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Monday, June 09, 2008

 

Court of Appeals junks petition to declare Executive Order No. 683 unconstitutional


THE Court of Appeals (CA) has junked a petition seeking to declare as unconstitutional Executive Order (EO) No. 683, allocating the 40-percent share of Palawan from the proceeds of the Camago-Malampaya oil and gas fields project as part of the “pork barrel” funds of the governor and two congressmen of the province.

EO 683, issued by the Office of the President on December 1, 2007, is entitled Authorizing the Use of Fees, Revenues and Receipts from Service Contract No. 38 for the Implementation of Development Projects for the People of Palawan.

The President, in signing EO 683, had earlier said that the funds intended for the province must be utilized “for the immediate and effective implementation of development projects for the people of Palawan.”

The CA’s 11th Division, in a seven-page resolution penned by Associate Justice Rebecca de Guia-Salvador, said that the petition merits outright dismissal because of procedural lapses that the court finds “unacceptable.”

The CA also pointed out that the petition is based on the same facts and issues raised in G.R. No. 170867, a petition for review now pending before the Supreme Court.

Palawan Bishop Pedro Dulay Arigo, Cesar N. Sarino, Dr. Jose Antonio N. Socrates and Prof. Harry Roque filed the petition.

Named as respondents were Executive Secretary Eduardo Ermita, Energy Secretary Angelo Reyes, Finance Secretary Margarito Teves Jr., Budget Secretary Rolando Andaya, Palawan, Gov. Joel Reyes, Rep. Antonio Alvarez (First District, Palawan), Rep. Abraham Mitra (Second District, Palawan) and Rafael del Pilar, president and chief executive of the Philippine National Oil Corp.-Exploration Corp.

The petition for review seeks the reversal of the December 16, 2005 decision rendered by the Regional Trial Court Branch 95 of Puerto Princesa City, Palawan, declaring that the province of Palawan is entitled to the 40-percent share of the national wealth, computed based on revenues generated from the Camago-Malampaya natural gas project since October 16, 2001.

“Because the issue which inextricably links the instant petition and G.R. No. 170867 is whether the Camago-Malampaya natural gas reservoir is within the territorial jurisdiction of Palawan forms part of the national territory of the Philippines, it would be premature for the Court to rule on this case when G.R. No. 170867 is still up for adjudication before the Supreme Court,” the CA pointed out.

The CA also stressed that the interim undertaking between the national government and the province of Palawan to grant the latter a 50-percent share of the disputed 40 percent from the proceeds of the Camago-Malampaya project under the terms of the Provisional Implementation Agreement is dependent on the final resolution of G.R. No. 170867.

The CA also takes into consideration the ongoing efforts of both the legislative and executive departments to arrive at a common position in redefining the country’s baseline in the light of the United Nations Convention on the Law of the Sea, saying that issuing a ruling now would also be tantamount to a “collateral adjudication” of the archipelagic baseline.

“The task of defining the baseline involves policy determination; accordingly, ample opportunity must be accorded the legislative and executive departments to forge a policy concensus, and to implement them before the courts may intervene under the expanded concept of judicial power in Section 1, Article VIII of the Constitution,” it said.

The CA also junked the petition due to the failure of the group to include relevant pleadings and other important documents to support the allegations of the petitions such as a copy of the petition for review on certiorari in G.R. No. 170867, the PIA, and the Service Contract No. 38.

Records showed that the Department of Energy entered into a service contract with Shell Philippines Exploration BV and Occidental Philippines on December 11, 1990 for the exclusive contract of petroleum operations in the area.

The exploration led to the drilling of the Camago-Malampaya natural gas reservoir which is located 80 kilometers from the coastline of Palawan in the South China Sea with projected revenues of approximately $8 billion to $10 billion for the government.

But a dispute arose between the local and national governments over the share of proceeds for the gas project.

The Palawan government had asserted its claim over a 40-percent share of the proceeds, based on the 1991 Local Government Code.

But the national government said Palawan’s claim was unfounded because the natural gas reservoir is approximately 80 kilometers from the coastline of Palawan and is thus outside its territorial jurisdiction.
--William B. Depasupil

   

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