WHEREAS, Executive Order No. 131, dated January 30, 1987, was suspended;

WHEREAS, a policy having been reached on energy, the reorganization of the Department of Natural Resources can now be effected;

WHEREAS, the environment will be affected by the use, development, management, renewal and conservation of the country ™s natural resources;

WHEREAS, there is a need to protect and enhance the quality of the country ™s natural resources;

WHEREAS, to attain this objective, environmental concerns and natural resources concern should be given equal attention by the Department;

WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the President shall continue to exercise legislative powers until the First Congress is convened;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

SECTION 1. Title. - This Executive Order shall otherwise be known as the Reorganization Act of the Department of Environment and Natural Resources.

SEC. 2. Reorganization. - The Department of Environment, Energy and Natural Resources is hereby reorganized structurally and functionally and renamed as the Department of Environment and Natural Resources, hereinafter referred to as Department, in accordance with the provisions of this Executive Order.

SEC. 3. Declaration of Policy. - it is hereby declared the policy of the State to ensure the sustainable use, development, management, renewal, and conservation of the country ™s other natural resources, including the protection and enhancement of the quality of the environment, and equitable access of the different segments of the population to the development and use of the country ™s natural resources, not only for the present generation but for future generations as well. It is also the policy of the state to recognize and apply a true value system including social and environmental cost implications relative to their utilization, development and conservation of our natural resources.

SEC. 4. Mandate. - The Department shall be the primary government agency responsible for the conservation, management, development and proper use of the country ™s environment and natural resources, specifically forest and grazing lands, mineral resources, including those in reservation and watershed areas, and lands of the public domain, as well as the licensing and regulations of all natural resources as may be provided for by law in order to ensure equitable sharing of the benefits derived therefrom for the welfare of the present and future generations of Filipinos.

To accomplish its mandate, the Department shall be guided by the following objectives that will serve as basis for policy formulation:

(a)	Assure the availability and sustainability of the country ™s natural resources through judicious use and systematic restoration or replacement, whenever possible;
(b)	Increase the productivity of natural resources in order to meet the demands for forest, mineral, and land resources of a growing population;
(c)	Enhance the contribution of natural resources for achieving national economic and social development;
(d)	Promote equitable access to natural resources by the different sectors of the population;
(e)	Conserve specific terrestrial and marine areas representative of the Philippines natural and cultural heritage for present and future generations.

SEC. 5. Power and Functions. - To accomplish its mandate, the Department shall have the following powers and functions:

(a)	Advise the President on the enactment of laws, relative to the development, use, regulation, and conservation of the country ™s natural resources and the control of pollution;
(b)	Formulate, implement, and supervise the government ™s policies, plans and programs pertaining to the management, conservation, development, use and replenishment of the country ™s natural resources;
(c)	Promulgate rules and regulations in accordance with law governing the exploration, development, conservation, extraction, disposition, use and such other commercial activities tending to cause the depletion and degradation of our natural resources;
(d)	Exercise supervision and control over forest lands, alienable and disposable lands, and mineral resources and in the process of exercising such control the Department shall impose appropriate payments, fees, charges, rentals and any such form of levy and collect such revenues for the exploration, development, utilization or gathering of such revenues;
(e)	Undertake exploration, assessment, classification and inventory of the country ™s natural resources using ground survey ™s remote sensing and complementary technologies;
(f)	Promote proper and mutual consultation with the private sector involving natural resources development, use and conservation;
(g)	Undertake geological surveys of the whole country including its territorial waters;
(h)	Establish policies and implement programs for the:

(1)

Accelerated inventory, surveys and classification of lands, forest, and mineral resources using appropriate technology, to be able to come up with a more accurate assessment of resource quality and quantity;

(2)

Equitable distribution of natural resources through the judicious administration, regulation, utilization, development and conservation of public lands, forest, and mineral resources (including mineral reservation areas), that would benefit a greater number of Filipinos;

(3)

Promotion, development and expansion of natural resource-based industries;

(4)

Preservation of cultural and natural heritage through wildlife conservation and segregation of natural parks and other protected areas;

(5)

Maintenance of a wholesome natural environment by enforcing environment protection laws; and

(6)

Encouragement of greater people participation and private initiative resource management.

