··-~=l=-=:::.......-==---r7""•"""- ·-r -·="'-~--"=-'".J:"..==-==~-.::...~~===~.::!~ to•=·=-.:::~.=:t=i = ·=·-·"" Agribusiness companies that intend to conduct operations in Palawan must secure SEP Clearance, pursuant to PCSD Administrative Order No.6, as amended, Series of 2008.31 The nature of SEP Clearance is explained by the Supreme Court in the case of VIllanueva, et al. vs. Palawan Council for Sustainable Development, et al., 32 the issue being whether or not PCSD is a quasi-judicial body. The Supreme Court ruled in the negative and said: "In issuing a SEP Clearance, the PCSD does not decide the rights and obligations of adverse parties with finality. The SEP Clearance is not even a license or permit. All it does is to allow the project proponent to proceed with its application for permits, licenses, patents, grants, or concessions with the relevant government agencies. The SEP Clearance allows the project proponent to prove the viability of their project, their capacity to prevent environmental damage, and other legal requirements, to the other concerned government agencies. The SEP Clearance in favor of PLMDC does not declare that the project proponent has an enforceable mining right within the Municipality of Narra; neither does it adjudicate that the concerned citizens of the said municipality have an obligation to respect PLMDC's right to mining. In fact, as seen in Section 5 of AO 6, the PCSD bases its actions, not on the legal rights and obligations of the parties (which is necessary in adjudication), but on policy considerations, such as social acceptability, ecological sustainability, and economic viability of the project. " (Emphasis underscoring ours) However, the Supreme Court recognized the power of PCSD to impose appropriate penalties. As such, regardless of not being a license or permit, non-compliance with the requirement to obtain SEP Clearance and the commission of such other prohibited acts33 enumerated in PCSD A.O. No. 6, Series of 2008, would necessitate the imposition, pursuant to Section 24 therein, of the following penalties: • Suspension of Project Operation - For committing any of the prohibited acts defined under Section 23, the PCSD may call the attention of the permitting agency to suspend the operation of the project, or in case of inaction by the permitting agency the PCSD may file the appropriate legal action against the former. • Cancellation of Permit - For committing any of the prohibited acts defined under Section 23, the PCSD may call the attention of the permitting agency to cancel the permit issued to the project, or in case of inaction by the permitting agency, the PCSD may file the appropriate legal action against the former. • Termination of Project Operation - For violation of Section 23.3 the PCSD shall immediately terminate the project operation. • Cancellation of SEP Clearance - For committing the prohibited act under Section 23.1 the PCSD may cancel the SEP Clearance. • Fine - In addition to the penalties under Sections 23.1 to 23.4, the PCSD shall impose the penalty of fine in the amount not less than fifty thousand pesos (P50,000) for every violation. 31 Revised Guidelines in the Implementation ofthe SEP Clearance System, Amending PCSD Administrative Order No. 6, Series of 2000, and PCSD Resolution No. 03-208, issued pursuant to the rule-making power of PCSD under R.A. No. 7611 32 G.R. No. 178347, February 25, 2013 http://www.lawphil.net/judjuris/juri2013/feb2013/gr 178347 2013.html#rnt33 (accessed Oct. 14, 2016) 33 Section 23. Prohibited Acts. The following acts are prohibited under this Order: 23.1 Non-compliance or violation of any of the terms and conditions of the SEP Clearance or PCSD Certificate of Accreditation; 23.2 Construction of ay structure or conduct of any activity without the required SEP Clearance or PCSD Accreditation in an area which such activity may be allowed under the Environmentally Critical Areas Network (ECAN); 23.3 Construction of any structure or conduct of any activity without the required SEP Clearance or PCSD Accreditation in an area which such activity may not be allowed under the ECAN; 23.4 Operating any project or undertaking without the required SEP Clearance or Certificate of Accreditation 12