If the ICCs/IPs manifests their rejection of the plan, program, project or activity, in any written form signed by the members of the community and their elders/leaders before or during the FBI, the same shall be received by the FBI team and the Regional Director shall be notified of the same. Upon receipt of the notice, the Regional Director shall order the conduct of a validation assembly similar to a consensus-building activity as provided for in this rules to validate the rejection. However, if the rejection is received or made after the FBI, the matter shall be tackled in the mandatory activity on consensus-building. If the rejection is affirmed during the validation assembly, the appropriate resolution of non-consent shall be made, adopted, and signed, and thereafter transmitted to the Regional Director by the FPIC Team. The Director shall then return the application to the endorsing agency or the applicant, as the case may be, with a transmittal of the resolution of non-consent. As a consequence of the adoption of such resolution, all proceedings in the conduct of the FPIC shall ipso facto stop. No FPIC process for any similar proposal shall be undertaken within six (6) months from the issuance of non-consent. Section 28. RRT Review. After receipt of the report, the Regional Director shall direct the RRT to review the same within five (5) days. Should the review report be favorable, and the Director finds nothing wrong with the same, he shall endorse the record of the FPIC Process undertaken, together with his recommendation/s to the ADO for appropriate action, otherwise he may direct appropriate action by the RRT or the FPIC Team before he makes his endorsement to the ADO. Section 29. Inaction. The inaction of the applicant within six (6) months from the last FPIC activity, without justifiable reason, shall be a ground for a termination of the FPIC process to be declared by the Regional Director with notice to the applicant. Section 30. Dormant Certification Precondition. If no activity is undertaken by the proponent within a year from the approval/issuance of permit, the CP is considered dormant and thus, upon the report of the Regional Director, the Chairperson shall issue a show cause order directing applicant/proponent why the CP should not be cancelled. Failure of applicant to comply within a non-extendible period of fifteen (15) working days from receipt of the order, or to show justifiable reason, the CP shall be cancelled by Resolution of the Commission, with notice to the concerned regulatory agency, proponent, and the ICCs/IPs. PART V MEMORANDUM OF AGREEMENT Section 31. Preparation of the Memorandum of Agreement (MOA). When the consent of the concerned community is obtained, the terms and conditions agreed upon shall be embodied in a MOA to be executed between and among the ICC/IPs, the applicant/proponent, the NCIP, and any other party that may be necessarily involved. The MOA shall be prepared by the FPIC Team strictly in accordance with what has been agreed upon by the parties, written in the language or dialect of the ICCs/IPs concerned, and thereafter translated into English and/or Pilipino. The drafting shall be the primary obligation of the Legal Officer of the concerned provincial office. In his/her absence the Regional Director shall designate the Legal Officer from another province to assist the FPIC Team. Section 32. Contents of MOA. The MOA shall include, but shall not be limited to, the following: a. b. c. d. e. f. g. h. Detailed benefit-sharing provisions in accordance with rules and regulations [i.e. not less than 1% royalty under mining act]; Development projects based on the development priorities of the community; Monitoring of the implementation MOA to be implemented by NCIP in partnership with LGUs and CSOs. This undertaking shall be paid for by the company; Mitigation and resettlement plans for potential risks ; Redress mechanisms; Clause on the non-transferability of the MOA; Clause for renegotiation of the economic provisions; Whether the concerned ICCs/IPs shall require another FPIC to be conducted in case of merger, reorganization, transfer of rights, acquisition by another entity, or joint venture; Page 11 of 22 NCIP AO 3 s. 2012 (The Revised Guidelines on Free and Prior Informed Consent and Related Processes of 2012)

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