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Mr. W, E* Rouse 3# December 21, 1951 account of the waters produced from this well. I am not certain why an appropriation was not filed. However 1 believe it was because there was an uncertainty as to whether it was necessary to appropriate the water from the well. Section 79$7 of the Nevada Compiled Laws pro* vides as follows: "All underground waters, save and except percolating water, the course and boundaries of which are incapable of determination, are hereby declared to be subject to appropriation under the laws of the state relating to the appropriation and use of water." It has never been legally determined whether the waters in the Las Vegas Artesian Basin are percolating waters, the course and boundary of which are incapable of determination, and therefore I am assuming that it may have been thought that it was not necessary to file an appropriation for this well. I find from our files that our Nevada attorney, Leo MeNamee, first raised the question of the desirability of protecting our water supply by appropriations in 1924 after the Railroad had first developed a very large flow of w&ter from Artesian ell No. 1 located near the Big Spring Since that time the Railroad, as well as others, has followed the practice of protecting water developed from wells by appropriation. Section 7944 of the Nevada compiled Laws provides that any person desiring to appropriate any of the public waters or to change the place of diversion, manner of use or place of use of water al*“ ready appropriated shall make an 'application to the "state Engineer for a permit• This is the section under which we have proceeded to make original appropriations and I see no reason why we should not be able to secure the transfer of our existing Railroad appropriation to the well in the shop grounds if that well can be reconstituted so as to provide a suitable supply. It might also be possible to transfer the Railroad appropriation to a new well in a suitable location which would develop sufficient water. I do not know what the attitude of the