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Energy Secretary Reyes's New Power from the President; Hidden or Ignored?
President Arroyo on September 15, 2008 issued Executive Order 751 authorizing the Secretary of the Department of Energy to close deals with foreign mining investors which basically contradicts the 1987 constitution.
Energy Secretary Reyes has been constantly criticized for his inability to control the rising oil prices but his newly earned power seem to have escaped the public attention. Is he doing great on his new role and has won the general approval of our elected officials who are quiet about this? Who really benefits from this E.O. and how it was kept away from media or the public are easy questions but its difficult to imagine a better future for the country with its continuous existence. With the current government set-up, a wise and well informed investor would know that the best time to start a business in the Philippines is between now and May 2010.
Below is a copy of the said order with my comments in parenthesis. For cross reference purposes, I have provided an excerpt of Article 12 of the 1987 Constitution at the bottom of the this page.
Executive Order No. 751
AUTHORIZING THE SECRETARY OF ENERGY TO NEGOTIATE AND CONCLUDE JOINT VENTURE, CO-PRODUCTION, OR PRODUCTION-SHARING AGREEMENTS FOR THE EXPLORATION, DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES
WHEREAS, Section 2 of Article XII of the 1987 Constitution provides that the exploration, development and utilization of natural resources shall be under the full control and supervision of the State, and that the Senate may directly undertake such activities, or may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum (60%) of whose capital is owned by such citizens, which 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;
(The use of the word "Senate" instead of the original word State in the Constitution can be very misleading. Is "I am sorry" in the air again? People are against the plan to amend the 60-40 capitalization. But some legislators who promote the idea even cite it as one of the reasons why we need ChaCha. )
WHEREAS, Section 2 of Article XII of the 1987 Constitution further provides that 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; (this provision continuous with this omitted part: "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".)
(This privilege is given to the lawfully elected president and it specifically involves "either technical or financial assistance" only. And why the omission of such an important part of the provision?)
WHEREAS, there are existing and expected proposals from interested parties, including foreign-owned corporations, for agreements involving the exploration, development and utilization of minerals that require immediate consideration to encourage investment in the industry which plays a pivotal role in the economic development of the country; and
( Like the ZTE deal? How about the provision in Section 1 of the same article that says "the State shall protect Filipino enterprises against unfair foreign competition and trade practices?)
WHEREAS, in order to enable the Government to consider and conclude such agreements, it is necessary in the national interest to provide the legal basis and authority for entering into such contracts or agreements;
(Are we desperate to have our natural resources taken advantaged of more and more by foreign-owned mining corporations to the point that our leaders dared to make this Order to meet their demands?)
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:
(Where in the Constitution is the President vested the power to change its provisions?)
SECTION 1. The Secretary of Energy (hereinafter referred to as “the Secretary”) is hereby authorized to negotiate and enter into, for and in behalf of the Government, joint venture, co-production, or production-sharing agreements for the exploration, development, and utilization of mineral resources with any Filipino citizen, or corporation or association at least sixty percent (60%) of whose capital is owned by Filipino citizens, subject to existing laws, rules and regulations.
(The president gave the power given to the State, as provided above, to the Secretary of Energy? What's this rally against ChaCha? She changes the Constitution at her own will anyway!)
SEC. 2. The Secretary is further hereby authorized to accept, consider, evaluate proposals from foreign-owned corporations or foreign investors, and negotiate and enter into, for and in behalf of the Government, contracts or agreements involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, subject to existing laws, rules and regulations.
(She even gave Secretary Reyes this presidential privilege!)
SEC. 3. The Secretary shall furnish the Office of the President copies of any contract or agreement which may be entered into pursuant to Sections 1 and 2 hereof.
(The President can monitor the contract or agreements entered into by the Secretary but she may not be directly accused of involvement in case a questionable deal is uncovered.)
SEC. 4. Any contract or agreement entered into by the Secretary pursuant to Sections 1 and 2 hereof shall be reported to Congress by the Executive Secretary in behalf of the President within thirty (30) days from its execution.
(Instead of the President doing this, the Constitution was changed again by having the Executive Secretary act in her behalf. Also, can anyone from the Congress at least tell the public, if rhey can't say what they know about it, how many contracts or agreements and with whom has Secretary Reyes executed since the signing of this E.O.?)
SEC. 5. The Secretary shall promulgate such supplementary rules and regulations as may be necessary to effectively implement the provisions of this Executive Order.
