Resident Marine Mammals of the Protected Seascape Ta+¦on Strait v. Reyes

EN BANC

[G.R. No. 180771. December 8, 2015.]

RESIDENT MARINE MAMMALS OF THE PROTECTED SEASCAPE TAÑON STRAIT, e.g., TOOTHED WHALES, DOLPHINS, PORPOISES, AND OTHER CETACEAN SPECIES, Joined in and Represented herein by Human Beings Gloria Estenzo Ramos and Rose-Liza Eisma-Osorio, In Their Capacity as Legal Guardians of the Lesser Life-Forms and as Responsible Stewards of God's Creations, petitioners, vs. SECRETARY ANGELO REYES, in his capacity as Secretary of the Department of Energy (DOE), SECRETARY JOSE L. ATIENZA, in his capacity as Secretary of the Department of Environment and Natural Resources (DENR), LEONARDO R. SIBBALUCA, DENR Regional Director-Region VII and in his capacity as Chairperson of the Tañon Strait Protected Seascape Management Board, Bureau of Fisheries and Aquatic Resources (BFAR), DIRECTOR MALCOLM J. SARMIENTO, JR., BFAR Regional Director for Region VII ANDRES M. BOJOS, JAPAN PETROLEUM EXPLORATION CO., LTD. (JAPEX), as represented by its Philippine Agent, SUPPLY OILFIELD SERVICES, INC., respondents.

[G.R. No. 181527. December 8, 2015.]

CENTRAL VISAYAS FISHERFOLK DEVELOPMENT CENTER (FIDEC), CERILO D. ENGARCIAL, RAMON YANONG, FRANCISCO LABID, in their personal capacity and as representatives of the SUBSISTENCE FISHERFOLKS OF THE MUNICIPALITIES OF ALOGUINSAN AND PINAMUNGAJAN, CEBU, AND THEIR FAMILIES, AND THE PRESENT AND FUTURE GENERATIONS OF FILIPINOS WHOSE RIGHTS ARE SIMILARLY AFFECTED, petitioners, vs. SECRETARY ANGELO REYES, in his capacity as Secretary of the Department of Energy (DOE), JOSE L. ATIENZA, in his capacity as Secretary of the Department of Environment and Natural Resources (DENR), LEONARDO R. SIBBALUCA, in his capacity as DENR Regional Director-Region VII and as Chairperson of the Tañon Strait Protected Seascape Management Board, ALAN ARRANGUEZ, in his capacity as Director — Environmental Management Bureau-Region VII, DOE Regional Director for Region VIII ANTONIO LABIOS, JAPAN PETROLEUM EXPLORATION CO., LTD. (JAPEX), as represented by its Philippine Agent, SUPPLY OILFIELD SERVICES, INC., respondents.

NOTICE

Sirs/Mesdames :

Please take notice that the Court en banc issued a Resolution datedDECEMBER 8, 2015, which reads as follows:

"G.R. No. 180771 — RESIDENT MARINE MAMMALS OF THE PROTECTED SEASCAPE TAÑON STRAIT, e.g., TOOTHED WHALES, DOLPHINS, PORPOISES, AND OTHER CETACEAN SPECIES, Joined in and Represented herein by Human Beings Gloria Estenzo Ramos and Rose-Liza Eisma-Osorio, In Their Capacity as Legal Guardians of the Lesser Life-Forms and as Responsible Stewards of God's Creations, Petitioners, v. SECRETARY ANGELO REYES, in his capacity as Secretary of the Department of Energy (DOE), SECRETARY JOSE L. ATIENZA, in his capacity as Secretary of the Department of Environment and Natural Resources (DENR), LEONARDO R. SIBBALUCA, DENR Regional Director-Region VII and in his capacity as Chairperson of the Tañon Strait Protected Seascape Management Board, Bureau of Fisheries and Aquatic Resources (BFAR), DIRECTOR MALCOLM J. SARMIENTO, JR., BFAR Regional Director for Region VII ANDRES M. BOJOS, JAPAN PETROLEUM EXPLORATION CO., LTD. (JAPEX), as represented by its Philippine Agent, SUPPLY OILFIELD SERVICES, INC., Respondents; G.R. No. 181527 — CENTRAL VISAYAS FISHERFOLK DEVELOPMENT CENTER (FIDEC), CERILO D. ENGARCIAL, RAMON YANONG, FRANCISCO LABID, in their personal capacity and as representatives of the SUBSISTENCE FISHERFOLKS OF THE MUNICIPALITIES OF ALOGUINSAN AND PINAMUNGAJAN, CEBU, AND THEIR FAMILIES, AND THE PRESENT AND FUTURE GENERATIONS OF FILIPINOS WHOSE RIGHTS ARE SIMILARLY AFFECTED, Petitioners, v. SECRETARY ANGELO REYES, in his capacity as Secretary of the Department of Energy (DOE), JOSE L. ATIENZA, in his capacity as Secretary of the Department of Environment and Natural Resources (DENR), LEONARDO R. SIBBALUCA, in his capacity as DENR Regional Director-Region VII and as Chairperson of the Tañon Strait Protected Seascape Management Board, ALAN ARRANGUEZ, in his capacity as Director — Environmental Management Bureau-Region VII, DOE Regional Director for Region VIII1ANTONIO LABIOS, JAPAN PETROLEUM EXPLORATION CO., LTD. (JAPEX), as represented by its Philippine Agent, SUPPLY OILFIELD SERVICES, INC., Respondents.