(i)

(1)

Accelerate cadastral and emancipation patent surveys, land use planning and public titling;

(2)

Harness forest resources in a sustainable manner, to assist rural development, support forest-based industries, and provide raw materials to meet increasing demands, at the same time keeping adequate reserves for environmental stability; and

(3)

Expedite mineral resources surveys, promote the production of metallic and non-metallic minerals and encourage mineral marketing.

(j) (k) (l) (m) (n) (o) (p) (q) (r) (s)
SEC. 6. Structural Organization. - The Department shall consist of the Department Proper, the staff offices, the staff bureaus and the regional/provincial/community natural resources offices.

The Department Proper shall consist of the following:

(a)	Office of the Secretary
(b)	Offices of Undersecretaries
(c)	Offices of Assistant Secretaries
(d)	Public Affairs Office
(e)	Special Concerns Office
(f)	Pollution Adjudication Board

The staff sectoral bureaus on the other hand, shall be composed of:

(a)	Forest Management Bureau
(b)	Lands Management Bureau
(c)	Mines and Geo-Sciences Bureau
(d)	Environmental Management Bureau
(e)	Ecosystems Research and Development Bureau
(f)	Protected Areas and Wildlife Bureau

The field offices shall consist of all the department regional offices, the provincial offices and the community offices.

SEC. 7. Secretary of Environment and Natural Resources. - The authority and responsibility for the exercise of the mandate of the Department, the accomplishment of its objectives and the discharge of its powers and functions shall be vested in the Secretary of Environment and Natural Resources, hereinafter referred to as Secretary, who shall supervise the Department and shall be appointed by the President. For such purposes, the Secretary shall have the following functions:

(a)	Advise the President on the promulgation of rules and regulations and other issuances relative to the conservation, management, development and proper use of the country ™s natural resources;
(b)	Establish policies and standards for the efficient and effective operations of the Department in accordance with the programs of the government;
(c)	Promulgate rules, regulations, and other issuances necessary in carrying out the Department ™s mandate, objectives, policies, plans, programs, and projects;
(d)	Exercise supervision over all functions and activities of the Department;
(e)	Delegate authority for the performance of any administrative or substantive function to subordinate officials of the Department;
(f)	Perform other functions as may be provided by law or assigned appropriately by the President.

SEC. 8. Office of the Secretary. - The Office of the Secretary shall consist of the Secretary and his immediate staff.

SEC. 9. Undersecretary. - The Secretary shall be assisted by five (5) Undersecretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate, assign and/or reassign the respective functional areas of responsibility of the Undersecretary, provided, that such responsibility shall be with respect to the mandate and objectives of the Department; and provided, further, that no Undersecretary shall be assigned primarily administrative responsibilities. Within his functional area of responsibility, an Undersecretary shall have the following functions:

(a)	Advise the Secretary in the promulgation of Department orders, administrative orders and other issuances, with respect to his area of responsibility;
(b)	Exercise supervision over the offices, services, operating units and officers and employees under his responsibilities;
(c)	Promulgate rules and regulations, consistent with Department policies, that will efficiently and effectively govern the activities of units under his responsibility;
(d)	Coordinate the functions and activities of the units under his responsibility with those of other units under the responsibility as may be delegated by the secretaries;
(e)	Exercise authority on substantive and administrative matters related to the functions and activities of units under his responsibility as may be delegated by the Secretary;
(f)	Perform other functions as may be provided by law or assigned appropriately by the Secretary.

SEC. 10. Assistant Secretary. - The Secretary and the Undersecretaries shall be assisted by seven (7) Assistant Secretaries, in the formulation, management and implementation of natural resources laws, policies, plans, and programs and projects. They shall oversee the day-to-day operations, administration and supervision of the constituents of the Department. The seven (7) Assistant Secretaries shall be responsible for the following:

(a)	Policy and Planning Studies
(b)	Foreign-Assisted and Special Projects
(c)	Field Operations in Luzon
(d)	Field Operations in Visayas
(e)	Field Operations in Mindanao
(f)	Legal Affairs
(g)	Management Services

SEC. 11. Public Affairs Office. - There is hereby created a Public Affairs Office, under the Office of the Secretary, to be headed by a Director and assisted by an Assistant Director, which shall serve as the public information arm of the Department. It shall be responsible for disseminating information on natural resources development policies, plans, programs and projects; and respond to public queries related to the development and conservation of natural resources.

