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Los Angeles January 13, 8 0 -1 1 1956 % A jf Mr. W. H. Johnson: cc: Mr. V. W. Smith Mr. C. M. Bates Mr. C. M. Cory Referring to your letter of January 12th, your file 1-733^, relative to relocation fund held in escrow at Las Vegas in connection with the sale of water production and distribution facilities, with which letter you attached copy of letter from Mr. Renshaw, Manager of the Las Vegas Valley Water District, advising that all the pipe relocations on Union Pacific property in accordance with Agreement C.L.D. 113^2 had been completed : In the original escrow instructions, Section 8 provided that this relocation fund should be held in escrow, to be disbursed under Section 5 of the sales agreement between the Water Company and Water District. Section 3 provides for the construction of certain pipe lines, the relocation of the pumping station, the construction of a three-phase power line, removal of certain pipe lines, removal of certain power lines, and removal of certain pipe lines. Section 5 of the contract further provides that the relocation fund should be paid out by the escrow company from time to time as the work progressed and upon our approval. It is my understanding that rather than handle the matter that way, the Water District decided to do all the work out of current funds and not use the relocation fund for that purpose, although I may be in error in this understanding. Mr. Renshaw*s letter advises that all pipe relocations in accordance with the agreement have been completed. He does not say anything about the wire lines or pumping station. I think it would be advisable to have this matter checked by our engineers who are familiar with the contract, especially Section 5 thereof, and ascertain that all of the provisions thereof have been carried out in full, or have been carried out to the final satisfaction of the railroad and the Water Company. I believe there were some minor changes made in the construction of certain pipe lines, and at one time I had been advised that they did not intend to construct the pipe line in ba D» JAN 13 1956 JAN 13 J9S L. C« C.