EXECUTIVE ORDER NO. 131 - REORGANIZING THE MINISTRY OF NATURAL RESOURCES AND RENAMING IT AS THE DEPARTMENT OF ENVIRONMENT, ENERGY AND NATURAL RESOURCES ABOLISHING THE MINISTRY OF ENERGY INTEGRATING ALL OFFICES AND AGENCIES WHOSE FUNCTIONS RELATE TO ENERGY AND NATURAL RESOURCES INTO THE MINISTRY DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES

RECALLING that the reorganization of the government is mandated expressly in Article II, Section 1 (a), and Article III of the Freedom  Constitution; 

HAVING IN MIND that, pursuant to Executive Order No. 5 (1986), it is directed that necessary and proper changes in the organizational and functional structures of the government, its agencies and its instrumentalities, be effected in order to promote efficiency and effectiveness in the delivery of public services;

REALIZING that the Ministry of Natural Resources must be reorganized and strengthened in order to increase its capacity to carry out powers and functions related to the demands of economic recovery, particularly the administration management, development, conservation, regulation and proper use of the country’s natural resources, for the benefit of all Filipinos;

AFFIRMING that the government needs at line agency for the formulation and supervision of its energy resource development program on a unified and coordinated manner;  

COGNIZANT of the important influence of the energy sector in the social and economic life of the country;

TAKING NOTE that the magnitude, compity and strategic importance of the country’s energy requirements, demand an integrated planning and supervision of the country’s comprehensive energy program geared toward achieving energy self-reliance and the judicious conservation and efficient utilization of the country’s resources;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino People and the Freedom Constitution, do hereby order:

Section 1. Title. — This Executive Order shall otherwise be known as the Reorganization Act of the Ministry of Environment, Energy and Natural Resources.

Sec. 2. Reorganization. — The Ministry of Natural Resources, is hereby reorganized structurally and functionally in accordance with the provisions of this Executive Order. The Ministry of Energy is hereby abolished and all its pertinent functions together with applicable appropriations, records, equipment and personnel as may be necessary are transferred to the Ministry, now reorganized and renamed the Ministry of Environment, Energy and Natural Resources, hereinafter referred to as the Ministry.

Sec. 3. Declaration of Policy. — It is hereby declared the policy of the State to ensure the judicious use, development, management, renewal, and conservation of the country’s forest, mineral, land, water including marine waters and 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 the importance of energy and natural resources relative to their utilization, development and conservation.

It is further the policy of the state to ensure the continuous, adequate and economic supply of energy with the end in view of ultimately achieving self-reliance in the country’s energy requirements, through intensive exploration and development of indigenous energy resources, and through the judicious conservation and efficient utilization of energy consistent with the country’s accelerated economic growth objectives.

Sec. 4. Mandate. — The Ministry shall be the primary government agency responsible for the conservation, management, development and proper use of the country’s energy and natural resources.

Natural resources specifically include but will not be limited to, forest and grazing lands, water, mineral resources, including those in reservation and watershed areas, and lands of the public domain.

Energy resources include but will not be limited to, those from fossil fuels such as petroleum, coal, natural gas and gas liquids, nuclear-fuel resources, geothermal resources, hydroelectric resources, and existing and potential forms of non-conventional energy resources.

The ministry shall be responsible for the exploration, development, marketing, distribution, storage and efficient utilization as well as the licensing and regulation of all energy and 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 Ministry 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 energy and 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, land and water resources of a growing population;

(c) Enhance the contribution of energy and 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 Philippine natural and cultural heritage for present and future generations.