The Public Affairs Offices of all bureaus are hereby abolished and their functions are transferred to the Public Affairs Office in accordance with Section 24 (b) hereof.

SEC. 12. Special Concerns Office. - There is hereby created a Special Concerns Office under the Office of the Secretary, to be headed by a Director and assisted by an Assistant Director, which shall be responsible for handling priority areas/subjects identified by the Secretary which necessitates special and immediate attention.

SEC. 13. Forest Management Bureau. - There is hereby created a Forest Management Bureau which shall integrate and absorb the powers and functions of the Bureau of Forest Development (BFD) and the Wood Industry Development Authority (WIDA), in accordance with Section 24(e) hereof except those line functions and powers which are transferred to the regional field office. The Forest Management Bureau, to be headed by a Director and assisted by an Assistant Director shall advise the Secretary on matters pertaining to forest development and conservation and shall have the following functions, but not limited to:

(a)	Recommended policies and/or programs for the effective protection, development, occupancy, management and conservation of forest lands and watersheds, including grazing and mangrove areas, reforestation and rehabilitation of critically denuded/degraded forest reservations, improvement of water, resource use the development, ancestral lands, wilderness areas and other natural preserves, development of forest plantations including rattan bamboo, and other valuable non-timber forest resources rationalization of the wood-based industries, regulation of the utilization and exploitation of forest resources including wildlife, to ensure continued supply of forest goods and services.
(b)	Advise the regional offices in the implementation of the above policies and/or programs.
(c)	Develop plans, programs, operating standards and administrative measures to promote the Bureau ™s objectives and functions.
(d)	Assist in the monitoring and evaluation of forestry and watershed development projects to ensure efficiency and effectiveness.
(e)	Undertake studies on the economics of forestry and forest-based industries, including supply and demand trends on the local, national and international levels, identifying investment problems and opportunities, in various areas.
(f)	Perform other functions as may be assigned by the Secretary and/or provided by law.

SEC. 14. Lands Management Bureau. - There is hereby created the Lands Management Bureau which shall absorb functions and powers of the Bureau of Lands except those line functions and powers which are transferred to the regional field office. The Lands Management Bureau to be headed by a Director and assisted by an Assistant Director shall advise the Secretary on matters pertaining to rational land classification management and disposition and shall have the following functions, but not limited to:

(a)	Recommend policies and programs for the efficient and effective administration, surveys, management and disposition of alienable and disposable lands of the public domain and other lands outside the responsibilities of other government agencies; such as reclaimed areas and other areas not needed for or are not being utilized for the purposes for which they have been established;
(b)	Advise the Regional Offices on the efficient and effective implementation of policies, programs and projects for more effective public lands management;
(c)	Assist in the monitoring and evaluation of land surveys, management and disposition of lands to ensure efficiency and effectiveness thereof;
(d)	Issue standards, guidelines, regulations and orders to enforce policies for the maximization of land use and development;
(e)	Develop operating standards and procedures to enhance the Bureau ™s objectives and functions;
(f)	Assist the Secretary as Executive Officer charged with carrying out the provisions of the Public Land Act (C.A. 141, as amended), who shall have direct executive control of the survey, classification, lease, sale or any other forms of concessions or disposition and management of the lands of the public domain;
(g)	Perform other functions as may be assigned by the Secretary and/or provided by law.

SEC. 15. Mines and Geo-Sciences Bureau. - There is hereby created the Mines and Geo-Sciences Bureau which shall absorb the functions of the Bureau of Mines and Geo-Sciences (BMGS), Mineral Reservations Development Board (MRDB) and the Gold Mining Industry Development Board (GMIDB) all of which are hereby merged in accordance with Section 24 hereof except those line functions and powers which are transferred to the regional field office. The Mines and Geo-Sciences Bureau, to be headed by a Director and assisted by an Assistant Director shall advise the Secretary on matters pertaining to geology and mineral resources exploration, development and conservation and shall have the following functions, but not limited to:

