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Mr. R,K, Bennett #3, the water developed at the original point of diversion in oid«r to affaot a transfer of the quantity of water called for by tho permit of appropriation. In tho situation baforo you, tho only advantage to bo gained by a transfer of an ex­isting right to appropriate is the priority which auch right to appropriate would have over subsequent rights to appropriate in the event of en adjudication of ell water rights in the Las Vegas Valley, laving acquired a right to appropriata watar for railroad purposes, eithar In the existing well in the shop grounds or by means of a new well, end whether by a new permit of appropriation or by a transfer to auch well or the railroad's present permit of appropriation, X am of the opinion that the railroad could continue ita present contract, or antar into a naw contract, with tha F»P«2, to sell surplus watar, As you know, Section 6I3 S K.G.L. parmlta the sals of surplus watar bsyond tha nssds or requirements of the water appropriates» own business without becoming a public utility provided the contract of such sale la approved by tha Public Service Cam- mission, Therefore, X believe the Railroad Company could develop# its own water supply either through tha existing wall or through e now wall, andelther acquire a right to appropriate such water by a naw permit or by transferring its present permit, X also believe that any surplus of water in exoess of the needs of the railroad company oould be delivered to the P.F.E. under contract, with tho approval of the Publio Service Commission. CH5/b CALYX* *, CORY .