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assumed that the present pavement existed at the tim the pipe replacements vere made whereas it is highly probable that a number of these at.’ sets end alleys vere unpaved when the replacements were made. Other distribution system additions, outside of those outlined above, consist almost entirely of mine in new sub-divisions which ere financed entirely by the sub-divider. Standard procedure in laying out a new subdivision Is to install all underground utilities before placing any pavement. Consequently, no pavement removal and replacement was involved in these installations. Even though it is conceded that the water Company may have had to remove and replace some pavement as outlined above, It in not agreed that the Union Pacific should be reimbursed for this. It is felt that the Water District should not be penalised because of an original installation of short-lived pip®. Accordingly the entire item of Pavement Work, $90,075 for reproduction cost and $76,56^ for depreciated cost, has been deducted from the District appraisal. Accrued Depreciation, January 1, 1951 to May 1, 1952 The District appraisal was based on present-day construction costs and in order to bring the depreciated cost up to a true value as of May 1, 1952 the accrued depreciation of $89,057 for the 16-mouth period prior to May 1, 1952 was deducted from the District appraisal. Appendix E tabulates the accrued depreciation from January 1, 1951 to May 1, 1952. Land and Water Eights Plate II shows the water bearing lands in west Las Vegas now owned by the Union Pacific and the valuation placed thereon by their appraisers.