(a)	Recommend policies, regulations and programs pertaining to mineral resources development and geology;
(b)	Recommend policies, regulation and oversee the development and exploitation of mineral resources of the sea within the country ™s jurisdiction such as silica sand, gold placer, magnetite and chromite sand, etc.
(c)	Advise the Secretary on the granting of mining rights and contracts over areas containing metallic and non-metallic mineral resources;
(d)	Advise the Regional Offices on the effective implementation of mineral development and conservation programs as well as geological surveys;
(e)	Assist in the monitoring and evaluation of the Bureau ™s programs and projects to ensure efficiency and effectiveness thereof;
(f)	Develop and promulgate standards and operating procedures on mineral resources development and geology;
(g)	Supervise and control the development and packaging of nationally applicable technologies on geological survey, mineral resource assessment, mining and metallurgical, chemical and rock mechanics laboratory services; the conduct of marine geological and geophysical survey and natural exploration drilling programs;
(h)	Perform other functions as may be assigned by the Secretary and/or provided by law.

SEC. 16. Environment Management Bureau. - There is hereby created an Environmental Management Bureau. The National Environmental Protection Council (NEPC), the National Pollution Control Commission (NPCC) and the Environmental Center of the Philippines (ECP), are hereby abolished and their powers and functions are hereby integrated into the Environmental Management Bureau in accordance with Section 24 hereof, subject to Section 19 hereof. The Environmental Management Bureau shall be headed by a Director and assisted by an Assistant Director who shall advise the Secretary on matters relating to environmental management, conservation, and pollution control. The Environmental Management Bureau shall have the following functions:

(a)	Recommend possible legislations, policies and programs for environmental management and pollution control;
(b)	Advise the Regional Offices in the efficient and effective implementation of policies, programs, and projects for the effective and efficient environmental management and pollution control;
(c)	Formulate environmental quality standards such as the quality standards for water, air, land, noise and radiations;
(d)	Recommend rules and regulations for environmental impact assessments and provide technical assistance for their implementation and monitoring;
(e)	Formulate rules and regulations for the proper disposition of solid wastes, toxic and hazardous substances;
(f)	Advise the Secretary on the legal aspects of environmental management and pollution control and assist in the conduct of public hearings in pollution cases;
(g)	Provide secretariat assistance to the Pollution Adjudication Board, created under Section 19 hereof;
(h)	Coordinate the inter-agency committees that may be created for the preparation of the State of the Philippine Environment Report and the National Conservation Strategy;
(i)	Provide assistance to the Regional Offices in the formulation and dissemination of information on environmental and pollution matters to the general public;
(j)	Assist the Secretary and the Regional Officers by providing technical assistance in the implementation of environmental and pollution laws;
(k)	Provide scientific assistance to the Regional Offices in the conduct of environmental research programs.

SEC. 17. Ecosystem Research and Development Bureau. - The Forest Research Institute and the National Mangrove Committee are hereby abolished and integrated into the Ecosystems Research and Development Bureau in accordance with Section 24 (e) hereof. The Ecosystems Research and Development Bureau shall be headed by a Director and assisted by an Assistant Director. The Bureau shall have the following functions:

(a)	Formulate and recommend an integrated research program relating to Philippine ecosystems and natural resources such as minerals, lands, forests, as holistic and interdisciplinary fields of inquiry;
(b)	Assist the Secretary in determining a system of priorities for the allocation of resources to various technological research programs of the department;
(c)	Provide technical assistance in the implementation and monitoring of the aforementioned research programs;
(d)	Generate technologies and provide scientific assistance in the research and development of technologies relevant to the sustainable uses of Philippine ecosystems and natural resources;
(e)	Assist the Secretary in the evaluation of the effectiveness of the implementation of the integrated research program.

The Ecosystem Research and Development Bureau shall directly manage and administer the FORI Research Offices, laboratories, and forest experiment stations located at UP Los Ba os and such other field laboratories as the Secretary may assign to its direct supervision. The Bureau shall coordinate all technological researches undertaken by the field offices, assess and translate all recommendable findings and disseminate such findings for all possible users and clientele.

