The Supreme Court (SC) has reminded local government units (LGUs) that they cannot veto a national law in enacting ordinances and adopting resolutions for the welfare of their constituents.

With its reminder, the SC declared that Occidental Mindoro “exceeded its powers and authority when it completely banned all large-scale exploration and mining operations within its territorial jurisdiction, in contravention of Republic Act No. 7942, the Philippine Mining Act of 1995.”

The SC decision written by Senior Associate Justice Marvic M.V.F. Leonen and made public last May 14 nullified the 25-year moratorium on large-scale mining implemented by Occidental Mindoro and its town, Abra de Ilog.

In 2008, Abra de Ilog passed an ordinance which banned large-scale mining activities in the municipality for 25 years. The ordinance was approved by the Sangguniang Panlalawigan of Occidental Mindoro.

Similarly, Occidental Mindoro adopted a provincial ordinance in 2009 that prohibited, also for 25 years, large-scale mining activities within the province.

On Oct. 16, 2008, Agusan Petroleum and Mineral Corporation (Agusan Petroleum), a contractor for large-scale mining, entered into a Financial or Technical Assistance Agreement No. 03-2008-IVB (FTAA) with the government.

Under the FTAA, Agusan Petroleum was given the exclusive right to explore, mine, utilize, and market minerals that may be derived from 46,050.6 hectares of land in Baco, San Teodoro and Puerto Galera in Oriental Mindoro, and Mamburao and Abra de Ilog in Occidental Mindoro.

On Oct. 13, 2014, Agusan Petroleum filed a petition for declaratory relief against the validity and constitutionality of the ordinances and resolutions issued by Abra de Ilog and Occidental Mindoro.

Agusan Petroleum told the trial court that the ordinances and resolutions affected its rights under the FTAA; intrude into the State's ownership of, and full power and control over the exploration, development and utilization of, the country's mineral resources; violate the non-impairment of contract clause; are contrary to law; and are unreasonable, oppressive and discriminatory.

It also said that there is no basis to completely ban large-scale mining because RA 7942 and its implementing rules provide safeguards for the protection of the environment, which are implemented by the Department of Environment and Natural Resources (DENR) and the Mines and Geosciences Bureau (MGB).

Occidental Mindoro countered that the ordinances and the resolutions are valid exercises of the police power of local government units and only temporarily regulate large-scale mining.

On Aug. 8, 2018, the RTC granted Agusan Petroleum’s petition as it declared unconstitutional and contrary to law the assailed ordinances and resolutions.

When their motions for reconsideration were denied, Occidental Mindoro filed an appeal before the SC.

The province told the SC that while the State owns all natural resources, it also has the constitutional obligation to protect and advance the right of the people to a balanced and healthful ecology and to promote the people's right to health.

It also said that RA 7942 recognizes certain areas closed to mining activities such as "areas expressly prohibited by law," and "law" includes ordinances passed by LGUs.

Thus, it asserted that the assailed ordinances and resolution, which merely declared a moratorium on large-scale mining activities, is not in contravention of, but is rather in accord with RA 7942.

Resolving the petition, the SC ruled:

“Consistent with autonomy, local government units are vested with police power for the general welfare of their constituents. Through their respective Sanggunians, they may enact ordinances for the purposes enumerated in RA 7160 (Local Government Code), including the protection of the environment within their territorial jurisdiction.

“However, as the State's territorial and political subdivisions, the local government unit's autonomy is limited and confined within the extent allowed by the national government.

“Local government units cannot exercise their power contrary to the Constitution, Republic Act No. 7160, or any other existing statute enacted by Congress. Since they merely derive their power from the State legislature; as such, they cannot regulate activities already allowed by the statute.

“In sum, Republic Act No. 7942 already provides stringent measures to safeguard the environment. Local government units, in the exercise of their autonomy, cannot disregard Republic Act No. 7942 and completely ban altogether all large-scale mining activities within their jurisdiction. What the national legislature expressly allows, the local government units may not disallow by ordinance or resolution.

“On the other hand, local government units must actively participate and coordinate with the DENR in the full enforcement of the law within their locality.

“With regard to the requirement of prior informed consent under the Republic Act No. 7160 in relation to Republic Act No. 7942, local governments have the authority to evaluate each application for a mining project to be conducted within their area, express their concerns or objections thereto, and/or withhold their approval, if these concerns are not addressed.

“In view of the above disquisitions, we find no reversible error in the Regional Trial Court's Decision declaring invalid the assailed Ordinances and Resolutions.

“Accordingly, the Petition is denied and the Aug. 8, 2018 Order of Branch 44 of the Regional Trial Court, Mamburao, Occidental Mindoro is affirmed. So ordered.”