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May 5 , 1954 80-11 Senator Thomas H. Kuchel Senate Office Building Washington* D. C. Dear Senator Kuchelt You are of course familiar with the con­struction during World War II of the Basic Magnesium Plant at Henderson, which was constructed for the pur­pose of producing magnesium for the war effort. This plant was constructed In 1942 by the Defense Plant Corporation, a wholly owned subsidiary of the R.P.C., and In connection with such construction a 40” pipe line was constructed from Lake Mead to the Basic Mag­nesium Plant. In 1942 the Defense Plant Corporation applied to the Secretary of Interior for necessary rights of way for the pipe line in question; but ap­parently, due to the more weighty matters pending at that time, or for reasons unknown to me, the applica­tion was never perfected.- However, at that time, and until 1947, permanent rights of way for pipe lines could have been granted the Defense Plant Corporation under existing laws, particularly Section 5f(a) of the Reconstruction Finance Corporation Act (56 Statutes 175). This Section was repealed (61 Statutes 207), and since then there has never been any general law which would authorize the granting of permanent rights of way of this character. At the termination of World War II the pipe line was sold as surplus property, first to the State of Nevada, and thereafter to Basic Management Inc., an organization which took over the property.