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    Tatad vs. Secretary of The Deparment of Energy.

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    Jona Calibuso
    The petitions challenge the constitutionality of Republic Act No. 8180 which deregulated the downstream oil industry. The Supreme Court granted the petitions and declared R.A. No. 8180 unconstitutional and Executive Order No. 372 void. Prior to 1971, the oil industry was unregulated but a crisis drove the government to create the Oil Industry Commission in 1971 to regulate the industry. The government also created the Philippine National Oil Corporation in 1973 to reduce foreign control of the industry. R.A. No. 8180 deregulated the industry but the Court found that the law's unconstitutional provisions so permeated its essence that the entire law had to be struck down.

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    Tatad vs. Secretary of The Deparment of Energy.

    Uploaded by

    Jona Calibuso
    111 views2 pages
    The petitions challenge the constitutionality of Republic Act No. 8180 which deregulated the downstream oil industry. The Supreme Court granted the petitions and declared R.A. No. 8180 unconstitutional and Executive Order No. 372 void. Prior to 1971, the oil industry was unregulated but a crisis drove the government to create the Oil Industry Commission in 1971 to regulate the industry. The government also created the Philippine National Oil Corporation in 1973 to reduce foreign control of the industry. R.A. No. 8180 deregulated the industry but the Court found that the law's unconstitutional provisions so permeated its essence that the entire law had to be struck down.

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    4. Tatad vs. Secretary of the Deparment of Energy.

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    The petitions challenge the constitutionality of Republic Act No. 8180 which deregulated the downstream oil industry. The Supreme Court granted the petitions and declared R.A. No. 8180 unconstitutional and Executive Order No. 372 void. Prior to 1971, the oil industry was unregulated but a crisis drove the government to create the Oil Industry Commission in 1971 to regulate the industry. The government also created the Philippine National Oil Corporation in 1973 to reduce foreign control of the industry. R.A. No. 8180 deregulated the industry but the Court found that the law's unconstitutional provisions so permeated its essence that the entire law had to be struck down.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    111 views2 pages

    Tatad vs. Secretary of The Deparment of Energy.

    Uploaded by

    Jona Calibuso
    The petitions challenge the constitutionality of Republic Act No. 8180 which deregulated the downstream oil industry. The Supreme Court granted the petitions and declared R.A. No. 8180 unconstitutional and Executive Order No. 372 void. Prior to 1971, the oil industry was unregulated but a crisis drove the government to create the Oil Industry Commission in 1971 to regulate the industry. The government also created the Philippine National Oil Corporation in 1973 to reduce foreign control of the industry. R.A. No. 8180 deregulated the industry but the Court found that the law's unconstitutional provisions so permeated its essence that the entire law had to be struck down.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CALIBUSO, JONA CARMELI B.

    STATCON
    FRANCISCO S. TATAD, petitioner,
    vs.
    THE SECRETARY OF THE DEPARTMENT OF ENERGY AND THE SECRETARY OF
    THE DEPARTMENT OF FINANCE, respondents.

    G.R. No. 127867 November 5, 1997

    EDCEL C. LAGMAN, JOKER P. ARROYO, ENRIQUE GARCIA, WIGBERTO


    TANADA, FLAG HUMAN RIGHTS FOUNDATION, INC., FREEDOM FROM DEBT
    COALITION (FDC), SANLAKAS, petitioners,
    vs.
    HON. RUBEN TORRES in his capacity as the Executive Secretary, HON. FRANCISCO
    VIRAY, in his capacity as the Secretary of Energy, CALTEX Philippines, Inc., PETRON
    Corporation and PILIPINAS SHELL Corporation, respondents.

    PRINCIPLES:

    PURPOSE/OBJECT OF INTERPRETATION – Intent of the Legislative

    To ascertain the legislative intent – look to the Title of the bill

    NATURE OF THE CASE:

    The petitions at bar challenge the constitutionality of Republic Act No. 8180 entitled
    "An Act Deregulating the Downstream Oil Industry and For Other Purposes".

    SC DECISION: IN VIEW WHEREOF, the petitions are GRANTED. R.A. No. 8180 is
    declared unconstitutional and E.O. No. 372 void.

