approval of the Director.

g. The Permittee shall submit to the Bureau within thirty (30) calendar
days from the end of six (6) months after the approval of the EnWP
and every six (6) months thereafter a status report on its compliance
with the said EnWP;

h. In case of core sample drilling, the Permittee shall, upon request of


the Director, submit to the Bureau a quarter of the core samples
which shall be deposited in the Core Library for reference and
safekeeping;

i. The Secretary or his/her duly authorized representative shall


annually review the performance of the Permittee;

j. Right of the Government to exercise visitorial powers over the


Permit Area, including the right to station representative(s) thereat
and at the Permittee's survey platform;

k. Exploration shall be carried out in accordance with the United


Nations Convention on the Law of the Sea (UNCLOS) and in a
manner that will not adversely affect the safety of navigation at sea

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and will ensure accommodation of other marine activities, such as,
fishing, aquaculture, transportation, etc,;

1. No exploration and/or extraction of minerals shall be undertaken


within the areas dosed to mining/quarrying;

m. The Permit shall be subject to cancellation, revocation and


termination as provided for in Section 20 hereof;

n. The Permittee shall comply with pertinent provisions of the Mining


Act and these implementing rules and regulations;

o. Other terms and conditions which the Bureau/concerned Regional


Office may deem appropriate.

SECTION 14: Identification and Prioritization of Borrow Pit


Areas for Government Reclamation Project.

The DENR may directly undertake the exploration,


identification and delineation of potential Borrow Areas as sources of
dredgefill materials for reclamation projects upon initiative or request for
technical assistance from PEA.

The PEA and its Contractor(s) may undertake the identification


of such borrow areas, subject to the following requirements;

i. Initially conduct exploration survey over selected offshore areas


under a Special Exploration Permit (SEP) to be issued by DENR
subject to compliance with the mandatory requirements under
Section 11 hereof;

ii. In the event that the PEA or its Project Contractor/Awardee has
undertaken the necessary exploration to the effect that there are
sufficient data for the identification and delineation of potential
borrow areas as validated by the DENR-MGB, PEA or its Project
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Contractor/Awardee shall be exempted from securing an SEP and
instead secure a GSQP.

Areas already identified by PEA as Borrow Areas for


Government Reclamation Projects shall be prioritized for utilization in
connection with said reclamation projects. For this purpose, PEA shall
submit to DENR the list of Identified Borrow areas, their technical
descriptions and location maps within two (2) months after the
effectivity of these implementing guidelines, subject to the
verification/validation by the DENR with respect to environmental
concerns. Areas being utilized already by PEA as borrow areas for
reclamation projects prior to the effectivity of E.O. 153 shall be
governed by the provision of Section 25 hereof.

Section 15: Government Seabed Quarry Operations

Seabed Quarrying may be undertaken by the DENR through its


corporate arm, the NRDC, or through a Qualified Person or
Government Entity/Instrumentality under any of the following modes:

a. Government Seabed Quarry Permit (GSQP); - to be issued to


any Qualified Government Entity/Instrumentality or a Qualified
Project Contractor/Awardee of a government priority project for a
period co-terminus with the particular project;

b. Government Dredging Permit (GDP) - to be issued to any


Qualified Person or Government Entity/Instrumentality for projects
that require declogging, clearing, widening and deepening of flood
control waterways, sealanes, ports and harbors as part of
maintenance dredging. Dredging activities related to government
reclamation project are exempted from securing a GDP.

The DENR shall formulate the guidelines for issuance of a


GDP.
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In the case of a GSQP, the Secretary, upon the
recommendation of the Director, may issue a GSQP to a Qualified
Person or Government Agency/Instrumentality: Provided, That the
proposed permit/borrow area(s) shall be first subjected to technical and
environmental evaluation/verification by the Bureau at the expense of the
concerned Government Entity/Instrumentality or a Qualified Project
Contractor/ Awardee.

In the case of Government Reclamation Projects under PEA


which is a Government Entity/Instumentality mandated to administer and
coordinate all Government Reclamation Projects, the Secretary shall
issue the GSQP to the winning Bidder or Project Contractor/Awardee
of a particular Government Reclamation Project: Provided, That the
said Project Contractor/Awardee satisfies the requisites of a Qualified
Person as defined in DENR Memorandum Order No. 99-10:
Provided, further, That a Qualified Government Entity/Instrumentality
may also be issued the GSQP in lieu of the Project
Contractor/Awardee which falls to meet the requisite of a Qualified
Person.

In the event that a Winning Bidder or Project


Contractor/Awardee of a Government Reclamation Project is deemed
not to be a Qualified Person by the DENR, the NRDC shall be issued
the GSQP by the Secretary to undertake the Seabed
dredging/quarrying operation for the particular Government Reclamation
Project: Provided, That the NRDC may avail of the services of a
Qualified Service Contractor(s) or, enter into a Memorandum of
Agreement (MOA) with other Qualified Government
Entity(ies)/Instrumentality(ies) to undertake the said Seabed
dredging/quarrying operations.

