A2. League of Provinces of The Philippines vs. DENR

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A2. G.R. No.

175368               April 11, 2013


LEAGUE OF PROVINCES OF THE PHILIPPINES, Petitioner, 
vs.
DEPARTMENT OF ENVIRONMENT and NATURAL RESOURCES and HON. ANGELO T. REYES, in his
capacity as Secretary of DENR, Respondents.
FACTS

 On March 28, 1996, Golden Falcon filed with the DENR Mines and Geosciences Bureau Regional Office
No. III (MGB R-III) an Application for Financial and Technical Assistance Agreement covering an area of
61,136 hectares situated in the Municipalities of San Miguel, San Ildefonso, Norzagaray and San Jose del
Monte, Bulacan.

 On April 29, 1998, the MGB R-III issued an Order denying Golden Falcon's application for failure to secure
area clearances from the Forest Management Sector and Lands Management Sector of the DENR
Regional Office No. III.

 On February 10, 2004, Eduardo D. Mercado, Benedicto S. Cruz, Gerardo R. Cruz and Liberato Sembrano
filed with the PENRO of Bulacan their respective Applications for Quarry Permit, which covered the same
area subject of Golden Falcon's application.

 On September 13, 2004, Atlantic Mines and Trading Corporation (AMTC) filed with the PENRO of Bulacan
an Application for Exploration Permit covering 5,281 hectares of the area covered by Golden Falcon's
Application for Financial and Technical Assistance Agreement.

 Through letters dated May 5 and May 10, 2005, AMTC notified the PENRO of Bulacan and the MGB R-III
Director that the subject Applications for Quarry Permit fell within its (AMTC's) existing valid and prior
Application for Exploration Permit.

 On July 22, 2005, AMTC filed with the PMRB of Bulacan a formal protest against the aforesaid Applications
for Quarry Permit on the ground that the subject area was already covered by its Application for Exploration
Permit.

 On August 10, 2005, Governor Dela Cruz issued the corresponding Small-Scale Mining Permits in favor of
Eduardo D. Mercado, Benedicto S. Cruz, Gerardo R. Cruz and Lucila S. Valdez.

 Subsequently, AMTC appealed to respondent DENR Secretary the grant of the aforesaid Small-Scale
Mining Permits.

 On August 8, 2006, respondent DENR Secretary rendered a Decision in favor of AMTC, declaring the
Application for Exploration Permit of AMTC as valid and the Small-Scale Mining Permits issued by Gov.
Dela Cruz as null and void.

 Hence, League of Provinces filed this petition for certiorari, prohibition and mandamus.

ISSUES:

1. Whether or not Section 17(B)(3)(III) of R.A. No. 7160 (LOCAL GOVERNMENT CODE) and Section 24 of
R.A. No. 7076 (PEOPLE'S SMALL-SCALE MINING ACT OF 1991 ) are unconstitutional for providing for
executive control and infringing upon the local autonomy of provinces.

2. Whether or not, the act of respondent in nullifying, voiding and cancelling the small-scale mining permits
amounts to executive control, not merely supervision and usurps the devolved powers of all provinces.

HELD:

1. No. In this case, respondent DENR Secretary has the authority to nullify the Small-Scale Mining Permits
issued by the Provincial Governor of Bulacan, as the DENR Secretary has control over the PMRB, and the
implementation of the Small-Scale Mining Program is subject to control by respondent DENR.

The Court has clarified that the constitutional guarantee of local autonomy in the Constitution Art. X, Sec. 2
refers to the administrative autonomy of local government units or the decentralization of government
authority. It does not make local governments sovereign within the State.

The Local Government Code did not fully devolve the enforcement of the small-scale mining law to the
provincial government, as its enforcement is subject to the supervision, control and review of the DENR,
which is in charge, subject to law and higher authority, of carrying out the State's constitutional mandate to
control and supervise the exploration, development, utilization of the country's natural resources.
2. No. The Court finds that the decision of the DENR Secretary was rendered in accordance with the power of
review granted to the DENR Secretary in the resolution of disputes, which is provided for in Section 24 of
R.A. No. 707651 and Section 22 of its Implementing Rules and Regulations.

The DENR Secretary exercises quasi-judicial function under R.A. No. 7076 and its Implementing Rules and
Regulations to the extent necessary in settling disputes, conflicts or litigations over conflicting claims. This
quasi-judicial function of the DENR Secretary can neither be equated with "substitution of judgment" of the
Provincial Governor in issuing Small-Scale Mining Permits nor "control" over the said act of the Provincial
Governor as it is a determination of the rights of AMTC over conflicting claims based on the law.

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