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#3 - Ad ministrator of General Services prdduction is essential to national defense. Growth of such industry cannot be encouraged in the Las Vegas Valley until adequate water at reasonable rates is made available. Either of th6se considerations alone justifies the proposed transfer to the District. When both rea­sons are considered, there is a compelling basis for approval of the proposed transfer. More specific reasons for the transfer will be given. N o attempt has been made to classify them under the two broad categories in view of their overlapping nature, i.e ., that which is conducive to public health also promotes public interest. These special considerations are: (a) Underground waters in Clark County, particularly in the vicinity of Las Vegas, at the present rate of increase in use will soon be seriously overdrawn. Except for the portion now served by the Basic Magnesium system the territory within the District is almost wholly dependent upon underground waters. At present such underground waters are pumped and distributed by a private company which has shown no desire to increase its facilities or water ^ resources. It is imperative that underground waters be~suppTemented by water brought from outside the District. The only reasonable supply of new water is from Lake Mead, either through a new water transmission line or by the utilization of the excess capacity of the existing forty inch wafer line. If is estimated that not more than two-thirds of the capacity of the existing forty inch line is required to serve any industries now located or which may be lo­cated at Henderson within existing Basic Magnesium Plant facilities. The excess one-third can be reqdsly used to supplement existing ground water supplies. In order to supplement the water supply of Las Vegas, the Water District intends to construct a transmission line from Henderson to Las Vegas. (b) Nellis Air Base, a few miles northeast of Las Vegas is increasing its housing facilities by the addition of a four hundred unit housing project. Inadequate existing water sources can no longer serve the increased demands of the Air Base. After consultation with the military authorities and ascertain­ing their requirements, the Water District proposes to extend its lines from Las Vegas to the Nellis Air Base. To assure the supply of water at the Air Base, the Water District will guarantee a maximum of four million gallons of water per day, delivered to the boundary of the Base under an agreement made or to be made with the proper military authorities. The guarantee will greatly increase the value of the Air Base from a military and defense viewpoint. (c) Industry at Henderson has need for an assured and long term supply of water at reasonable cost. At pr s^nt any purchaser or lessee of existing facilities at Basic Magnesium Plant must look to the Colorado River Com m i­ssion for its water supply. In the event of default under the quitclaim deed and the letter of intent, control by said Commission would be summarily terminated. In such case the purchaser or lessee would have to make new arrangements for water supply, with no assurance that the new supply would be at a satisfactory rate. The Water District has sufficient funds and will obligate itself to assure a reliable supply of water at reasonable cost to any purchaser or lessee of exist­ing facilities at Basic Magnesi um Plant. Thus, regardless of forfeiture, if any,