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Senator Thomas H. Kuchel May 5, 1954 In 1942 applications for rights of way for this pipe line were made by the Colorado River Commission of Nevada on behalf of the State of Nevada, and also by Basic Management Inc., the owner of the pipe line at that time. However, the Department of Interior considered that these applications were made under the Act of February 15# 1901, which provided for granting only of revocable licenses; and the Department of Interior required, as a condition to granting such a license, that Basic Management Inc. relinquish three million gallons of water per day, or approximately one-tenth of the capacity of the system, to the Bureau of Reclamation. Apparently, therefore, no further action was taken on either of these applications. In 1947 the Las Vegas Valley Water District was organized in southern Nevada, under the laws of the State, for the purpose, among other things, of bringing in water from Lake Mead to the City of Las Vegas and property included in the District, which contains approximately 307 square miles and has an estimated population of 66,000. As a corollary to the organization of this District, it would be necessary for the District to construct its own pipe line from a connection with the Lake Mead - Henderson pipe line to the City Of Las Vegas. In 1953 a bond issue was voted to permit the proposed operations of the Water District, and the bonds were sold April 28th, and the District was now in a position, upon receipt of the money, to commence construction of the branch pipe line and other construction work necessary to serve the District with water from Lake Mead. However, it then became apparent that in order to successfully operate the District and secure a permanent right to carry the water from Lake Mead to Henderson and to the Water District, permanent rights of way for the two pipe lines would have to be secured from the Government, and to that end Senate Bills 3302 and 3303 were introduced by Senator McCarran and referred to the Interior and Insular Affairs Committee. As above stated, the existing legislation provides only for revocable licenses, whereas the proposed bills provide for permanent rights of way, terminable only - 2 -