(E.O. 751 effectively implemented plus the amendment of the 60-40 capitalization! Imagine what will happen if this E.O. is inherited by another corrupt system of government. Why dodn't we hear anyone talk against it? Pres. Arroyo has been frequenting foreign countries like Dubai. Just hope the trips of our elected officials have nothing to do with this E.O. and that you can still exercise freedom and enjoy the mineral treasures and agricultural land that God has provided for the Filipinos in the Philippines in the years ahead. What is its beauty if you are there just as a stranger, if not a slave or a quiet observer?)
SEC. 6. All other executive orders, rules, regulations and other issuances or parts thereof, which are not inconsistent with the provisions of this Executive Order, shall continue in force and effect.
(Section 6 was strategically worded to support its legal right to exist by stating that "all other executive orders, rules, regulations and other issuances or parts thereof, WHICH ARE NOT INCONSISTENT (meaning consistent?) with the provisions of this Executive Order, shall continue in force and effect". It does not revoke or modify those ones inconsistent with it like what they do in other executive orders, as in E.O. 706, for an obvious but neglected reason that without the approval of ChaCha or ConAs or other legal means, they can't do the same to the provisions in the 1987 Constitution. She did it anyway. But with the approval of ChaCha, E.O. 751 may find its way to get a legal standing.)
SEC. 7. This Executive Order shall take effect immediately upon its publication in a national newspaper of general circulation.
(Can the people know which one and when? Black's Law Dictionary defines Executive order as "An order issued by or on behalf of the President, usu. intended to direct or instruct the actions of executive agencies or government officials, or to set policies for the executive branch to follow." This E.O. did a lot more than its legal right.
DONE in the City of Manila, this 15th day of September in the Year of Our Lord, Two Thousand and Eight.
(It was signed and sealed by the President and Acting Executive Secretary Jesus G. Dureza.)
If you want to see a copy of the sealed one, go to "Office of the President Website". When you enter the main words, you will come across a site with nothing but the E.O 751 in it. But notice that it edited the original by replacing the word Senate with State without any reference to it.
In an attempt to find comments or news regarding the Order, a google search on the net led me to "only one" but legally based criticism of the E.O. unedited as follows:
October 10th, 2008 rhia Posted in Legal Updates, Mining, Natural Resources, Policy Updates, RPD |
The President on September 15, 2008, issued Executive Order 751. The Order authorizes the Secretary of the Department of Energy to “negotiate and enter into, for and in behalf of the Government, joint venture, co-production, or production sharing agreements, for the exploration, development and exploitation of mineral resources with any Filipino citizen or corporation or association, at least 60% of whose capital is owned by Filipino citizens.” SEction 8, meanwhile, of the Mining Act of 1995 states that the Department of Environment and Natural Resources shall be the primary governemtn agency responsible for the conservation, management, development, and proper use of the State’s mineral resources.
Though Section 8 merely states “primary govenrment agency” and did not explicitly state the exclusive jurisdiction to manage mineral resouces, the Executive Order 751 will undoubtedly cause confusion among sectors and govenrment agencies alike, giving additional jurisdiction to the Secretary of Energy, without expressly removing the same power from the Secretary of DENR.
Finally, it is also a reason for concern the words used in EO 751. Instead of recognizing that the power to manage comes from the State, it states that the power is given in behalf of the Government. An indication maybe of how this government sees itself in relation to the State, one that is beyond the body of people that gave it its power in the first place.
ANOTHER RELATED POST:
February 9th, 2009 rhia Posted in Legal Updates, Natural Resources, Policy Updates |
Early this February, the House of Representatives of the Congress of the Philippines passed Resolution No. 737, which is entitled “Resolution Proposing Amendments to Sections 2 and 3, Article XII of ht e1987 Constitution to Allow the Acquisition by Foreign Corporations and Associations, ath ethe Transfer or Conveyance Thereto, of Alienable Public Lands and Private Lands.”