The coverage of the GSQP shall specifically be for DENR-


evaluated borrow areas which shall be not more than 10,000 hectares
and with a term co-terminus with the particular Government
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Reclamation Project: Provided, That the borrow areas shall, ipso facto,
revert back to the jurisdiction of DENR after the Government
Reclamation Project: Provided, further, That offshore areas which are
not utilized for any existing or proposed reclamation projects or
programs of PEA or the concerned Government Entity/instrumentality
shall remain within the jurisdiction of the DENR.

SECTION 16: Requirements for a GSQP Application

Subject to full compliance with the requirements of the SEP, a


Qualified Government Entity/Instrumentality or Qualified Project
Contractor/Awardee may apply with the Bureau for a GSQP (MGB
Form No. 8-3c) upon payment of the required filing and processing
fees, for the extraction, removal and commercial disposition of Seabed
Quarry Resources: Provided, That the GSQP shall be co-terminus with
the project

SECTION 17: Area Clearance and Posting of GSQP


Applications

The procedural guidelines on Area Clearance and Posting of


GSQP Applications shall be in accordance with those embodied in
Sections 11 and 12, respectively, hereof.

SECTION 18: General Terms and Conditions of the GSQP

The following terms and conditions shall be incorporated in the


GSQP

a. No extraction, removal and/or disposition of materials shall likewise


be allowed in offshore areas within one thousand five hundred
(1,500) meters distance from the coast, and within two hundred
(200) meters landward from the mean low tide level along the
beach and wherein the seabed depth is less than 30 meters as
measured from the mean sea level;
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b. The extraction, removal and/or disposition of materials under the
Permit shall be confined within the area specified therein, the
boundaries of which, according to the application, are established
on the ground with prominent marks;

c. The Permit shall be for the exclusive use and benefit of the Permitee
and shall not be transferred or assigned without prior written
approval of the Director;

d. The Permit Holder shall assume full responsibility and be liable for
damages to private and/or public property(ies) that may be
occasioned by its operations under the Permit;

e. The Permit Holder shall post a Financial Performance Surety of P l


Million to cover any accidental damages to property, the loss of
lives, or the destruction of the seabed during the conduct of the
dredging operations;

f. The Permit Holder shall manage its operations in a technically and


environmentally responsible manner to achieve a safe, non-polluting
and self-sustaining post disturbance landform;

g. The Permit Holder shall conduct its operations in accordance with


the provisions of the Mining Act and these implementing rules and
regulations;

h. The Permit Holder shall not discriminate on the basis of the gender
and that the Permit Holder shall respect the right of women workers
to participate in policy and decision-making processes affecting
their rights and benefits;

i. The Permit Holder shall conform to laws, rules and regulations


regarding, among others, labor, safety and health standards;

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j. The Permit Holder shall not interfere with the rights of other Permit
Holders/ Operators/Contractors/Awardees.

k. The Permit Holder shall recognize and respect the rights, customs
and traditions of local communities, particularly Indigenous Cultural
Communities;

l. The Permit Holder shall immediately stop digging and extracting


materials the moment man-made articles or artifacts are found. It
shall notify the Director of the National Museum of such findings, in
which case, the digging shall be under the supervision of the
National Museum until such artifacts are recovered;

m. The Permit shall be subject to cancellation, revocation and


termination as provided for in Section 20 hereof; and,

c. Other terms and conditions that the Bureau may require.

SECTION 19: Environmental Protection, Health and Safety

Applicants for, and Holders of Government Seabed Quarrying


and/or Dredging Permit(s), including Project Contractors/Awardees,
shall be governed by the provisions in Chapters XVI, XVII, and XVIII
of DAO 96-40.

Every Project Contractor/Awardee/Permit Holder/Project Sub-


Contractor operating in the seabed areas shall abide by the provisions
of Sec. 181 of DAO 96-40: Provided, That the Monitoring Trust
Fund Mentioned in Sec. 181 (a) of DAO 96-40 shall not be less than
One Hundred Thousand Pesos (Pl00,000.00).

A Permit Holder/Project Contractor/Awardee shall submit an


annual Safety and Health Program covering its area of operations within
fifteen (15) working days before the start of every calendar year,
Provided, That the Bureau shall have jurisdiction to conduct inspection
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of all mining operations and installations: Provided, further, That the
Bureau shall undertake safety and health audit annually or as often as
necessary to assess the effectiveness of the Safety and Health Program.

