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from a ll holders of permits and claimants o f vested rights; may upon his own in itia tio n conduct pumping tests to determine i f over-pimping is indicated, to determine the s p e cific capacity of the aquifers and to determine perme­a b ility ch aracteristics; he shall determine i f there is unappropriated water in the area affected and shall issue permits only i f suoh determina­tion is affirm ative. The state engineer at any time may hold a hearing on his own motion, or upon petition signed by a representative body of users of underground water in any area or subarea, to determine whether the water supply within suoh area or subarea is adequate fo r the needs of a ll per­mittees and a ll vested-right claimants, and i f the determination is nega­tive the state engineer shall order that withdrawals be restricted to con­form to p riority rights during the period of shortage," Now, the Las Vegas Land & Water Company, when i t experienced what it feared might be a c r it ic a l situation here this summer, and in order to make this community conservation conscious, figured that instead of addressing a petition to the State Engineer, i t would f i l e a general protest with the State Engineers O ffice, and we figured that probably the people of the community would become more conservation conscious i f , at the same time, we file d a sp eoific protest to an application that was made by prominent and in flu en tia l people of this community, and maybe they would get out and make such e, hallaWballoo, that the matter would be presented to the community at large, The result of that protest has brought the question out in the open, and brought a ll the matters out in the open, and the desired results have been attained, fa r greater than our expectations. Now, as long as the community does not exceed 25,000 inhabitants, we have ample water underground to supply a ll needs ~ not only that, but we have ample water to supply the needs of ordinary industry that might come in here, but as I say, we have not water underground su fficien t to supply an industry the size of the Basic Magnesium or an industry that would use water to the extent that that industry had to use water. We have a cushion here that has not as yet been reached. There’ s a p o ssib ility of d rillin g wells further away, and s t i l l obtain underground water, but we must realize that out­side of Lake Mead, the only available supply of water fo r this community is under­ground water. Now, I hope that I expressed myself clea rly , and i f there’ s any question that you wish to ask me, I ’ l l gladly try to answer lfo IE, GRIFFITH; Mr. Chairman, may I ask Mr, McNamee what statute that was you were reading from — the 1939, as amended in 1943? IE. MoNAMEEi Yes; I didn’ t read the amendment. There’ s a provision that the State Engineer shall determine i f there’ s any unappropriated water in any particular area, and that he w ill not grant permits to d r ill new w ells unless that determination is in the affirm ative, MR. GRIFFITH* Does that mean that i f the State Engineer examines this area when this particular application is made, and finds that there is unappro­priated water there, he must issue a permit. Has he any right under that Act to refuse a permit unless he finds there is no more unappropriated water? IE. MeNAMEE* Yes; now when you talk of unappropriated waters in the area, i t must be unappropriated water in the particular aquacade. There might be two or three aquacades in one or two basins. You must determine i f a parti­cular aquacade is in an undeveloped area. (14)