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asphaltic concrete and at an average price of $0.*+0 per square foot for removal and replacement, the reproduction cost, new, would he $27,1+80. The depreciated coat, with a remaining life expectancy of 85$, would he $23,360* It is felt that this is a very generous estimate since it was assumed that the present pavement existed at the time the pipe replacements were made whereas it is hi^aly probable that a number of these streets and alleys were unpaved when the replacements were made. Other distribution system additions, outside of those outlined above, consist almost entirely of mains in nev sub-divisions which are financed entirely by the sub-divider. Standard procedure in laying out a new sub­division is to install all underground utilities before placing any pave­ment. Consequently, no pavement removal and replacement was Involved in these installations. Even though it is conceded that the water Company may have had to remove and replace some pavement as outlined above, it is not agreed that the Union Pacific should be reimbursed for this end accordingly the entire item of Pavement Work, $90,075 for reproduction cost and $76,56!+ for depreciated cost, has been deducted frcm the District appraisal. Accrued Depreciation. January 1. 1951 to May 1, 1952 The District appraisal was based on present-day construction costs and in order to bring the depreciated cost up to a true value as of May 1, 1952 the accrued depreciation of $.109,500 for the 16-month, period prior to May 1, 1952 was deducted from the District appraisal. Appendix B tabulates the accrued depreciation from January 1, 1951 to May 1, 1952. Land and Water Rights Plate II shows the water bearing lands in vest Las Vegas now owned by the Union Pacific end the valuation placed thereon by their appraisers. -9-