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{ con apta**is-*7~8«v ) i M »« p ia § m ust a l a nisi f M # S ** m $ p * smus # las Vegas, Kevada r/O July B, m 3 r Hr. i* 1. Bennett f css — Up * €>» KL Bates) With reference to the letter of fitf: 7i 1953i from Mr, Batee# concerning BID 2085# being an Extension R M « r of Audit Wo* 58126, KID 1031# covering g » f i ­nishing of water to Leonard K. Fayle, dba Quality Bakery* and requesting a termination of this agreement and tho preparation of a new agreement with lessees of Fayis, 1 am wondering about the terns of the proposed new agreement In view of Section t of the agreement between the Water Company and the Las Vegas Valley Water District, Section f of the aforesaid agreement provides# in part# as follows* **With respect to any water produced after the sale date free wells now or hereafter located in said shop grounds# the first forties* and each of them* agree that none of said water so produced shall he used except by First forties* or any of them* or corporations affiliated in ownership with first Forties or any of them." It is ay understanding that the Fallroad Company will he unable to furnish any so-called surplus water after said sale date, the proposed new agreement provides for a term of five years* Although our usual fora of agreement permits termination upon thirty days written notice, it seems to m that any new water contract should provide for a termination to be effective upon the so-called sale date* tUD 1031, Audit Wo. 58126# provides that it shall be automatically terminated without notice upon the termi­nation of the tenancy of the User, the tenancy User was terminated on Kay 2b* 1950 when Peed Audit 1911# conveying the property to the User# was executed. §gjj eequently, it would appear that we have been furnishing watts? under a contract which terminated three years ago and 1 am wondering if you do not think we should continue this practice without s new contract in view of the limi­tations imposed by the agreement with the Water District. I will appreciate your advising me how the proposed contract* as well ss future water contracts, should be handled. (sgd) CAX.VZN n. com