July 1, 1941

BUREAU OF FORESTRY ADMINISTRATIVE ORDER NO. 8-3-41

SUBJECT : Revised Regulations Governing Special Uses of Forest Lands

Pursuant to the provisions of Section 79 (b) and 1817 of the Revised

Administrative Code, the following rules and regulations governing the leasing or
granting of permits under the provisions of Section 1838 of the same Code as
amended by Act No. 3820 and Commonwealth Act No. 100, for the special uses of
forest lands or vacant public lands not declared agricultural lands are hereby
promulgated for information and guidance of all concerned.

INTRODUCTION

1. Words and phrases defined. — In applying the provisions of this

Administrative Order, the words and phrases herein used shall be taken in the sense
indicated below.

"Special Uses" includes all forms of legal uses of public forest lands.

"Forest lands" is synonymous with timber lands but includes vacant public
lands not declared agricultural lands.

"Permits" includes ordinary permit, exclusive permit, and gratuitous permit.

"Lease" includes all permits.

"Public purposes" includes, in addition to any purposes specified in these

regulations, any purpose declared by the proper authorities to be for public purposes.

"Person" includes corporation and association.

"Improvements includes permanent and temporary improvements.

"Permanent Improvements" includes those which are permanently annexed to

the land under lease in such a manner that they cannot be separated therefrom without
causing damage thereto.

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 "Temporary Improvements" refers to those which can be removed without
causing any damage to the land under lease and to which the same has been attached.

"Unoccupied" refers to a forest land which is not occupied by any person or if

occupied by a person disqualified to acquire it, or by person who, being qualified to
use it, refuses or fails to exercise his preferential right thereto, and which is not
reserved for public purposes.

PERMITS AND LEASES

2. Unauthorized use of forest lands. — No person shall occupy or use any

parcel of the public forest lands of the Philippines without first securing therefor a
lease or permit in accordance with the provisions of this Order; Provided, however,
that timber licenses and concessionaires shall have free right-of-way within the area
covered by their licenses or concessions for the purpose of developing and exploiting
the timber found thereon. The violator or violators shall be subject to the penalties
provided in Section 33 (c) hereof.

3. Schedule of fees, rentals and area. — Except as hereinafter provided, the

forestry fees, rental and maximum area for each kind of special uses of forest lands
shall be as follows:

Kinds Forestry Fee Rental (y) Maximum

for each per Area in
Application Hectare Hectare

Bathing Establishment P5.00 P5.00 24

Hotel Site' 5.00 5.00 24
Nipa and Bacauan Plantation 2.00 2.00 200
Private Camp 1.00 1.00 24
Right-of-way 5.00 5.00 200 x
Saltworks and for Fishpond 5.00 5.00 200 x
Sanatorium 50.00 5.00 24
Sawmill Site 5.00 5.00 24
Lumber Yard 5.00 5.00 24
Timber Depot 5.00 5.00 24
Logging Camp Site 5.00 5.00 24
Kaiñgin 1.00 1.00 24
Lime and Charcoal Kiln 2.00 2.00 24
Other Uses 2.00 2.00 24

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 Note: o — Payable only to the Director of Forestry, Manila
(y) — May be paid to Municipal Treasurer
(x) — Area shall be such as may actually and reasonably be
necessary to carry out the purpose of the lease.
4. Classes of permits. — Permits that may be issued under this order shall be
anyone of the following classes:

(a) By the Secretary of Agriculture and Commerce; Special use

permits for a term of more than five years and lease agreements.

(b) By the Director of Forestry with the approval of the Secretary of

Agriculture and Commerce; Special use permits for a term
exceeding two years but not more than five years.

(c) By the Director of Forestry:

(1) Special use permits for a term not exceeding two years.

(2) Gratuitous special use permits for the following purposes.

(aa) Public uses by any department or branch of the Insular,

Provincial or Municipal Government.

(bb) Lands for semi-public purposes by associations or

organizations where such lands are open to the use of the
public including lands occupied by shelter huts,
community houses, camp grounds, etc.; open to free use
by the public.

(cc) Houses or huts for temporary use in connection with other

authorized uses, provided that houses used during the
entire year as headquarters will be classified as private
camp and charged for accordingly.

(dd) Telephone lines with free use and free connection by the
Department of Agriculture and Commerce. Telegraph
lines with free use of poles for attaching thereon
Department of Agriculture and Commerce telephone
lines.

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 (ee) Roads and trails which are free public highways.

(d) By Forest Officer under certain conditions; Kaiñgin permits.

5. When lease may be issued. — A permit or lease may be issued only after
application therefor has been duly filed, and an investigation of the land for which a
lease is desired has been made and the issuing officer is satisfied, upon reasonable
showing, that the applicant will be able to utilize the land during the period fixed by
the lease; that the necessary fees and rentals have been paid and the corresponding
bond as hereinafter provided deposited; and that the use thereof will not be prejudicial
to public interest.

