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Los Angeles, September 30, 1952 30-12 Mr. Wm. Reinhardt: You will recall that in my letter to you of Decem­ber 4, 19 51, I recommended the transfer of the water pro­duction facilities of the Railroad at Las Vegas to the Las Vegas Land and Water Company. I believe final con­sideration of this suggestion was deferred because of an alternate suggestion for disposition of the entire water system at Las Vegas made by Mr. Hulsizer and because of the negotiations for sale of the properties to the Las Vegas Valley Water District, which have now resulted in a tentative agreement to sell the properties to the Dis­trict for two and a half million dollars subject to cer­tain credits and adjustments. I am again raising the question of transferring the water production facilities of the Railroad to the Water Company at this time because of the situation which faces us in Nevada Public Service Commission Case No. 1207 in­volving the adequacy of the water supply furnished by the LVL&W Company at Las Vegas. You will recall that this case was initiated in August, 1950, on the complaint of the City of Las Vegas, and that after a partial hearing in September of 1950 the case was continued indefinite­ly until reopening was requested by the City, with the understanding that pumps would be placed on Wells 3, 10 and 1 1 to secure an additional supply of water during the peak periods of consumption during the summer months. The City has requested the reopening of this case, and it is expected that the Commission will set it for hearing some time in November of this year. I have just returned from Las Vegas, where I con­ferred with the representatives of the District. They have furnished me a tentative set of plans showing the proposed improvements to be constructed by the District. One such improvement is the construction of a 30-million gallon reservoir on land to the west of our existing wa­ter field. I am inclined to believe from discussions with the District representatives that the District will 1 1