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Las Vegas ** December X?# 1951 Hr. W». Reinhardt - Los Angeles Attached Is clipping from the Las Vegas Morning Sun of December 17, 1951, concerning the O'Neill - Montgomery report on feasibility of increasing capacity of the Henderson pipe line and pumping facilities to 50,000,000 gallons per day. At an informal meeting Sunday afternoon O'Neill and Montgomery submitted the attached Interim Report and Estimate of Cost to members of the Colorado River Commission and Directors of the Las Vegas Valley Water District. Copies of the report were also handed to officers of the Basio Lessee corporations who were % holding a separate meeting considering the agreement for purchase of residual plant facilities. After preliminary review of the report members of both the CRC and the Water District appeared satisfied the plan offered a solution to the water situation at a cost within the District*s ability to finance and it Was the concensus of opinion the Lessees will accept the plan and will contract to deliver to the district 20,000,000 gallons per day during next 20 years and 10,000,000 gallons per day for the following 10 years although the District Directors indicated they wanted 20,000,000 gallons per day for the - ifi?' ? . entire 30 year period. The CRC has scheduled meetings today with the Lessees and Tuesday with the Lessees and Water District Directors. flie CRC anticipates the residual facilities will be turned over to the Lessees effective^ January 1, 1952 and the District I f| J§!If Directors hope to negotiate agreement with the Lessees subject to approval of the bond issue. W. h. Johnson