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JUAN ANTONIO, ANNA ROSARIO and JOSE ALFONSO, all surnamed OPOSA, minors

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SECOND DIVISION
[G.R. No. 75962. June 30, 1988.]
GREENHILLS MINING COMPANY,
petitioner
,
vs.
OFFICE OF THE PRESIDENT,
MINISTER OF NATURAL RESOURCES, DIRECTOR OF THE BUREAU OF MINES
AND THE GEO-SCIENCES, AND GREEN VALLEY COMPANY,
respondents
.
Laurel Law Office
for petitioner.
Belo, Abiera and Associates and Eulogio R. Rodriguez
for private respondent.
D E C I S I O N
YAP,
J
p:
The instant petition seeks the review of (a) the decision dated July 8, 1986 issued by
respondent Office of the President and signed by Deputy Executive Secretary Fulgencio S. Factoran,
Jr., declaring all mining claims located and registered within the Southern Zambales Forest Reserve
as null and void and granting private respondent Green Valley Company preferential right to possess,
exploit, develop and operate the area covered by its exploration permit, and (b) the order dated
September 10, 1986 denying petitioner's motion for reconsideration.
The facts are as follows:
The petition involves a conflict of Greenhills mining claims and the exploration permit of
Green Valley over an area within the Southern Zambales Forest Reserve and within the same mineral
land.
Mining claims of different claimowners were previously located and registered with the office
of the Mining Recorder at Iba, Zambales, in 1933 and 1934 under the provisions of the Philippine Bill
of 1902. However, for failure to pursue their claims and to perform annual assessment works, the
claims were considered abandoned.
On January 18, 1956, then President Ramon Magsaysay issued Proclamation No. 245
establishing the Southern Zambales Forest Reserve (hereinafter called "Reservation" for brevity) with
an area of 37,000 hectares embracing the municipalities of San Marcelino and Castillejos for soil
protection, timber production, and other forest purposes subject to existing private rights.
In 1970 and 1971, Greenhills relocated the previously abandoned mining claims of the
claimowners inside the reservation. It executed certificates or declaration of location (DOL) covering
113 claims and registered them with the office of the Mining Recorder. Lode Lease Applications
(LLAs) on the 113 claims were later filed with the Bureau of Mines. Boundary survey plans or returns
for the 113 claims were submitted and approved by the Mines Director on October 27, 1971, and
together with lease applications they were published in the Official Gazette and in newspapers of
general circulation.
On September 5, 1975, Greenhills filed with the Bureau of Forest Development (BFD for
brevity) an application for prospecting permit (Prospecting Permit No. 354-03079) covering 1,296
hectares within the reservation, which was granted by the BFD Director on January 5, 1978 to expire
six months thereafter or on June 5, 1978.
On March 1, 1979 Green Valley applied with BFD for a prospecting permit over 4,800
hectares also within the reservation. BFD granted the permit (Prospecting Permit No. 349-03179) to
expire on August 31, 1979. It was extended to January 31, 1980. prLL
On July 19, 1979 Green Valley filed with the Bureau of Mines and Geo-Sciences (BMGS for
brevity) an application for exploration permit over the same area covered by its prospecting permit,
as well as additional areas covered by prospecting permits issued to Concepcion Lomotan, Dolores
Montilla and Asuncion Caguios.
The application was referred to the BMGS Mineral Lands and Topographic Survey Division
(MLTSD) which upon verification submitted reports dated August 17, 1979 and October 4, 1979 with
the finding that the areas applied for by Green Valley were in conflict with the Greenhills group of
claims.
In another report dated September 10, 1979, the Mineral Resources Administrative Division
also of the Bureau of Mines commented that Green Valley's exploration permit may be given due
course contending that all mining claims in areas within the reserve are null and void pursuant
to Section 28(a), Commonwealth Act No. 137. 1
On October 16 and November 29, 1979, respectively, Green Valley's exploration permits
(Exploration Permit Nos. 79 and 80) covering 5,208.96 hectares were approved.

