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Mr, Bennett - Page 2 In View of the delay in the completion of the water tank, which will no doubt extend beyond the sale date, it would seem that it might be advisable to retain the water appropriation in the present Well Ho, 1 in the water field until a date subsequent to the sale date so that the Railroad Company would have a source of w&ter, which It would own and be available from the facilities of the Water District after the sale date, so that all the District could charge for would be the transportation of water through its facilities, which charge would continue until such time as the tank is completed and the Shop Well used to furnish all of the require­ments of the Railroad facilities except in an extreme emergency, in which event of course the Company would then have to purchase water through a connection to the District's water main which is provided for in Agreement rtC*L,D, 113&2. It is isy understanding that Agreement "C*L,D, 113^2, dated June 1, 1953, provides under Section 2, page 10, that the Railroad Company shall make application to the State Engineer prior to the sale date for the purpose of changing point of diversion of 2£ cfs from Well Ho, 1 to the Shop Well and that in the event a change in point of diversion shall not have been authorized by the State Engineer prior to the sale date, then the Railroad Companies shall have the right within two years subsequent to the sale date to obtain from the State Engineer authority to change the points of diversion of the entire 2§ ofs from Well Ho, 1 to the Shop Well. L, R. Haag LRMll®