By Zbranek                                            H.B. No. 3571

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, administration, powers, duties,

 1-3     operation, financing, and dissolution of the Chambers County

 1-4     Improvement District No. 2 and the power of certain entities to

 1-5     contract with the district; granting authority to issue bonds.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  CREATION; LEGISLATIVE DECLARATION.  (a)  There is

 1-8     created a special district to be known as the Chambers County

 1-9     Improvement District No. 2.  The district is a governmental agency,

1-10     a body politic and corporate, and a political subdivision of the

1-11     state.

1-12           (b)  The name of the district may be changed by resolution of

1-13     the board at any time so long as the name is descriptive of the

1-14     location and the principal powers of the district.

1-15           (c)  The creation of the district is essential to accomplish

1-16     the purposes of Article XVI, Section 59 and Article III, Section

1-17     52-a, of the Texas Constitution and to accomplish the other

1-18     purposes of this Act.

1-19           (d)  It is found, determined, and declared that the creation

1-20     of the district and granting it the power, means, and measures

1-21     authorized by this Act will further promote and enhance the health,

1-22     safety, and general welfare of the persons and property interests

1-23     of this state.

1-24           (e)  It is further hereby found, determined, and declared:

 2-1                 (1)  that the present and prospective right to gainful

 2-2     employment and the general welfare of the people of this state

 2-3     require as a public purpose the promotion and development of new

 2-4     and expanded industrial and manufacturing enterprises, and the

 2-5     preservation of existing industrial and manufacturing enterprises;

 2-6                 (2)  that the existence, development, and expansion of

 2-7     industry are essential to the economic growth of the state and to

 2-8     the full employment, welfare, and prosperity of its citizens;

 2-9                 (3)  that creation of the district and granting it the

2-10     powers, means, and measures authorized by this Act, including the

2-11     power to levy taxes, impose zoning regulations and other

2-12     regulations, and acquire property by purchase, lease, or eminent

2-13     domain:

2-14                       (A)  are in the public interest and serve a

2-15     public purpose of the state in promoting the welfare of the

2-16     citizens of the state economically by securing and retaining

2-17     private, industrial, and manufacturing enterprises resulting in the

2-18     maintenance of a higher level of employment, economic activity, and

2-19     stability;

2-20                       (B)  will diversify the economy of the state and

2-21     the district and help to eliminate unemployment or underemployment

2-22     in the state and the district; and

2-23                       (C)  will promote transportation of commercial

2-24     products in the state;

2-25                       (D)  will preserve, maintain, and enhance the

2-26     economic health and vitality of the area in the district as a

2-27     business and industrial center; and

 3-1                       (E)  will preserve and conserve the natural

 3-2     resources of the state, including specifically the salt dome area

 3-3     proposed to be included within or adjacent to the districts

 3-4     boundaries.

 3-5           (f)  The district will not act as the agent or

 3-6     instrumentality of a private interest even though many private

 3-7     interests will be benefitted by the district, as will the general

 3-8     public.

 3-9           (g)  The legislature finds, determines, and intends that by

3-10     creating the district it has established a program to accomplish

3-11     the public purposes set out in Article III, Section 52-a, of the

3-12     Texas Constitution.

3-13           (h)  The legislature finds that all of the land and other

3-14     property included within the boundaries of the district will be

3-15     benefitted by the creation of the district under powers conferred

3-16     by Article XVI, Section 59 and Article III, Section 52-1, of the

3-17     Texas Constitution, and other powers granted under this Act, and

3-18     that the district is created to serve a public use and benefit.

3-19           (i)  This Act shall be liberally construed in conformance

3-20     with the legislative findings and purposes of this Act.

3-21           SECTION 2.  DEFINITIONS.  In this Act:

3-22           (a)  "board" means the board of directors of the district.

3-23           (b)  "city" means the City of Mont Belvieu, Texas.

3-24           (c)  "county" means Chambers County, Texas.

3-25           (d)  "district" means Chambers County Improvement District

3-26     No. 2.

3-27           (e)  "nonconforming property" means property which is used or

 4-1     proposed to be used for purposes which are not in conformity with

 4-2     the district's zoning regulations or comprehensive plan.

 4-3           (f)  "purchase program" means the purchase of nonconforming

 4-4     property pursuant to Section 7(c) of this Act.

 4-5           (g)  "zoning regulations" means zoning regulations adopted by

 4-6     the board pursuant to the provisions of this Act and Chapter 211,

 4-7     Local Government Code.

