DENR Administrative Order No. 01 of 1989: Revised Industrial Tree Plantations Regulations

),f,\RCH 6, 1~S9 OFFICIAL GAZETTE 1968--43 I fl'lGA KAUTUSANG PAMPANGASIWAAN AT ALITtJNTUNIN NG I fi'iGA KAGAWARAN. KAWANlHAN AT TANGGAPAN (DEPARTMENT, BUREAU AND OFFICE ADMINISTRATIVE ORDERS AND REGULATIONS) 1--. Kagawaran r.g Kapalijiran at Kalikasan (DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES) DEPAP..TnIENT OF ENVIROKMENT AND AND NATURAL RESOURCES DEKP.. Am.UNI3TRATIVE ORDER xo, 01 Series of 1989 SUBJECT: REVISED P..EGULATIOXS A~D GUIDELIKES GOVERNING TH~ ESTABLISEl'!ENT AND DEVELOP MENT OF INDUSTRIAL TREE PLANTATIO~S Pursuant to PD 705, as amended by PD 1559, and Executive Order No. 725 dated September 1, 1981, and in line with the policy of Government of ensuring the sustainable productivity of forest lands, and in recogni tion of its role as a tool to economic recovery and national security, the following regula tions and guidelines governing the establish ment and development of Industrial Tree Plantations (lTP) are hereby promulgated: CHAPTER I-TITLE, POLICIES, OBJEC TIVES, AND DEFINITION OF TEnMS SECTION 1. Title.-This Administrative Order shall be .known as the "Revised In dustrial Tree Plantations Regulations". SEC. 2. Policies and Obiectives.-The po licies and objectives of Government on the establishment and development of industrial tree plantations shall be: 2.1 To accelerate revegetation of tqe coun try's open, denuded, brushland and in adequately stocked areas in order to supply the raw material requirements of wood-based and related Industrtes and energy-generating faeilities; 2.2 To provide incentives to interested and deserving applicants for the estab lishment and development of industria! tree plantations; and 2.3 To improve and maintain a desirable forest ecosystem. SEC. 3. Definition of Terms. The following terms are to be understood or interpreted as they are hereunder defined: a. Industrial Tree Plantation (ITP) refers to any tract of forestland planted to tree crops primarily to supply the raw material requirements of existing or proposed wood processing and energy-generating plants, and related industries. b. Lease-is a privilege granted by the State to a person to occupy and possess in consideration of a specified rental, any forest land of the public domain in order to undertake any authorized activity therein. c. Secretary-refers to the Secretary of DENR. d. Undersecretary-refers to the Under secretary for Field Operations of DENR e. Regional Executive DirectOr-refers to the Regional. Executive. Directors (RED) . of the 13 Regional Offices of the DENR and theCordillera Adminis trative Region. f. PENRO-,refers to the Provincial En vironment and Natural Resources Of fice g. CENRO-refersto the Community En viron·ment ·AIld. Na~a].tResourceBOf­ fiee. 1:J\;3-1-1 OFFICIAL GAZETTE VOL. 85, No. 10 ---------------,. ---- -------- . h. Open Lcnii-i-reie:» to bare or grass covered tracts of forestlands to devoid of trees. 'I. Denuded l(~'J1(~rcfers to forestland that lias been depleted of its natural forest cover due to the activities of men, fire or other natural causes. i. Er:-.::..:hhmd-rcfers to forest land which is covered with brush. k, Lnades;': ... tdj siocl:.cc-shnll refer to forestlands with an existing stand of timber ccntaining an average per hec t..i:"e cf less th.n: 20 trees of diptcrocarp and endangered species with a dia meter breast height (dbh) of not more than 20 centimeters. l. Premin.n :::!,c,:;:·r:.<;-,m:c tree species the wood of which has some special charac tcr istics such as strength or durability, h~:lnty. scarcity cr rarity, or is used for special purposes, as contained in the list of such premium tree species which shan be prepared by Forest Manage ment Bureau (FMB) from' time to time. m. Eruuuutcrcd tree s'Pc~ics-tree species that are rare, scarce, or nearing extinc tion. n. Fastqroiciru: species-are tree species that grow relatively faster than com mon forest tree and whose rotation age is 4 to 20 years with a mean annual increment of at least. ten (10) cubic meters per hectare unaer favorable site conditions. CHAPTER .11 SEC. 4. Forestlands Available for ITP and Disposition. for P14ntation. De1Je1J:rpment. . \.. . The following' forestland areas are avail able for the industrial tree plantation devel opment, a. Bare, open denuded or grass-covered . tracts of forest lands, brushlands and/ or inadequately-stocked areas within or o~]bfd~ timbct' eeneesslons. .' o. Portion and/or areas covered by pasture leases or permits needing immediate reforestation. c. Government reforestation projects or porfions