Under Sec. 2 of the 1987 Constitution, the ownership-in-trust of natural resources (except for ancestral domains) is vested with the State. As owner-in-trust, it may sell, lease, or otherwise alienate the rights to these resources through contracts only to Filipinos and Filipino corporations. By Filipino corporations, the ownership ratio of Filipinos and foreign persons or corporation should be 60-40, meaning, 60% of the corporation should be owned by Filipinos, and not merely a simple majority ownership. In the proposed amendment, the 60% limitation for corporations is removed, and instead, a corporation that is 100% foreign-owned may now come in and gain rights to our natural resources. This also supports the ruling of the Supreme Court in the case of La Bugal B’laan Tribal Association vs. DENR wherein it stated that the Constitution did not do away with service contracts with 100% foreign-owned corporations. The Constitution still allowed 100% ownership in its Financial and Technical Assistance Agreements. However, with this Resolution, it becomes now clear that it will do away entirely with any limitation on ownership and thus, the natural resources of the Philippines will be a free-for-all game.
Vicente Sinco stated the rational for the reservation of the EDU of natural resources[1]:
“It should be emphatically stated that the provisions of our Constitution which limit to Filipinos the right to develop the natural resources and to operate the public utilities of the Philippines is one of the bulwarks of our national integrity. The Filipino people decided to include it in our Constitution in order that it may have the stability and permanency that its importance requires. It is written in our Constitution so that it may neither be the subject of barter nor be impaired in the give and take of politics. With our natural resources, our sources of power and energy, our public lands, and our public utilities, the material basis of the nation’s existence, in the hands of aliens over whom the Philippine Government does not have complete control, the Filipinos may soon find themselves deprived of their patrimony and living as it were, in a house that no longer belongs to them.”
However, under this present Congress that is controlled by the administration, it is clear that natural resources are no longer seen as the bulwarks of national integrity. Instead, it has become a mere commodity, a subject of barter for so-called economic gains. The proposal thus goes against the very grain of the original provision that was upheld and protected in all these decades. Natural resources have thus become the primary political agenda.
It now depends on the Senate whether to adopt the amendments or not. Once it adopts it, the final process for the Constitutional change would be, within sixty to ninety days, a plebiscite would be held for the ratification of the Philippine population. If the people ratify this amendment, it will wipe away all established doctrines and constitutional limitations on the exploration, utilization, and development of natural resources and ownership of lands.
To see the original articles and more of their blogs, go to LRC-KsK Research and Policy Advocacy.
AN EXCERPT OF ARTICLE 12 OF THE 1987 CONSTITUTION REFERRED TO IN THE ABOVE E.O.:
ARTICLE XII
NATIONAL ECONOMY AND PATRIMONY
Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the under-privileged.
The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.
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 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.
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.
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 fish- workers in rivers, lakes, bays, and lagoons.
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.
The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.
Energy Secretary Reyes has been constantly criticized for his inability to control the rising oil prices but his newly earned power seem to have escaped the public attention. Is he doing great on his new role and has won the general approval of our elected officials who are quiet about this? Who really benefits from this E.O. and how it was kept away from media or the public are easy questions but its difficult to imagine a better future for the country with its continuous existence. With the current government set-up, a wise and well informed investor would know that the best time to start a business in the Philippines is between now and May 2010.
Below is a copy of the said order with my comments in parenthesis. For cross reference purposes, I have provided an excerpt of Article 12 of the 1987 Constitution at the bottom of the this page.
Executive Order No. 751
AUTHORIZING THE SECRETARY OF ENERGY TO NEGOTIATE AND CONCLUDE JOINT VENTURE, CO-PRODUCTION, OR PRODUCTION-SHARING AGREEMENTS FOR THE EXPLORATION, DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES
WHEREAS, Section 2 of Article XII of the 1987 Constitution provides that the exploration, development and utilization of natural resources shall be under the full control and supervision of the State, and that the Senate may directly undertake such activities, or may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum (60%) of whose capital is owned by such citizens, which 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;
(The use of the word "Senate" instead of the original word State in the Constitution can be very misleading. Is "I am sorry" in the air again? People are against the plan to amend the 60-40 capitalization. But some legislators who promote the idea even cite it as one of the reasons why we need ChaCha. )
WHEREAS, Section 2 of Article XII of the 1987 Constitution further provides that 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; (this provision continuous with this omitted part: "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".)
(This privilege is given to the lawfully elected president and it specifically involves "either technical or financial assistance" only. And why the omission of such an important part of the provision?)
WHEREAS, there are existing and expected proposals from interested parties, including foreign-owned corporations, for agreements involving the exploration, development and utilization of minerals that require immediate consideration to encourage investment in the industry which plays a pivotal role in the economic development of the country; and
( Like the ZTE deal? How about the provision in Section 1 of the same article that says "the State shall protect Filipino enterprises against unfair foreign competition and trade practices?)
