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Mr. W. B. Rouse 2 January 10, 1952 sale not to exceed the 2| cubic feet per second which it presently has the right to appropriate from Well No. 1. The problem would then be how to obtain this supply. If the sale were to the Water Company, some type of joint operation of Well No. 1 and the necessary transmission system involving a division of costs between the Rail­road and the Water Company could undoubtedly be worked out. Under such circumstances it appears to me that it could.be successfully contended that the water taken by the Railroad Company was its own water and not water fur­nished by the Water Company as a public utility. On the other hand if and when the properties are sold to the Las Vegas Valley Water District, a joint op­eration would be very impractical if at all possible. In such a sale it might be possible to reserve Well No. 1 for the use of the Railroad alone. The Railroad would then have to maintain and operate the well and arrange for the transmission of the water, either through the District's facilities or through its own pipe lines. I doubt if such an arrangement would be acceptable to the District and the District might attempt to condemn any water right which the Railroad sought to retain in the present water field. I understand that the water used by the Railroad and the P.F.E. at Las Vegas during the year 1951 was as followst Gallons Per Tear Average Cubic _____________ Feet per Second Railroad 41,765,450 0.177 P.F.E. 21,62$,840 0.092 I had thought that the existing Railroad well in the shop grounds might be capable of furnishing all of the wa­ter required by the Railroad and the P.F.E., but I have been advised recently that the well is not a very satis­factory well and that considerable facilities would have to be constructed in the Railroad yards for storage, etc., to enable the water from this well to be used successfully in all of the Railroad facilities.