thereof found to be more suit able for or can be better developed as industr-ial tree plantation in terms of .benefits to the government and to the surrounding community. SEC. 5. Areas not Available [or Industrial Tree Plcniaticn Dcvclonment-: The following areas may be the subject of rTP as said areas nrc to be forested by the government through contractual refcresta tion ns wen as by holders of timber license agreernents (TLA) in pursuance of their ob ligation to reforest. a. Denuded inadequately-timbered areas 'proclaimed by the President as civil reservations, military reservations, watershed forest reservations, critical watersheds. national parks, game re ftH~'e and birds sanctuaries, national shrines. and national historic sites. b. Adequately-stod:€d logged-over creas, c. 'All open. denuded and brushland areas within forest concessions to be re forested by the concessionaires. d. Wilderness areas and .greenbelts with in concession designated in accorrlance with LOI 917 ad 917-A. SEC. 6. Size of the A7'ca. The maximum area that granted for ITP shall be the area that can be developed with.. in five (5) years by the lessee, but not to exceed 20,000 hectares, PROVIDED, however, that the foregoing limitations shall not pre clude the granting of additional areas on a case to case basis depending upon the excel lent performance of the lessee determined through evaluation of. the accomplishment thereof.' ,. . SEC. 7. Identification and Delimitation of PotentialITP A,·eas. The DENR shall identify, with the aid of ,the 13.te~ forest 1"eso'Cr~'3!l conditilJe1 maps, OfFICIAL GAZETTE ,1968-45 SEC. 8.. 1ilo(:(: 0/ 1);sJ.lo.')Ftj'h·'~ o] ...4 inilable Arcus. The application shall be filed in the pres cribed f.J1'111 hs!·,::-to attnched as Annex "A" at the Office of the CENRO concerned and shall be accompanied, by the following pre liminary requirements : ' The area ava ~!~lb}c 1.'01' lL"'P development shall be [;l'3"l,cd to ~:Ja;ificd "LPi~Ecants through ail r' ';; L::,.",,~ which shall have a term of twer.ry i:"':)" j2::41'S which shall be r.utomatically {',:, ed at the option of the lessee for a:1Jthcl' twenty five (25) years, F~WViDE:J, that the terms of the ITP !e2.se shall be subject to futur:: Comg;:{";'2;ora: action on production-sharing scheme in ac cordance with the New Constitution. e. If the applicant is ~ corporation, three (3) copies of the minutes of the meet ing' of the Board of Directors indicat ing- the present Officers and Stock holders, Articles of Incorporation and By-Laws, and financial statement for the proceeding )"<;;:1', if the applicant is u.!.rea1-!J in existence at the time and, stating the authority of the officers 10 file tl-~ application in behalf of the cor pcrntion. f. If the applicant uses a name, style, or trade name other than j+s true name, th ree (3) copies of the CSl'tificateof Rezistration r-f such name style or trade name with the Bureau cf Dom estic Trade. certified by "~l :-:'.1'::-.oi'ized officer of said Bureau. (J. Indicative development plan, the out En2 cf ,.,1-,:"h 1" hereto attached as Annex ":0". SEC. 10. Qualification of Applicants. Any Filipino citizen who is at least twenty-one (21) years of age.. corporation, partnership or association or cooperatives registered under Philipnine laws, at least sixty percent (60%) of the capitai of which is owned or controlled by Filipino citizens, may file an application for Industria! Tree Plantation. a. Non-refundable filing fee of r'O.50 per SEC. 11. Formation of new corporations hectare or a fraction thereof. [or tree plantation developments--Fo» the b. If applicant is a government official or establishment. development and operation of employee, 'whether in career or non- the ITP, a timber license holder may' form career service, written permission from a new corporation as the major stockholder the Department head or head of agency with other investors. The timber license concerned. holder shall warrant the development and im c. If the applicant is a married woman, plementation of the ITP in ac~ordance v~ith the written consent of her husband. the provisions of the ITP Lease Agreement. d. If the applicant is naturalized Filipino Should thenew coroporation fail tocarry out citizen, a copy of his/her Certificate of the development of such plantation within Naturalization certified by ,the 'Clerk the period specified in sucbagreemenjv.the of Court of the Court of First Instance, . 