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Form 5527-B U N I O N P A C I F I C R A I L R O A D C O M P A N Y 9-48-500M SAVE^ELEGRAPHING M AILGRAM SAVE TELEGRAPHING page Z done in acesrdsnes with the provisions of Soot ion 5# this latter part of the escrow deposit ie designated in tike draft as *Relocation Fund** tiie District is to enter into, a contract or con* trests for the performance of the work and Use escrow agent is to asks payment direct to the contractor or contractors* If within s designated tine the District has not contracted ths work# thsn ear companies may award a contrast or eon* traeta for the performance of it and payment to the eon* tractor or contractors whom we engage will likewise be wade by the eaerew agent* the estimated cost of the work is #320*000 pirns 10 percent* making the total estimated east #352*000. this manner of handling and paying far the- so* sailed relocation work 1 e in my opinion a deeided improve* went over the methods prescribed in ths Marsh* 1953 draft of agreement* and I belters it safeguards our interests an well as they sen be safeguarded. Share would seem to be only one risk if we take on the relocation work# and that* aa Hr# Bennett points out# is the chance that the estimate Of the amount to be put in the Relocation Fund ie not large enough and we will be required to pay the excess eoet out of our own funds* I assume that in finking the estimate our engineers hare considered the risk and with that in mind havs approved an satinets which in their judgment is sufficiently high te meet the contingency. Mr# Dennett in the last paragraph sf his letter above referred to alludes to ths additional protection given the District in the revised draft against drilling of watar wsHa in the shop ground area except for the purposes of ttaion Pacific and affiliates (pegs 1?)* this pretaetiea as weH as the restriction insisted upon by the Distrlet against water production to be incorporated /in future deads to our land in the vicinity of the land to be eeld to the District {Exhibit B) eeeme to ms from the District** view* point as a justifiable protection inasmuch as the Distrlet will wish to enjoy as much of a monopoly as possibls in the sals of water# And from our viewpoint# although we might prefer to avoid furnishing this protection# yet X de net be* lieve that it will result seriously to our disadvantage and further than that it la ay opinion that the elimination of the protection from the agreement would ereate an Impasse between the Distrlet and ourselves. X assume that this