REPUBLIC ACT NO. 1849 - AN
ACT GRANTING THE BUTUAN SAWMILL, INC., A FRANCHISE TO INSTALL, OPERATE
AND MAINTAIN AN ELECTRIC LIGHT, HEAT AND POWER SYSTEM IN THE
MUNICIPALITY OF LIANGA, PROVINCE OF SURIGAO |
Section 1.
Subject to the conditions established in this Act and the provisions of
Act Numbered Thirty-one hundred and eight and its amendments,
applicable thereto, there is hereby granted to the Butuan Sawmill,
Inc., for a period of fifty years from the approval of this Act, the
right, privilege, and authority to construct, maintain and operate an
electric light, heat, and power system, for the purpose of generating
and distributing electric light, heat and power for sale within the
limits of the Municipality of Lianga, Province of Surigao, Philippines.
The grantee shall further have the right and privilege to install, lay,
maintain on all streets, public thoroughfares, bridges and public
places within said limits, poles, conductors interruptors,
transformers, cables, wires, and other overhead appliances, and all
other necessary apparatus and appurtenances for the furnishing and
distribution of electric current and to supply, sell, and furnish such
current to any person, corporation or public or private concern within
said limits for provincial, municipal, domestic or manufacturing uses
and for any other use to which electricity may be put, and to charge
and collect a schedule of prices and conventional sets for the use of
same: Provided, That this franchise shall not take effect until the
grantee shall have obtained from the Public Service Commission a
certificate showing the public necessity and convenience of the same in
accordance with the purpose of subsection (i) of section fifteen of Act
Numbered Thirty-one hundred and eight as amended, and shall have filed
such certificate with the Secretary of Public Works and Communications
upon accepting this franchise: And, provided, further, That if the
grantee does not file the proper application for said certificate with
the Public Service Commission within six months from the date of the
approval of this Act, this franchise shall become null and
void. Sec. 2. The poles erected by the grantee shall be of such a height as to maintain the wires stretched on the same at a distance of at least twenty feet above the level of the ground, and shall be of such appearance as not to disfigure the streets, and shall be placed with due regard for the public safety so as not to be a danger to the same, in accordance with a plan approved by the provincial or municipal authorities concerned, represented by the provincial governor, or the municipal mayor, as the case may be, and said grantee shall supply electric power, heat and light to any applicant for the same within fifteen days after the date of his application, and as between such applicant and other applicants, in the order of the date of his application, up to the limit of the capacity of the plant of said grantee, to be determined by the electrical engineer of the Public Service Commission on the application of said grantee; and should the demand for electric power, heat and light at any time increase beyond the capacity of the plant of said grantee to supply the same, the capacity of said plant shall be increased by said grantee to meet such demand, in accordance with the decision of the Public Service Commission or its legal successors: Provided, however, That in case the point at which the electric light, heat, or power is to be supplied, is more than thirty meters from the lines or wires operated by said grantee, the latter shall not be obliged to furnish said service.cralaw Sec. 3. All apparatus and appurtenances used by
the grantee shall be modern and first class in every respect, and said
wires shall be insulated and carefully connected and fastened so as not
to come in direct contact with any object through which a ground could
be formed, and shall be stretched so as not to interfere with the free
use of said streets and public thoroughfares nor cause any injury to
the public, danger of fire or damage and inconvenience to the owners of
the property: Provided, That in the maintenance and operation of its
plant and system for the transmission and distribution of electric
current, the grantee shall always be subject to such reasonable
regulations as the municipal council of Lianga and the provincial board
of Surigao may promulgate in the premises and also to the regulations
prescribed by the National Electrical Code of America: Provided, That
the grantee shall, whenever the Congress of the Republic of the
Philippines, upon recommendation of the Public Service Commission or
its legal successor, so directs, place said wires in underground pipes
or conduits at its own expense and without any cost and prejudice to