'lease, agreement shall be' cancelled. ' that issued the same, and a certification SEG. 12. When appZication: 1'S considered by the Office of the Solicitor General filed. that he has not filed application for his' An apnlication is considered flied on the denaturalization, or any action that date of receipt of all the application require may affect his citizenship. merits called for under Sec., 9 of this Order. aerial photographs, satellite imageries and/ or other apP~'cpl'ja~'~' technical d:11a and rc fercEcc, Iancls of Hie public domain, the uio phys ical features of which indicates the [~asibility of establishing an Industrial Tree p1:lntation. Areas so idcntfied shall be delimited on a map of C02l';::;n icn t scale as oasis in deter mining the rclr.tivo locnticn and extent r-f the areas that maybe made avaiiable for ITP. 1%s-16 OFFICIAL GAZETTE VOL. 85, No. 10 SEC. 13. Processing of Applications.s-: (t. In the CENr..O C8ce--Gpon receipt of the application, the C~NIW shall have the area inspected by at least a For ester in the presence of the applicant or his repr-esentative. The inspecting Forest Officer-shall within 30 days submit his report showing, the follow ing: 1. Conformity with the guidelines for availability of the area set forth in Section 4 of this Order. 2. Sketch of the area indicating- the loca tion, boundary, extent, vegeta tive condition, present land usc, cc cupancy, description of adjacent areas and other relevant informa tion. 3. Suitability of the area for the pur pose taking into account the vegeta tion in and around the area applied for, site indicators within the area, climatic conditions and products. 4. Remarks /recommendations. The CENr..O shall immediately evaluate the report and if found in order, pre pare the indorsement and forward all papers to the PENRO with his recorn mendations within fifteen (15) days from submission of the report of the Inspecting Forest Officers. b. In the P:3NRO-Upon receipt of the application and all pertinent docu .ments, the PENRO shall have the docu ments evaluated and if found in order, prepare indorsement to the Regional Executive Director (RED) thru the Reg-ional Technical Director (RTD) for Forestry within fifteen (15) days from receipt of the report. c. In the DENR Regional Office-In the Regional Office, the Regional Technical Director (RTD) shall have the docu merits evaluated and if found in order, prepare the lease agreement in accord ::1.I1.('e with the ITP Lease Agreement, format hereto attached as Annex "C" and forward all papers to the r..ED with his recommendation. The RED rc views and approves the lease agreement if area is below three hundred (300) hectares, otherwise forwards same to DENR. for consideration. d. In the D2NI~ Office-Approval of lease agreement at the D:i::': R Cfi:-.:e shall be made by DENR Officials as follows: 300-500 hectares Asst. Secretary for Operations 501-75;) hectares USEC for Field Operations over 75:) hectares .... Secretary SEC. 14. Management and Decclopmeni: Plan-Th~ lessee shall within twelve (12) months from the issuance of the ITP lease, submit to the Secretary a twenty-five (25) years comprehensive development and rna nagemcnt plan following the outline provid ed for the purpose (Annex "D"). CHAPTER III GOVEr..N1\1:ENT INCENTIVES SEC. 15. Nominal Piling Fee.-A nominal filing fee of only fifty centavos (1'.50) pel' hectare shall accompany any application filed for ITP Lease. SEC. 16. Reduced Paymwt oj Forest Charges and Land RentaIs.-The Lessee shall pay only 25% of regular forest charges due on timber from rTP in accordance with P.D. 705, as amended. The government in centive on land rentals forI'l'P development shall be in accordance with the provisions ofSec, 36 of P.D. 705, as amended. SEC. 17. Reduced Specific Tax-The speci fic tax payable by a lessee on the trees- and other forest products grown and cut or gathered in an ITP shall only be 25% on the regular specific tax prescribed in the Na tional Internal Revenue Code. SEC. 18. Exem-ption. from payment of cer tain IntemalRevenue Taxeso-Timber and other forest nrcdpcts planted and grown in ITP areas bartered or exchanged by the 11ARCH 6, 1989 OFFICIAL GAZETTE 1968-47 leaee holder, in their original state shall be exempted from the payment of value added tax p~.lr3u:;mt to E:~ecutive Order (E.O) No. 273, Series of 1987. The lease holder shu ll, likewise, not be subject to any obligation prescribed in, or arising Gut of.. t! ie prov is!OI1S of the National Internal Revenue Corle on withholding tax not source upcn interest paid on borrowings incurred for development and operation of . the Industrial Tree Platation, S:::::. 19. !nt:!r;~it!: of ;]oU:",dr1.1·V c·!d S~:r..~1~S of Arca.-The boundaries and legal status of the area covered by an ITP once established shall not be altered or modified. SE;. ~f). Pkmtation. devclopmen: c.