G.R. No. 182734, June 27, 2023
BAYAN MUNA PARTY-LIST REPRESENTATIVES SATUR C. OCAMPO AND TEODORO A. CASIÑO, ANAKPAWIS REPRESENTATIVE CRISPIN B. BELTRAN, GABRIELA WOMEN’S PARTY REPRESENTATIVES LIZA L. MAZA AND LUZVIMINDA C. ILAGAN, REP. LORENZO R. TAÑADA III, AND REP. TEOFISTO L. GUINGONA III, PETITIONERS, VS. PRESIDENT GLORIA MACAPAGAL-ARROYO, EXECUTIVE SECRETARY EDUARDO R. ERMITA, SECRETARY OF THE DEPARTMENT OF FOREIGN AFFAIRS, SECRETARY OF THE DEPARTMENT OF ENERGY, PHILIPPINE NATIONAL OIL COMPANY, AND PHILIPPINE NATIONAL OIL COMPANY EXPLORATION CORPORATION, RESPONDENTS.

FACTS

This is a Concurring Opinion by Acting Chief Justice Leonen regarding the denial of a Motion for Reconsideration. The case involves the Joint Marine Seismic Undertaking (the Undertaking), which was executed by the Philippine National Oil Company. The petitioners challenged its constitutionality. The ponencia (main decision) denied the respondents’ procedural challenges and found the Undertaking unconstitutional for violating Article XII, Section 2 of the Constitution. The respondents, in their Motion for Reconsideration, argued that the Court encroached upon presidential discretion on foreign and economic policy and that the determination of the exact location of the agreement area was a factual issue precluding judicial review.

ISSUE

1. Whether the Court properly exercised its power of judicial review over the case despite procedural challenges and claims it involved factual questions.
2. Whether the Joint Marine Seismic Undertaking violated Article XII, Section 2 of the 1987 Constitution concerning the exploration of natural resources.

RULING

The Concurring Opinion votes to DENY the Motion for Reconsideration WITH FINALITY.
1. On Judicial Review: The Court correctly exercised its power of judicial review. The case involves a matter of transcendental importance—the limits of State prerogatives over natural resources. The filtering mechanism in Gios-Samar v. DOTC, which screens cases involving intertwined factual and legal issues, does not apply. No relevant factual question exists because the respondents admitted the agreement area falls within Philippine territory. The resolution of the core legal issue—whether the Undertaking’s activities constitute “exploration” under the Constitution—is not dependent on determining the precise metes and bounds of the area.
2. On the Constitutionality of the Undertaking: The Undertaking was executed in grave violation of Article XII, Section 2 of the Constitution. The opinion clarifies and reiterates the following constitutional principles:
* Not a Foreign Relations Instrument: The Undertaking is not an instrument of foreign relations. Respondents previously characterized it as a purely corporate act and cannot change their legal theory. Even if it were, the President’s wide discretion in foreign policy must conform to the Constitution.
* Constitutional Limits on Natural Resource Exploration: The Constitution reserves the exploration, development, and utilization of natural resources for Filipino citizens. While foreign corporations may participate as “technical or financial assistance” contractors under strict State control and supervision, this exception must be restrictively interpreted.
* Exploration Includes Data Gathering: “Exploration” includes “pre-exploratory activities” aimed at discovering the existence of resources. The information generated from such activities is as valuable as the resource itself and is covered by the constitutional reservation.
* Specific Violation: The Undertaking grossly failed to comply with constitutional requirements. By agreeing to a joint ownership of the seismic data gathered from exploratory activities within the Philippines’ exclusive economic zone in the West Philippine Sea, the Philippine National Oil Company illegally surrendered sovereign prerogatives. This violated the constitutional directive that the nation’s marine wealth is reserved for the exclusive use and enjoyment of the Filipino people.
ACCORDINGLY, the Motion for Reconsideration is denied for lack of merit.