SEC. 18. Protected Areas and Wildlife Bureau. - There is hereby created a Protected Areas and Wildlife Bureau which shall absorb the Division of Parks and Wildlife and the Marine Parks Program of the Bureau of Forest Development as well as: Calauit Game Preserve and Wildlife Sanctuary, Presidential Committee on the Conservation of Tamaraw, Ninoy Aquino Parks and Wildlife Center (formerly Parks and Wildlife Nature Center), shares in Kabuhayan Program and Agro Forestry State Projects of the KKK Processing Authority, all national parks, wildlife sanctuaries and game preserves previously managed and administered by the Ministry of Human Settlements including National Parks Reservation situated in the provinces of Bulacan, Rizal, Laguna and Quezon formerly declared as Bagong Lipunan Sites of said Ministry, Magat Forest Reservation and Mt. Arayat National Park, formerly with the Ministry of Tourism in accordance with Section 24 (c) hereof. The Bureaus shall have the following functions:

(a)	Formulate and recommend policies, guidelines, rules and regulations for the establishment and management of an Integrated Protected Areas Systems such as national parks, wildlife sanctuaries and refuge, marine parks, and biospheric reserves;
(b)	Formulate and recommend policies, guidelines, rules and regulations for the preservation of biological diversity, genetic resources, the endangered Philippine flora and fauna;
(c)	Prepare an up-to-date listing of endangered Philippine flora and fauna and recommend a program of conservation and propagation of the same;
(d)	Assist the Secretary in the monitoring and assessment of the management of the Integrated Protected Areas System and provide technical assistance to the regional Offices in the implementation of programs for these areas;
(e)	Perform other functions as may be assigned by the Secretary and/or provided by law.

SEC. 19. Pollution Adjudication Board. - There is hereby created a Pollution Adjudication Board under the Office of the Secretary. The Board shall be composed of the Secretary as Chairman, two (2) Undersecretaries as may be designated by the Secretary, the Director of Environmental Management, and three (3) others to be designated by the Secretary as members. The Board shall assume the powers and functions of the Commission/Commissioners of the National Pollution Control Commission with respect tot eh adjudication of pollution cases under Republic Act 3931 and Presidential Decree 984, particularly with respect to Section 6 letters e, f, g, j, k, and p of P.D. 984. The Environmental Management Bureau shall serve as the Secretariat of the Board. These powers and functions may be delegated to the regional officers of the Department in accordance with rules and regulations to be promulgated by the Board.

SEC. 20. Field Offices of the Department. - The field offices of the Department are the Environment and Natural Resources Regional Offices in thirteen (13) administrative regions of the country, the Environment and Natural Resources Provincial Office in every province and the Community Office in municipalities wherever deemed necessary. The regional offices of the Bureau of Forest Development, Bureau of Mines & Geo-Sciences and Bureau of Lands in each of the thirteen (13) administrative regions and the research centers of the Forest Research Institute are hereby integrated into the Department-wide Regional Environment and Natural Resources Office of the Department, in accordance with Section 24(e) hereof. A Regional Office shall be headed by a Regional Executive Director (with the Rank of Regional Director and shall be assisted by five (5) Regional Technical Directors (with the Rank of Assistant Regional Director) each for Forestry, Land Management, Mines and Geo-Sciences, Environmental Management and Ecosystems Research. The Regional Executive Directors and Regional Technical Directors shall be Career Executive Service Officers.

SEC. 21. Functions of Environment and Natural Resources Regional Office. - Environment and Natural Resources Regional Offices shall be located in the identified regional capitals and shall have the following functions, but not limited to:

(a)	Implement laws, policies, plans, programs, projects, rules and regulations of the Department to promote the sustainability and productivity of natural resources, social equity in natural resource utilization and environmental protection.
(b)	Provide efficient and effective delivery of services to the people;
(c)	Coordinate with regional offices of other departments, offices, agencies in the region and local government units in the enforcement of natural resource conservation laws and regulations, and in the formulation/implementation of natural resources programs and projects;
(d)	Recommend and, upon approval, implement programs and projects on forestry, minerals and land management and disposition;
(e)	Conduct comprehensive inventory of natural resources short and long-term development plans for the conservation, utilization and replacement of natural resources;
(f)	Evolve respective regional budget in conformity with the priorities established by the Regional Development Councils;
(g)	Supervise the processing of natural resources products, grade and inspect minerals, lumber and other wood processed products, and monitor the movement of these products;
(h)	Conduct field researches for appropriate technologies recommend for various projects;
(i)	Perform other functions as may be assigned by the Secretary and/or provided by law.

