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7 -4 1 -5 0 0 M Form 2191-B *---- UNION PACIFIC RAILROAD C O M P A N Y / 7 ^ ~ 3 Time Filed_________ ~______ M TELEGRAM Los Angeles - July l6* 195^ COPY AES* WHH Omaha EEB Los Angeles • ; . Orig AES Omaha ey WHH Omaha* EEB Los Angeles S-335. I discussed this with Mr. Bennett who advised as follows: QUOTE. AS you know* there is a distinction between the covenant covering the land west of a line 1600 feet west of Ma^.n Street* and the lands described in 'Exhibit "B" of the contract between theRailroads and the District. On the latter lands., we covenanted not to drill for 21 years* with an option in the district to extend for a further 21 years. The restrictions on the shop grounds are contained in Section 2 of the agreement* which reserved to the Railroads the water rights* on lands situated between Main Street and a line 1600 feet westerly thereof. QUOTE. The transactions referred to in the first paragraph: of Mr. Stoddard's wire presumably refer to sales we made prior to the contract with the Water District* and in general contain a reservation of water rights in the Railroad Company. There is no time limit on the reservation as there is in the lands described in Exhibit "B"* and we are under no obligation under the contract to convey these water reservations to the District. There- is no objection to conveying these water reservations to the District* although* as I have stated* there is no obligation so to do. UNQUOTE. It is my view that it would be in keeping with the spirit of the provisions of our agreement with theWater District that the reservations made in the area where we agreed.to prohibit drilling for water should be conveyed to the District. However* there is