6. Special provisions, regarding lease agreement. — Preference to actual

permittee. — A lease agreement may be granted to an applicant who is a holder of an
ordinary permit over the land covered thereby and who has satisfactorily complied
with the terms of such permit for a period of not less than one year, or in the case of
an applicant who is not a permittee, if the capital to be invested by him justifies the
granting thereof on condition that the actual permittee, if any, has failed or refused to
exercise his preferential privileges or rights thereto.

7. Rights under lease. — Unless otherwise specified, the permit or lease

shall confer upon the holder thereof only the right to use for a certain stated period of
time the definite tracts of public forest land described in the permit or lease to be
devoted exclusively to the purposes for which said permit or lease is applied under the
terms and conditions therein contained.

8. Date of expiration of lease. — Lease may be granted for one year or more
at the discretion of the Director of Forestry and shall expire on June 30 of the last year
of its term or duration or at an earlier date when public interests so require.

9. Renewal or Extension. —

(a) Special use permits issued under these regulations may be renewed
or extended upon the expiration of the term granted therein
provided that the permittee has complied with all the rules and
regulations and provided further that the area is not needed for
other public interests.

(b) A lease agreement shall run for a period of not more than ten (10)
years, but may be renewed for an equal period of ten (10) years. If
at the expiration of these terms (20) years the conditions of the area
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 or public interests so require, or lessee shall have made important
improvements on the premises which, in the opinion of the
Secretary of Agriculture and Commerce further renewals may be
granted. The combined period of the original lease including the
renewals shall not exceed fifty (50) years.

(c) All permits or leases on being renewed or extended, as above

provided, shall be subject to the same conditions stipulated in the
original ones, to laws enacted by the Congress of the Philippines as
well as to such additional conditions as the Director of Forestry, or
the Secretary of Agriculture and Commerce, as the case may be,
may impose.

APPLICATIONS

10. Qualifications of and other requirements from an applicant. An applicant

for lease must possess or comply with the following requirements:

(a) He must be a citizen, of lawful age, of the Philippines or of the

United States.

(b) If the applicant is an association or a corporation, it must be duly

registered or incorporated under the laws of the Philippines or of
the United States and at least sixty percentum of the capital stock
of which belongs wholly to citizens of the Philippines or of the
United States.

(c) In case of a married woman, she must present the written consent
of her husband unless she shows by affidavit of herself duly
attested by two witnesses, some good sufficient causes satisfactory
to the Director of Forestry that said consent is not legally necessary
or cannot be feasibly obtained.

(d) If the applicant is a civil service employee, provincial governor,

municipal mayor, justice of the peace, or other officials who
receive regular salary from the Government and whose entire time
and strength are due the Government, the application should be
accompanied with a special permission from the President of the
Philippines or proper Department Head. Auxiliary justice of the
peace and other similar officials are exempt, from the above

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 requirements.

(e) Persons falling under the preceding paragraph who are already
holders of permits or leases and are appointed or elected to office
shall apply to their respective Department Heads for special
permission to continue holding their respective permits or leases.
Copies of the request and the corresponding permission granted
them shall be furnished the Director of Forestry.

11. Forms and contents of applications. — All applications for permits or

leases shall be submitted on a form prescribed by the Bureau of Forestry, and shall be
sworn to by the applicant before any officer or employee authorized by law to
administer oaths, showing the locations of the land applied for, his qualifications,
amount of working capital to enable him to finance the proper management and
operation of the permit and other requirements as follows:

(a) If the applicant is a corporation or partnership, a copy of its articles

of incorporation or partnership certified by the Securities and
Exchange Commission.

(b) If the applicant is an unincorporated company: A copy of its

articles of partnership: Provided, that if such partnership or if any
person shall use or sign any name other than his true name, he
should secure a certificate from the Director of Commerce,
showing that such name has first been registered in the Bureau of
Commerce, together with his true name and that of other person
having a joint for common interest with him in the business
transaction.

(c) If organized outside of the Philippines in addition to the above

certified copy: Documentary evidence necessary to show that such
corporation, association, or partnership has been organized in
accordance with the requirement of the laws of the country or state
wherein they have been constituted and that it is authorized to
transact business in the Philippines.

12. Place of filing. — An application shall be filed in the Office of the

Director of Forestry, Manila.

13. Fees to accompany applications: When refund may be made.

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 (a) All applications must be accompanied with a duly certified check,
or post office money order payable to the Director of Forestry,
corresponding to the fee required in Section 3 hereof. Said fee shall
not be reimbursable to the applicant. (As amended by Forestry
Adm. Order No. 4, 9-26-46).

(b) Application fees for special use permits may be refunded in case
the application is withdrawn prior to the inspection of the
premises.

14. When application is considered filed. — An application shall not be

considered filed on the date when it is prepared, sworn to, or mailed, but on the date
when the original thereof properly accomplished with the corresponding application
fee is actually received in the Office of the Director of Forestry in Manila.