Sec. 5. Powers and Functions. — To accomplish its mandate, the Ministry shall have the following powers and functions:

(a) Advise the President on the promulgation of laws relative to the development, use, regulation, and conservation of the country’s energy and natural resources;

(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 energy and natural resources;

(c) Encourage, guide and where necessary, regulate business activities relative to the exploration, exploitation, development, extraction, importation, exportation, transport, marketing, distribution and storage of fossil, nuclear, a geothermal, hydroelectric, and non-conventional forms of energy resources and prescribe and collect reasonable fees in the exercise of such powers;

(d) 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;

(e) Exercise supervision and control over forest lands, alienable and disposable lands, mineral and energy resources and in the process of exercising such control the Ministry shall impose appropriate taxes, fees, charges, rentals and any such form of levy for the use, occupation or exploitation of such resources;

(f) Undertake exploration, assessment, classification and inventory of the country’s energy and natural resources using ground surveys, remote sensing and complementary technologies;

(g) Promote proper and mutual consultation with the private sector involving energy and natural resources development, use and conservation;

(h) Issue licenses and permits for activities related to the use and development of aquatic resources, treasure hunting, salvaging of sunken vessels and other similar activities;

(i) Undertake geological surveys of the whole country including its territorial waters;

(j) 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, water 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 national parks and other protected areas;

5. Maintenance of a wholesome natural environment by enforcing environmental protection laws;

6. Encouragement of greater participation and private initiative in natural resource management.

(k) Promulgate rules and regulations necessary to:

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

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

4. Assure conservation and judicious and sustainable development of aquatic resources.

(l) Assess, review and provide direction to, in coordination with concerned government agencies, energy research and development programs, including identification of sources of energy and determination of their commercial feasibility for development;

(m) Regulate the development, disposition, extraction, exploration and use of the country’s forest, land, water and mineral resources.

(n) Assume responsibility for the assessment, development, protection, licensing and regulation as provided for by law, where applicable, of all energy and natural resources, the regulation and monitoring of service contractors, licensees, lessees, and permit for the extraction, exploration, development and use of natural resources products; the implementation of programs and measures with the end in view of promoting close collaboration between the government and the private sector; the effective and efficient classification and sub-classification of lands of the public domain; and the enforcement of energy and natural resources and environmental laws, rules and regulations.

(o) Promulgate rules, regulations and guidelines on the issuance of licenses, permits, concessions, lease agreements and such other privileges concerning the development, exploration and utilization of the country’s marine, freshwater, and brackish water and overall aquatic resources of the country and shall continue to oversee, supervise and police our natural resources; to cancel or cause to cancel such privileges upon failure, non-compliance or violations of any regulations, orders and for all other causes which are in furtherance of the conservation of natural resources and supportive of the national interest;

(p) Exercise other powers and functions and perform such other acts as may be necessary, proper or incidental to the attainment of its mandates and objectives.

Sec. 6. Structural Organization. — The Ministry consists of the Ministry Proper with five (5) Offices as defined in Section 11 hereof and the following:

(a) Office of Energy and Environment;
(b) Office of Natural Resources;
(c) Office of Field Operations;
(d) Legal and Supportive Services;
(e) Office of Policy and Planning;

(a) Forest Management Bureau;
(b) Land Management Bureau;
(e) Mines and Geo-Sciences Bureau;
(d) Environmental Protection Bureau;
(e) Energy Development Bureau;
(f) Energy Utilization Bureau;

Sec. 7. Minister of Environment Energy and Natural Resources. — The authority and responsibility for the exercise of the mandate of the Ministry, the accomplishment of its objectives and discharge of its powers and functions shall be vested in the Minister of Environment, Energy and Natural Resources, hereinafter referred to as the Minister, who shall be appointed by the President and who shall have supervision and control over the Ministry. For such purposes, the Minister shall have the following functions:

(a) Advice the President on the promulgation of rules, 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 Ministry in accordance with the programs of the government;

(c) Promulgate rules, regulations and other issuances necessary in carrying out the Ministry’s mandate, objectives, policies, plans, programs and projects;

(d) Exercise supervision and control over all functions and activities of the Ministry;

(e) Delegate authority for the performance of any administrative or substantive function to any Deputy Minister or other officers of rank at the Ministry proper;

(f) Perform other functions as may be provided by law or assigned appropriately by the President.

Sec. 8. Office of the Minister. — The Office of the Minister shall consist of the Minister and his immediate staff.

