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80-11 Los Angeles, June 9, 1953 Mr. W. H. Johnson: (cc - Mr. Wm. Reinhardt Mr. C. M. Bates) Copies of agreement dated June 1, 1953 j between Los Angeles & Salt Lake Railroad, Union Pacific and Las Vegas Land and Mater Company and Las Vegas Valley Mater District for the sale of the water system at Las Vegas to the Dis­trict have been distributed today. I call your attention particularly to the provisions of Section 4 of the agreement that if the Railroads sell any of their land west of the tracks at Las Vegas prior to the sale of the 507 acres of water-bearing land to the District, the Railroads will insert in the deed conveying " said lands a covenant for the benefit of the water-bearing land restricting the drilling of water wells upon the granted lands or shall have previously recorded a deed made by the Los Angeles & Salt Lake Railroad Company to one of its affiliated corporations conveying the said wa­ter- bearing lands and restricting itself, its successors and assigns, against the drilling of water wells on all of the other land of the said Railroad Company west of the tracks. Documents for the transfer of the 507 acres of wa­ter- bearing land from LA&SLRR to UPRR and from UPRR to LVL&MCo. have been sent to our executives for execution. The deed from the LA&SL to the UPRR will contain a cov­enant similar to that set forth in Exhibit "B" to the aa-bove mentioned agreement. I have suggested that these deeds not be recorded "until a sale to the District or un­til prior to that time we are forced to record the deeds to comply with the provisions of the above mentioned a-greement in connection with a sale of land by the Rail­roads to outside persons. No transfer of land owned by the Railroads at Las Vegas should be made unless and until we are able to comply with the provisions of Section 4 of the above men­tioned agreement. w. H. J. JUN 9 195