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\ Salt Lake - May 10, | d & Mr* F* 0. Paulsenf X (cc Mr* E. E. Bennett Refer to correspondence ending with your letter of March 31, 1950, file 9312, In connection with payment for water consumed at Pioche, Nevada, from Lincoln County Power District No* 1. For your Information, I am attaching hereto copy of my letter of April 4th to the Power District, and a copy of reply received from that organization, which, incidentally you will note was written by Mr* Jto G. Martin who, as District Attorney, is also the writer of the letter dated March 9th en­closed with Mr* Bennet *s letter of March 17th* It seems that the Railroad*a course should be to ig­nore the old free contract with Amalgamated Pioche Mines and Smelters Corporation, in view of the statements of Mr* Martin* It appears that the rates charged against the Railroad for water are fair and just since they are in accord with those charged all other consumers, and as a matter of policy we should accept them. The contention that water taps are some­times left running in the winter time to preclude freezing of lines does not sound unreasonable, and does no doubt account for the higher hilling during Winter months* With the elimi­nation of the water tank, and the instruction to our employes at Pioche to see that water is not wasted, no doubt during the Winter of 1950-51 we will be able to decrease the water bills. You will note the billing for March was 115.85, and the bill just received for April is $10,78. Whether or not a formal agreement should be entered into, setting fbrth all conditions, such as the 4 connections serviced, the rate of 50^ per M gallons, etc., is perhaps a matter for the Law Department or Mr* Lynch to decide. If such were done, we could no doubt supersede and terminate the old agreement known as Deed No. 979* If an agreement Is desire— able, I suggest that Mr. Bennett handle with Mr* Martin for ^ its preparation* Your file is returned herewith# G. T