Be it enacted by the Batasang Pambansa in session assembled:

SECTION 1. The barangays of Ilihan, Sinai, Sibagat, El Rio, Afga, Tabontabon, Perez, Magsaysay, Santa Cruz, Santa Maria, San Isidro, Villangit, Del Rosario, Anahauan, Mahayahay and San Vicente, all in the Municipality of Bayugan, Province of Agusan del Sur, are hereby separated from said municipality to form and constitute an independent Municipality of Sibagat without affecting in any manner the legal existence of the mother Municipality of Bayugan.

SEC. 2. The boundaries of the new Municipality of Sibagat will be: Beginning at the point of intersection of the Cabadbaran-Old Bayugan and Surigao del Sur boundaries; thence in a southerly direction following the Old Bayugan and Cabadbaran, Old Bayugan and Butuan City, Old Bayugan and Las Nieves boundaries, until it reaches the point of intersection of Old Bayugan, Esperanza and the Municipality of Las Nieves; thence in a northeasterly direction, in an imaginary straight line connecting the Sitio of Tag-libas at Barrio Ilihan until it intersects the Agusan-Davao National Road at the middle of Wawa Bridge; thence, still in a northeasterly direction, 45 degrees northeast until it reaches the Old Bayugan and Surigao del Sur boundary; thence following the Agusan del Sur and Surigao del Sur provincial boundary until it reaches the point of intersection of the Cabadbaran-Old Bayugan and Surigao del Sur boundaries, which is the point of beginning.

SEC. 3. The seat of government of the newly created municipality shall be in Barangay Sibagat.

SEC. 4. Except as herein provided, all provisions of laws, now or hereafter applicable to regular municipalities, shall be applicable to the new Municipality of Sibagat.

SEC. 5. After ratification by the majority of the votes cast in a plebiscite to be conducted in the area or areas affected within a period of ninety (90) days after the approval of this Act, the President (Prime Minister) shall appoint the mayor and other officials of the new Municipality of Sibagat.

SEC. 6. Such sum as may be determined by the Commission on Elections and which shall be needed in the conduct and supervision of the plebiscite mentioned in Section 5 hereof shall be charged against the appropriation of the Commission of Elections for the holding of election/ referendum/plebiscite found in K.B.I. No. 1.1.3, Batas Pambansa Blg. 40.

SEC. 7. Upon the effectivity of this Act, the proportionate share of the new Municipality of Sibagat in the obligations, funds, assets and other property of the Municipality of Bayugan shall be transferred by the President (Prime Minister) to the newly created municipality upon the recommendation of the Commission on Audit.

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

Approved, February 1, 1980.