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^-D "" Omaha - February 2L, 195k 704-36 Mr. E. E. Bennett - Los Angeles, Calif.* , • ft (CC - Mr. Mr. W. R. Rouse W. H. Hulsizer) This refers to Section 10(b) of contract dated June 1, 1953, covering the sale of the water production, stor­age and distribution system at Las Vegas, Nevada to Las Vegas Valley Water District. The following retirements of L.V.L.& W.Co. water pipe lines were made subsequent to September 1, 1952. nection across Lot 4, Block 2 of Subdivision of Lot J of park Place Addition, Las Vegas, Nevada, in­stalled under Work order 515. 760 110 L.F. of 6* C.I. water main in Lot 1, Block 5 of Desert park, Tract 2, Las Vegas, Nevada, in­stalled under Work order 515* 753 750 L.F. of 8* C.I. water mains in south side of Charleston Blvd., which was included in defense pro­ject completed during April 1943 under Work order 464, the cost of With respect to retirements under Work order 720 and 760, it is our interpretation of the contract that deduction should be made from the basic purchase price.for the undepreciat­ed ledger value only. The property to be retired was constructed prior to September 1, 1952. In view of the fact that the cost of water main re­tired under Work Order 753, was fully amortized prior to September 1, 1952, at an accelerated rate over period of three years, whereas the normal service life for such facilities is considered to be 75 years, question arises whether it was the intention that no deduction be made from the basic purchase price in connection with this retirement. W.O. No. 755 125 L.F Description Led®sr Book Value Depreciation ant con which has been fully amortized. 2 016.72 2 016*72 R. M Will you please advise.