upr000065 406

RE: I & Q DOCKET 127 - LVL&WCO. Los Angeles* November 9» 1951 Ur. Calvin M. Cory: (cc - Mr. Wm. Reinhardt / Ur. W. H. Johnson) >/ Messrs, we he, Carson and Renwick con­ferred with Chairman Allen of the Public Service Commis­sion on November 5th regarding Las Vegas water rates. They found that some of the figures appearing on page 15 of Commission's opinion of August 24 were taken from affidavits of completion filed in connec­tion with applications to appropriate water at the time the various wells were drilled. They were not able to maim a careful check of the documents filed by the LYIAVCo. with the State Engineer but it appears likely that some of the documents filed by the Company understated the actual cost of the wells. Mr. Allen was given the true cost of the wells and other incidental facilities and he stated that if the State Engineer's records are incorrect, the Company should take steps to correct them. I do not have complete files on these water appropriations. Since returning from. Carson City, Ur. Renwiok examined a few of such affidavits which are in oar files. They do not purport to state the ex&ot cost of the wells, but state that "at least* a stated sum of money was spent. The figures used wereapparently esti­mated amounts rathnr than the final cost. I would like to have you advise me if it is the customary practice in Nevada to show the exact cost of drilling wells in affi­davits of completion and whether in your opinion our filings complied with the State law and the regulation of the state Engineer. Mr. Reinhardt is asking Ur. Johnson to review all of our water appropriation filings. Mr. Johnson may find a complete file in the Water Company's office. If not. will you borrow Leo MeNamee's files and make them avail­able to Ur. Johnson so that he can cheek the accuracy of our filings after ascertaining the true cost of the wells from the Auditor. J