WHEREAS, in order to enable the Government to consider and conclude such agreements, it is necessary in the national interest to provide the legal basis and authority for entering into such contracts or agreements;
(Are we desperate to have our natural resources taken advantaged of more and more by foreign-owned mining corporations to the point that our leaders dared to make this Order to meet their demands?)
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:
(Where in the Constitution is the President vested the power to change its provisions?)
SECTION 1. The Secretary of Energy (hereinafter referred to as “the Secretary”) is hereby authorized to negotiate and enter into, for and in behalf of the Government, joint venture, co-production, or production-sharing agreements for the exploration, development, and utilization of mineral resources with any Filipino citizen, or corporation or association at least sixty percent (60%) of whose capital is owned by Filipino citizens, subject to existing laws, rules and regulations.
(The president gave the power given to the State, as provided above, to the Secretary of Energy? What's this rally against ChaCha? She changes the Constitution at her own will anyway!)
SEC. 2. The Secretary is further hereby authorized to accept, consider, evaluate proposals from foreign-owned corporations or foreign investors, and negotiate and enter into, for and in behalf of the Government, contracts or agreements involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, subject to existing laws, rules and regulations.
(She even gave Secretary Reyes this presidential privilege!)
SEC. 3. The Secretary shall furnish the Office of the President copies of any contract or agreement which may be entered into pursuant to Sections 1 and 2 hereof.
(The President can monitor the contract or agreements entered into by the Secretary but she may not be directly accused of involvement in case a questionable deal is uncovered.)
SEC. 4. Any contract or agreement entered into by the Secretary pursuant to Sections 1 and 2 hereof shall be reported to Congress by the Executive Secretary in behalf of the President within thirty (30) days from its execution.
(Instead of the President doing this, the Constitution was changed again by having the Executive Secretary act in her behalf. Also, can anyone from the Congress at least tell the public, if rhey can't say what they know about it, how many contracts or agreements and with whom has Secretary Reyes executed since the signing of this E.O.?)
SEC. 5. The Secretary shall promulgate such supplementary rules and regulations as may be necessary to effectively implement the provisions of this Executive Order.
(E.O. 751 effectively implemented plus the amendment of the 60-40 capitalization! Imagine what will happen if this E.O. is inherited by another corrupt system of government. Why dodn't we hear anyone talk against it? Pres. Arroyo has been frequenting foreign countries like Dubai. Just hope the trips of our elected officials have nothing to do with this E.O. and that you can still exercise freedom and enjoy the mineral treasures and agricultural land that God has provided for the Filipinos in the Philippines in the years ahead. What is its beauty if you are there just as a stranger, if not a slave or a quiet observer?)
SEC. 6. All other executive orders, rules, regulations and other issuances or parts thereof, which are not inconsistent with the provisions of this Executive Order, shall continue in force and effect.
(Section 6 was strategically worded to support its legal right to exist by stating that "all other executive orders, rules, regulations and other issuances or parts thereof, WHICH ARE NOT INCONSISTENT (meaning consistent?) with the provisions of this Executive Order, shall continue in force and effect". It does not revoke or modify those ones inconsistent with it like what they do in other executive orders, as in E.O. 706, for an obvious but neglected reason that without the approval of ChaCha or ConAs or other legal means, they can't do the same to the provisions in the 1987 Constitution. She did it anyway. But with the approval of ChaCha, E.O. 751 may find its way to get a legal standing.)
SEC. 7. This Executive Order shall take effect immediately upon its publication in a national newspaper of general circulation.
(Can the people know which one and when? Black's Law Dictionary defines Executive order as "An order issued by or on behalf of the President, usu. intended to direct or instruct the actions of executive agencies or government officials, or to set policies for the executive branch to follow." This E.O. did a lot more than its legal right.
DONE in the City of Manila, this 15th day of September in the Year of Our Lord, Two Thousand and Eight.
(It was signed and sealed by the President and Acting Executive Secretary Jesus G. Dureza.)
If you want to see a copy of the sealed one, go to "Office of the President Website". When you enter the main words, you will come across a site with nothing but the E.O 751 in it. But notice that it edited the original by replacing the word Senate with State without any reference to it.