15. Recording of Application. — All applications received, except improperly

accomplished ones and/or applications unaccompanied with corresponding
application fees which shall be returned to the applicants unrecorded, shall be given
current serial numbers and shall be duly recorded in the registry book provided for the
purpose in chronological order in accordance with the date and hour of receipt.

16. Procedure on application. — The duplicate and triplicate of application

filed in the Central Office shall be referred to the District Forester and officer in
charge of station concerned for file and investigation, report and recommendation
before any definite action is taken thereon. If an application is filed in the District
Headquarters, the district forester shall immediately forward the original to the
Manila Office, order the investigation of the land therein described to determine the
veracity of the sworn statements of the applicant and his ability to finance the proper
management and operation of the permit and submit a report of his investigation to
the Director of Forestry, stating therein the facts found by him and his
recommendation.

17. Area applied for lease agreement: when may be advertised.

(a) After investigation of an area applied for lease agreement the

Director of Forestry may advertise for bids by having suitable
notices posted on the bulletin board of the Bureau of Forestry and
at conspicuous places in the provincial and municipal buildings
where the land is located and on the land applied for a period of
not less than thirty (30) days, describing the area to be included in

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 the lease agreement setting forth the terms and conditions of said
agreement and calling for bids covering the said area. The
applicant may be required by the Bureau of Forestry to do the
posting of such notices and in such a case proof of the
advertisement shall be evidenced by an affidavit duly subscribed
and sworn to by the applicant before an officer legally authorized
to administer oaths in any of the municipalities where the land is
located.

(b) In the notices provided above, the right to reject any or all bids
shall be reserved, and also the right to accept such bids as the
Director of Forestry or the Secretary of Agriculture and Commerce
may deem most advantageous to the Commonwealth.

(c) All bids must be accompanied with a properly executed bond or a

certified check or post office money order payable to the Director
of Forestry for the amount set forth in the advertisement.

18. Priority. — In determining the priority of application or right to a permit

or lease, the following general rules shall be considered.

(a) When two or more applications are filed for the same area, the
Director of Forestry shall give full consideration to all pertinent
matters including the relative dates the applications are filed before
taking final action upon such applications.

(b) Priority established may be lost if, in the course of consideration

by the Director Forestry on the application, the applicant shall not,
before the expiration of the date granted or such date as may be
fixed later by the said Director —

(1) File the required data in addition to that contained in or

furnished with the application, or

(2) Present satisfactory evidence of ability to carry out the

purpose set forth in the application, or

(3) Accept conditions of the proposed lease or permit, or

(4) Modify the boundaries of the land as required if the purpose

of the applicant, as disclosed in the application, is not such

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 as, in the judgment of the Director, will be best adopted to
the proper and best use of the land or will be prejudicial to
public interests.

(c) The Director of Forestry may in his discretion, give preference to

the applicant who can best meet the requirements of the Forestry
Laws and Regulations and whose plans and ability are considered
best suited to the proposed utilization of the land.

(d) If the land applied for is found actually occupied by another

person, the occupant, if qualified, shall be advised of his priority
right to apply for the land and shall be given a period of not more
than sixty (60) days within which to exercise that right. In the
event the occupant is not qualified under the law to apply for the
land or fails or refuses to exercise his priority right with respect
thereto within that time, he shall lose such right and shall be
required to vacate it.

19. Conflicting applications: when may be advertised under public auction.

— When the area is covered by two or more conflicting applications, and in the
opinion of the Director of Forestry, the most equitable disposition of which would be
made by public auction, he may advertise the area for bids and shall make award
thereof to the highest qualified bidder at such auction in accordance with Section 17
hereof.

RENTALS, BOND AND FEES

20. Rentals. —

(a) Appraisal and reappraisal. — The rental charges prescribed in

Section 3 hereof shall be subject to change, based on the appraisal
or reappraisal by the Director of Forestry of the land under lease or
its improvements: Provided, that the rental for the ensuing term, if
an appraisal or reappraisal has been made, shall not be less than
three per centum (3%) of the appraisal or reappraisal value of the
land and one per centum (1%) of that of the improvements:
Provided, however, that the Secretary of Agriculture and
Commerce, may, in his discretion, waive the collection of the latter
charge: Provided, further, That should the term of the lease be
more than ten years, a reappraisal may be made every five years,
thereafter and that in no case shall the appraisal or reappraisal be
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 less than the expense incurred or which may incurred by the
Government in connection with the application for lease or
permits.

(b) Minimum Rentals. — In no case shall the rental on the basis

prescribed in Section 3 hereof, be less than P5.00 for hotel site,
sawmill site, lumber yard, timber depot, log pond, logging camp,
right-of-way, saltworks, and bathing establishment, and P2.50 for
all others.

(c) Rentals, when due. — The initial rentals shall accrue on the first
day of occupation if the area is already being used, otherwise in the
first day of the quarter within which the permit or lease becomes
effective and shall be paid in advance in the manner prescribed in
the following paragraph prior to the issuance of such permit or
lease. After the initial rental is paid, the annual payment shall
become due on the first day of July of each year.