~:;~n­ see, tax deductible-:«...'\mount expended Ly a lessee in the establishment, development, and operations of an ITP prior to the time when the production state is reached may, at the option of the lessee, be regarded as ordinary and necessary business or as capital expend itures and, therefore, tax deductible. SEC. 21. Credit A...,.~istance.-Holders of ITP Lease Agreeme~1t may apply with the Development Bank of the Philippines, the Central Bank and other sc....ernment and pri vate financing institutions for assistance in obtaining long term and low interest loans; P;?,OVIDED. that the lessee may assign the Lease Agreement as a collateral for loans which may have been granted or guaranteed by such government and private financial institutions. However, the leasehold rights should be subject to the approval of the Secretary. . SEC. 22 Otlfer Ince-n.tives.-Applicants for ITP Leases shall not be required to post forestry bond or to the payment of inspec tion fees. Thev shall be entitled to other incentives provided for under thE" Omnibus Investment Code of .1987, All other applic nb'e incentives enumerated under Sec. sser P.l), 705. as amended, shall apply to ITP Lease holders. SEC. 23. Ownership of Plantation Prod 'If.cts.-Trees and other products planted and grown under en ITP Lease Agreement belong to the lessee who shall have the right to sell, conveyor dispose of said planted trees and other products. SEC. 24. EXP01-t of Logs Harvested [rom ITP.-Trees grown and harvested from ITPs maybe exported as logs, poles, piles, billets or in any form, without restriction in quantity or volume. SEC. 25. Entitlement. to Fair Commensa ti011.-Upon the ezpiration of the ITP Lease Agreement, or on its termination when pub lic interest demands.. all permanent improve ments b the nrea shallba retained in the area but the !,=SSEE shall be entitled to fair compensation for such permanent improve ments the amount of which shall be mutual ly agreed upon by both the DENR and the Lessee. SEC. 26. Developmenni Requiremcnis in ITP .Leases-Development and establish ment of plantations shall.have a definite pro gram and schedule to be embodied in an in dustrial tree plantation development and ma nagement plan which shall, among others, provide for development of at least thirty percent (30%) of the area within three (3) years and 100% of the area within five (5) years and after the lease is granted. Inter planting of cash crops may be allowed in new plantation areas; PROVIDED, that planting therein will not be detrimental to the soil and water of the land and shall..instead enrich. the soil with nitrogen-fixing bacteria or any soil conditioning elements in preparation for tree planting. CHAPTER IV-GENERAL PROVISIONS SEC. 27. },[oniwrjng· a.nd;;· Control.-The followinr- shatlbeadcptedtoprovlde 'an ef ~ective monitoringjand .~ontrol system for the development and operation of ITPs; ·a. The ITP lease. "holder"shall' submit to the CENRO'3o quarterly report on the development of the ITP. b. The CENRO Sh31I submit through the PENRO and the DENR Regional Office 19G8-4S OFFICIAL GAZETTE VOL. 85, No. 10 a quarterly report on the status of tree plantation development within the its jurisdiction and copy furnish the Central Of.ice. c. The DENll Regional Office shall within thirty (30) days after submission of report from the CE!\r:.O prepare a sum marized report to 05cQ of the Secretary which in turn shall maintain a nation wide status chart of ITP activities. d. Existing IT? Leases shall be evaluated within six (6) months from the is suance of this Order and those which have not complied with the terms and conditions of the lc~.:-·~ shall be cancelled and the 411'2:1., if still suitable for rTP, shall be opened to qualified applicants. Sse. 28. Grounds f01· the Ccncellation of Leace.:-:The Sccrct-ry upon the rccornmen dation of the Rezioaal Executive Director may cancel or sus;;nd IT? leases, depending on the gravity of the offense or the adverse efiect on the management of forest land and resources based on any of the following grounds. 1. If the privilege was obtained through fraud, misrcpresentution or omission of material facts existing at the time of the filing of the applications : 2. Failure of a privilege holder to pay and/or settle any .forestry aCCOT.!:lt, such as, rental, forest charges, ~'.I1d per mit fees, when they become due, or violation of any of the, provisions of the National Internal Revenue Code relating to forest products. 