The natural resources provincial and community offices shall absorb, respectively, the functions of the district offices of the bureaus, which are hereby abolished in accordance with Section 24 (b) hereof. The provincial and community natural resource office shall be headed by a provincial natural resource officer and community natural resource officer, respectively.

SEC. 22. Attached Agencies and Corporations. - The following agencies and corporations are attached to the Department:

(a)	National Mapping and Resource Information Authority. - There is hereby created the National Mapping and Resource Information Authority (NAMRIA) which shall integrate the functions and powers of the National Resources Management Center (NRMC), National Cartography Authority (NCA), the Bureau of Coast and Geodetic Survey (BCGS), and the Land Classification Teams based at the then Bureau of Forest Development, in accordance with Section 24 (e) hereof, which shall provide the Department and the government with map-making services. The authority shall act as the central mapping agency which will serve the needs of the line services of the Department and other government offices with regard to information and researches, and shall expand its capability in the production and maintenance of maps, charts and similar photogrammetry and cartography materials.
	The Authority shall be responsible for conducting research on remote sensing technologies such as satellite imagery analysis, airborne multi-spectral scanning systems, and side-looking airborne radar; provide remote sensing services and vital data on the environment, water resources, agriculture, and other information needed by other government agencies and the private sector; integrate all techniques of producing maps from the ground surveys to various combinations of remote sensing techniques in a cost effective and acceptable manner; and the integration of geographic and related information to facilitate access to and analysis of data and its transformation into useful information for resource policy formulation, planning and management. It shall be the central depository and distribution facility for natural resources data in the form of maps, statistics, text, charts, etc. store on paper, film or computer compatible media and shall operate information services and networks to facilitate transfer, sharing, access and dissemination of natural resource information in all regions and provinces of the country; establishment of a nationwide geodetic network of control points that serves as a common reference system for all surveys in the country and conduct hydrographic and nautical charts vital to sea and water travel as well as the exploitation of our marine resources; formulate and implement nationwide development program on aerial photography, cartography and remote sensing mapping activities; establish and implement technical standards and quality specifications on map production and its reproduction; and provide photogrammetry, cartographic and remote sensing mapping services in order or accelerate the development of a comprehensive data bank and information systems on base maps and charts.
	The NAMRIA shall be provided with policy directions by a five (5) member Board of Governors consisting of key officers with no less than the rank of undersecretaries as follows:

Department of Environment & Natural Resources

- chairman

Department of Agriculture

- member

Department of Public Works & Highways

- member

Department of National Defense

- member

Department of Transportation & Communications

- member

(b)

(1)

Direct involvement in pioneering but potentially viable production, use and marketing ventures or projects using new/innovative technologies, systems, and strategies such as but not limited to stumpage sales system, industrial forest plantations or logging operations, rattan tissue culture; provided, however, that activities which compete with the private sector shall be avoided except in specific cases where the revenues of NRDC are earmarked for a specific local developmental or social service.

(2)

Financing natural resource development projects undertaken by the private sector such as establishing industrial tree plantations, agro-forestry, small-scale mining and retooling of the natural resource-based processing industries to improve their efficiency and competitiveness; to discharge these functions effectively, it is hereby authorized to generate funds through debt instruments from various sources, and innovative income-generating strategies.

(c)
SEC. 23. Detachment and Transfers. - The following offices and corporation attached to the Department of Environment, Energy and Natural Resources by E.O. 131 are hereby detached and/or transferred as follows:

(a)	Manila Seedling Bank Foundation, Inc. is administratively detached from the Department.
(b)	Bureau of Energy Utilization, and
(c)	Bureau of Energy Development are transferred to the appropriate energy governing body pursuant to the Executive Order pertaining to it.