(d) Payment of rental: to who made. — Payment of rental shall be

made to the Provincial Treasurer or his deputy, of the province
where the land under lease, permit or application is located or to
any office charged with the collection of internal revenue taxes
where it will be most convenient for the lessee, permittee or
applicant to make such payment.

(e) Certificate of payment of rentals. — Upon payment of the rental, a

permittee, lessee or applicant, as the case may be, shall secure a
certificate thereof from the collecting officer and forward the same
to the Director of Forestry or his duly authorized representatives
for accounting, and record purposes.

(f) Additional charges for default in payment of rentals. — Failure to

pay without justifiable cause the annual rental on or before July 31,
shall subject the lessee or permittee to a surcharge based on the
amount of the original rental according to the following schedule:
Rental paid from August 1 to
September 31 10% surcharge
Rental paid from October 1 to
December 31 15% surcharge
Rental paid from January 1 to
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 March 31 20% surcharge
Rental paid from April 1 to
June 30 25% surcharge
Rental paid after one year 100% surcharge
Provided, however, That in the case of permits expiring on dates
other than June 30, the surcharge shall be computed and adjusted
accordingly following the above schedule.

(g) Refund. — Rentals may be refunded within two (2) years after the
payment has been made for the use of lands not under the control
of the Bureau of Forestry, or in case the permit or lease is
cancelled due to no fault of the permittee for his failure to use the
area upon reasons acceptable to the Director of Forestry: Provided,
That the Government suffered no damage; and provided, further,
That no amount less than two (P2.00) pesos shall be refunded
unless requested by the permittee in writing.

21. Schedule of bond. — The bond required for special use permits shall be
fixed by the Director of Forestry. However, for saltworks, a nipa or bacauan
plantation, the bond shall, until otherwise changes be: P10.00 per hectare or a fraction
exceeding one half of a hectare and P5.00 for one half of a hectare or less.

22. Form of bond. — Before any lease or permit is issued or entered into
between the applicant and the government, the applicant and the government, the
applicant may, as guaranty of good faith in filing his application and for satisfactory
compliance with the Forest Laws and Regulations and the terms and conditions of the
permit or lease and the payment of rental charges due thereof, be required to deposit
with the Director of Forestry in the amount fixed in the preceding section a cash bond,
a Philippine National Bank Bond, a United States Liberty Loan Bond, or a bond of
the Government of the Philippine Islands or any political sub-division thereof:
Provided, However, That in case the bond required exceeds P500, a bond duly
executed by a Surety Company may be accepted. And Provided further: That should
the bond delivered in accordance herewith be unsatisfactory to the Director of
Forestry, or the Secretary of Agriculture and Commerce, the applicant or lessee may
be required within thirty (30) days upon demand to furnish a new bond with sureties
solvent and satisfactory.

23. Causes for forfeiture of bond. — The Director of Forestry may confiscate
or forfeit a bond deposited to the government for any of the following reasons:

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 (a) For failure to fulfill conditions and requirements under which the
permit or lease is issued;

(b) For failure to pay the rentals due; or

(c) For violation of any provision of this order or other formal

requirement of the Bureau of Forestry.

24. Special Provisions. —

(a) Waiving rentals and fees in favor of Government agency. — In

case the applicant is a Government agency or a public or
semi-public entity, the Director of Forestry may waive the
collection of the fees and rental charges.

(b) When payment of bond deposit may be deferred. — The Director

of Forestry, may, at his discretion, defer the payment of bond
deposit of a period of not exceeding one year subject to such terms
and conditions as may be prescribed by him.

COMMON PROVISIONS TO PERMITS AND LEASE AGREEMENT

25. General conditions under which permits are issued. — Every lease or
permit shall be governed by the provisions of this Order as well as those which may
hereafter be issued, especially by the following terms and conditions, aside from those
which may be expressly stipulated in the permit or lease;

(a) Supervision of operation. — The permittee or lessee shall

supervise the operation of his employees, either personally or
through competent agents who must be men of ability and integrity
and whose names, addresses and residence certificate numbers for
the fiscal year shall be sent to the local forest station.

(b) Agents. — No foreigner shall be appointed as an agent of a

permittee unless such agent is locally entitled to hold a permit
under the provisions of the Constitution of the Philippines.

(c) Damages. — The Director of Forestry shall not be responsible for

any loss occasioned by adjudication by competent court, of the
area in favor of any claimant and the permittee waives any right to
claim for damages arising from such decision of the court.

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 (d) No title or priority right acquired under permit or lease. — The
permittee or lessee shall have no right to a title or claim of any sort
whatsoever on, nor priority right to, the land covered by the permit
or lease, No such land shall be deemed to be occupied within the
meaning of the Public Land Act but shall remain subject to
disposition under the Forest Laws and Regulations.

(e) Interference with prior claimant prohibited. — The permittee or

lessee shall not interfere with any prior right by occupation or
settlement over the land until the consent of the settler or occupant
is first had and obtained or until such claims shall have been
legally extinguished.