Before the Court are motions for reconsideration filed by the public respondents, through the Office of the Solicitor General (OSG), 2 and private respondent JAPEX Philippines Ltd. (JAPEX) 3 of our April 21, 2015 Decision nullifying Service Contract No. 46 (SC-46) for violating the 1987 Constitution, Republic Act No. 7586, and Presidential Decree No. 1586.

Public respondents ask for reconsideration on the following grounds:

I.

SERVICE CONTRACT 46 (SC 46) IS NOT VIOLATIVE OF SECTION 2 ARTICLE VII [OF] THE CONSTITUTION.

A) SECRETARY VINCENT S. PEREZ SIGNED SC 46 WITH A SPECIAL AUTHORITY FROM PRESIDENT GLORIA MACAPAGAL-ARROYO.

B) COPIES OF SC 46 WERE FURNISHED THE HOUSE OF REPRESENTATIVES AND SENATE OF THE PHILIPPINES AS REQUIRED BY LAW. 4

Private respondent JAPEX raises the same grounds as follows:

WITH ALL DUE RESPECT, SERVICE CONTRACT NO. 46 COMPLIED WITH THE REQUIREMENTS OF ARTICLE XII OF THE 1987 PHILIPPINE CONSTITUTION AND JURISPRUDENTIAL SAFEGUARDS CONSIDERING THAT IT WAS SIGNED BY THE SECRETARY OF THE DEPARTMENT OF ENERGY BY VIRTUE OF A SPECIAL AUTHORITY FROM THE PRESIDENT OF THE PHILIPPINES AND THAT THE CONGRESS WAS DULY NOTIFIED OF SUCH CONTRACT. 5

The petitioners in G.R. Nos. 180771 and 181527 filed their respective Comments to the motions for reconsideration.

Both respondents attached as one of their annexes, the "Special Authority," 6 issued by former President Gloria Macapagal-Arroyo, designating and authorizing then Secretary of Energy Vincent S. Perez, Jr. to "sign, execute and deliver, in accordance with prevailing law, for and on behalf of the Republic of the Philippines," the Contracts on Exploration, Development and production of Petroleum Resources over the Agusan-Davao Basin and Tañon Strait, to wit: cHDAIS

MALACAÑANG

SPECIAL AUTHORITY

I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the authority vested in me under Section 2, Article XII of the 1987 Constitution to enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development and utilization of minerals, petroleum and other mineral oils, and the authority vested in me under Section 51, Chapter 12, Book 1 of the Administrative Code of the Philippines to execute contracts for and on behalf of the Republic of the Philippines and to delegate such authority, hereby designate and authorize:

HON. VINCENT S. PEREZ, JR.Secretary of Energy

to sign, execute and deliver, in accordance with prevailing law, for and on behalf of the Republic of the Philippines, the following Contracts on Exploration, Development and Production of Petroleum Resources:

• over the Agusan-Davao Basin with South Sea Petroleum Holdings Limited; and

• over the Tañon Strait, Visayan Basin with Japan Petroleum Exploration Co., Ltd.

as fully to all intents and purposes as I, the President of the Republic of the Philippines, might or could lawfully do if acting personally.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed.

