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Los Angeles - July 16, 1954 80-11 Mr, Wm. Reinhardts Referring to Mr, Stoddard’s S-335 relative to water reservations, etc,: As you know, there is a distinction between the covenant covering the land west of a line 1600 feet west of Main Street, and the lands described in Exhibit "Bw of the contract between the Railroads and the District. On the latter lands, we covenanted not to drill for 21 years, with an option in the district to extend for a further 21 years. The restrictions on the shop grounds are contained in Section 2 of the agreement, which reserved to the Railroads the water rights on lands situated between Main Street and a line 1600 feet westerly thereof. The transactions referred to in the first paragraph of Mr. Stoddard's wire presumably refer to sales we made prior to the contract with the Water District, and in general contain a reservation of water rights in the Railroad Company, There is no time limit on the reservation as there is in the lands described in Exhibit "B”, and we are under no obligation under the contract to convey these water reservations to the District. There is no objection to conveying these water reservations to the District, although, as I have stated, there is no obligation so to do. E. E. Bennett