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(COPY) ^ Omaha - December 16, 1952 Memorandum: At a conference today attended by Messrs. L. J. Bachman, W. H. Hulsizer, R. M. Sutton, C. G. Parkinson, F. D. Cope, W. R. Rouse, John A. Bennewitz and E. C. Renwick to discuss the proposal to convey the water production facilities of the LA&SL at.Las Vegas to the LVL&WCo. pending a sale of the water production and water distribution system to !the Las Vegas Valley Water District, it was tentatively decided, 1) That the recommendation of the local committee of operating officers for the development of an independent water supply by the railroad at Las Vegas through improvement of the shop well, drilling of additional well and construction of pipe lines and storage tanks be progressed to conclusion. This will involve the transfer of a water appropriation of 2.5 c.f.s. owned by the LA&SL from well No. 1 in the water field at Las Vegas to the shop well and the proposed new well in the shop grounds. 2) That it would be desirable to transfer the water production facilities of the LA&SL to the LVL&WCo. promptly. To carry out this Iplan it is proposed to (a) transfer the 0 water (production facilities from LA&SL to UPRRCo. at tax base; and (b) to transfer the same facilities from UPRRCo. to LVL&W Co. at highest market value which can be sustained by appraisal providing capital gain on such transfer can be taken by UPRRCo. 1 .