rworva8 the right to furnlrh eleotrlo onorgy to maid national derrnse projeot in tha event the Brazer RlvOr Xl&r18 Tranamlsaion Cooporatlvo, Ino., does not rurnirh 8lootrio energy to raid project In ample quantltirr and amounts.' we find no vlca la this amendment.
, Honomblr A. C. soott, Jr., Pago b
Although not wIthin tho aoope of three queatlona aubmlttod to ua, n offer thr following luggoatlons and ob- arrvatlona rolatlng to tho drart of oontraot aubraittrd to ua. ThO lo o o nd paragraph of aeotlon 2 reada aa tollowa: VeginnIng on the date ot inltlel dollrary and thrOUghOut the tam 0i thI8 OOntfaOt, the Dlatrlot ahall umko avallablo to the F'urohaaor, the output oi it8 entire lleotrlo gonerating oapaolty at Poeaum KIngdOm Dam and 18 Bat forth In Sootion lo.* Sootlon 10 of thr oontraot la rntltlad Valvor of Do- rault,* SootIon 11 Ia~antltlrd *AvaIlabllIty,W wherefor'n WI l aauao that tho refeMnoo to *Section lOa In the above quoted paragraph of SaotIon 2 ahould bo ohangrd to read aSaotIon 11." Wa undrkand thr intent of the partI. with rrrrrenoa to thr abova quotad paragraph of Sootlon 2 to be that tho dla- trlot ahall be free to aell, to other uaora, a n3.lx o a ~a power, ovar and above that whloh tha Purohaarr ran uaa. Poaslblr am- biguity may br avoided by adding an exprosa olauso to that effeot. Thr last aentenor of tha first paragraph of Srotlon 22, reads: *Aa provided in seotion 4 hareof, this total awn of money may be adjusted artrr Yanuary 1, 1945." It apparently should read, Veotlon 5 hereof." Both Seotions 5 and 22 of the oontract rerer to a re- detcnrilnetlon in January, 1945, of the annual oonslderatlon of $203,925 provided In thlr oontraot; auoh reoonalderatlon to be "on a baaia of amortizing $4,000,000 over 50 years on a l lnklng fund baa1a.a Tho oontraot a-ppoara nowhera to mantl;; ;~t~terrst rato upon whIoh auoh a oomputatlon la to be made. IntentIon of tha partlea that tho preaont Interrat rate or thr outHanblng obligationa oi tho Diatrlrt Ia to be used? In the event tho dIrtrIot should rorlnanoo it8 proaontly outstanding bond8 or ahould Iaaue additional bond8 brarlng a different rate of Lntaroat, whloh ratr ahall be uaod to detormIno the aallow- lnoe ror amortization?,; .: / -_ .' wo raiao thebe queatlona morelp beaauae thoy aoem to ua .~:to Indicate amblgutira In thr oontraot whioh may be easily nPaeAIed at thIa the, but whloh might poaalbly give riaa to o~a%ly litigation In thr tutura.
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. Honorablr A. C. Soott, Jr., Pagr 4
we are returning to you herewith the draft or the oontract which you left with us. Tours very truly ATIORNEYGENSRALOF TYXAS
. '.%L:db BY a/ Walter R. Koch Aaslatant- Enoloauira COKMITTEE APPROVEDPgB 21, 1941 BY BWB Chairman a/ Gerald C. Mann
AT. ORNEYGENERALOF TEXAS