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Aggrieved, Greenhills filed separate letter-protests with the BFD and BMGS asking for the
cancellation of Green Valley's prospecting and exploration permits.
In answer to Greenhills' protest, Green Valley countered that the protest had become moot
and academic and it has no factual and legal basis since the alleged prospecting Permit No. 354-
03079 of Greenhills Mining Co., which was the basis of its protest had long expired and at the time
Green Valley Co. applied for and was issued Prospecting Permit No. 439-83179, the area was open
for registration; that said prospecting permit had been replaced by Exploration Permit Nos. 79 and 80
issued by the Bureau of Mines and Geo-Sciences on October 16, 1979 and November 29, 1979,
respectively; that the Bureau of Forestry was no longer the proper forum; that the subject matter of
the protest concerned the validity of mining claims and should be filed with the proper forum.
Supporting Greenhills' protest, Lepanto Consolidated Mining Co. which operates Greenhills
Mining claims in its letters dated May 4 and May 20, 1981 manifested that the mining claims of
Greenhills were excluded from Green Valley's prospecting permit for the reasons that: (1) the areas
covered by the mining claims of Greenhills were previously covered by patentable mining claims duly
located and registered by different mining claimowners in 1933 and 1934 under the Philippine Bill of
1902; (2) that pursuant to the ruling of the Supreme Court in McDaniel vs. Apacible, 2 reservation of
public lands cannot be made to include prior perfected mining locations and therefore the areas
covered by Greenhills mining claims should be deemed segregated from the mass of the public
domain which were open to relocation and registration; (3) that Greenhills mining claims had been
surveyed and survey plans approved and the lease applications published in 1971 and 1973.
On June 5, 1981, the Director of the BFD issued an order directing amendment of Green
Valley's prospecting permit to exclude areas previously located and registered patentable mining
claims as appearing in a sketch plan issued by the BMGS.
In a letter dated June 9, 1981 to the BMGS, Greenhills reiterated its request to exclude from
Green Valley's exploration permit area covered by its mining claims. On June 11, 1981, the Director
of the Bureau of Mines issued the following order, the dispositive portion of which reads:
"PREMISES CONSIDERED, Exploration Permit No. 79 issued in favor of Green Valley
Company on October 16, 1979 should be, as hereby it is, AMENDED to exclude
therefrom the area covered by previously located and registered patentable mining
claims as appearing in the sketch plan, likewise made integral part of this Order."
Against the BFD and the BMGS orders, Green Valley filed an appeal to the Ministry of Natural
Resources (MNR). LibLex
On July 23, 1981, the MNR held that since the cases involved the determination of the mining
rights of the parties concerned over the disputed area, the investigation and resolution of these
issues were within the original jurisdiction of the Bureau of Mines and Geo-Sciences. Accordingly, it
set aside the order of BFD dated June 5, 1981 and the order of BMGS dated June 11, 1981.
Unsatisfied, Green Valley filed an appeal with the Office of the President assailing MNR's
refusal to rule on the validity of the mining claims of Greenhills. It faults MNR for remanding the case
to the Bureau of Mines in deference to the latter's original jurisdiction to resolve and decide the
mining rights of the parties and to investigate and determine if there was any conflict or overlapping
over the parties' mining claims/permit.
On July 6, 1986, the Office of the President rendered the decision in question, the dispositive
portion of which
inter alia
read as follows:
"PREMISES CONSIDERED, the order of the Minister of Natural Resources dated July 23,
1981, is hereby affirmed.
"Further, all mining claims within the Southern Zambales Forest Reserve located and
registered by the Greenhills Mining Company in violation of section 28(c) of C.A. No.
137, as amended, are hereby declared null and void. The Green Valley Company is
given the preferential right to possess, exploit, explore, develop and operate the areas
within the Southern Zambales Forest Reserve covered by Exploration Permit No. 79
issued in its name on October 16, 1979.
A motion to reconsider the decision filed by Greenhills was denied on September 10, 1986.
Hence, the present petition.
Petitioner alleges that: (a) mining claims located under the Philippine Bill of 1902 which were
later on abandoned or forfeited by the original locators could be the subject of relocation by another
person; (b) the reservation of public lands such as the Southern Zambales Forest Reserve established

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SECOND DIVISION [G.R. No. 75962. June 30, 1988.] GREENHILLS MINING COMPANY, petitioner, vs. OFFICE OF THE PRESIDENT, MINISTER OF NATURAL RESOURCES, DIRECTOR OF THE BUREAU OF MINES AND THE GEO-SCIENCES, AND GREEN VALLEY COMPANY, respondents. Laurel Law Office for petitioner. Belo, Abiera and Associates and Eulogio R. Rodriguez for private respondent. DECISION YAP, J p: The instant petition seeks the review of (a) the decision dated July 8, 1986 issued by respondent Office of the President and signed by Deputy Executive Secretary Fulgencio S. Factoran, Jr., declaring all mining claims located and registered within the Southern Zambales Forest Reserve as null and void and granting private respondent Green Valley Company preferential right to possess, exploit, develop and operate the area covered by its exploration permit, and (b) the order dated September 10, 1986 denying petitioner's motion for reconsideration. The facts are as follows: The petition involves a conflict of Greenhills mining claims and the exploration permit of Green Valley over an area within the Southern Zambales Forest Reserve and within the same mineral land. Mining claims of different claimowners were previously located and registered with the office of the Mining Recorder at Iba, Zambales, in 1933 and 1934 under the provisions of the Philippine Bill of 1902. However, for failure to pursue their claims and to perform annual assessment works, the claims were considered abandoned. On January 18, 1956, then ...
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