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Friday, March 29, 2024

Cebu-Negros oil deal voided

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The Supreme Court nullified the contract signed between the government and an oil exploration company allowing the exploration, development and exploitation of petroleum resources within Tañon Strait situated between the Islands of Negros and Cebu.

In a decision, the SC through Associate Justice Teresita Leonardo de-Castro ruled that while the government is allowed to enter into a service contract under the 1987 Constitution, service contract No. 46 signed on December 21, 2004 by the Department of Energy (DOE) and Japan Petroleum Exploration Co. Ltd. (Japex) for oil exploration and exploration and drilling in a 2,850 kilometer area offshore of Tanon Strait failed to comply with the safeguards under Section 2, Article XII of the Constitution.

Section 2, Article XII of the Constitution requires that service contract be authorized by a general law signed by the President, and reported to Congress.

“The Court noted that while there is a general law on exploration, Presidential Decree No. 87, which remains in effect, SC-46 was entered into in 2004 only between the Department of Energy and Japex and was signed only by the then-Secretary of Energy and not by the President,” the Court ruled.

 “The Court also noted that SC-46 was never submitted to Congress. For these reasons, SC-46 violated the Constitution and is unconstitutional,” the SC added.

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 Aside from being unconstitutional, the SC also held that SC-46 also violated existing laws, such as Republic Act 7586 or the National Integrated Protected Areas System (NIPAS) Act of 1992, since Tañon Strait is, by virtue of Proclamation No. 2146, an environmentally critical area.

 For being such, the high court stressed that any activity outside the scope of its management plan may only be implemented pursuant to an environmental compliance certificate (ECC) secured after undergoing an environmental impact assessment (EIA) to determine the effects of such activity on its ecological system.

 “These were not complied with under SC-46; for this reason, the Court also considered that SC-46 violated the NIPAS Act,” the SC held.

Since Tañon Strait is a NIPAS area, its exploration and utilization may only be allowed only through a law passed by Congress.

The controversy arose from the consolidated petitions filed Gloria Estenzo Ramos and Rose Liza Eisma-Osorio “as legal guardians of marine mammals”, Central Visayan Fisherfolk Development Center and Resident Marine Mammals of Protected Seascape Tañon Strait.

The petitioners said they filed the petition due to imminent threat to its resident marine mammals such as toothed whales, dolphins and porpoises.

The petitioners also claimed that the area was declared as a “protected seascape” on May 27, 1998 by then President Fidel Ramos, a scuba diving enthusiast with the signing of Presidential Decree No. 1234.

 As a result, the Tañon Strait is now covered by Republic Act No. 7586 (An Act Providing for the Establishment and Management of National Integrated Protected Areas System or “The NIPAS Act”).

But on December 21, 2004, the DOE signed Service Contract No. 46 with JAPEX for oil exploration and drilling in a 2,850 kilometer area offshore of Tanon Strait.

In May and June, 2005, the DOE conducted a seismic survey over the exploration area. According to the petitioners, no environmental impact assessment survey was done prior to the seismic survey.

After the conduct of the seismic survey, a study was made on its effects.

According to the petitioners, based on the study, it was found out that there was a reduced fish catch caused by destruction of 136 “payao” or artificial reefs.

 In addition, the study also found out that there was fish kill in the area.

Despite these, the petitioners said, the DENR last March 6, granted JAPEX an environmental clearance certificate (ECC) without conducting public consultations.

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