3. Violation of any of the terms and condi tions of, or failure 'to comply with or perform the obligations imposed in the lease agreement, lease, license, permit, or contract, or pertinent laws, or poli cies affecting the exercise of the privi lege rrranted therein. or any of the provisions of this Order; 4. Conducting an operation in violation of the prescribed management or opera tion plan, or beyond the area covered by the privilege; G. Failure to provide the necessary protec tion, management and development over tile forest land or area covered by the privilege granted in his favor; 6. Abandonment of the area or failure to exercise the privilege granted within the prescribed period. or, if not pres cribed, within four (4) months from the issuance of the license agreement, license, lease or permit; or SEC. 29. Luciusion of Adcquatelq-Stocked LO:J!J~'d-C1/Pl' ArcC's in ITP Lcasc.-Adcqu ately stocked logged-over areas within timber concessions shall not he made available for ITP development, However, in extreme cases where the inclusion ofsuch areas will promote cout iguity to the adjoining open arid inadequately stocked logged-over areas, the same may be allowed; PR')VIDED, such areas will not exceed thirty percent (305'0) of tho ITP lease. SE~. 30. Rcgz~!atio';UJ O~l, C1.~tting Natural ly Grcuni Trees uiiihin. the IT? Lcase.-Thc Lessee may, in consonance with the approved ITP development and management plan, be allowed to cut and utilize naturally grown, mature, overrnature and defective trees in side adequately-stocked portions of the area covered by the lease areas subject to the con dition that at least twenty percent (207(» of such a1'2<1. shall be preserved for biological diversity. In other areas of the ITP lease, any nat urally grown standing tree may be cut sub ject to the following conditions: 1. The cutting and extraction of timber found therein' shall be in accordance with the timetable provided in the ap proved management/development plan. 2. Provided further, that no cutting shall be done within forty (40) meters of both sides of river banks, Enrichment planting shall be required of the ITP holder in these areas. MAlu...-n 6, 1989 orricr.u. GAZETTE 1968-49 SEC. 31. 'Repcalirl,f! CIa lI.SC.-This Orde~ edes '1\'1 "0 4 and 5 series of 1932 anasupers J,~ ~~ ,.' • all forestry regulatIOns, ~lemo:anda,. Cll' I rs and other instructions inconsistenteu a , herewith. SEC. 32. Effcctfvity,-This Order shall effect fifteen (15) days from the date of its publication in the Offic}Cll G~zette or in a newspaper of general circulation. (Sgd.) FULGENCIO S. FACTOI~.\N, JR. Secretary ANNEX "A" APPLICATION FOR INDUSTRIAL TREE PLANTATION LEASE ApPLICATION No. The Secretary Department of Environment and Natural Resources Visayas Avenue, Dillman, Quezon City Sir: In consonance with the provisions of P.D. No. 705, as amended by P.D. 1559, and Exe cutive Order No. 725 dated September 9, 1981. I/we hereby apply for an Industrial Tree Plantation Lease, the particulars of which are as follows: Area [: Location '. Province Municipality/City Barrio Sitio Boundaries : N: E: S: W: 032488 L/we understand that the filing of this application does not convey the right to en. tel', occupy or develop the area applied for until a lease has been issued to me/us by the Secretary of Environment and Natural Resources or his duly authorized- represen tative. L/we understand that' the cutting and /01' gathering of naturally grown trees wi thin the area is not allowed unless a per mit is obtained from the Secretary, DENR. The required application fee of P , which is NOT refundable is herewith enclosed. Very truly yours, (Applicant) A..~NEX "B" OUTLINE OF INDICATIVE ITF. . DEVELOP:\IENT/MANAGEMENT PLAN 1. Introduction II. Development Objectives A.' General B. Specific' III. Resources Data IV. Plan of Development-,..' .:. A. Forest -Surveys 1.,Boundary. survey, and delimita tions ~. . ,'. :'" .. 2. Timber and other forest products . inventory , B. Infrastructure Development 1. Access roads ~ .. ., . 2. Office mid Employee.quarters 3. Water system C. Nursery Development Program ,1. Identification and selection of nursery site. 19G3-50 OFFICIAL GAZETTE VOL. 85, No. 10 2. Site preparation 3. Construction/establishment of nursery facilities and other in frastructure. 4. Species sources and seedling production schedule. D. Plantation Development Program. 1. Annual-Planting Program 1.1 Area 1.2 Species 1.3 Maintenance 2. Employment program E. Utilization and Product Disposition 1. End Use 2. Harvest and transport systems 3. Dependent industries 4. Export market V. Financial Resources VI. Technical knowhow VII. Appendices 1. Maps 2. History of area 3. History of applicant 4. Others relevant to the plan SUBMITTED By: ......