 4-8           SECTION 3.  BOUNDARIES.  (a)  The district includes all of

 4-9     the territory contained within the following described area:

4-10           BEING 4,384.0971 acres of land lying in Chambers County,

4-11     Texas and being described by the metes and bounds as follows;

4-12           BEGINNING at a point in the centerline of Cedar Bayou for the

4-13     Southwest corner of the W. D. Smith Survey, Abstract Number 24 and

4-14     in the North line of the William Bloodgood League, Abstract Number

4-15     4.  For a corner and being the POINT OF BEGINNING of this tract of

4-16     land, having a State Plane Coordinate System Value of Y =

4-17     751,472.63 and X = 3,288,346.48.

4-18           THENCE N 77 07'35" E with the a North line of this tract of

4-19     land, the North line of said Bloodgood League, and the South line

4-20     of said Smith Survey a distance of 3825.40 feet to a point for a

4-21     corner of this tract of land, and the Northwest corner of the

4-22     Chambers County Appraisal District (C.C.A.D.) Tracts 4-8-0 thru 8;

4-23           THENCE S 12 41'43" E with the West line of this tract of

4-24     land, the West line of C.C.A.D. Tract 4-8-0 thru 8, and the East

4-25     line of C.C.A.D. Tract 4-9-0 a distance of 313.12 feet to a point

4-26     for a corner of this tract of land, the Southwest corner of

4-27     C.C.A.D. Tract 4-8-0 thru 8, the Southeast corner of C.C.A.D. Tract

 5-1     4-9-0, and in the North line of C.C.A.D. Tract 4-14-0;

 5-2           THENCE N 78 55'40" E with a South line of this tract of land,

 5-3     the South line of C.C.A.D. Tract 4-8-0 thru 8, and the North line

 5-4     of C.C.A.D. Tract 4-14-0 a distance of 636.08 feet to a point for a

 5-5     corner of this tract of land, the Southeast corner of C.C.A.D.

 5-6     Tract 4-8-0 thru 8, the Northeast corner of C.C.A.D. Tract 4-14-0,

 5-7     and in the West line of C.C.A.D. Tracts 4-6A-0 and 4-6B-0;

 5-8           THENCE N 10 15'35" W with a East line of this tract of land,

 5-9     the East line of C.C.A.D. Tract 4-8-0 thru 8 and the West line of

5-10     C.C.A.D. Tracts 4-6A-0 and 4-6B-0 a distance of 333.46 feet to a

5-11     point for a corner of this tract of land, the Northeast corner of

5-12     C.C.A.D. Tract 4-8-0 thru 8, the Northwest corner of C.C.A.D.

5-13     Tracts 4-6A-0 and 4-6B-0, in the North line of the Bloodgood

5-14     Survey, and in the South line of the Smith Survey;

5-15           THENCE N 77 30'20" E with a North line of this tract of land,

5-16     the North line of C.C.A.D. Tracts 4-6A-0 and 4-6B-0, the North line

5-17     of said Bloodgood League, and the South line of said Smith Survey a

5-18     distance of 2737.54 feet to a point for a corner of this tract of

5-19     land, the Northeast corner of C.C.A.D. Tracts 4-6A-0 and 4-6B-0,

5-20     and the Northwest corner of C.C.A.D. Tract 4-5-0;

5-21           THENCE S 12 14'31" E with a West line of this tract of land,

5-22     the West line of C.C.A.D. Tract 4-5-0, and the East line of

5-23     C.C.A.D. Tracts 4-6A-0 and 4-6B-0 a distance of 1002.08 feet to a

5-24     point for a corner of this tract of land, the Southwest corner of

5-25     C.C.A.D. Tract 4-5-0, the Southeast corner of C.C.A.D.  Tracts

5-26     4-6A-0 and 4-6B-0, and in the North line of C.C.A.D. Tract 4-38-1;

5-27           THENCE N 77 43'57" E with a South line of this tract of land,

 6-1     the South line of C.C.A.D. Tract 4-5-0 and the North line of

 6-2     C.C.A.D. Tract 4-38-1 a distance of 221.52 feet to a point for a

 6-3     corner of this tract of land, the Northeast corner of C.C.A.D.

