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Rights of Private Landowners. – The private landowner or lawful possessor shall be notified of any plan or petition to declare his land as a people's small-scale mining area. Said landowner may oppose such plan or petition in an appropriate proceeding and hearing conducted before the Board.
If a private land is declared as a people's small-scale mining area, the owner and the small-scale mining contractors are encouraged to enter into a voluntary and acceptable contractual agreement for the small-scale utilization of the mineral values from the private land: provided, that the owner shall in all cases be entitled to the payment of actual damages which he may suffer as a result of such declaration: provided, further, that royalties paid to the owner shall in no case exceed one percent (1%) of the gross value of the minerals recovered as royalty.
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