(f) Surface right. — In the absence of any express provision to the

contrary, each lease or permit issued under these regulations shall
be deemed to vest in the holder thereof a surface right only to the
land granted and no right to utilize or remove without license any
timber or other forest products.

(g) Sanitary conditions of buildings and premises. — The lessee or

permittee shall keep their buildings and premises in a neat and
sanitary condition and shall be subject to all regulations in force
and to the instructions of the forest officers to give effect to such
regulations.

(h) Rights of cutting timber by forestry licensees. — The permit or

lease shall not authorize the permittee or lessee to prevent the
cutting of timber or other forest products within the area granted
by persons holding forestry licenses.

(i) Free access of forest officers. — The Secretary of Agriculture and

Commerce, the Director of Forestry, or any of their authorized
representative, shall be allowed by the permittee or lessee to have
free access at all times to the land under application or lease.

(j) Public roads. — All the existing roads and trails and other means
of transportation, which pass thru or adjoin the area under permit
or lease shall be kept free from obstruction of all kinds for public
use.

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 (k) Right-of-way. — Right-of-way for power transmission lines and
for telephone and telegraph lines granted shall be subject to the
conditions that the lessee or permittee shall execute such
stipulations for the protection of the public forest; shall furnish
such facilities to forest officers; and shall permit such reasonable
use of its poles and lines for official purposes as may be required
by the Director of Forestry or the Secretary of Agriculture and
Commerce.

(l) Statements in application as part of conditions of lease. Any or all

of the statements made in the corresponding application shall be
considered as essential conditions and part of the lease or permit
issued on the basis of such application. Therefore, any false
statement, misrepresentation or subterfuge in any form or material
omission of facts, altering, changing, or modifying the
consideration of any or all the conditions mentioned therein shall
ipso facto cause the cancellation of the lease or permit.

(m) Private transaction. — The applicant, permittee or lessee shall

furnish the Bureau of Forestry, Manila, with a copy of all
transactions made involving or affecting the forest land covered by
the application, permit or lease for information. Such private
transaction is not considered as binding unless approved by the
Director of Forestry.

(n) Survey. — If the applicant does not agree to the area resulting from
the survey made by the Director of Forestry, he may ask at any
time that an exact plan of the land be made by qualified surveyor
and duly approved by the Director of Lands, the cost of the survey
in this case to be paid by the applicant.

(o) Corners and boundary lines. — The permittee or lessee is under

obligation to make and conserve by means of posts, piled stones,
or marked trees, the corners and boundary lines of the land
occupied.

(p) Disposition of Improvements. —

(1) Upon the expiration or cancellation of the permit or lease,

the grantee shall not acquire any right, by virtue of the said

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 permit or lease, to claim reimbursement for the expenses
incurred for improvements of whatever kind, which he may
have introduced upon the land.

(2) Upon the cancellation of the permit or lease thru fault of the
permittee or lessee, the improvements existing thereon shall
revert to and become the property of the Government. In
case the same is granted to another permittee or lessee, such
improvements shall be appraised accordingly and the new
grantee shall either rent them or pay the Government the
price thereof.

(3) If the permit or lease is canceled thru the delinquency of the

permittee or lessee the Government may sell the
improvements existing on the area leased, if there be any,
and the permittee or lessee shall be entitled to the
reimbursement of the proceeds from the sale after deducting
the sum due the Government and the expenses incurred in
said sale and in the issuance of the permit or lease.

(4) When an applicant who is entitled to preferential right fails

to file his application within the time specified or his
application is denied or canceled, the right to the
improvement of/on the land applied for shall be forfeited to
the Government.

(5) Upon the expiration or cancellation of a lease or permit, a

lessee or permittee may, at the discretion of the Director of
Forestry, or the Secretary of Agriculture and Commerce, be
allowed to hold the land for a period not exceeding ninety
(90) days only for the purpose of removing temporary
improvements and putting the land to its original condition.

(q) Cancellation or suspension. — The permit or lease may be

cancelled or suspended for any of the following causes:

(1) For serious or continued violation of its terms, or of the

Forest Laws and Regulations.

(2) By repudiation or abandonment of the area on the part of

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 the permittee or lessee.

(3) Upon request of the permittee or lessee.

(4) When the public interests so require.

(5) Failure to pay without justifiable cause the rental charges

and surcharges as provided in Section 20, paragraph (f)
hereof without prejudice to any action that may be taken by
the Government to recover rentals due.

(6) Failure to (1) advise or furnish the Director of Forestry with

copy of all private transactions affecting or involving the
forest land under application, permit or lease or (2) to
secure approval of such transaction before they become
effective.

(7) Occupation by a permittee or lessee of an area greater or

other than that covered by the permit or lease.

(8) Failure of the permittee or lessee to use the area for the
purpose within four (4) months from the date issued without
reasonable cause.

