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Mr. W. H. Guild: O F F IC E O F mftfl n*vi*\l 3 1 1942 LOS AhN Sy CAL March 31, 1942 Pursuant to request of Mr. Jeffers, I am handing you herewith copy of report made "by Mr. Hulsizer In connection with a study he has made of the Las Vegas Land and Water Company. Mr. Jeffers requests that his copy of the report be delivered to him before he leaves the city today. In connection therewith, I have the follow­ing comments to make: I am not quite clear as to the statement in recommendation number (2) with respect to reduction in rate of return because of, among other things, "the heavy expenditures for wells, etc." The cost of these wells is borne by the Union Pacific Railroad Company. It is true that with this additional expenditure for such wells the cost of water to the L.V.L.& W. should be increased, and it is possible that is what Mr. Hulsizer had in mind. With respect to recommendation number (12). There is at present a law in the State of Nevada, Chapter 178, enacted in 1939, which provides for the conservation and distribution of underground waters. Section 8 of this Act provides in part: "No person controlling an artesian well shall suffer the waters therefrom to flow to waste, unless, and as far as reasonably necessary in the judgment of the state engineer, to prevent the obstruction thereof, or to flow or be taken there­from any water except for beneficial purposes. The owner of any artesian well from which water is being unnecessarily wasted shall be deemed guilty of a misdemeanor, and, if upon fifteen days written notice by registered mail, return receipt requested, the owner fails to abate or refuses to abate such waste, the state engineer or his assistants or authorized agents, may, without further notice, take such steps as may be necessary to abate such waste, such s,s fitting the well with the proper valves or other necessary devices to the end that such waste