SPECIAL USES OF FOREST LANDS

Forester  AMIE A. TENORIO‐RABANG
Chief, Forest Land Use and Allocation Section
Forest Resources Management Division
 Outline of the Presentation
I – Legal Basis

II – Brief Description of Tenure Instruments for Special Uses of Forestlands

 Special Land Use Permits (SLUP)

 Forest Landuse Agreement (FLAg)
 Forest Landuse Agreement for Tourism Purposes (FLAgT)

III – Process Flow

IV – Sample computation of Annual Rental/Government Share and Performance Bond

 LEGAL BASIS
Article 12 (Sect. 2), 1987 Philippine Constitution

• All lands of the public domain, xxx, forests or timber,

wildlife, flora and fauna, and other natural resources are
owned by the State

• All natural resources shall not be alienated, except for

agricultural lands

• The exploration, development and utilization of natural

resources shall be under the full control and supervision of
the State.
 LEGAL BASIS
Article 12 (Sect. 2), 1987 Philippine Constitution

• The State may directly undertake such activities, or it may enter

into co-production, joint venture or production-sharing
agreements with Filipino citizens, or corporations or
associations at least 60% of whose capital is owned by such
citizens.

• Such agreements may be for a period not exceeding twenty-five

years, renewable for not more than twenty-five years, and under
such terms and conditions as may provided by law.
 LEGAL BASIS

Executive Order 192, series of 1987

• The Department, shall be the primary government agency

responsible for the conservation, management, protection, proper
use and sustainable development of the country’s environment
and natural resources...
 Tenure Instruments issued by the DENR
 Integrated Forest Management Agreement (IFMA)
 Socialized Industrial Forest Management Agreement (SIFMA)
 Forestland Grazing Management Agreement (FLGMA)
 Community-Based Forest Management Agreement (CBFMA)
 Special Land Use Permit/Lease (SLUP)
 Forest Landuse Agreement –Tourism (FLAgT)
 Forest Landuse Agreement (FLAg)
 Tree Farm Lease Agreement (TFLA)
 Agro-Forestry Farm Lease Agreement (AFFLA)
 Protected Area Community-Based Resources Management Agreement (PACBARMA)
 Special use Agreement within Protected Area (SAPA)
 Mineral Production Sharing Agreement (MPSA)
 LEGAL BASIS

Presidential Decree 705, Section 57.

Other Special Uses of Forest Lands - “Forest lands, may be

leased for a period not exceeding twenty-five (25) years, … for
the establishment of sawmills, lumber yards, timber depots … or
other beneficial purposes which do not in any way impair the forest
resources therein”.
 SPECIAL LAND USE PERMIT (SLUP)
a privilege granted by the State to a person to temporarily occupy, possess and
manage in consideration of specified return, any public forest lands for a
specific use or purpose.

“Bridging tenure for FLAg (conversion) should there be a need to

extend the period of the project ”

Legal Basis : DAO 2004-59 and DENR Memorandum Order 10 April 2006
Area : depends upon the area requirement of the project
Duration : 3 years to be converted to FLAg
should there be a need to extend its validity
Application Fee : Php. 500.00/ application
Approving authority : Regional Executive Director
 Related Policies and Issuances on SLUP

• DENR Memorandum No. 148 dated 10 April 2006

(25 Year Forestry Leases, Permits, Contracts and related Agreements)

• DENR Memorandum No. 447 dated 17 October 2013

(Suspension on processing and issuance of new and renewal of Special Land
Use Permits (SLUPs)

• DENR Memorandum No. 537 dated 29 Nov. 2013

(Lifting of suspension in the issuance of SLUPs including (OLPs)
 Related Policies and Issuances on SLUP

DENR Memorandum No. 118 dated 07 March 2013

(Processing of Special Land-use Permits with Tree Cutting/Earth-balling)

DAO No. 2009-16 dated 25 November 2009

(Non-issuance of SLUP for tourism purposes)

DENR Memorandum from the Undersecretary for Field Operations dated 16

May 2016
 Forest Landuse Agreement (FLAg)

• a contract between the government and a second party to temporarily occupy, manage
and develop in consideration of a government share, any forestland of the public
domain for specific use

• Legal basis : DAO 2004-59 dated August 31, 2004

• Area : depends upon the area requirement of the project
• Duration : 25 years renewable for another 25 years
• Application Fee : Php. 500.00/application
• Approving Authority : Undersecretary for Field Operations
 Forest Landuse Agreement (FLAg)
Government Share/Annual Rental : at least five percent (5%) of the most recent
zonal value of the nearest commercial zone of
the barangay/municipality/city or province,
whichever is higher.