(9) The cancellation of the permit for any of the causes

mentioned in sub-paragraphs (1), (2), (5), (6), (7), and (8)
hereof shall carry with it the forfeiture of the bond if any, to
the government.

(10) Cancellation of permits and lease agreements shall be made

by the issuing officer.

MISCELLANEOUS PROVISIONS
26. Additional conditions for certain classes of leases. — In addition to the
general provisions as prescribed in the preceding section which apply to all permits
and lease agreements in general, the following special conditions shall apply to the
cases specified below:

(a) Saltworks and other uses of tidal swamps, mangroves and other
swamps, ponds, marshes and streams within public forest lands;

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 (1) Obstruction to navigation. — Nothing in this Order shall be
construed as permitting the lessee or permittee to obstruct
the free navigation of any stream adjoining or flowing
through the area, or prohibit or interfere with the passage of
people along such streams or the banks thereof, or impeded
the flow and ebb of the tide to and from the interior of the
swamps.

(2) Planting Requirements. — When so required, such portion

of the area granted as is not actually occupied by saltworks
shall be planted by the permittee or lessee at his expense
with species collected by the local forest officer and all
clearings made in the operations of saltworks on the area
shall be replanted by the permittee whenever the area is no
longer in use for saltworks purposes.

(b) Sawmill site and lumber yard:

(1) Precaution against fires. — The permittee or lessee shall

conduct the business in such sawmill site or lumber yard in
an orderly manner and shall take all reasonable precautions
to prevent and suppress forest fires.

(2) Removal of inflammable matters. — The permittee or lessee

shall clear of brush and other inflammable materials the
portion embraced within the mill yard and when so required
by the Director of Forestry, additional strips of 50 feet
width beyond the marginal limits thereof.

(3) Disposition of saw dust and other refuse. — Sawdust, slabs,

edgings, and other refuse shall be disposed of as directed by
the Director of Forestry or his duly authorized
representatives.

(c) Right-of-way:

(1) To be confined on area granted. — The right-of-way

granted shall only be confined to the parcel of land
described in the permit or lease and no other parcel of
public land shall be utilized by the permittee or lessee

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 without first securing previous permission of the Director of
Forestry.

(2) Precaution against fires and other accidents. — Precautions

shall be taken by the permittee and lessee to prevent the
occurrence of forest fires and other accidents that may
endanger, life and property in, and along the right-of-way
granted or cause damage to adjoining forests.

(3) Invoicing timber. — All merchantable timber cut or used in

the installation of electric transmission, and telephone lines
shall be invoiced and paid for in accordance with the Forest
Internal Revenue Laws and Regulations.

(4) Trees that may be cut. — The permittee or lessee shall pay
the corresponding regular forest charges to the municipal
treasurer concerned on all merchantable trees as may be cut
in the construction of a right-of-way, tramway line, roads,
trails, etc.

(d) Nipa and Bacauan Plantation:

(1) Non-interference with navigation. — The plantation within

the area under permit or lease shall be so laid as not to
interfere with the free navigation of any stream adjoining or
flowing through the area nor shall it impede the flow and
ebb of the tide to and from the interior of the swamps.

(2) Planting of bare or cut-over areas. — The lessee or

permittee shall be authorized to plant nipa or bacauan or
both on areas where they are not actually growing or on
cut-over portion of the land under permit or lease.

(3) Products gathered from plantation exempt from forest

charges. — Nipas or bacauans planted by the lessee or
permittee may be cut and removed free of forest charges
provided that same are invoiced and manifested in the same
way as forest products cut under a gratuitous license.

(4) Minimum diameter limit. — The minimum diameter limit

for bacauan, langaray, teagal and pototan which may be cut
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 in a plantation shall be ten (10) centimeters. Api-api and
other species may be cut regardless of diameter limit, if so
stipulated in the permit or lease.

(e) Kaiñgin permit. — Special permits authorizing the clearing of

certain portions of the public forest for the purpose of rating
agricultural crops may be granted by the Director of Forestry or his
duly authorized representative, subject to such conditions as may
be prescribed by him in any of the following cases:

(1) On forest lands covered by undesirable forest species that

need to be removed on conditions that the permittee agrees
to plant seeds or seedlings of forest tree species on the area
so cleared, the seed or seedlings to be furnished by, and the
planting to be done under, the supervision of a forest
officer.

(2) Area under special use permit. — On a portion or an area

covered by special use permits or leases for the raising of a
limited amount of annual agricultural crops subject to such
conditions as the Director of Forestry may deem wise to
impose.

(3) Areas certified conditionally for disposition under the

Public Land Act. — On areas certified by the Director of
Forestry as non-forest land for disposition under the Public
Land Act when such certification is made, subject to the
condition that no clearing shall be made unless proper
permission is first obtained from the Director of Forestry or
his duly authorized representatives.
Application for this purpose may be filed annually
covering areas to be cleared during the year, an extension of such
areas may be applied for during the same year if the area granted
in the permit has already been cleared or the extension is
necessary in order to continue the applicant's agricultural
operations. If the additional areas are not cleared within the
period granted in the permit, the applicant shall apply for a
renewal of the permit before continuing clearing operations.
A copy of the permit shall be sent to the Director of Lands

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 who may at any time recommend its cancellation for cause.

