September 24, 1999

DAR OPINION NO. 47-99

DIRECTOR PETER ANTHONY A. ABAYA

Environmental Management and Natural Resources

Topaz Building, 99-101 Kamias Road

Quezon City 1102

Dear Director Abaya:

This refers to your letter dated 25 March 1999 requesting for opinion regarding your bureau's interpretations on land conversion, emancipation patent and land classification. Your query was prompted in view of the Environmental Compliance Certificate (ECC) application for the proposed Lakewood Golf and Country Club Project of LANDCO-NE Development Corporation to be located at Barangay Sumacab, Este, Cabanatuan City.

I.          As regards land conversion, you believe that the area is exempted from CARP since the same falls within the purview of DOJ Opinion No. 44, Series of 1990, and DAR Administrative Order No. 6, Series of 1994. Further, you stated that Conversion Order from the DAR is no longer necessary since the area is exempted from Republic Act No. 6657 by reason of the City Ordinance classification of the area as a "Light Industrial Zone."

While it may be true, as you claim, that subject landholding is beyond the ambit of the Comprehensive Agrarian Reform Law (CARL) in view of DOJ Opinion No. 44, Series of 1990, the exemption Order of then DAR Secretary Ernesto D. Garilao dated 22 December 1995 and its reclassification as within the "Light Industrial Zone" as early as 1981, prior to the effectivity of R.A. No. 6657 on 15 June 1988, we believe that the reclassification thereof to non-agricultural uses did not operate to divest tenant-farmers of their rights, especially the transfer of ownership if applicable, over lands covered by Presidential Decree No. 27, which have already been vested prior to 15 June 1988 (Item II, 3rd paragraph, DAR Administrative Order No. 6, Series of 1994; Sec. 7, R.A. 3844 in conjunction with Sec. 75, R.A. 6657).

II.         On Emancipation Patents, you believe that the area is still covered by Emancipation Patents (EPs) since a zoning ordinance will not remove prior rights of the beneficiaries of Presidential Decree No. 27. You now pose a query on whether or not EPs can be sold to a third party, and if so, can the farmers apply for a separate clearance.

We submit that transfer of awarded lands under P.D. No. 27, as amended by E.O. No. 228 and R.A. No. 6657 may be allowed after full payment of amortizations. However, in order to effect valid transfer thereof, DAR A.O. No. 8, Series of 1995 provides for certain conditions that must be met, to wit:

a)         that the productivity of the land shall be maintained;

b)         that the buyer will not exceed the aggregate landowner ceiling provided by law; and

c)         that the ownership ceiling of five (5) hectares shall be imposed.

III.       On land classification, you stated that a letter from the Director of the Department of Agriculture, Region III, declares that the area is classified to be within the prime agricultural zone consisting of irrigated lands, that Republic Act No. 8435 (Agricultural & Fisheries Modernization Act) refers to the Network of Protected Areas for Agricultural and Agro-Industrial Development (NPAAAD) which includes all irrigated lands; that Administrative Order No. 363, Series of 1997 (Office of the President) states that Network for Protected Agricultural Areas refers to lands reserved for agricultural activities and which includes all irrigated and potentially irrigable land; and that in all cases, applications for conversion including lands protected from non-negotiable for conversion shall not be given due course by the DAR.

Without necessarily opposing the merits of the Order of then DAR Secretary Ernesto D. Garilao dated 22 December 1995, we generally held the same view on land classification. The reason for non-negotiability for conversion of irrigated lands is to preserve them for food security, same being a finite natural resource, which has incessantly been shrinking due to conversion to non-agricultural uses.

Thank you for communicating with us.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Wilfredo M. Peñaflor

Assistant Secretary — PPLAO

This Department