Letter from Robert J. Moore to Pat McCarran (Washington D. C.), March 18, 1954

Honorable Pat McCarran United States Senate Washington 25, D. C. My dear Senator McCarran; In March 1948 when the Basic Magnesium Project, Henderson, Nevada was transferred to the State of Nevada, the Colorado River Commission was charged with the responsibility of operating this project, for the State and they solicited the help of the general Services Administration in securing a right-of-way for the water transmission system from Lake Mead to Henderson, Nevada, Which the previous operator of the project, the Defense PIants Corporation, had never secured. During the intervening months several exchanges of letters and Commission representatives in personal contacts attempted co secure this right-of-way from the United States Department of the Interior through its Bureau of Land Management. In June 1952 Basic Management Incorporated, together with the five operating companies, purchased the project from the State of Nevada. In September 1952 the Reno, Nevada office of the Bureau of Land Management secured a decision from the department of the Interior granting Basic Management incorporated this right-of-way subject to certain stipulations. A copy of the decision, location map and allied papers are attached and are marked exhibit "A". Since one of the stipulations provided that Basic management Incorporated relinquish three million gallons of carter per day or approximately one-tenth of the capacity of the system to the Bureau of Reclamation we could not accept the right-of-way subject to these stipulations. Since that time Basic Management Incorporated has made no attempt to remove these stipulations. The Colorado River Commission of Nevada and Basic Management Incorporated negotiated with the Las Vegas Valley Water district, a public corporation organized with the purpose of producing, transmitting and distributing water in the Las Vegas Valley and for the purpose of bringing Colorado River water from Lake Mead to supplement the underground waters of the valley. In 195S Basic Management Incorporated and the District entered into an agreement thereby Basic Management Incorporated through their transmission system from Lake Mead would deliver certain water for the District to a point where the District would divert this water into its own transmission system for distribution. In September 1953 the electors in the District overwhelmingly approved a $8,700,000 bond issue to finance this project, The attorneys for the District have advised the district that Basic Management Incorporated must secure an irrevocable right-of-way for this water transmission system before they can market their bonds, enclosed marked exhibit "B" is a copy of the attorneys' report to the Water District outlining the reasons for this requirement and other valuable background information. Senator Pan McCarran - 2 - March 18, 1954 In view of the above, the Board of Directors of Basic Management Incorporated sincerely solicit your assistance in having the Congress of the United States enact legislation granting this right-of-way which will permit the Las Vegas Valley Water District to market its bonds. A suggested draft of this legislation is enclosed end narked exhibit "C." Very truly yours BASIC MANAGEMENT INCORPORATED Enc.-3