CASE DIGEST
REPUBLIC VS. PROVINCIAL
GOVERNMENT OF PALAWAN
G.R. No. 170867 &
186941, December 04, 2018
EN BANC, LEONEN, J.
National Territory; Natural
Resources belongs to the State
Province of Palawan not entitled in the
proceeds of Camago-Malampaya natural gas project as natural resources belongs to
the State. Sovereignty over the waters between and surrounding the archipelago,
pertains to the coastal state, and not to the LGUs.
The national government entered a
contract with a certain company. The contract entails the use of natural
resources in Camago-Malampaya area which is approximately near the Municipality
of Kalayaan, Palawan Province. It argued that since the reservoir is located
within its territorial jurisdiction, it is entitled to said share under Section
290 of the Local Government Code. The National Government disputed the claim,
arguing that since the gas fields were approximately 80 k.ms from Palawan's
coastline, they are outside the territorial jurisdiction of the province and is
within the national territory of the Philippines.
Is the reservoir within the territorial
jurisdiction of Palawan so that it is entitled to 40% share of the proceeds?
NO. The
Supreme Court ruled that Palawan was not entitled to share in the proceeds of
the Camago-Malampaya natural gas project.
The SC held that there was no debate
that the natural resource in the Camago-Malampaya reservoir belongs to the
State under the Regalian Doctrine, noting that Palawan’s claim is anchored not
on ownership of the reservoir but on a revenue-sharing scheme, under Section 7,
Article X of the 1986 Constitution and Section 290 of the LGC, that allows
local government units (LGUs) to share in the proceeds of the utilization of
national wealth provided they are found within their respective areas.
Territorial jurisdiction is defined,
not by the local government, but by the law that creates it; it is delimited,
not by the extent of the LGU's exercise of authority, but by physical boundaries
as fixed in its charter. The Court, however, found that existing laws do not
include the Camago-Malampaya reservoir within the area or territorial
jurisdiction of the Province of Palawan. It stressed that “As defined in its
organic law, the province of Palawan comprises merely of islands. The
continental shelf, where the Camago-Malamapaya reservoir is located, was
clearly not included in its territory.
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