SECTION 20: Cancellation/Revocation/Termination of Permit

After due process, an SEP, GSQP or GDP may be


cancelled/revoked/ terminated by the Secretary, upon recommendation
of the Director, based on any or all of the following grounds:

a. Failure to comply with the terms and conditions of the Permit and/or
ECC/EPEP/SHP;

b. Failure to pay fees, royalties and taxes due the government for two
(2) consecutive years without valid ground;

c. Any misrepresentation in any statement made in the application or


those made later in support thereof;

d. Violation of any provision of the Mining Act and these implementing


rules and regulations.

Upon cancellation of the Permit, the dredged areas shall be


rehabilitated immediately by the Permit Holder in accordance with his
approved EPEP and rehabilitation plan.

The foregoing provisions notwithstanding,


cancellation/revocation/termination of a GSQP shall not release the
Permit Holder from any legal and financial obligations it may have.

SECTION 21: Taxes, Royalties and Fees

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Save in cases provided by law, taxes and royalties shall be
collected from the Permittees/Permit Holders and/or
Contractors/Subcontractors.

The DENR or thru NRDC is authorized to collect management,


service, environmental user's and other fees from the Permittees/Permit
Holders and/or Contractors/Subcontractors.

A basic fee of Five Pesos (P5.00) per cubic meter of seabed


dredgefill material quarried/dredged by the contractor/Permit Holder
shall be collected by DENR/NRDC as
Management/Service/Environmental User's Fees. The fees collected
shall be shared among the DENR/NRDC, PEA and the Local
Government Units concerned(S) in the following manner; 40% to
NRDC; 40% to PEA and 20% to Local Government Units concerned.

SECTION 22: Inter-Agency Coordinating Committee

There shall be created a permanent Inter-Agency Coordinating


Committee composed of two (2) representatives each from the DENR,
MGB and PEA who shall promote cooperation, coordinate the
agencies activities and administer technical assistance concerning the
identification, selection and evaluation of borrow areas. Funds for the
said Committee shall be provided by PEA and NRDC.

SECTION 23. Penal Provisions

As per Sec. 102 of RA 7940, any person undertaking


exploration work without the necessary permit shall, upon conviction,
be penalized by a fine of not exceeding Fifty Thousand Pesos
(P50,000.00)

As per Sec. 103 of RA 7942, any person extracting minerals


and disposing the same without a mining agreement, lease, permit,
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license, or steals minerals and ores or the products thereof from mines
or mills or processing plants, shall, upon conviction, be imprisoned from
six (6) months to six (6) years or pay a fine from Ten Thousand pesos
(P10,000.00) to Twenty Thousand Pesos (P20,000.00), or both, at the
discretion of the appropriate court. In addition, he shall be liable to pay
damages or compensation for the minerals removed, extracted, and
disposed of. In the case of associations, partnerships, or corporations,
the president and each of the directors thereof shall be responsible for
the acts committed by such association, partnership, or corporation.

SECTION 24: Non-Impairment of Vested Rights

Borrow areas which are utilized for any existing and proposed
reclamation projects of PEA shall be within the jurisdiction of PEA.

All existing extraction permits issued, or valid contracts entered


into by the PEA involving borrow areas already surveyed, assessed,
quantified and tested, as of the date of effectivity of E.O. 153 shall
remain valid, shall not be impaired, and shall be recognized by the
DENR-MGB: Provided, That Section 21 hereof pertaining to the
collection of fees shall apply.

Section 25: Transitory Provision

Upon signing of the IRR, the MGB-DENR shall issue a permit


to PEA for the continued use of all its existing and identified borrow pits
prior to issuance of E.O. 153, for the following approved and on-going
government reclamation projects:

Manila Bay Reclamations - San Nicholas Shoal


and
Maragondon Borrow Pit Area

Cebu South Reclamation - Maasin Borrow Pit Area

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North Cebu Reclamation - Malapascua Borrow Area

PEA and DENR shall jointly undertake the exploration of


proposed borrow areas for purposes of technical and environmental
evaluation and verification.

SECTION 26: Separability Clause

If any clause, sentence, section or provision of these


implementing rules and regulations is held or declared to be
unconstitutional or invalid by a competent court, the remaining parts of
these implementing rules and regulations shall not be affected thereby.

SECTION 27: Repealing and Amending Clause

All orders, rules and regulations inconsistent with or contrary to


the provisions of these implementing rules and regulations are hereby
repealed or modified accordingly.

SECTION 28: Effectivity

These implementing rules and regulations shall take effect fifteen


(15) days following its complete publication in two newspapers of
general circulation, and fifteen (15) days after registration with the
office of the National Administrative Register.

APPROVED By:

(Sgd.) ANTONIO H. CERILLES (Sgd.) FRISCO F. SAN JUAN


Secretary Chairman
Dept. Of Environment and Public Estates Authority
Natural Resources

Published at:

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MALAYA April 14, 2000

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