 6-4     Tract 4-38-1, and the Northwest corner of C.C.A.D. Tracts 4-32-0,

 6-5     4-32B-0 and 4-32D-0;

 6-6           THENCE S 12 36'40" E with a East line of this tract of land,

 6-7     the East line of C.C.A.D. Tract 4-38-1, and the West line of

 6-8     C.C.A.D. Tracts 4-32-0, 4-32B-0 and 4-32D-0 a distance of 162.55

 6-9     feet to a point for a corner of this tract of land, the Southeast

6-10     corner of C.C.A.D. Tract 4-38-1, and the Northeast corner of

6-11     C.C.A.D. Tract 4-26-0;

6-12           THENCE S 77 43'27" W with a South line of this tract of land,

6-13     the South line of C.C.A.D. Tract 4-38-1 and the North line of

6-14     C.C.A.D. Tract 4-26-0 a distance of 947.05 feet to a point for a

6-15     corner of this tract of land, the Southwest corner of C.C.A.D.

6-16     Tract 4-38-1, the Northwest corner of C.C.A.D. Tract 4-26-0, and in

6-17     the East line of C.C.A.D. Tracts 4-23-1 and 4-24B-0;

6-18           THENCE S 12 34'55" E with a West line of this tract of land,

6-19     the West line of C.C.A.D. Tracts 4-26-0, 4-27-0, 4-28-0, 4-29-0,

6-20     4-29-1 thru 5, 4-30-0 and 4-31-0, and the East line of C.C.A.D.

6-21     Tracts 4-23-1 and 4-24B-0 a distance of 975.64 feet to a point for

6-22     a corner of this tract of land, the Southwest corner of C.C.A.D.

6-23     Tract 4-31-0, the Northwest corner of C.C.A.D. Tract 4-58A-0, and a

6-24     corner of C.C.A.D. Tracts 4-23-1 and 4-24B-0;

6-25           THENCE N 78 11'13" E with a South line of this tract of land,

6-26     the South line of C.C.A.D. Tract 4-31-0 and the North line of

6-27     C.C.A.D. Tract 4-58A-0 a distance of 1133.92 feet to a point for a

 7-1     corner of this tract of land, the Northeast corner of C.C.A.D.

 7-2     Tract 4-58A-0, the Northwest corner of C.C.A.D.  Tract 4-56-0, and

 7-3     in the South line of C.C.A.D. Tracts 4-32-0, 4-32B-0 and 4-32D-0.

 7-4           THENCE N 77 46'15" E with a South line of this tract of land,

 7-5     the South line of C.C.A.D. Tracts 4-32-0, 4-32B-0 and 4-32D-0, and

 7-6     the North line of C.C.A.D.  Tract 4-56-0 a distance of 118.57 feet

 7-7     to a point for a corner of this tract of land, the Southeast corner

 7-8     of C.C.A.D. Tracts 4-32-0, 4-32B-0 and 4-32D-0, and the Southwest

 7-9     corner of C.C.A.D. Tract 4-37-0;

7-10           THENCE N 12 33'54" W with a East line of this tract of land,

7-11     the East line of C.C.A.D. Tract 4-32-0, 4-32B-0 and 4-32D-0, and

7-12     the West line of C.C.A.D.  Tract 4-37-0 a distance of 521.69 feet

7-13     to a point for a corner of this tract of land, the Northwest corner

7-14     of C.C.A.D. Tract 4-37-0, and the Southwest corner of C.C.A.D.

7-15     Tracts 4-36(A thru C)-0;

7-16           THENCE N 77 50'15" E with a South line of this tract of land,

7-17     the South line of C.C.A.D. Tracts 4-36(A thru C)-0 and the North

7-18     line of C.C.A.D. Tract 4-37-0 a distance of 1253.56 feet to a point

7-19     for a corner of this tract of land, the Northeast corner of

7-20     C.C.A.D. Tract 4-37-0, the Southeast corner of C.C.A.D.  Tracts

7-21     4-36(A thru C)-0, and in the West line of C.C.A.D. Tract 4-25A-0;

7-22           THENCE N 12 36'45" W with a East line of this tract of land,

7-23     the East line of C.C.A.D. Tracts 4-36(A thru C)-0 and the West line

7-24     of C.C.A.D. Tract 4-25A-0 a distance of 142.67 feet to a point for

7-25     a corner of this tract of land, the Northeast corner of C.C.A.D.

