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

SECTION 1. Subject to the conditions imposed by this Act, there is granted to Fel-Mel Enterprises, its successors or assigns, for a period of twenty-five years after the approval of this Act, the right, privilege and authority to construct, operate and maintain an ice plant or ice plants and cold storage facilities in the City of Lucena, Atimonan and Tiaong, Province of Quezon, for the purpose of manufacturing ice and furnishing cold storage, and to sell and distribute the ice so manufactured and render cold storage service therein, and to collect a schedule of rates, prices and charges for the ice so manufactured, distributed and sold, and for the cold storage service furnished, which schedule of rates, prices and charges shall at all times be subject to regulation by the Public Service Commission.

SEC. 2. The grantee shall install and maintain an ice plant or ice plants and cold storage facility or facilities in any of some or all of the municipalities and city mentioned above: Provided, however, That the total daily production capacity of all the ice plants so installed and maintained shall not exceed one thousand tons and that the total capacity of all the cold storage so installed and maintained shall not exceed two thousand tons.

SEC. 3. All the machinery, equipment and appurtenances to be used by the grantee shall be modern, safe and first class in every respect.

SEC. 4. If the grantee shall not commence the manufacture of ice within two years from the approval of this Act, unless prevented by an act of God, 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. 5. This franchise is granted subject to the provisions of Commonwealth Act Numbered One hundred forty-six, as amended, only with respect to the fixing of rates, 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 the public interest so requires.

SEC. 6. In consideration of this franchise the grantee shall pay a tax equivalent to five per cent of its gross income.

SEC. 7. In the event of any competing individual, association, or corporation receiving from the Congress of the Philippines a similar franchise in which there shall be any term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms hereof and shall operate equally in favor of the grantee as in the case of said competing individual, association, or corporation.

SEC. 8. This Act shall take effect upon its approval.

Enacted without Executive approval, August 4, 1969.