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Mr, E.E. Bennett #2 I am t h e r e f o r e of t h e o p in io n t h a t th e ',? Railroad, Company may claim.- t h a t i t s p erm it t o use 2,? 5 ", CFS from Well jfl (which perm it s p e c i f i c a l l y d e s i g n a t e s R a ilr o a d purposes) i s a v e s te d r i g h t , a c q u i r e d p r i o r to March 25, 1939, and co n seq u en tly capable of being t r a n s - . f e r r e d ' t o a new p o i n t of d i v e r s i o n a t th e shop w e l l . You w i l l r e c a l l t h a t in my l e t t e r t o you of January 3, 1952, I s t a t e d t h a t i n ord er t o e f f e c t a t r a n s f e r of an e x i s t i n g r i g h t t o a n o th e r l o c a t i o n , t h e r e must be w ater a v a i l a b l e a t th e new p o in t of d i v e r s i o n i n . s u f f i c i e n t q u a n t i t y t o equal th e w a t e r . r i g h t which i s ? t r a n s f e r r e d to such p o in t of d i v e r s i o n . I based t h i s s ta te m e n t on in f o rm a tio n given by Mr. Jamison who s t a t e d h i s b e l i e f t h a t t h i s was a r u l i n g of th e A ttorney General. I t seems, t o me however, t h a t th e r u l i n g of th e A ttorney General cannot apply t o a v e s te d r i g h t , and, t h a t th e Company would have the- r i g h t to take 2.5 CFS from i t s shop w e ll in th e event such w e ll i s capable of producing t h i s q u a n t i t y . I t a l s o seems t o me t h a t i f such a t r a n s f e r i s e f f e c t e d and s a id q u a n t i t y of w ater i s not developed or i f developed, not u s e d , . f o r a p e r io d of f i v e s u c c e s s iv e y e a r s , t h e r e would be a f o r f e i t u r e under s e c t i o n 7993*lSa t o .the e x t e n t of such non-use. In summary, th e committee concluded to determ ine how much w ater can be developed a t th e shop w e ll and t o t r a n s f e r a l l of th e companies’ w ater r i g h t t o th e shop w e l l ' even though th e w ater developed does no t equal th e amount t r a n s f e r r e d . In view of th e f o r e g o in g , I b e l i e v e t h i s may be accomplished, n o tw ith s ta n d in g t h a t a l e s s e r amount o f w ater i s a c t u a l l y a v a i l a b l e . Sine e r e l y , CMC/b end. CALVIN M. CORY: