DENR Sec. may cancel mining rights thru MGB

The DENR Secretarys power to cancel mining rights or agreements through the Mines and Geosciences Bureau (MGB) can be inferred from Sec. 230, Chapter XXIV of DENR AO 96-40 on cancellation, revocation, and termination of a permit/mineral agreement/FTAA. Sec. 230 provides:
Section 230. Grounds. The following grounds for cancellation revocation and termination of a Mining Permit Mineral Agreement/FTAA.

a. Violation of any of the terms and conditions of the Permits or Agreements;
b. Nonpayment of taxes and fees due the government for two (2) consecutive years; and
c. Falsehood or omission of facts in the application for exploration [or Mining] Permit Mineral Agreement/FTAA or other permits which may later, change or affect substantially the facts set forth in said statements.

Though Sec. 230 is silent as to who can order the cancellation, revocation, and termination of a permit/mineral agreement/FTAA, it has to be correlated with the power of the MGB under Sec. 7 of AO 96-40 to cancel or to recommend cancellation, after due process, mining rights, mining applications and mining claims for noncompliance with pertinent laws, rules and regulations. As the MGB is under the supervision of the DENR Secretary, then the logical conclusion is that it is the DENR Secretary who can cancel the mineral agreements and not the POA nor the MAB. (G.R. No. 169080; December 19, 2007)