Sec. 9. Deputy Minister. — The Minister shall be assisted by five (5) Deputy Ministers appointed by the President upon the recommendation of the Minister, one to be responsible for Energy and Environment, one for Natural Resources, one for Field Operations, one for Legal and Support Services and one for Policy and Planning. For such purpose, a Deputy Minister shall have the following functions:

(a) Advise the Minister in the promulgation of Ministry orders, administrative orders and other issuances, with respect to his area of responsibility;

(b) Exercise supervision and control over the offices, services, operating units and officers (the term “officers” as used in this Executive Order is intended to be within the meaning of the term “official” as used in the freedom Constitution) and employees under his responsibility,

(c) Promulgate rules and regulation, consistent with Ministry 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 of other Deputy Ministers;

(e) Exercise delegated authority on substantive and administrative matters related to the functions and activities of units under his responsibility to the extent granted by the Minister through administrative issuances;

(f) Perform other functions as may be provided by law or assigned appropriately by the Minister.

Sec. 10. Assistant Ministers. — The Minister and the Deputy Ministers shall also be assisted by seven (7) Assistant Ministers appointed by the President upon the recommendation of the Minister, responsible for the following: one for Planning and Project Management, one for Foreign Funded and Special Projects, one for Luzon field office, one for Visayas field office, one for Mindanao field office, one for Management Services, and one for Legal Services.

Sec. 11. Office of the Deputy Minister for Natural Resources. — Office to be headed by Deputy Minister shall have the following powers and functions:

(a) Assist and advise the Minister on the promulgation of all office order, rules and regulations related to natural resources;

(b) Establish policies and standards for the effective, efficient and economical operations of the Ministry in accordance with the programs of government related to natural resources;

(c) Promulgate rules and regulations necessary to carry out ministry objectives, policies, plans, programs and projects related to natural resources;

(d) Exercise supervision and control over all functions and activities of bureaus and offices in the Ministry with regards to natural resources concern:

(e) Delegate authority for the performance of any administrative and substantive function to any Assistant Minister or other officials of rank at the Ministry proper concerned with natural resources matter;

Sec. 11A. Office of the Deputy Minister for Environment and Energy. — Office to be headed by Deputy Minister shall have the following powers and functions:

(a) Assist and advise the Minister on the promulgation of all office order, rules and regulations related to the energy and environment;

(b) Establish policies and standards for the effective, efficient, and economical operations of the Ministry in accordance with the programs of government related to energy and environment;

(c) Promulgate rules and regulations necessary to carry out ministry objectives, policies, plans, programs and projects related to energy and environment;

(d) Exercise supervision and control over all functions and activities of bureaus and offices in the Ministry with regard to energy and environment;

(e) Delegate authority for the performance of any administrative and substantive function to any Assistant Minister or other officials of rank at the Ministry proper concerned with energy and environment.

Sec. 11B. Office of the Deputy Minister for Legal and Support Services. — Office to be headed by Deputy Minister shall have the following powers and functions:

(a) Assist and advise the Minister on the promulgation of all office order, rules and regulations related to the financial management, administrative services, human resources development services and legal services;

(b) Establish policies and standards for the effective, efficient and economical operations of the Ministry in accordance with the programs of government related to financial management, administrative services, human resources development services and legal services;

(c) Promulgate rules and regulations necessary to carry out ministry objectives, policies, plans, programs and projects related to financial management, administrative services, human resources development services and legal services;

(d) Exercise supervision and control over all functions and activities of bureaus and offices in the Ministry with regard to financial management, administrative services, human resources development services and legal services;

(e) Delegate authority for the performance of any administrative and substantive function to any Assistant Minister or other officials of rank at the Ministry proper concerned with financial management, administrative services, human resources development services and legal services;

(f) Develop and recommend policies and programs on personnel development, management, selection, placement and promotion standards including welfare services; conduct career and personnel development programs for the Department; develop and maintain a system for maintenance of the Ministry including its communication, transportation and printing services;

(g) Develop and maintain adequate record and report filing systems and books of account; certify for the Ministry availability of funds, including obligations of the same; prepare and process payrolls and vouchers for payments of salaries and wages of officers and employees of the Ministry;

(h) Issue allotments advice in support of the budget requirement for the conduct of operations under each program and project;

(i) Develop and recommend efficient and effective methods and procedures on budget disbursement, and cost and financial accounting and management.
Administrative and Finance Divisions of all bureaus, shall continue to function as staff support to their respective bureaus, as coordinated by the Ministry’s Support Services Office.