DONE in the City of Manila, Philippines, this 4th day of December in the year of Our Lord, Two Thousand and Four.

(Sgd.) Gloria Arroyo

By the President: (Sgd.)EDUARDO R. ERMITAExecutive Secretary 7

Public and private respondents assert that in view of the Special Authority, and under the doctrine of qualified political agency or alter ego doctrine, the requirement that the President must be the one to sign service agreements with foreign-owned corporations involving the exploration, development, and utilization of our minerals, petroleum, and other mineral oils, as stated in paragraph 4, Section 2, Article XII of the 1987 Constitution, had been complied with.

Private respondent JAPEX, particularly argue that:

Nothing in Article XII prohibits the President from validly designating a representative or an alter ego. Section 2 of Article XII of the Constitution makes use of the word "may" as follows:

"The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical resources." 8 (Citation omitted.)

The motions for reconsideration lack merit.

This Court reiterates its ruling that the President herself should have signed SC-46, as required by the 1987 Constitution. As held in the April 21, 2015 Decision, 9 the doctrine of qualified political agency cannot apply in this case, to wit:

Public respondents' implied argument that based on the "alter ego principle," their acts are also that of then President Macapagal-Arroyo's, cannot apply in this case. In Joson v. Torres, we explained the concept of the alter ego principle or the doctrine of qualified political agency and its limit in this wise:

Under this doctrine, which recognizes the establishment of a single executive, all executive and administrative organizations are adjuncts of the Executive Department, the heads of the various executive departments are assistants and agents of the Chief Executive, and, except in cases where the Chief Executive is required by the Constitution or law to act in person or the exigencies of the situation demand that he act personally, the multifarious executive and administrative functions of the Chief Executive are performed by and through the executive departments, and the acts of the Secretaries of such departments, performed and promulgated in the regular course of business, are, unless disapproved or reprobated by the Chief Executive presumptively the acts of the Chief Executive. (Emphasis ours, citation omitted.)

Thus, public and private respondents' belated submission of the Special Authority will not cure the above-mentioned constitutional defect in SC-46.

Private respondent JAPEX's focus on the word "may" in paragraph 4, Section 2, Article XII of the 1987 Constitution does nothing to help its position. The term is not used to describe or qualify how or who can "enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country." 10 Instead, the word "may" refers to the President's authority to enter into such agreements, i.e., that the President is allowed by the 1987 Constitution to enter into such agreements, if necessary. ISHCcT

Anent JAPEX's claim that this Court required that "there must be a showing that the government agency or subordinate official has been authorized by the President to enter into such service contract for the government," 11 such statement is misleading at best. JAPEX failed to quote the entire paragraph to show that this Court qualified that statement by saying that such will only apply "if we were inclined to relax the requirement in La Bugal to harmonize the 1987 Constitution with the . . . provision of Presidential Decree No. 87." 12 But this Court was not inclined to relax the La Bugal ruling then, and it is not inclined to do so now.

Public and private respondents both insist that they were able to comply with the notification requirement under paragraph 5, Section 2, Article XII of the 1987 Constitution, which reads:

The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.

They submitted 13 letters notifying the Speaker of the House of Representatives and the Senate President about SC-46. Again, this belated submission of evidence will still not compel a reversal of our ruling since the nullity of SC-46 is based on other equally important grounds as well.

In view of the foregoing discussion, we find no need to discuss the other issues raised by JAPEX. DHITCc

WHEREFORE, the respondents' Motions for Reconsideration are DENIED with FINALITY. No further pleadings or motions shall be entertained herein.

Let an Entry of Judgment in this case be made in due course." Brion, J., on official leave. (adv53)

Very truly yours,

 

(SGD.) FELIPA B. ANAMAClerk of Court

Footnotes

1. Should be Region VII.

2. Rollo (G.R. No. 181527), pp. 768-783.

3. Id. at 791-869.

4. Id. at 770.

5. Id. at 793.

6. Id. at 778 and 811.

7. Id. at 778 and 811.

8. Id. at 796.

9. G.R. Nos. 180771 & 181527, Resident Mammals of the Protected Seascape Tañon Strait v. Secretary Angelo Reyes, April 21, 2015.

10. 1987 CONSTITUTION, Article XII, Section 2.

11. Rollo (G.R. No. 181527), p. 797.

12. Id. at 735.

13. Id. at 779-781; 812-817.