Act No. 1262

Explanation: This section grants Ignacio Arnalot the authority to divert water from specific rivers for generating electric power and transmitting it to his factory.
Key Definitions:
- Grantee: Ignacio Arnalot, his successors and assigns.
- Rivers: Ibiang Munti and Ibiang Malaqui.
- Electric Power: Power generated for sale to individuals and corporations.
Requirements:
- Right to divert water for 25 years from the date of enactment.
- Construction and operation of related facilities (dams, canals, powerhouses, etc.).
Important Procedures:
- Water used must be returned to the rivers as directed by the Consulting Engineer.
Consequences:
- Failure to adhere to the terms may result in forfeiture of the franchise.

Explanation: Details the requirements for the acceptance of the franchise and the timeline for construction.
Requirements:
- Acceptance of the franchise conditions must be filed within 30 days.
- Detailed plans for the power plant must be submitted within 40 days for approval.
- Construction must commence within 90 days after plan approval.
- The plant must be operational within 15 months from the enactment date.
Consequences:
- Forfeiture of the franchise occurs for failure to commence construction or for discontinuation of operation for two years.

Explanation: Outlines the requirements for inspection and operation of the power plant.
Requirements:
- The power plant cannot operate without inspection and a permit issued by the Consulting Engineer.
- Maintenance of the plant and bridges must meet the standards set by the Consulting Engineer.
Consequences: Non-compliance with inspection requirements can impede operational status.

Explanation: This section reserves a specific amount of water for municipal purposes.
Key Definitions:
- Reserved Quantity: 30 liters per second from the rivers.
Requirements:
- The municipality of Tayabas retains the right to use this water, which must not significantly interfere with the grantee’s operations.

Explanation: Mandates adherence to electrical safety and installation standards.
Requirements:
- Electric installations must comply with the latest National Electric Code of the United States.
- The Consulting Engineer or authorized agents may inspect the plant at any time.

Explanation: Outlines financial responsibilities of the grantee to the government.
Requirements:
- Annual payment of 1% of gross receipts from electric power sales to the Government of the Philippine Islands.
- The grantee's books must be open for inspection by the Insular Treasurer, who will receive quarterly reports of gross and net receipts.
Consequences: Non-compliance may affect financial standing and operations.

Explanation: Indicates the franchise is subject to changes by the U.S. Congress.
Key Definitions:
- Amendment: Possible alterations to the franchise terms by legislative action.
Requirements:
- Compliance with limitations on corporations and franchises as per the Act of Congress approved July 1, 1902.

Explanation: States the urgency for the enactment of this bill.
Requirements:
- The bill’s passage is expedited under specific legislative procedures.

The Act grants a 25-year franchise to divert water for electric power generation to Ignacio Arnalot.
Strict timelines and requirements for construction and operation are specified, with the risk of forfeiture for non-compliance.
The municipality of Tayabas reserves a portion of water for its use, ensuring minimal disruption to local resources.
Financial obligations include a percentage of gross receipts paid to the government and transparency in financial reporting.
Amendments to the franchise are possible under U.S. Congressional authority, ensuring ongoing regulatory oversight.