Sec. 11C. Office of the Deputy Minister for Field Operations. — The Field Operations Office shall be headed by a Deputy Minister, assisted by three (3) Assistant Ministers, one for Luzon, one for Visayas and one for Mindanao, and shall have the following functions:

(a) Oversee the implementation and operations of the Ministry’s policies, plans and programs in the regional and field offices.

(b) Provide the Ministry with the latest information, data and/or statistics on the latest programs, projects and activities being implemented in the field and transmit such information to the Office of Public Affairs, whenever applicable, to keep the public informed on energy and natural resources developments; monitor the execution/implementation of regional projects and activities of the licenses, permittees, and other lessees involved in the utilization of energy and natural resources.

Sec. 12. Office of the Deputy Minister for Policy and Planning. — Office to be headed by Deputy Minister shall have the following powers and functions:

(a) Shall serve as the central coordinating unit for policy, planning and project development and management;

(b) Shall develop a Department-wide framework for policy formulation and program planning;

(c) Shall conduct resource policy analysis;

(d) Shall institute an effective system of monitoring and evaluation of Ministry programs and projects;

(e) Shall coordinate official development assistance and implementation of foreign-assisted projects;

(f) Shall establish contacts with foreign funding institutions;

(g) Shall monitor the activities of regional/international institutions/instrumentalities and trade movements affecting energy and natural resources sectors;

(h) Shall coordinate and integrate proposed projects prepared by the sectoral bureaus and attached agencies for local and foreign fundings;

(i) Shall coordinate information systems of the different natural resources agencies/services of the Ministry;

(j) Shall integrate all applied research functions on the development, production, harvesting, processing and use of environment, energy and natural resources of the different bureaus. It shall have the following institutes: forestry, mines, and land management. The Forest Research Institute (FORI) is hereby transferred into the Natural Resource Research Office. It shall be responsible for assembling and storing natural resources research outputs and promoting the application of utilization of these results by the Department’s clienteles.

Sec. 13. Legal Services Office. — The Legal Services Office shall be headed by an Assistant Minister. It shall advise and assist the Minister with respect to legal matters; prepare recommendations or orders involving the disposition, utilization and development of public lands, forest, minerals and other natural resources; review the issuances of licenses, permits and deeds of conveyance sales and other transfer of rights involving development and utilization of natural resources; and appear and act as counsel of the Ministry.

The Legal Divisions of all bureaus, shall continue to function as staff support to their respective bureaus, as coordinated by the Ministry’s Legal Services Office.

Sec. 14. Public Affairs Office. — The Public Affairs Office to be headed by a Director, shall serve as the public information arm of the Ministry; be responsible for disseminating information on energy and natural resources development policies, plans, programs and projects; and respond to public queries related to the development and conservation of energy and 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 Sec. 24 (b) hereof.

Sec. 15. Special Concerns Office. — The Special Concerns Office to be headed by a Director, shall be responsible for handling priority areas/subjects identified by the Minister which necessitate special and immediate attention.

Sec. 16. Forest Management Bureau. — The Bureau of Forest Development (BFD) and the Wood Industry Development Authority (WIDA), are hereby abolished and in their stead the Forest Management Bureau is hereby created. The Forest Management Bureau, to be headed by a Director and assisted by an Assistant Director shall advise the Minister on matters pertaining to forest development and conservation. Its primary functions are:

(a) Recommend 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 and development, development of national parks, preservation of wilderness areas, game refuges and wildlife sanctuaries, 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) Perform other functions as may be assigned by the Minister.

Sec. 17. Land Management Bureau. — There is hereby created the Lands Management Bureau which shall absorb functions of the Bureau of Lands, which is hereby abolished in accordance with Sec. 24 (b) hereof, and the relevant functions of the Human Settlements Regulatory Commission, excluding those related to highly urbanized areas. The Lands Management Bureau, to be headed by a Director and assisted by an Assistant Director, shall advise the Minister on matters pertaining to rational land management and disposition and shall have the following functions:

(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;

(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) Develop operating standards and procedures to promote the Bureau’s objectives and functions;

(e) Perform other functions as may be assigned by the Minister.

