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Les Angeles, November 14, 1952 1-7354 P P R NOV 18 1952 (CC - Mr. W. H. Johnson) Referring to your letter of November 5, 1952, file 80-11, attaching copy of new proposal by the Water District at Las Vegas to purchase the water producing and distributing facilities of the Railroads and the Water Company in Las Vegas: In accordance with our conversation, my comment on each of the items mentioned in the Water District's proposal is, as follows: (a) The 507 acres, more or less, of water bearing land is that area shown in tinted pink on Drawing 1-128, no date, marked "Exhibit A". As I understand it, the Water District does not propose to purchase any additional area, but does desire to obtain easements for certain pipe lines and power lines on property which will still be owned by the Railroad Company, all as outlined in following items: (b) The wording of this item appears satisfactory to me, except that I would suggest the word (or” in lines 14 and 19, page 2 of this Item (b), should be "and/or", for the reason that I believe in all fairness we should have a stand-by well in the shop ground area so we will not have to depend upon water from one well: hence the changing of "or" to "and/or". With reference to drilling an additional well at a point within radius of 100 ft. from present shop well, I have previously discussed question of location of the so-called additional stand-by well with Mr. Hugh Shamberger, Nevada State Engineer, and he agreed that it would be satisfactory to drill a well within the limit of the shop grounds-. However, the priority date of this new well would be the date of the application to the Public Utilities Commission for a permit in event we do not plug the present shop well. In event we do plug the shop well, then the priority date of our new well somewhere In the shop ground area would be August 23, 1924 for production equal to amount transferred from Well No. 1 in the water field to the present