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Los Angeles, April g4, 1958 Mr* 0. A. Cunningham - Salt Lake* co - Mr* E* K* Bailey - Omaha Mr. J. A* Bunjer - Omaha Mr* C. M, Cory - Las Vegas This Is further in connection wells at Dry Lake, Nevada* with the question of it to Mr• Calvin M* Cory at las Vegas so that he could Investigate the matter on the ground, Loth as to the factual situation, the Nevada law which governs the situation, and also close contact with the State Water Engineer*s Office* As I have wired you, Mr, Cory developed information that the territory at Dry Lake has not been designated as an area for administration under the Nevada laws governing conservation of underground waters* This has an important bearing on the right of the contractor to have his well driller drill a well. Section 534*050 of the Nevada Revised Statutes provides that In such a designated area no one shall drill a well without first getting a permit to do so from the State Engineer. On the other hand, in an area not so designated, anyone may drill a well without any permission in advance. Then, however, if he finds water the section provides that he shall not use it until after obtaining a permit, as provided by the previous chapter* Of course this provision of the law makes it perfectly lawful for the well driller at Dry Lake to @0 ahead and drill1 the well. There Is nothing In the statutory law or in any case law which we have found which would prevent the drilling of such a well close to an existing well. Therefore, there is no legal action which can be taken at this time to stop the drilling of this well. done farther along the line to control this situation, further investigation was made into the law surrounding the obtaining of a permit to use the water in the event the well is found to be productive. In that connection the contractor, under the provisions of the law, should file an application for permit with the State Engineer’s Office containing the information prescribed by the statute. Within thirty days after receiving the application, the State Engineer must publish in a newspaper in the county where the well is located, notice of the fact that the application has been made. Within thirty days after On receiving your telegram yesterday, I telephoned In an effort to see if anything effective can be