(4) Forest lands claimed without title. — On areas containing

forests, claimed by those who, possessing no title deeds,
allege themselves to be owners.
Before making a kaiñgin, such claimant shall apply for
permission from the local forest officer, and his application
should be accompanied with such document or evidence as may
corroborate the allegations of the applicant.
Permits for the purpose shall also be issued after taking
into consideration the importance of the forest cover of the land
desired to be cleared and the proofs of the alleged ownership
presented whether same are admissible or not for purposes of
registration under Section 1829 of the Revised Administrative
Code.

(5) Construction of roads or trails. — On areas containing

forest within public forest lands or forest reserves where it
is necessary to use fire for opening logging roads or trails.

(6) Kaiñgin zones. — On areas within kaiñgin zones

established by the Bureau of Forestry for the non-Christian
Tribes.

(7) Special cases. — On forest lands within unclassified public

forest which are potentially agricultural lands, preferably
those covered with grass, brush or small quantities of
merchantable timber of the less valuable species, whenever
public interests so require in cases of public calamity, etc.,
or on any portion of a forest reserve or timber land so
located when the granting thereof shall be helpful in forest
administration.

(f) Private camp:

(1) Planting requirements. — The permittee shall agree to plant

seeds or seedlings of forest tree species on the area used
under the permit before abandoning the same, when
required to do so, the seeds or seedlings to be furnished by
the Bureau of Forestry and the planting to be done under the
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 supervision of a forest officer.

(2) Cultivation. — No cultivation permit shall be necessary

when a small garden, etc. is maintained subsidiary to the use
of the land as private camp.

(3) Fencing. — Barbed wire fence may be used in enclosing the

lands occupied under this permit only by special
arrangement with the officer issuing the permit.
27. Termination of lease upon death of lessee. — The permit or lease shall
terminate upon the death of the permittee or lessee.
28. Rights of surviving heirs. — A permit or lease may, upon application
within sixty (60) days from the date of death of a permittee or lessee, be issued to his
surviving heirs if duly qualified to hold a permit or lease in accordance with the
requirements of these regulations.
29. When transfer of lease is allowed. — Upon application and payment of
the necessary fees, rentals or cash bonds, an area under permit or lease or portion
thereof may be transferred to a duly qualified person under the following conditions:

(a) That the permittee or lessee had, except when otherwise

specifically authorized, hold permit or lease and actually operated
and made improvements on the area during a period of at least one
year from the date the permit or lease is granted.

(b) That the permittee or lessee has no unpaid rental or rentals and, if
he has any, the transferee shall settle all such unpaid rentals
previous to the approval of the transfer.

(c) That the permittee or lessee shall submit a statement to the

Director of Forestry transferring his right to the land in favor of
any person who is qualified to hold a permit or lease under the
provisions of this order, the Director of Forestry will if necessary,
order investigation of the land before such transfer can be effected.

(d) That such transfer shall only be valid when approved by the
Director of Forestry, or of the Secretary of Agriculture and
Commerce, as the case may be, under such terms and conditions as
may be prescribed by either of these officials, otherwise it shall be
null and void and shall be considered sufficient cause for the

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 cancellation of the permit or lease.
30. Duties of permittees or lessees. — Every permittee or lessee of public
forest lands shall be governed by, and subject to, these regulations. Among his duties
shall be:

(a) To observe such precautions as may be necessary to prevent injury

to the public forest.

(b) To be responsible for any injury to the public forest covered by his
lease or permit by improper or negligent operation of himself, his
agent, representative or workmen.

(c) To place himself, his agent and employee at the disposition of the
forest officer, when so required, for the purpose of fighting fire in
the public forests, forest reserves, forest plantations, areas
reforested or under reforestation.

(d) To accept obligations for any damage which may be caused by his
operation, such damage to be assessed by the Director of Forestry
and paid for by the permittee or lessee.

(e) To submit reports or statements of his operation at such intervals

as may be required by the Director of Forestry or the Secretary of
Agriculture and Commerce.

(f) To keep records of such transaction in connection with his permit

or lease as may be required by the Director of Forestry or his duly
authorized representative.

(g) To permit at any time a forest officer duly authorized by the

Director of Forestry to inspect all the records having any hearing
on the date or information required in connection with his
operation as a permittee or lessee.

(h) To appear and to be present or to send a representative whenever

required by the forest officer, during the inspection of the area
under permit or lease or in the investigation of matters pertaining
thereto.

(i) To surrender to the Secretary of Agriculture and Commerce or to

the Director of Forestry his permit or lease if not to be renewed on
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 the date of expiration or after the date of its cancellation.

