04/02/2020
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production-sharing agreement with them. The State may likewise enter into
any of said agreements with a non-member of the ICCs/IPs, whether
natural or juridical, or enter into agreements with foreign-owned
corporations involving either technical or financial assistance for the largescale exploration, development and utilization of minerals, petroleum, and
other mineral oils, or allow such non-member to participate in its
agreement with the ICCs/IPs. If the State decides to enter into an agreement
with a non-ICC/IP member, the National Commission on Indigenous Peoples (NCIP)
shall ensure that the rights of the ICCs/IPs under the agreement shall be protected.
The agreement shall be for a period of 25 years, renewable for another 25 years.
To reiterate, in the large-scale utilization of natural resources within the ancestral
domains, the State, as owner of these resources, has four (4) options: (1) it may, of
and by itself, directly undertake the development and exploitation of the natural
resources; or (2) it may recognize the priority rights of the ICCs/IPs by entering into
an agreement with them for such development and exploitation; or (3) it may enter
into an agreement with a non-member of the ICCs/IPs, whether natural or juridical,
local or foreign; or (4) it may allow such non-member to participate in the
agreement with the ICCs/IPs.
The rights granted by the IPRA to the ICCs/IPs over the natural resources
in their ancestral domains merely gives the ICCs/IPs, as owners and
occupants of the land on which the resources are found, the right to the
small-scale utilization of these resources, and at the same time, a priority in
their large-scale development and exploitation.
Section 57 does not
mandate the State to automatically give priority to the ICCs/IPs. The State
has several options and it is within its discretion to choose which option to
pursue. Moreover, there is nothing in the law that gives the ICCs/IPs the right to
solely undertake the large-scale development of the natural resources within their
domains. The ICCs/IPs must undertake such endeavour always under State
supervision or control. This indicates that the State does not lose control and
ownership over the resources even in their exploitation. Sections 7 (b) and 57 of
the law simply give due respect to the ICCs/IPs who, as actual occupants of the land
where the natural resources lie, have traditionally utilized these resources for their
subsistence and survival.
Neither is the State stripped of ownership and control of the natural resources by the
following provision:
"Section 59. Certification Precondition.-- All departments and other
governmental agencies shall henceforth be strictly enjoined from issuing,
renewing or granting any concession, license or lease, or entering into
any production-sharing agreement. without prior certification from the
NCIP that the area affected does not overlap with any ancestral domain.
Such certification shall only be issued after a field-based investigation is
conducted by the Ancestral Domains Office of the area concerned:
Provided, That no certification shall be issued by the NCIP without the
free and prior informed and written consent of the ICCs/IPs concerned:
Provided, further, That no department, government agency or
government-owned or -controlled corporation may issue new concession,
license, lease, or production sharing agreement while there is a pending
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