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mi !M UOCOT 127 - 1V1&WC0 l«a ^ipilfta, October 4* 1951 Toi Hr. 2* g« BoaMlt front Edward G. Kenwiek 2 believe the subject of the amount of water-bearing land to include 1a the rot* base will com op la our dis­cussion® with Mr. Alloa. I have therefore reviewed th« flies of Hr* Reinhardt, the kaneger of Industrial Development sad of the load end Tor Agent to obtain tho full atory. It did aot develop the mtoefl for the various purchases of water-bearing load la the record la the rate ttat because there woe ao serious question raised concerning At tad no eon- crate evidence offered skewing that the land held far eater pro- duet ion me excessive* The evidence did show that for Joint futility sente purposes the Railroad acreage had been reduced front 12^0 aerea to 679 acres* la our petition for reconsidera­tion we took the position that this land wan recorded on the hooka of the Qonpaay aa water-bearing lead aad that the Ceesmia- eion eould not find it unaeeeaeary without evidence plainly indicating that the land was not used or useful, hr. ?*ehe was not fully informd concerning the history of the lead acquisi­tion but he did eay that it would not be proper to Include leas than 679 aerea la the rate bane because It ie now necessary for the utility to maintain control ewer a substantial acreage ao that others will not drill wells ahead of its water supply end drain the sources of the wells# (lew Tr* 201) Chairman Allen asked Mr* lehe the only question about the amount of acreage and tibia was why the 120 aerea located in the northwest corner of the water-bearing lands ms included. Mr* ;*ehe replied that he would have to testify fro® hearsay, that it was his understanding from the geological study wade of the underground water sources that the Railroad was of the ©pin- lea that water flowed into their land free that direction and the land wee held to present other producers from tapping the supply ahead of the Railroad wells* Mr* Alien asked him If the hater Company wouldn't be protected under the priority of right to water in sievadn and hr* £ehe said he wee not informed con­cerning those lawn* The question of whether the lands should be Included in the rata bass depends in my opinion on whether the management exercised reasonable judgment at the time they were purchased and not what the facte might later be determined to be.