Section 2

All lands of the public domain, waters,

minerals, coal, petroleum, and other mineral
oils, all forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna,
and other natural resources are owned by the
State. With the exception of agricultural
lands, all other natural resources shall not be
alienated.
The Regalian Doctrine [Jura Regalia]

 “The universal feudal theory that all lands were

held from the Crown” [Carino v. Insular
Government (1909)].
 Recognized in the 1935,1973 and 1987
Constitutions; but ownership is vested in the State
as such rather than in the head thereof [Lee Hong
Kok v. David, 48 CRA372],
The Regalian Doctrine [Jura Regalia]

 “We adhere to the Regalian Doctrine wherein all

agricultural, timber and mineral lands are subject
to the dominion of the State” Sunbeam
[Convenience Food v. Court of Appeals, 181 SCRA
443]
 Thus, before any land may be classified from the
forest group and converted into alienable or
disposable land for agricultural or other purposes,
there must be a positive act from the
Government.
The Regalian Doctrine [Jura Regalia]

 In our jurisdiction, the task of administering and

disposing lands of the public domain belongs to
the Director of Lands and, ultimately, the
Secretary of Environment and Natural
Resources.
 The classification of public lands is, thus, an
exclusive prerogative of the Executive
Department through the Office of the President.
Limits on dominium
 “The exploration, development, and utilization of
natural resources shall be under the full control and
supervision of the State. The State may directly
undertake such activities, or it may enter into co-
production, joint venture, or production-sharing
agreements with Filipino citizens, or corporations or
associations at least sixty per centum of whose capital is
owned by such citizens. Such agreements may be for a
period not exceeding twenty-five years, renewable for
not more than twenty-five years, and under such terms
and conditions as may be provided by law. In cases of
water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water
power, beneficial use may be the measure and limit of
the grant.”
Imperium and dominium

 Imperium is the government authority

possessed by the state in the concept
of sovereignty.

 Dominium is the capacity of the state

to own or acquire property.
Limits imposed by Section 2

Only agricultural lands of the public

domain may be alienated.

The State is not authorized to

alienate the natural resources of the
country.
Limits imposed by Section 2

 Exploration, development and

utilization of inalienable resources
1935 and 1973 Constitutions – the exploration, etc. of any
of the natural resources may be granted by the government
by license, concession or lease to citizens of the Philippines
or to corporations or associations at least 60% of the capital
of which is owned by such citizens. The role of government
was merely to give permission.
Limits imposed by Section 2
 1987 Constitution – Section 2 now requires that the State should take a
more active role in the exploration, development and utilization of
natural resources.

 Options open to the State:

- Undertake such activities directly
- Enter into co-production, joint venture or production-sharing
agreements with Filipino citizens or corporations or associations at
least 60% of whose capital is owned by such citizens
- Enter into agreement with foreign owned corporations for large-scale
exploration, etc.
Limits imposed by Section 2

 Agreements for the exploitation of the natural

resources can have a life of only 25 years.
 This limit is not applicable to “water rights for
irrigation, water supply fisheries, or industrial uses
other than the development of water power.” In these
cases, “beneficial use may be the measure and the
limit of the grant.”
 In the case of water rights for waterpower, the 25 year
limit is applicable.
Limits imposed by Section 2

“The State shall protect the nation's marine wealth

in its archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and
enjoyment exclusively to Filipino citizens.”
 Exclusive use and enjoyment of the nation’s
marine wealth are reserved for Filipino citizens,
that is, Filipino natural persons.
Limits imposed by Section 2

“The Congress may, by law, allow small-scale

utilization of natural resources by Filipino citizens,
as well as cooperative fish farming, with priority to
subsistence fishermen and fishworkers in rivers,
lakes, bays, and lagoons.”
Limits imposed by Section 2

“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.“
 Agreements can only be for “technical and financial
assistance” and only in relation to “large-scale
exploration”
 “The President shall notify the Congress of
every contract entered into in accordance
with this provision, within thirty days from
its execution.”