Cruz and Europa v. Secretary of Environment and Natural Resources

conservation measures, pursuant to national and customary laws; to an informed and intelligent participation in the formulation and implementation of any project, government or private, that will affect or impact upon the ancestral domains and to receive just and fair compensation for any damages which they may sustain as a result of the project, and the right to effective measures by the government to prevent any interference with, alienation and encroachment of these rights." It must be noted that the right to negotiate terms and conditions granted under Section 7(b) pertains only to the exploration of natural resources. The term "exploration" refers only to the search or prospecting of mineral resources, or any other means for the purpose of determining the existence and the feasibility of mining them for profit.[155] The exploration, which is merely a preliminary activity, cannot be equated with the entire process of "exploration, development and utilization" of natural resources which under the Constitution belong to the State. Section 57, on the other hand, grants the indigenous peoples "priority rights" in the utilization of natural resources and not absolute ownership thereof. Priority rights does not mean exclusive rights. What is granted is merely the right of preference or first consideration in the award of privileges provided by existing laws and regulations, with due regard to the needs and welfare of indigenous peoples living in the area. There is nothing in the assailed law which implies an automatic or mechanical character in the grant of concessions. Nor does the law negate the exercise of sound discretion by government entities. Several factors still have to be considered. For example, the extent and nature of utilization and the consequent impact on the environment and on the indigenous peoples' way of life are important considerations. Moreover, the indigenous peoples must show that they live in the area and that they are in the best position to undertake the required utilization. It must be emphasized that the grant of said priority rights to indigenous peoples is not a blanket authority to disregard pertinent laws and regulations. The utilization of said natural resources is always subject to compliance by the indigenous peoples with existing laws, such as R.A. 7076 and R.A. 7942 since it is not they but the State, which owns these resources. It also bears stressing that the grant of priority rights does not preclude the State from undertaking activities, or entering into co-production, joint venture or production-sharing agreements with private entities, to utilize the natural resources which may be located within the ancestral domains. There is no intention, as between the State and the indigenous peoples, to create a hierarchy of values; rather, the object is to balance the interests of the State for national development and those of the indigenous peoples. Neither does the grant of priority rights to the indigenous peoples exclude non-indigenous peoples from undertaking the same activities within the ancestral domains upon authority granted by the proper governmental agency. To do so would unduly limit the ownership rights of the State over the natural resources. To be sure, the act of the State of giving preferential right to a particular sector in the utilization of natural resources is nothing new. As previously mentioned, Section 7, Article XIII of the Constitution mandates the protection by the State of "the rights of subsistence fishermen, especially of local communities, to the preferential use of communal marine and fishing resources, both inland and offshore." Section 57 further recognizes the possibility that the exploration and exploitation of natural resources within the ancestral domains may disrupt the natural environment as well as the traditional activities of the indigenous peoples therein. Hence, the need for the prior informed consent of the indigenous peoples before any search for or utilization of the natural resources within their ancestral domains is undertaken. In a situation where the State intends to directly or indirectly undertake such activities, IPRA requires that the prior informed consent of the indigenous peoples be obtained. The State must, as a matter of policy and law, consult the indigenous peoples in accordance with the intent of the framers of the Constitution that national development policies and programs should involve a systematic consultation to balance local needs as well as