 For energy projects : Php. 3,000.00 per hectare and a fraction thereof, to be
increased cumulatively by 10% every year

Performance Bond : Twice the annual rental or government share, as the case maybe, but not
less than Php. 10,000.00

Required Plan : 25 year Comprehensive Development and Management Plan (CDMP)

 Forest Landuse Agreement (FLAg)
Legal Uses of Forest lands
1. Bodega/Warehouse 11. Lumberyard
2. Drydock site/shipbuilding 12. Mineral storage/Crushing Site
3. Industrial Processing Site 13. Mining Waste Disposal Site
4. Herbal/Medicinal Plantation 14. Motor Pool Site
5. Nipa plantation 15. Plant Nursery Site
6. Fish Drying site 16. Power Station Site
7. Other Lawful Purposes 17. Right-of-Way
8. Communication Station Site 18. School Site
9. Landing Site (air strip) 19. Water Reservoir or Impounding
10. Log Pond/ Log Depot Site Dam
 SLUPs/OLP permits issued by the Regional Offices
Landing site (boat, plane, etc) Machine shop and junk yard
Bodega/warehouse Ore crushing site
Aviation Fuel Depot Pipe line corridor
Dry-dock site Piggery and poultry
Culture Site (seaweeds, crab, shrimps, etc.) Summer resort site
Mill site (copper, iron, etc.) Shipbuilding site
Coal depot site School Site
Store site Recreation and complex site
Commercial center Well pad site
Duck raising site Market Site
Gas station site Sanitary landfill/Dump site
Transportation terminal site Botika
Fish drying site Temporary facility site
Veneer plant site Hybrid Goat Breeding Site
Mini golf site Agriculture Farm Shop
Motor pool Site Floating restaurant
Cell site Camp site
Training center
 Forest Landuse Agreement for Tourism (FLAgT)

a contract between the government and a second party to temporarily occupy, manage
and develop in consideration of a government share, any forestland of the public
domain for tourism purposes

Legal basis : DAO No. 2004-28 dated August 25, 2004

DAO 2009-16 dated. Nov. 25, 2009
DMO 2011-02 dated. March 15, 2011
Area : depends upon the area requirement of the project
Duration : 25 years renewable for another 25 years
Application Fee : Php. 500.00/application
Approving Authority : Undersecretary for Field Operations
 Forest Landuse Agreement for Tourism (FLAgT)

• Bathing establishment
• Camp site
• Ecotourism
• Hotel site (inclusive of related resort facilities)
• Other tourism purposes
 Related Policy and issuances
Memo dated May 16, 2017

• Clarification of Existing guidelines relative to the issues and concerns raised during the series
of workshops on forest tenure and permit re-orientation per DENR SO 2016-263

• Clarification on the computation of performance bond for FLAG and SLUP

• Clarification on the conduct of appraisal on the value of the land and the improvements
introduced thereon under lease agreement or permit vis-à-vis the specific guidelines on Annual
Rental/Government Share Generation.

• Clarification on the implementation of projects of national interest or public utilities within

areas covered with CBFMA vis-à-vis the issuance of waiver of rights of the tenure holder for
the purpose
 Related Policy and issuances
Memo dated June 06, 2017

• Clarification on the inability of the applicants of FLAgT to submit promptly the TDP
prepared by the LGU and duly approved by DOT

• Clarification on the validity of FAO 8-3 dated 1 July 1941 as reference in the issuance of
permit or agreement for the Special use of forest lands vis-à-vis the existence of DAO No.
2004-28 dated 25 Aug. 2004 and DAO No. 2004-59 dated 31 Aug. 2004 which governs the
special uses of forest lands.

• Inclusion of planted CBFM area under the NGP in the community resource management
framework

Memo dated June 28, 2017

 Composition of the committee that will facilitate the review of the comprehensive
development and management plans for FLAG and FLAGT
PROCESS FLOW
 CENRO
PROCEDURES DOCUMENTARY REQUIREMENTS
• Accepts and reviews application and checks • Duly accomplished application form & other
completeness of the documentary requirements relevant documents

• Checklist of Requirements (SLUP/FLAg/FLAgT)

• Conducts field investigation depending on the • Report on the result of the field work
extent of the area

• Conducts timber inventory on the areas with • Inventory return and report duly sworn and
timber stand where structures or facilities will be subscribed
constructed or established.

• Prepares map after completion of field work • Geographically referenced map/s in print and
shapefile format
• Endorses application and requirements to PENRO. • Duly accomplished application form and
documentary requirements
 PENRO

PROCEDURES DOCUMENTARY REQUIREMENTS

 Reviews and evaluates the application and • Duly accomplished application form & relevant
documentary requirements together with the documents
report of the CENRO.

 Endorses application to Office of the Regional  Duly accomplished application form and
Director documentary requirements
 RENRO

PROCEDURES DOCUMENTARY REQUIREMENTS

 Reviews the application and the requirements  Duly accomplished application form and
including the field report documentary requirements

 A Committee composed mainly of technical staff • CDMP approved by the RED

of the FMS reviews/deliberates the CDMP
submitted by the FLAg holder three (3) months
after the FLAg issuance
 Requires the applicant to submit CDMP prior to  CDMP
endorsement of their FLAgT applications to FMB
and OSEC.
 Endorses the application to the Office of the  Duly accomplished application form and
Secretary thru OUFO documentary requirements
 Approves the SLUP
 FMB

