man000174 15

their water system without the consent of the District. Under the Union Pacific draft, the District would be required to pay the expense of any such additions. To the extent that the Public Service Commission will permit it, the Water District should be authorized to prevent any further additions to the water system without its consent. Accordingly, we have drafted Section 13A to cover this matter. 5. Termination of Agreement (Section 14). Union Pacific's draft provides that if the District failes to pay for the water facilities by December 31» 1953» that the contract will automatically be terminated on that date. As we have hereto­fore indicated, we feel that the fixed date of December 31> 1953 is unwise. Accordingly, we propose to provide that if the transfer is not consummated by December 31» 1953> that either party may terminate the contract after ninety (90) days notice to the other parties. Such a provision would appear to give Union Pacific adequate control over the termination date and at the same time would give the District somewhat greater leeway in the marketing of its bonds. Moreover, if both parties desired to continue the present contract in effect, it would not be necessary to adopt a supplementary contract extending the time beyond December 31> 1953. 6. Relocation of Facilities by Union Pacific. Sections 15> 17 and 18 permit Union Pacific to relocate certain water and power lines of the District in the event that the District 4.