upr000211 114

Los Angls - Jan, 25# 19^2 Orlg QrFA - Omaha Cy WRB-Las Vegas Please refer to my letter Nov. 12, 19*H# submitting budget recommendation for facilities at Las Vegas. As pointed out in second paragraph, sheet 5# there was then no way to determine what developments to expect. Now we know definitely that the big housing project is out, and while McNeil has contract for constructing some .800 houses at Magnesium plant the anticipated Increase in housing at Las Vegas will leave us with but little excess water when our 19*1-2 budget program is' completed. The Hall rotary outfit drills and completes wells in a manner that cannot be done with cable tools. Hall has been • - I losing money on this outfit and has announced his intention of selling it this fall. We do not know of another portable outfit here. Las Vegas has such possibilities that we should have some cushion in our production, and it is almost certain that we will need additional wells next year. Therefore, while Hall is at Las Vegas I think it would be wise to drill two wells in addition to the budget request, which may be throttled in if not needed or quickly put in service if the demand requires; in any event ready for next year’s almost certain demand. WRB concurs. If it is not too late to get an item in the 19*1-2 budget I would like to submit a wire budget item tomorrow. Will appre­ciate your advice. 3-5*1-