ALVAREZ vs PICOP December 3, 2009 Chico-Nazario, J. Mica Maurinne M. Adao SUMMARY: In 1952, TLA 43 was issued to PICOP. It was valid for 25 years and renewable for another 25 years and with a condition that DENR can amend the boundaries covered by the license. Upon request of the board of investors if PICOP, President Marcos signed 1969 Document purportedly a Presidential Warrranty assuring PICOP of the boundaries convered by the TLA. However, PICOP claimed that such warranty is a contract which guarantees perpetual renewal of its license. In 1999, DAO 99-53 was issued providing for the conversion of TLA to IFMA. PICOP applied for the conversion of its TLA which was already subsisting since 1952 and was already renewed once in 1977. Without negotiating further with the DENR, PICOP filed a mandamus with RTC of Manila to compel DENR Sec Alvarez to issue the IFMA they are applying for insisting that there should be automatic conversion, the 1969 Document is a contract and that it has complied with all the legal requirements for the conversion of its TLA to IFMA. RTC granted the mandamus. CA affirmed. SC reversed. Hence, this motion for reconsideration. It was held that there is no law enjoining the DENR to issue the IFMA applied for because it is discretionary upon the Secretary after proper evaluation. The 1969 Document is also not a contract but a mere reassurance of the boundaries of TLA 43. It cannot be construed to grant perpetual renewal of license because that would contravene Sec 2, Article 12 of the Constitution. Regarding the adminsitrative requirements, the Court held that PICOP submitted the forest protection and reforestation plans and paid forest charges. PICOP is required to submit the NCIP certification mandated by RA 8371. Also, the approval of the Sangunians of ALL local government units (Surigao del Sur, Agusan del Sur, Compostela Valley and Davao Oriental) concerned. The approval of Surigao del Sur cannot be deemed as sufficient compliance. DOCTRINE: The approval of the Sanggunian concerned is required by law, not because the local government has control over such project, but because the local government has the duty to protect its constituents and their stake in the implementation of the project. Again, Section 26 states that it applies to projects that "may cause pollution, climatic change, depletion of non-renewable resources, loss of crop land, rangeland, or forest cover, and extinction of animal or plant species." The local government should thus represent the communities in such area, the very people who will be affected by flooding, landslides or even climatic change if the project is not properly regulated, and who likewise have a stake in the resources in the area, and deserve to be adequately compensated when these resources are exploited. FACTS: 1952 - Timber License Agreement (TLA) 43 was issued to PICOP 1 . TLA is valid for 25 years or until 1977 and renewable for another 25 years. It was issued under the condition, among others, that the DENR may amend or alter the description of the boundaries in the area covered by the license agreement. 1969 – President Marcos signed the 1969 Document purported to be Presidential Warranty in response to the request of the Board of Investments of PICOP for a warranty on the boundaries the concession area under TLA 43. 1977 - TLA 43 (valid from 1952-1977) was renewed for another 25 years or until 2002. 1999 - DENR Administrative Order (DAO) No. 99-53 was issued providing for the conversion of TLA to Integrated Forest Management Agreement 2 (IFMA).This is a late response to the change in the 1 PICOP is a predecessor-in-interest of Bislig Bay Lumber Company, Inc (BBLCI) 2 A production-sharing contract entered into by and between the DENR and a qualified applicant wherein the DENR grants to the latter the exclusive right to develop, manage, protect and utilize a specified area of forestland and forest resource therein for a period of 25 years and may be renewed for another 25- year period, consistent with the principle of sustainable development and in