PROCEDURES DOCUMENTARY REQUIREMENTS

 Reviews the application and the documentary  Duly accomplished application form and
requirements submitted by the RENRO duly documentary requirements
referred by the OUFO.
 Submits to the OUFO the result of the evaluation  List of lacking requirements
and recommendation for the RENRO to facilitate
the compliance with of the applicant on the
perceived deficiencies in the application.
 Prepares Final map  Geographically referenced map
 Endorses application and the draft Agreement to  CSW report, application, documentary
the Secretary thru the Undersecretary for Field requirements and draft FLAg/FLAgT
Operations.
 Releases the Agreement approved by the  Duly signed, subscribed and sworn FLAg/FLAgT
Secretary or his authorized representative.
 OASB/OAFO
PROCEDURES DOCUMENTARY REQUIREMENTS

 Reviews application and documentary  Application and documentary requirements

requirements submitted by the RENRO.
 Refers the submitted application and  Application and documentary requirements
documentary requirements to the FMB for
appropriate action.
 Reviews the application, documentary  CSW report, application, documentary
requirements, CSW report, map and draft requirements, map and draft FLAG/FLAgT
FLAg/FLAgT endorsed by FMB and
submits to the Office of the Secretary.
 Prepares final FLAg/FLAgT and submits the  Final FLAg/FLAgT
same to the Office of the Secretary including
the application and CSW report
 OUFO

PROCEDURES DOCUMENTARY REQUIREMENTS

 Reviews the application, CSW report, map  Application, CSW report, map and the final
and the final FLAg / FLAgT endorsed by FLAg / FLAgT
the OUFO.
 Approves and returns the approved FLAg /  Approved FLAg / FLAgT
FLAgT to FMB for numbering and/or
release.
Sample Photos
 Geothermal Power Plant Site
Energy Development Corporation
Valencia, Negros Oriental

Wind Energy Development Project

EDC/ Northern Luzon UPC Asia Corp.
Ilocos Norte
OLP 174 - EDC Well Pad Site and Well Head for Geothermal Steam Production
Valencia, Negros Oriental

EDC- OLP for Geothermal Pipelines that crosses the Okoy River from Well Pad Site
to Sogongon Power Plant Complex
Valencia, Negros Oriental
 Geothermal Power Plant Site
Energy Development Corporation
Valencia, Negros Oriental

Front, perspective and interior views of OLP No. 009 Warehouse

Apo Cement Corporation Naga City, Cebu

Hull Factory Building and Slipway of OLP No.018, K&A Metal Industries, Inc.
Balamban, Cebu
 Geothermal Power Plant Site
Energy Development Corporation
Valencia, Negros Oriental

OLP No. 12 - Dry Dock and Shipyard

Colorado Shipyard and Shipbuilding Corporation
Consolacion, Cebu
FLAg-Geothermal Power Plant Site
Energy Development Corporation (EDC)
Valencia, Negros Oriental
OLP – Transmission Line (Right-of-way)
National Grid Corporation of the Philippines (NGCP)
OLP No. 10 Light House, Dry Dock, and Shipyard
L’Nor Marine Services, Inc.
Liloan, Cebu
Bathing Establishment
Benthel Development Corp.
Cordova Cebu
 Geothermal Power Plant Site
Energy Development Corporation
Valencia, Negros Oriental

Bathing Establishment Lease Agreement No. – 0008

Euro Asia Holiday Resort Corp.
Zaragoza Island, Badian, Cebu
 Sample Computation of Performance Bond
Consistent with the provisions of DAO No. 2004-16 dated 15 June 2004

Item C (10). Special Use Permits and Leases

States that performance bond is twice the annual rental or user fee, as the case maybe, but not less than
PhP10,000.00. Provided that 50% of the computed bond deposit shall be posted in cash and the balance in the
form of surety bond with a duration of five (5) years renewable every five (5) years in case of a lease or
management agreement or coterminous to a permit. Provided, further, that the face value of the surety bond shall
be increased by 25%.

Item E (4). Rental/Government Share/User Fee for Special Use of Forestland for Energy Project

The required amount is Php. 3,000.00 per hectare and fraction thereof and to be increased
cumulatively by 10% every year.
 Sample Computation of Annual Rental and Performance Bond for
Energy Projects
Given:

Tenured Area = 56 hectares

Annual Rental / Government Share = Php. 3,000.00/hectare

Annual Rental is computed as follows:

AR = 56 hectares x Php. 3,000.00 = Php. 168,000.00

Performance Bond is twice the annual rental which is equals to Php. 336,000.00

PB = Php. 168,000 x 2 = Php. 336,000.00

 Example of computation for the adjusted annual rental
In 2013, the AR is Php. 168,000.00 and a 10% increase on the AR was incurred which is
equals to Php. 16,800.00 Hence, the annual rental for year 2014 will be Php. 184,000.00,
computed as follows:

Php. 168,000.00 (AR for 2013)

+ Php. 16,800.00 (10% increase in AR for 2014)
Php. 184,800.00 (AR for 2014)
 Example of computation for the adjusted annual rental

For 2015, the AR is Php. 203,280.00 which is computed as follows:

Php. 184,800.00 (AR for 2014)

+ Php. 18,480.00 (10% increase in AR for 2014)
Php.203,280.00 (AR for 2015)
MARAMING SALAMAT PO!