(j) To inform the Director of Forestry, Manila, or his representative of

this names of other persons or companies, as well as their
addresses and capital invested, who, afterwards, may be financially
interested in his permit or lease. Failure to do so may cause the
cancellation of said permit or lease.

(k) To advise the Director of Forestry of any change in the

management, ownership, or capital stock of the company, or
corporation, or transfer of a majority of the stock or shares of said
company or corporation. Failure to do so without justifiable cause
shall be considered sufficient ground for the cancellation of the
permit or lease.
31. Appeal, how taken. — Orders, decisions or any action of the Director of
Forestry under these regulations shall be final, unless a motion for reconsideration
thereof is filed or appeal therefrom is taken to the Secretary of Agriculture and
Commerce in the manner and within the time prescribed in Forestry Administrative
Order No. 6-2.
LEGAL PROCEEDINGS AND PENALTY
32. Authority. —

(a) Civil action. — All cases requiring the institution of civil

proceedings shall be reported to the Director of Forestry for
reference to the Solicitor-General or to the proper Provincial
Fiscal, as the case may be, for action.
(b) Criminal complaints. — For the purposes of this Order, forest officers are
hereby authorized to file the necessary criminal complaints in courts and shall submit
a report thereof to the Director of Forestry for appropriate action.
33. Penalties. —

(a) For unlawful destruction of public forest. — Any person who shall
make kaiñgin in a public forest or area certified to the Director of
Lands for disposition under the Public Land Act with restrictions
that no portion thereof shall be cleared without permit as provided
in Section 26 (e) paragraph (3) of these regulations, or in any
manner destroy such forest or part thereof or forest products
growing therein, or any person who shall negligently permit a fire

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 which has been set upon his own premises to be communicated
with destructive results to any of the forests mentioned below,
shall suffer the penalties provided in Section 2751 of the Revised
Administrative Code, as amended by Commonwealth Act No. 447,
as follows:
Offense Committed in Penalties
Fine Imprisonment

(a) Forest reserve Four (4) times Not less than four
the regular (4) nor more than
government charges six (6) months.

(b) Proclaimed timber Three (3) times Not less than two
land Cn. forest, the regular (2) nor more than
Cn. pastures. government charges. four (4) months.

(c) Public forest Two (2) times Not less than one
other than those the regular (1) nor more than
mentioned above government charges. two (2) months.
viz. (a) & (b)

(b) Eviction of the offenders; recovery of damages. — In addition to

the penalties mentioned in paragraph (a) of this section, the court
shall, upon conviction, order the eviction of the offender from the
land and the forfeiture to the government of any construction or
improvement made thereon. If the area is reforested or under
reforestation, the government may, in addition to the penalties,
recover in a separate civil action, double the actual damages
sustained as determined by the value of plantings and
improvements destroyed and the detriment to the land and
vegetation thereof.

(c) For unlawful occupation or use of public forest lands. — Any

person occupying or using anyone of the above-mentioned public
forest without permit or lease from Bureau of Forestry in violation
of the provisions of Section 2 of this order, shall be subject to
prosecution under Section 2751 of the Administrative Code as
amended and to pay double the ordinary rental charges of the land
so occupied during the period of illegal occupation, in accordance
with Section 1838 of the same Code as amended by

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 Commonwealth Act No. 100.

(d) Evasion of the laws on nationalization of certain rights, franchises,

and privileges. — Any person, corporation, or association which,
having in its name or under its control, a right, franchise, privilege,
property or business the exercise or enjoyment of which is
expressly reserved by the Constitution or laws of the Philippines to
citizens of the Philippines or of the United States, or to
corporations or associations at least sixty per centum of the capital
of which is owned by such citizens, permits or allows the use,
exploitation or enjoyment thereof by a person, corporation or
association to possessing the requisites prescribed by the
Constitution or the laws of the Philippines; or lease, or in any other
way transfers or conveys said right, franchise, privilege, property
or business to a person, corporation or association not otherwise
qualified under the Constitution, or the provisions of Existing Acts,
and any person who knowingly aids assists, or abets in the
planning, consummation, or perpetration of any of the acts
hereinabove enumerated. shall be punished by imprisonment for
not less than two nor more than ten years, and by a fine of not less
than two thousand nor more than ten thousand pesos, Provided,
however, that presidents, managers, or persons in charge of
corporations, associations, or partnerships violating the provisions
hereof shall be criminally liable in lieu thereof. (Commonwealth
Act No. 108 as amended by Commonwealth Act No. 421.)
34. Repealing clause. — Except those governing National parks, Forest
Reserves, Communal Forests, Communal Pastures or Grazing Lands, all existing
rules, regulations, circulars, and instructions regarding special uses of forest lands
inconsistent with the provisions of this Order are hereby repealed.
35. Date of taking effect. — This Order shall take effect July 1, 1941.

(SGD.) BENIGNO S. AQUINO

Secretary of Agriculture and Commerce

RECOMMENDED BY:

(SGD.) FLORENCIO TAMESIS

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 Director of Forestry

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