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The 2.5 c.f.s. appropriated by the Railroad Company for railroad purposes is not included in the sale to the Water District, the Railroad Company reserving the right to apply to the State Engineer for permission to change the point of diversion of said 2.5 c.f.s, from said Well No. 1 to a well located on its shop ground. As the population grew, the First Parties drilled more wells so that at the present time there are altogether eleven wells upon the lands being purchased by the District, the waters from which are appropriated for municipal supply and certificates of appropriation issued by the State Engineer of the State of Nevada are of record in the County Recorder’s office, for all of the waters from each of said wells. The total amount appropriated, according to said certificates of appropriation is 23.37 c.f.s, including 4.18 c.f.s. from said Well No. 1. It is my opinion that the First Parties and their successors and assigns are entitled to use, for municipal supply, all of the waters produced from these eleven wells, and I am further of the opinion that should the underground aquifers from which these wells draw their respective amounts of water be depleted or lessened by an appropriator whose priority is later than that of First Parties, such later appropriator would be required to plug his well and be enjoined from using water therefrom. As to the acquiring of additional water from the Colorado River: Under date of June 19, 1950, the Water District made application to the State Engineer for permission to appropriate 59 cubic feet per second of water (43,000 acre feet per annum) from Lake Mead and the Colorado River for municipal purposes. A permit was granted under date of January 31, 1951, which permit is in good standing. The District has until January 24, 1962, in which to apply the appropriated water to a beneficial use. Under and pursuant to the Reclamation Law of 1902, the Boulder Canyon Project Act, and the Colorado River Compact, by contract of March 30, 1942, as amended by supplemental contract of January 3, 1944, the United States of America agreed to sell and deliver to the State of Nevada such waters from the Colorado River as may be necessary to supply the State but not to exceed 300.000 acre feet of water annually; the contract is for permanent service. Pursuant to the laws of Nevada, by agreement of June 14, 1951, as amended by amendatory agreement of March 6, 1954, the State of Nevada has agreed to sell and deliver to the District such water as the District may demand, not to exceed 43,000 acre feet annually of said Colorado River waters; this latter agreement is also for permanent service. Under date of May 23, 1952, the District entered into an agreement with Basic Management, Inc. whereby Basic Management, Inc. will deliver into the District’s water system, through B. M. I.’s existing water plant and system, up to 5,000,000 gallons of water per day, and up to 13.750.000 gallons per day after the District shall have, at its own expense installed pumps and other facilities sufficient to handle such increased quantity. (The B.M.I. water system consists of intake pumps at the point of diversion on Lake Mead, and a 40" pipe line extending from the Lake to Henderson, Nevada.) In my opinion said agreement is a binding obligation on both parties thereto. It is my opinion that to the extent that the District applies such water to beneficial use in the time and manner provided by law, said District is entitled to use not to exceed 43,000 acre feet annually of waters from the Colorado River. In Nevada the water of all sources of water supply, within the boundaries of the state, whether above or beneath the surface of the ground, belongs to the public. Subject to existing rights, all such waters may be appropriated for beneficial use as provided by our Nevada Statutes and not otherwise. The determination of the relative rights to water and the administration of said rights in Nevada are imposed upon the State Engineer of the State, subject to court confirmation if disputes arise. Very truly yours, LAM :nd LEO A. McNAMEE 2