the municipality above-mentioned. Sec. 5. Whenever any person has obtained permission to use any of the streets or public thoroughfares of the municipality above-mentioned for the purpose of removing any building or in the prosecution of any municipal work or for any just cause whatsoever, making it necessary to raise or remove any of said poles or electric wires which may obstruct the removal of said building so as to allow the free and unobstructed prosecution of said work, the person or entity at whose request the building has been moved or the construction undertaken, shall pay one-half of the actual cost of removing or raising and of replacing the poles, wires and other overhead or underground conductors. The notice shall be served in the usual form, and in case of refusal or failure of the grantee to comply with such notice, the municipal mayor, with the proper approval of the municipal council first had, shall order such poles or wires to be raised or removed at the expense of said grantee, for the purpose aforesaid: Provided, however, That the grantee may appeal from any such decision to the provincial board of Surigao whose decision shall be final.cralaw Sec. 6. The grantee shall be liable to the municipality above named for any injury arising from any claims caused by accidents to person or property by reason of the construction under this franchise or of any neglect or omission to keep the said poles and wires in a safe condition.cralaw Sec. 7. Said grantee shall file his written
acceptance of this franchise with the Secretary or Public Works and
Communications within one hundred and eighty days from the date when he
obtained the certificate required by section one of this Act and shall
commence work under the supervision and subject to the approval of the
electrical engineer of the Public Service Commission, in accordance
with plan, specifications, and estimates previously approved by the
Public Service Commission, within six months' time from and after the
date of filing such acceptance, unless prevented by act of God, or
force majeure, usurped or military power, martial law, riot or civil
commotion or other inevitable cause, and shall complete the system and
have the same in operation within eighteen months from the date of such
acceptance, and shall thereafter maintain a first-class electric light,
heat, and power service: Provided, That in consideration of the
franchise hereby granted, the grantee shall pay quarterly into the
municipal treasury of the municipality above named, one per centum of
the gross earnings of his electrical business during the life of this
franchise. Section 10. The grantee is forbidden to issue stock or bonds under this franchise except in exchange for actual cash or for property at a fair valuation equal to the par value of the stock or bonds issued and upon prior authority of the Public Service Commission. Nor shall said grantee declare any stock or bond as dividend.cralaw Section 11. The books and accounts of the grantee shall always be open to the inspection of the provincial treasurer of Surigao or his authorized representative, and it shall be the duty of the grantee to submit to the provincial treasurer quarterly reports in duplicate showing the gross receipts and the net receipts for the past quarter and the general condition of the business, one of which shall be forwarded by the provincial treasurer to the Auditor General who shall keep the same on file.cralaw Section 12. The grantee shall pay on its real estate,
buildings, plant, machinery, and other personal property the same taxes
as are now or may hereafter be required by law from other
persons. Section 14. The Public Service Commission, or its legal successor, after hearing the interested parties, upon notice and order in writing, shall have the power to declare the forfeiture of this franchise and all rights inherent in the same for failure on the part of the grantee to comply with any of the terms and conditions thereof, unless such failure shall have been directly and primarily caused by the act of God, public enemy or force majeure. Against such declaration of the forfeiture by the Public Service Commission or its legal successor, the grantee may apply for the remedies provided in section thirty-five of Act Numbered Three thousand one hundred eight, as amended.cralaw Section 15. At any time after forty years from the date of the approval of this Act, the Republic of the Philippines or any of the political subdivisions thereof to which the right may be assigned, may purchase, and the grantee shall sell thereto, all of his plant, poles, wires, buildings, real estate, and all other property used in the enjoyment of this franchise, at a valuation based in part upon the net earnings of the grantee and its true worth on the books, making the proper deduction for depreciation; in part on the cost of the actual reproduction of said property, less depreciation and, in part, on the original cost of said property, less depreciation, the valuation to be determined after hearing by the Supreme Court of the Philippines, sitting as a board of directors, whose decision, by a majority of the members thereof, shall be final.cralaw Section 16. The rates for the light service, flat rate, as well as meter rate, fixed by the grantee, shall always be subject to regulations by the Congress of the Philippines or by the proper authorities, and shall in no case be in excess of forty centavos per kilowatt hour: Provided, That only subscribers who have more than ten outlets installed in one building shall be entitled to be furnished with a meter.cralaw Section 17. Whenever in this franchise the term
"grantee" is used, it shall be held and understood to mean and
represent the Butuan Sawmill, Inc., its representative, successors or
assigns. Approved: June 22, 1957 |