-..-.--...... - . --. --..... - . --... (Applicant) Prepared by/in collaboration; with:. . . •••••••• ••••••••• ••• ..-...eJ. • ......J~... . •• (Registered Fcxrester) Attested by: ...- ---- .. . . -- - -.. (CENRO) ANNEX "C" REPUBLIC OF THE PHILIPPINES DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES OFFICE OF THE SECRETARY DILlMAN, QUEZON CITY INDUSTRIAL TREE PLANTATION LEASE AGREEMENT No. OF (Name of Lessee) (Location of Area) This AGREEMENT, made and entered into by and between: the SECRETARY OF ENVI RONMENT AND NATURAL RESOURCES, for and in behalf of the Republic of the Philippines, hereinafter referred to as the LEsSOR, and with residence and postal address at hereinafter referred to as the LESSEE: \VITNESSETH, THAT: W~EREAS, the establishment of Industrial Tree Plantations is encouraged as Govern ment policy to accelerate the country's re forestation efforts which shall promote ecological balance and assure an adequate. wood supply to meet local and foreign de mand: .WHEREAS, P.D. 705, P.D. 1559, Executive Order No. 725 and other existini laws, rules and regulations pi'ovfde:fdr Incentive vto . t •.-.- -;.;'~ •.' ....~,..'. -: qualified developers and. operators of Indus trial Tree plantation ~ WHEREAS, the LESSOR and the LESSEE. are desirous" of -entering ·into". this . Indttstrial Tree Plantation Agreement;. Now, THEREFORE, for and in consideration of the foregoing premises, the LESSOR as Secretary of Environment and Natural Re l\IARCH G, 1989 OFFICIAL GAZETTE 19G8-51 sources and b)' virtue of the authority of Presider..tial Decree No. 705, as amended by Presitie~tial Decree No. 1559, otherwise known as the Revised Forestry Code of the Philippines, hereby leases to the LESSEE . ..........................., , ".' hectares of public forest land covering a period of twenty-five (25) years to expire on . .................................................., au tomatically, renewable for another twenty-five (25) years which land is located at Sitio/s . """ ,... Barri0/s ................................................ Municipalitylies of . Province of - -. Philippines, the description and boundaries of which are shown in the attached sketch which forms part of. this Lease Agreement. This Lease Agreement shall be for the planting of trees to supply the requirements of existing and proposed wood processing plants and other related industries subject to the following terms and conditions: l.The LEssEE agrees to plant and raise -in the area covered under this Lease Agreement trees for the production of saw timber, pulpwood, etc., and other crops suitable for energy generation, or for other government' sponsored de velopment projects, it ;found viable. 2. The planting of dipterocarp or prima ry trees of commercial value and the raising of the secondary crops shall be confined within the perimeter of the parcel of land described herein. The LESSEE shall conserve and preserve the monuments and other land marks indi cating corners and .outlines p.lp!').g the boundaries and within the conflnes of the area 'covered ,by t4j§ ,As-reement. 3. The area subject 9f .thiJ3 Le;ls.e ,A'gr~e­ ment is. a public forest Iand and does not include areas already declared as A and D lands or private lands and any such lands shall be excluded from the boundaries of the TI'P Leased area. 4. The LESSOR reserves the right to per mit, if public interest requires, the ope ning of such portions of the area under lease. for logging. mining, and other public right-of-way, which shall not be more than ten (10) meters wide, PROVIDED,' that the person or entity granted the right-of-way shall puy the LESSEE a rcasonnabla compensation for any damage to improvements, if any, occasioned by such opening. 5. The LESSEE shall be entitled to exemp tion from payment of rentals for the full term of the Lease Agreement. 6. All operations and planting of forest crops, ill harmonized combination with agricultural crops, shall follow such rules and regulations that maybe issued h,Y the Forest Management Bureau, PROVTDED that precautionary measures shall be instituted to. minimize surface run-off, soil erosion and other land im balance, .Non-cornpliance with such rules and regulations 'shall be sufficient ground for the cancellation of this Lease Agreement. 7. If the LESSEE does not utilize the area leased herein for the purpose for which the lease is granted, or fails to. com ply 'with the terms and spirit, hereof within one (1) year after the signing of the Agreement, "~eJ1 . this Lease Agreement maybecancelled by the LES SOR, except for cause beyond control of the LESsEE. 