SEC. 24. Transitory Provisions. - In accomplishing the acts of reorganization herein prescribed, the following transitory provisions shall be complied with, unless otherwise provided elsewhere in this Executive Order:

(a)	The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be necessary, who shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits. Those personnel from the transferred unit whose positions are not included in the Department ™s new position structure and staffing pattern approved and prescribed by the Secretary or who are not reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of Section 25 hereof.
(b)	The transfer of functions which results in the abolition of the government unit that exercised them shall include the appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The abolished unit ™s remaining appropriations and funds, if any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units as the Secretary shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over capacity, continue to perform their duties and responsibilities and receive the corresponding salaries and benefits. Its personnel whose positions are not included in the Department ™s structure and staffing pattern approved and prescribed by the Secretary under Section 25 hereof or who is not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 25.
(c)	Any transfer of functions which does not result in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, chosen in action, rights, and assets and personnel as may be necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred in connection with the discharge of the transferred functions, shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Such personnel shall, in a hold-over capacity, continue to perform their duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service. Any personnel, whose positions are not included in the Department ™s new position structure and staffing pattern approved and prescribed by the Secretary under Section 25 hereof or is not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 25.
(d)	In case of the abolition of the government unit which does not result in the transfer of its functions to another unit, the appropriations and funds of the abolished entity shall revert to the General Fund, while the records, equipment, facilities, chosen in action, rights, and other assets thereof shall be allocated to such appropriate entities as the Secretary shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The liabilities of the abolished units shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations, while the personnel thereof, whose position, is not included in the Department ™s new position structure and staffing pattern approved and prescribed by the Secretary under Section 25 hereof or who has not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 25.
(e)	In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions (subject to the reorganization herein prescribed and the laws, rules and regulations pertinent to the exercise of such functions) and shall acquire the appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets, liabilities, if any, and personnel, as may be necessary, of the units that compose the merged unit shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service. Any such personnel, whose positions are not included in the Department ™s new position structure and staffing pattern approved and prescribed by the Secretary under Section 25 hereof or who are not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 25.
(f)	In case of termination of a function which does not result in the abolition of the government unit which performed such function, the appropriations and funds intended to finance the discharge of such function shall revert t the General Fund while the records, equipment, facilities, chosen in action, rights and other assets used in connection with the discharged of such function shall be allocated to the appropriate units as the Department shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The liabilities, if any, that may have been incurred in connection with the discharge of such function shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The personnel who have performed such function, whose positions are not included in the Department ™s new position structure and staffing pattern approved and prescribed by the Secretary under Section 25 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 25 hereof.

SEC. 25. New Structure and Pattern. - Upon approval of this Executive Order, the officers and employees of the Department shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from government service.

The new position structure and staffing pattern of the Department shall be approved and prescribed by the Secretary within sixty (60) days from the effectivity of this Executive Order and the authorized positions created thereunder shall be filled with regular appointments by him or by the President as the case may be. Those incumbents whose positions are not included therein or who are not reappointed shall be deemed separated from the service shall receive the retirement benefits to which they may be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent of one (1) month basic salary for every year of service in the government, or a fraction thereof, computed on the basis of the highest salary received, but in no case such shall payment exceed the equivalent of twelve (12) months salary.

SEC. 26. Periodic Performance Evaluation. - The Department of Environment and Natural Resources is hereby required to formulate and enforce a system of measuring and evaluating periodically and objectively the performance of the Department and submit the same annually to the President.

SEC. 27. Notice or Consent Requirement. - If any reorganizational change herein authorized is of such substance or materiality as to prejudice third persons with rights recognized by law or contract such that notice to or consent of creditors is required to be made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be complied with prior to the implementation of such reorganizational change.

SEC. 28. Prohibition Against Structural Changes. - No change in the regorganization herein prescribed shall be valid except upon prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services.

SEC. 29. Funding. - Funds needed to carry out the provisions of this Executive Order shall be taken from funds available in the Department.

SEC. 30. Implementing Authority of the Secretary. - The Secretary shall issue such orders, rules and regulations and other issuances as may be necessary to ensure the effective implementation of the provisions of this Executive Order.

SEC. 31. Separability. - Any portion or provisions of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions hereof as long as such remaining portions or provisions can still subsist and be given effect in their entirety.

SEC. 32. Repealing Clause. - All laws, ordinances, rules, regulations and other issuances or parts thereof, which are inconsistent with this Executive Order, are hereby repealed or modified accordingly.

SEC. 33. Effectivity. - This Executive Order shall take effect immediately.

APPROVED in the City of Manila, Philippines, this 10th day of June, in the Year of Our Lord, nineteen hundred and eighty-seven.


By the President:

(SGD.) JOKER P. ARROYO
Executive Secretary