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Los Angeles January 14, 1954 80-11 Mr. C. M. Corys (cc - Mr. Wm. Reinhardt) Section 12 of the Contract between the Railroads, the Water Company, and the Las Vegas Valley Water Dis­trict provides in parti "When the escrow referred to in Section 7 hereof shall have been opened, or at such earlier time as the parties hereto mutually agree, First Parties ***shall file with the Public Service Commission of the State of Nevada, application requesting authority of said Commission to transfer such of said properties as are then maintained and operated as a public utility for the furnishing of water to the Inhabitants of the City of Las Vegas to the District in accordance with the provisions of this agreement, and shall thereafter dili­gently prosecute said application *** unless the parties hereto shall agree that such authority is not required." Utilities Code, it is provided in parti "No public utility shall sell *** or otherwise dispose of *** the whole or any part of its *** plant, system, or other property necessary or useful in the performance of its duty to the public, or any franchise or permit *** without first having secured from the Commission an order authoriz­ing it so to do." similar requirements in the State of Nevada under the Nevada compiled laws, or under the rules and regulations of the Nevada Public Service Commission? If not, I pro­pose to write to the District, quoting your opinion on the subject, and suggesting that under the Nevada law it is not necessary to file such an application, and there­fore the First Parties to the contract are relieved of the obligation under Section 12. I presume they will refer my letter to their attorney, who might want to check into the law before concurring to your opinion. In California, under Section 851 of the Public Will you please advise whether there are any 1. £. Bennett EEBips WM. R JAN 15 1954 ft ft D, JAN I S 1984