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« 4 - the Las Vegas Ranch located east of Fifth Street highway and opposite the Mormon Church purchase parcel, which area would also be encumbered by drilling restrictions. X under­stand that in subsequent negotiations with the District, after submission of their first bid, it was mutually agreed that we would not en­cumber the Las Vegas Ranch with these drilling restrictions. Question of drilling a well within a radius of 100 ft. from our shop well is again brought up in this item. Our remarks on this particular feature are included in comment on Item (b) above. Also this item (e) specifics that no ttwater well11 shall be drilled or dug down to a depth exceeding 100 ft., ex­cept the wshop well to replace same". It is my understanding that the State of Nevada (in Las will not permit the drilling of a water well^ to a depth less than 400 ft. below the ground surface on account of probable contamination of water in the aquifer sands by surface drainage and seepage. In other words, a well must be drilled deeper than 400 ft. and not perforated above the 400 ft. depth. This question came up at the time we drilled LVL&WCo. Well No. 2 in 1949. The State specified that wells should be drilled beyond a 400-ft. depth and no perforations made above the 400-ft. elevation. I understand that we have already agreed to encumber all sections of land listed in (e) (with exception of Las Vegas Ranch) with a covenant that we will not drill a water well to a depth exceeding 100 feet for a period of 50 years (except as otherwise outlined in this agreement). Paragraph 2, page 4, of the proposed agreement. I or two questions to discuss with you on this paragraph.