Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Subject to the terms and conditions established in Act Numbered Thirty-six hundred and thirty-six, as amended by Commonwealth Act Numbered One hundred and thirty-two, and to the provisions of the Constitution, there is granted to the Butuan Sawmill, Incorporated, 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 plant for the purpose of generating and distributing electric light, heat, and/or power for sale within the municipality of Nasipit, Province of Agusan: Provided, That the holder of the franchise herein granted shall start operation thereof within one and one-half years from the approval said franchise, if he is not an actual operator; and six months if he is already a holder of a municipal franchise. Failure to comply with this requirement shall ipso facto cancel and void the franchise.

SEC. 2. It is expressly provided that in the event the lent should desire to maintain and operate for itself the plant and enterprise herein authorized, the grantee shall surrender its franchise and will turn over to the Government all serviceable equipment therein, at cost, less reasonable depreciation.

SEC. 3. This Act shall take effect upon its approval.

Approved, June 12, 1950.