8. The LESSEE shall improve and plant at 30% of the area her~ingrallted with three (3) years from the execution of this Agreement;' and ~~~ ~!~c~'of the area within :4ive(5J~·y~~i~/~~T~WISE, the LESSOR may reduce the area granted commensurate~ith'~-e'~p~~~jtyof the LESSEE to .fmprove' ~nd'riiP-~~·~se.of the area: orcancelthe l~e'for· cause. 9. The LESSEE shall do an' in his' 'power to prevent and suppress flrel'l in the area under this'Agreement or other areas lJG8-;)2 OFFICIAL GAZE7IE YOLo 55, Xo. 10 immediately adjacent thereto, and to place his employees or workers under the direction of foresters or other au thorized agents of the Secretary of Department of Environment and Na tural Resources, whenever required for the purpose of putting out or preven ting forest fires. 10. The LESSEE shall be responsible for the protection and cpnservation of forest growth in the area under LEASE and shall cooperate with the DENR Re gional Offices in the protection of the forest areas immediately adjacent thereto. 11. The cutting, gathering or protection of trees, naturally growing in the area under Lease shall be regulated by the Regional Executive Director. 12. The LESSEE shall not assign or sublease the leased area or any portion thereof. Neither shall the LESSEE encumber the leased area in whole orin part, to any lending entity for the purpose of cre dit financing, without the prior appro val of the LESSOR. 13. Upon the expiration of this Agreement or on its termination when public inte rest demands, all permanent improve men ts on the area shall remain on the plantation, but the LESSEE shall be en titled to fair compensation for such improvements introduced by the LESSEE onthe leased area in' an amount to be determined .mutually 'by both the DENR and the Lessee. The "LESSEE shall be entitled to compen sation to permanent infrastructure introducedby the'LEssEE-based on their fair market value"a~ of the expiration dafe:,':TheLEssEE mayremove the tem porary '.()i,--semr.perinanent .structures, unlesatheLesson opts to retain them ~by 'paying,-their fair market value as of' ,th~ ~ expiration date. 'The value of ~tpe improvements shall be determined mutually: by both parties. .14. In the event of violation of the LESSEE 01' his authorized agents of any provi sion of P.D. 705 and P.D. 1559 gover ning the protection of the tree in the leased area, or of the terms and con ditions, of the Lease Agreement; and the event that after due warning of the LESSOR to the LESSEE, the latter fails within a reasonable time, which time shall not exceed three (3) months to stop the violation referred to; or in the event that the LESSEE or his agents or other persons operating under this Lease Agreement, commit an act ten. ding to influence a forest officer, to induce him directly or indirectly to violate existing rules and/or regula tions, then this Agreement maybe cancelled by the LESSOR without the right of compensation under the imme diately proceeding paragraph. 15. To insure normal balance of forest co ver, the LESSEE shall submit a devel opment program for the leased' area for the approval of the LESSOR which shall form part of this contract upon its approval. No revisions shall hie made on such program without the mu tual consent of both parties. 16.' The LESSSE is required to submit on or before the 30th day of January of each year all Annual Report to the LESSOR, showing among others, the number of hectares developed during the year, species planted, survival rata at the end of 'the year, number and size of nurseries established, kinds of seedlings raised, and. other improvements intro duced during the year. Quarterly progress reports shall be SUbmitted to the SecJetary, DENR during the-tenure ofthis,Agreem~nt. . 17. The L~SSEE shall not unnecessarily im pede, obstruct. or in, any 'manner pre vent the passage of legitimate licenses lessees, permittees, and/or other forest .users and the public, by virtue of the lease herein granted. . ' :MARCH 6, 1969 OFFICIAL GAZETTE 1968-53 Kama RoC. Ko. D3.te ot IQIue l'lace ot Issue ACKNO\VLEDGEMENT (Regional Executive Director) . - ..