Quarrying Rights: Local Permits Prevail Despite National Authorization

The Supreme Court has clarified a crucial point for businesses engaged in quarrying and mineral extraction: securing a permit from the national government does not automatically authorize operations within a local government's jurisdiction. In Province of Cagayan v. Lara (G.R. No. 188500, July 24, 2013), the Court ruled that a quarry operator must also comply with local ordinances and secure the necessary permits from the provincial governor before commencing operations. This decision underscores the complementary nature of national and local regulations in the mining sector and serves as a reminder that all legal requirements must be met to operate lawfully.

The Case: A Quarry Operator's Permit and a Stoppage Order

Joseph Lasam Lara obtained an Industrial Sand and Gravel Permit (ISAG Permit) from the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR), along with an Environmental Compliance Certificate (ECC). These documents authorized him to conduct quarrying operations in a 20-hectare area in Peñablanca, Cagayan.

When Lara attempted to pay the required extraction fees at the provincial treasurer's office, he was directed to secure an Order of Payment from the Environmental and Natural Resources Officer (ENRO). The ENRO, however, refused to issue the order. Lara's counsel eventually deposited the fee directly with the treasurer's office.

After Lara began his operations, the provincial governor issued a Stoppage Order. The order cited Lara's failure to secure a permit from the governor under Provincial Ordinance No. 2005-07 and his non-payment of the sand and gravel fee. Lara then filed a case for injunction to stop the enforcement of the Stoppage Order.

The Legal Question

The central issue was whether Lara, having secured a national permit from the MGB, still needed to obtain a permit from the provincial governor before starting his quarrying operations. The lower court had ruled in Lara's favor, holding that the ISAG Permit and ECC were sufficient authorization.

The Supreme Court's Ruling

The Supreme Court reversed the lower court's decision, ruling that the injunction was improperly issued. The Court emphasized that a writ of injunction requires the existence of a clear legal right to be protected. In this case, Lara did not have such a right because he had failed to comply with all the requirements for lawful quarrying.

The Court cited Section 138 of Republic Act No. 7160, the Local Government Code of 1991, which explicitly states that the permit to extract sand, gravel, and other quarry resources shall be issued exclusively by the provincial governor. This is subject to an ordinance of the Sangguniang Panlalawigan.

Furthermore, the Court noted that Cagayan's Provincial Ordinance No. 2005-07, Article H, Section 2H.04, mirrors this requirement. It states that no person shall extract quarry resources unless a permit has been issued by the Governor. Lara admittedly failed to secure this permit. Therefore, he had no legal right to conduct his operations and was not entitled to an injunction.

Practical Takeaways

• National permits are not enough. An ISAG Permit from the MGB or similar national authorization does not exempt a quarry operator from complying with local government requirements.
• The governor's permit is a prerequisite. Under the Local Government Code, the provincial governor is the exclusive authority to issue permits for sand, gravel, and other quarry resources.
• Local ordinances must be followed. Provinces and municipalities can enact ordinances regulating quarrying within their jurisdiction, and these must be observed.
• Injunctions require a clear right. A court will not issue an injunction to protect a right that is doubtful or disputed, especially when the applicant has not complied with all legal requirements.
• Seek full compliance before operations. To avoid costly stoppage orders and legal disputes, ensure all necessary permits and clearances from both national and local government units are secured before commencing any quarrying or extraction activity.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.