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% - 2 - in Item 2 so that the reference to the former in the latter will "be clear. He also suggests that neither of these deeds he recorded until required by the terms of the contract with the Las Vegas Valley Water District for the sale of the entire water system. I am informed that Mr. Cory will shortly file application with the Nevada State Engineer to transfer the 2.5 c.f.s. water appropriation owned hy LA&SL from Well No. 1 to the shop well, hut he does not intend to complete the transfer until the new water distribution facilities in the shop grounds have been completed so that water can he distributed from the shop well to the Railroad facilities. In the meantime, the LVL&WCo. will furnish water to the Union Pacific under the above mentioned appropriation from Well No. 1, under the terms of the contract mentioned in Item 5» which terminates the contract under which Union Pacific has heretofore furnished water to LVL&WCo. The Division forces should complete the new facilities in the shop grounds as soon as possible, not only because of this transfer, but also because we can expect to transfer the entire water system to the Las Vegas Valley Water District some time near the end of 1953» When the transfer of the above mentioned properties to the LVL&WOo. is completed, all of the private contracts Tinder which the Union Pacific has been furnishing water to industries at Las Vegas, except that with the PEE, should be terminated so that the LVL&WCo. can thereafter furnish the service. I am instructing Mr. L. R. Maag by this letter to make such tariff filings as may be necessary to enable the LVL&WCo. to serve these industries. It will be necessary for a decision to be reached as to the labor forces which will maintain and operate the water production facilities after the transfer. It is my suggestion that the Railroad forces continue to do this work and bill the Water Company for the actual cost. The enclosed contract between the Railroads and the LVL&WCo. does not cover this matter, which can be worked out without the formalities of a contract. fSorted) WM. REMS ARB* Wm. Reinhardt Enel 8