In an attempt to find comments or news regarding the Order, a google search on the net led me to "only one" but legally based criticism of the E.O. unedited as follows:
October 10th, 2008 rhia Posted in Legal Updates, Mining, Natural Resources, Policy Updates, RPD |
The President on September 15, 2008, issued Executive Order 751. The Order authorizes the Secretary of the Department of Energy to “negotiate and enter into, for and in behalf of the Government, joint venture, co-production, or production sharing agreements, for the exploration, development and exploitation of mineral resources with any Filipino citizen or corporation or association, at least 60% of whose capital is owned by Filipino citizens.” SEction 8, meanwhile, of the Mining Act of 1995 states that the Department of Environment and Natural Resources shall be the primary governemtn agency responsible for the conservation, management, development, and proper use of the State’s mineral resources.
Though Section 8 merely states “primary govenrment agency” and did not explicitly state the exclusive jurisdiction to manage mineral resouces, the Executive Order 751 will undoubtedly cause confusion among sectors and govenrment agencies alike, giving additional jurisdiction to the Secretary of Energy, without expressly removing the same power from the Secretary of DENR.
Finally, it is also a reason for concern the words used in EO 751. Instead of recognizing that the power to manage comes from the State, it states that the power is given in behalf of the Government. An indication maybe of how this government sees itself in relation to the State, one that is beyond the body of people that gave it its power in the first place.
ANOTHER RELATED POST:
February 9th, 2009 rhia Posted in Legal Updates, Natural Resources, Policy Updates |
Early this February, the House of Representatives of the Congress of the Philippines passed Resolution No. 737, which is entitled “Resolution Proposing Amendments to Sections 2 and 3, Article XII of ht e1987 Constitution to Allow the Acquisition by Foreign Corporations and Associations, ath ethe Transfer or Conveyance Thereto, of Alienable Public Lands and Private Lands.”
Under Sec. 2 of the 1987 Constitution, the ownership-in-trust of natural resources (except for ancestral domains) is vested with the State. As owner-in-trust, it may sell, lease, or otherwise alienate the rights to these resources through contracts only to Filipinos and Filipino corporations. By Filipino corporations, the ownership ratio of Filipinos and foreign persons or corporation should be 60-40, meaning, 60% of the corporation should be owned by Filipinos, and not merely a simple majority ownership. In the proposed amendment, the 60% limitation for corporations is removed, and instead, a corporation that is 100% foreign-owned may now come in and gain rights to our natural resources. This also supports the ruling of the Supreme Court in the case of La Bugal B’laan Tribal Association vs. DENR wherein it stated that the Constitution did not do away with service contracts with 100% foreign-owned corporations. The Constitution still allowed 100% ownership in its Financial and Technical Assistance Agreements. However, with this Resolution, it becomes now clear that it will do away entirely with any limitation on ownership and thus, the natural resources of the Philippines will be a free-for-all game.
Vicente Sinco stated the rational for the reservation of the EDU of natural resources[1]:
“It should be emphatically stated that the provisions of our Constitution which limit to Filipinos the right to develop the natural resources and to operate the public utilities of the Philippines is one of the bulwarks of our national integrity. The Filipino people decided to include it in our Constitution in order that it may have the stability and permanency that its importance requires. It is written in our Constitution so that it may neither be the subject of barter nor be impaired in the give and take of politics. With our natural resources, our sources of power and energy, our public lands, and our public utilities, the material basis of the nation’s existence, in the hands of aliens over whom the Philippine Government does not have complete control, the Filipinos may soon find themselves deprived of their patrimony and living as it were, in a house that no longer belongs to them.”
However, under this present Congress that is controlled by the administration, it is clear that natural resources are no longer seen as the bulwarks of national integrity. Instead, it has become a mere commodity, a subject of barter for so-called economic gains. The proposal thus goes against the very grain of the original provision that was upheld and protected in all these decades. Natural resources have thus become the primary political agenda.
It now depends on the Senate whether to adopt the amendments or not. Once it adopts it, the final process for the Constitutional change would be, within sixty to ninety days, a plebiscite would be held for the ratification of the Philippine population. If the people ratify this amendment, it will wipe away all established doctrines and constitutional limitations on the exploration, utilization, and development of natural resources and ownership of lands.
To see the original articles and more of their blogs, go to LRC-KsK Research and Policy Advocacy.
AN EXCERPT OF ARTICLE 12 OF THE 1987 CONSTITUTION REFERRED TO IN THE ABOVE E.O.:
ARTICLE XII
NATIONAL ECONOMY AND PATRIMONY
Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the under-privileged.
The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.
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 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.
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.
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 fish- workers in rivers, lakes, bays, and lagoons.
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.
The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.
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