    FACTS: Prior to 1971, there was no government agency regulating the oil industry other than
    those dealing with ordinary commodities. Oil companies were free to enter and exit the market
    without any government interference. There were four (4) refining companies (Shell, Caltex,
    Bataan Refining Company and Filoil Refining) and six (6) petroleum marketing companies
    (Esso, Filoil, Caltex, Getty, Mobil and Shell), then operating in the country.

    In 1971, the country was driven to its knees by a crippling oil crisis. The government,
    realizing that petroleum and its products are vital to national security and that their continued
    supply at reasonable prices is essential to the general welfare, enacted the Oil Industry
    Commission Act.

    It created the Oil Industry Commission (OIC) to regulate the business of importing,
    exporting, re-exporting, shipping, transporting, processing, refining, storing, distributing,
    marketing and selling crude oil, gasoline, kerosene, gas and other refined petroleum products.

    The OIC was vested with the power to fix the market prices of petroleum products, to
    regulate the capacities of refineries, to license new refineries and to regulate the operations and
    trade practices of the industry.

    In addition to the creation of the OIC, the government saw the imperious need for a more
    active role of Filipinos in the oil industry. Until the early seventies, the downstream oil industry
    was controlled by multinational companies. All the oil refineries and marketing companies
    were owned by foreigners whose economic interests did not always coincide with the interest of
    the Filipino. Crude oil was transported to the country by foreign-controlled tankers. Crude
    processing was done locally by foreign-owned refineries and petroleum products were marketed
    through foreign-owned retail outlets.
    CALIBUSO, JONA CARMELI B.
    STATCON
    On November 9, 1973, President Ferdinand E. Marcos boldly created the Philippine
    National Oil Corporation (PNOC) to break the control by foreigners of our oil industry.
    By 1985, only three (3) oil companies were operating in the country — Caltex, Shell and the
    government-owned PNOC.

    In May, 1987, President Corazon C. Aquino signed Executive Order No. 172 creating
    the Energy Regulatory Board to regulate the business of importing, exporting, re-exporting,
    shipping, transporting, processing, refining, marketing and distributing energy resources "when
    warranted and only when public necessity requires."

    On December 9, 1992, Congress enacted R.A. No. 7638 which created the Department of
    Energy to prepare, integrate, coordinate, supervise and control all plans, programs, projects, and
    activities of the government in relation to energy exploration, development, utilization,
    distribution and conservation. The thrust of the Philippine energy program under the law was
    toward privatization of government agencies related to energy, deregulation of the power and
    energy industry and reduction of dependency on oil-fired plants.10 The law also aimed to
    encourage free and active participation and investment by the private sector in all energy
    activities. Section 5(e) of the law states that "at the end of four (4) years from the effectivity of
    this Act, the Department shall, upon approval of the President, institute the programs and
    timetable of deregulation of appropriate energy projects and activities of the energy industry."

    ISSUE: 1. WON offending provisions in R.A. 8180 can be individually struck down without
    invalidating the entire law.

    RULING:

    1. YES. stated by author Agpalo,37 viz.:

    The general rule is that where part of a statute is void as repugnant to the
    Constitution, while another part is valid, the valid portion, if separable from the invalid,
    may stand and be enforced. The presence of a separability clause in a statute creates the
    presumption that the legislature intended separability, rather than complete nullity of the
    statute. To justify this result, the valid portion must be so far independent of the invalid
    portion that it is fair to presume that the legislature would have enacted it by itself if it
    had supposed that it could not constitutionally enact the other. Enough must remain to
    make a complete, intelligible and valid statute, which carries out the legislative intent. . . .

    The exception to the general rule is that when the parts of a statute are so
    mutually dependent and connected, as conditions, considerations, inducements, or
    compensations for each other, as to warrant a belief that the legislature intended them as a
    whole, the nullity of one part will vitiate the rest. In making the parts of the statute
    dependent, conditional, or connected with one another, the legislature intended the statute
    to be carried out as a whole and would not have enacted it if one part is void, in which
    case if some parts are unconstitutional, all the other provisions thus dependent,
    conditional, or connected must fall with them.

    R.A. No. 8180 contains a separability clause. Section 23 provides that "if for any
    reason, any section or provision of this Act is declared unconstitutional or invalid, such
    parts not affected thereby shall remain in full force and effect." This separability clause
    notwithstanding, we hold that the offending provisions of R.A. No. 8180 so permeate its
    essence that the entire law has to be struck down.

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