Sec. 18. 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, Gold Mining Industry Development Board and the Mineral Reservations Board, all of which are hereby abolished in accordance with Sec. 24 (b) hereof. The Mines and Geo-Sciences Bureau, to be headed by a Director and assisted by an Assistant Director, shall advise the Minister on matters pertaining to geology and mineral resources exploration, development and conservation and shall have the following functions:

(a) Recommend policies, regulations and/or programs related to the exploration, development, exploitation and conservation of mineral resources, metallic and non-metallic, including the development of the mining industry;

(b) Advise the Minister on the granting of mining rights and contracts over areas containing metallic and non-metallic mineral resources:

(c) Advise the Regional Offices on the effective implementation of mineral development and conservation programs as well as geological surveys;

(d) Assist in the monitoring and evaluation of the Bureau’s programs and projects to ensure efficiency and effectiveness thereof,

(e) Develop operating standards and procedures to enhance the Bureau’s efficiency and effectiveness;

(f) Perform other functions as may be assigned by the Minister.

Sec. 18.A Environmental Protection Bureau. — The National Environmental Protection Council (NEPC), National Pollution Control Commission (NPCC) and the Environmental Center of the Philippines (ECP) are hereby integrated and merged into a single bureau in accordance with Sec. 24 (c) hereof. The Bureau shall be responsible for the formulation, enforcement and monitoring of an integrated program of natural resources conservation and environmental protection, as well as, formulation of policies and guidelines for the establishment of environmental quality standards and impact assessments, and the conservation of natural resources.

Sec. 18.B Energy Utilization Bureau. — The Energy Utilization Bureau is hereby transferred. The Energy Utilization Bureau, to be headed by a Director and assisted by an Assistant Director shall advise Secretary on matters pertaining to energy utilization. Its primary functions are:

(a) Recommend policies and/or programs for effective energy utilization;

(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 energy resources utilization to ensure efficiency and effectiveness;

(e) Perform other functions as may be assigned by the Secretary,

Sec. 18.C Energy Development Bureau. — The Energy Development Bureau is hereby transferred. The Energy Development Bureau, to be headed by a Director and assisted by an Assistant Director shall advise the Secretary on matters pertaining to energy development. Its primary functions are:

(a) Recommend policies and/or programs for effective energy development;

(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 energy resources utilization to ensure efficiency and effectiveness;

(e) Perform other functions as may be assigned by the Secretary;

Sec. 19. Attached and Administratively-Supervised Agencies of the Ministry. — The following government agencies/corporations are hereby attached to the Department.

(a) National Mapping and Resource Information Authority. — The Natural 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, are hereby integrated and merged into a single agency to be called National Mapping and Resource Information Authority in accordance with Sec. 24 (e) hereof, which shall provide the Ministry and the government with map-making services. The authority shall act as the central mapping agency which will serve the needs of the line agencies of the Ministry 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 airborned 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 or 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.

(b) Manila Seedling Bank Foundation, Inc. — It shall continue to serve the government and private sectors involved in all kinds of tree planting activities by providing them with healthy tree seedlings and planting materials by operating seedling nurseries and seed orchards. It shall also accept tree planting contracts from both government and private sectors in the establishment of agro-forest farms and tree plantations, and pilot-test innovative packages of nursery and plantation development technologies that can be adopted locally and internationally.

(c) Natural Resources Development Corporation. — The Natural Resources Development Corporation (NRDC), the National Development Corporation Plantation Inc. (NDCPI), National Coal Authority are integrated and hereby merged into the Natural Resources Development Corporation in accordance with Sec. 24 (e) hereof and shall be under the direct supervision of the Minister. It shall be charged primarily with promoting natural resource development and conservation through:

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 plantation or logging operations, rattan tissue culture; provided, however, that no such activities which compete with the private sector shall be undertaken;

2. Regulation and supervision of the processing of forest products, grading and inspection of lumber and other processed products, and monitoring of the movement of timber and other forest products.