- .. WITNESSES: ...... .. WITNESSES: RECOMMENDED By: Secretary, DENR (Lessor) (Lessee) personally known to me and to me known to be the same person who executed the fore going instrument" and, who, acknowledged to me that the same is his free act and deed. This document' is -an INDUSTRIAL TREE PLANTATION LEASE AG:r~NT No;' ..,...... , covering .. ...... parcels of public forest land, cotisistingof .. . .... , .. .. . and each. is signed by the LE~~OR and his witnesses ~nd bears my Notarial. SeaT. Witness, my hand and .offlcialseakon -the date and place first 'above written. In Quezon City, this . day of , 19.. , before me a Notary Public for and in the said City, personally appeared: REPUBLIC OF THE PHILIPPINES } QUEZON CITY S.S. Forand in behalf, of the Republicof the Philippines 18. After the final ground survey, the boundaries of 'the area covered by this Industrial Tree Plantation Lease Agreement shall not be altered or modified except when public interest demands. 19. In the process of development, the LEs SEE shall strictly observe and/or im plement all possible measures for the protection of watersheds and the envi ronment to the effect that: a. Notrees in the lease area shall be cut regardless of species, if found wi thin twenty (20) meters from edges of rivers of creeks of at least five (5) meters in width and of public roads. b. Open, denuded, brushland or inade quately-stocked areas along stream channels below five (5) meters in vidht shall be planted with trees and maybe harvested if included in the duly approved Industrial Tree Plan tation plan. c. The LESSEE shall protect and conserve unique, rare and endangered trees, plants and wildlife identified under existing rules, laws and regulations within the lease area. d. The LESSEE shall plant five (5) edible fruit tree -speclesper hectare 'of the area under lease, to provide aid and comfort and food' for wildlife species. e. There should be at least (60) survi ving seedlings of suitable disptero carp species per hectare of the area after three (3) years from the start of land development. Quezon City,. Philippines . """" . , 19 , . •••••••••~..., ...---•• -. •••••T"•••••- •••••••••••••••••••••• Secreta1jJ, .DENR (Lessor) ..... - . (Lessee) Notary Public Doc. No. . Page N0 •.• .. ..• . Book, No Series of 19 1968-54 OFFICIAL GAZETTE VOL. 05, No. 10 ANNEX uD" OUTLINE OF INDUSTRIAL TREE PLANTATION COJ\IPREHENSIVE MANAGEMENT AND DEVELOP· MENT PLAN 1. Preparation Review and Approval Sheet. II. Location Map III. Summary of Plan IV. Description of the Plantation Area V. Development Plan 1. Survey and demarcation of bounda ry 2. Infrastructure to be introduced. 3. Nursery Work Program 3.1 Seed species 3.2 Sources of seed 3.3 Seedling production schedule 3.4 Size and capacity of nurserylies 3.5 Source of water, specifying wa ter development activities, such as dams, catchment basins, irri gation, etc. 3.6 Sources and schedule of appli cation and other inputs, such as fertilizers, chemicals, limes, etc. 3.7 Schedule of application of machi neries, equipment, tools, etc. and 'construction of supporting' buil dings, sheds, and other infras tructures. 4. Plantation Work Program 4.1 Number of compartments Dr blocks 4.2 Area of-each . compartment or . block 4.3 Numberand spacing of trees to be planted in each compartment or. block 4.4 Climax species of the trees to be planted in each .compartment! block 4.5 Schedule of Planting indicating target date of the start of opera tions and completion in each compartment/block. 4.6 Period of maturity of the climax species. 4.7 Land preparation activities in each ccrnpartment/Uiock rnclu ding, if to be undertaken, the planting of secondary species and other soil conditioners and pri mary crop protectors 4.8 Source and number of seedlings to be introduced in each com partment or block with allowance for mortality 4.9 Source of water, specifying wa ter development activities such as catchment basins, dams, irre gations, etc. 4.10 Source and application schedule of other inputs such as fertili zers, chemicals, etc., required in each compartment/block: and 4.11 Source and schedule of use in each compartment/block of ma chineries, equipment, tools, etc.; with further information on the following: 4.12 Maintenance of plantation, such as replanting, weeding, and mul ching, etc. 4.13 Protection of plantation such as, patrolling, establishment of checkpoints, firebreaks, -green belts, fire towers, 'and protection diseases. 4.14 -Such other Informations relevant to the' development, rehabilita tion, planting and replanting ae.. tivities, . VI. Utilization .and Product Disposition 1. Harvest ~ethods 2. Transportation 3. Processing Plant./s and/or wood using industrylies supported OFFICIAL GAZETTE 1965-55 4. Marketing VII. Implementing Organization 1. Corporate Structure 2. Structure of implementing division or department, such as its forestry department 3. Total personnel and payroll 4. Duties of key personnel VIII. Financial Feasibility, particularly bud get, sources of funds and schedule of application IX. Required Appendices Annexes.