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3* «Water production facilities” as used in agreement sha^l include: as Water bearing lands and the rights of way for certain pipe lines and power lineq ba All water wellss springs, pipe lines, power lines, reservoirs, settling basins and other structures or facilities located on said water bearing land and said rights of way which are used or useful in the production, transmission or delivery of water, Co Any addition and betterments to the properties (in a & b) which are made by second party after January 1, 1950 in accordance with (2) excluding any of the above mentioned properties which are retired after January 1, 19500 Uo "It is agreed that the market value of the lands and rights of way mentioned in subparagraph a, of Sec, 3 as of January 1, 1950 is $75*900. It is agreed that the original cost of all the structures and facilities referred to in subparagraph b. of Sec, 3 hereof, as of January 1, 1950 xs $779, 25U.OO and that the accrued depreciation thereon as of said date is $108,5ll, It is further agreed that the amount of working cash and the cost of material and supplies as of January 1.,. 1950 are $2,000 and $3,000, respectively, All of the above amounts less depreciation accrued to January 1, 1950 total $75l,6ii3 an^ for the purpose of this agreement such total is hereinafter referred to as the "agreed value" of the water production facilities as of January 1, 1950," -10-