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 this Act there is granted to Southern Negros Ice Plant and Cold Storage Corporation, hereinafter called the grantee, for a period of twenty-five years from the approval of this Act, a franchise to construct, operate and maintain ice plant and cold storage in the Municipality of Himamaylan, Province of Negros Occidental, and to sell ice and supply cold storage in the Municipalities of Himamaylan and Binalbagan in the Province of Negros Occidental, and to charge and collect a schedule of prices and rates for the ice and cold storage so furnished, which schedule of prices and rates shall, at all times, be subject to regulation by the Public Service Commission or its legal successor.

SEC. 2. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights, privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other person, company, or corporation organized for the same purpose, without the approval and/or consent of the Congress of the Philippines.

SEC. 3. The grantee shall manufacture and supply ice with a minimum daily capacity of ten tons.

SEC. 4. All the apparatus and appurtenances to be used by the grantee shall be modern, safe and first class in every respect, and the grantee shall, whenever the Public Service Commission shall determine that public interest reasonably requires it, change or alter any of its apparatus and appurtenances at grantee's expense.

SEC. 5. If the grantee shall not commence the manufacture and distribution of ice within two years from the approval of this Act, unless prevented by an act of God or force majeure, martial law, riot, civil commotion, usurpation by a military power or any other cause beyond the grantee's control, this franchise shall become null and void.

SEC. 6. This franchise is granted subject to the provisions of Commonwealth Act Numbered One hundred forty-six, as amended, and with the understanding and upon the condition that it shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when public interest so requires.

SEC. 7. The books, records and accounts of the grantee shall always be open to the inspection of the Auditor General or his authorized representatives, and it shall be the duty of the grantee to submit to the Auditor General quarterly reports in duplicate showing the gross receipts for the quarter past.

SEC. 8. In consideration of the franchise and rights hereby granted, the grantee shall pay a franchise tax equal to five per centum of the gross earnings under this franchise, three per centum of which shall accrue to the national government and two per centum to the municipality where the franchise is being operated.

SEC. 9. It is expressly provided that in the event the Government should desire to maintain and operate for itself the system and enterprise herein authorized, the grantee shall surrender its franchise and shall turn over to the Government all serviceable equipment therein, at cost, less reasonable depreciation.

SEC. 10. This Act shall take effect upon its approval.

Approved,

GIL J. PUYAT	CORNELIO T. VILLAREAL
President of the Senate	Speaker of the House of Representatives
Finally passed by the Senate on September 20, 1972.	This Act, which originated in the House of Representatives, was finally passed by the same on September 22, 1972.

ELISEO M. TENZA	INOCENCIO B. PAREJA
Secretary of the Senate	Secretary of the House Representatives

Approved: October 23, 1972