November 10, 1998

DAR OPINION NO. 108-98

TOMAS L. AGTARAP

Vice President

Project Management and Engineering Services

National Power Corporation

Diliman, Quezon City

Sir:

This refers to your letter dated 06 October 1998 requesting for clarification relative to DAR's procedure on lands covered by Certificates of Land Ownership Award (CLOAs) to be acquired by the National Power Corporation in pursuance of its power projects.

Your letter states that you are currently negotiating for the acquisition of lands needed for the San Roque Multi-Purpose Project in San Manuel, Pangasinan; and that several lots that will be affected by said NPC project are covered by CLOAs.

It is your view that the guidelines contained in DAR Administrative Order No. 8, Series of 1995 pertain only to situations where the transfer is effected in favor of private individuals.

We share your view.

An examination of said DAR Administrative Order No. 8, Series of 1995 would readily disclose that its provisions contemplate a transfer of awarded lands to private individuals. This can be gleaned from the Policy Statement thereof when it requires the following, to wit: a) maintenance of the productivity of the land; b) buyer's aggregate landholding not to exceed the landownership ceiling provided by law; and c) imposition of the ownership ceiling of five hectares. Moreover, the rules on validity of land transactions (DAR Administrative Order No. 1, Series of 1989) allow transactions executed by beneficiaries covering lands acquired under agrarian reform laws in favor of the government.

In DAR Opinion No. 45, Series of 1995 (copy attached) we opined that the registration of the sale of the farmlots may be effected without prior DAR Clearance, considering that said acquisition by NPC (though short of judicial proceedings) was undertaken by virtue of the expropriation powers of the government.

In fairness to the CLOA or EP awardees whose lands shall be expropriated, they should however still be entitled as agrarian reform beneficiaries or awardees in other landholdings.

We hope to have clarified the matter with you.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Director Nestor R. Acosta

DAR — Region I

Jean Lee Building

Lingsat, San Fernando

La Union

PARO Renato Alano

DAR — Provincial Office

Human Settlement Bldg.

Urdaneta, Pangasinan

The Municipal Agrarian Reform Officer

DAR Municipal Office

San Manuel, Pangasinan