7-26     Tracts 4-36(A thru C)-0, the Southeast corner of C.C.A.D. Tract

7-27     4-35-0;

 8-1           THENCE S 77 50'15" W with a North line of this tract of land,

 8-2     the North line of C.C.A.D. Tracts 4-36(A thru C)-0 and the South

 8-3     line of C.C.A.D. Tract 4-35-0 a distance of 626.40 feet to a point

 8-4     for a corner of this tract of land, a corner of C.C.A.D. Tracts

 8-5     4-36(A thru C)-0, and the Southwest corner of C.C.A.D. Tract

 8-6     4-35-0;

 8-7           THENCE N 12 58'41" W with a East line of this tract of land,

 8-8     the East line of C.C.A.D. Tracts 4-36(A thru C)-0 and the West line

 8-9     of C.C.A.D. Tract 4-35-0 a distance of 69.38 feet to a point for a

8-10     corner of this tract of land, the Northwest corner of C.C.A.D.

8-11     Tract 4-35-0, the Northeast corner of C.C.A.D.  Tracts 4-36(A thru

8-12     C)-0 and in the South line of C.C.A.D. Tract 4-34-0;

8-13           THENCE S 77 50'15" W with a North line of this tract of land,

8-14     the North line of C.C.A.D. Tracts 4-36(A thru C)-0 and the South

8-15     line of C.C.A.D. Tract 4-34-0 a distance of 626.56 feet to a point

8-16     for a corner of this tract of land, the Northwest corner of

8-17     C.C.A.D. Tracts 4-36(A thru C)-0, the Southwest corner of C.C.A.D.

8-18     Tract 4-34-0 and in the East line of C.C.A.D. Tracts 4-32-0,

8-19     4-32B-0 and 4-32D-0;

8-20           THENCE N 12 34'14" W with a East line of this tract of land,

8-21     the East line of C.C.A.D. Tracts 4-32-0, 4-32B-0 and 4-32D-0, and

8-22     the West line of C.C.A.D.  Tract 4-34-0 a distance of 251.36 feet

8-23     to a point for a corner of this tract of land, the Northwest corner

8-24     of C.C.A.D. Tract 4-34-0, and the Southwest corner of C.C.A.D.

8-25     Tract 4-33-0;

8-26           THENCE N 77 38'33" E with a South line of this tract of land,

8-27     the South line of C.C.A.D. Tract 4-33-0 and the North line of

 9-1     C.C.A.D. Tract 4-34-0 a distance of 1253.34 feet to a point for a

 9-2     corner of this tract of land, the Northeast corner of C.C.A.D.

 9-3     Tract 4-34-0, the Southeast corner of C.C.A.D. Tract 4-33-0, and in

 9-4     the West line of C.C.A.D. Tract 4-38-0;

 9-5           THENCE N 12 35'22" W with a East line of this tract of land,

 9-6     the East line of C.C.A.D. Tract 4-33-0 and the West line of

 9-7     C.C.A.D. Tract 4-38-0 a distance of 162.78 feet to a point for a

 9-8     corner of this tract of land, the Northeast corner of C.C.A.D.

 9-9     Tract 4-33-0, the Northwest corner of C.C.A.D. Tract 4-38-0, and in

9-10     the South line of C.C.A.D. Tract 4-4-0;

9-11           THENCE N 77 37'47" E with a South line of this tract of land,

9-12     the South line of C.C.A.D. Tract 4-4-0, and the North line of

9-13     C.C.A.D. Tract 4-38-0 a distance of 100.84 feet to a point for a

9-14     corner of this tract of land;

9-15           THENCE N 33 21'31" W with a West line of this tract of land,

9-16     the West line of the Approximate Limits of the Mont Belvieu Salt

9-17     Dome and across C.C.A.D.  Tract 4-4-0 a distance of 684.13 feet to

9-18     a point for a corner of this tract of land;

9-19           THENCE N 29 04'15" W with a West line of this tract of land,

9-20     the West line of the Approximate Limits of the Mont Belvieu Salt

9-21     Dome and across C.C.A.D.  Tract 4-4-0, at 380.74 feet cross the

9-22     North line of C.C.A.D. Tract 4-4-0, the North line of said

9-23     Bloodgood Survey, the South line of C.C.A.D. Tracts 24-11-1 thru

9-24     13, and the South line of the Smith Survey, continuing along this

9-25     line and across C.C.A.D. Tracts 24-11-1 thru 13, at 1179.19 feet

9-26     cross the East line of C.C.A.D. Tracts 24-11-1 thru 13 and the West

9-27     line of C.C.A.D. Tract 24-1-3, continuing along this line and

 10-1    across said C.C.A.D. Tract 24-1-3 a total distance of 1563.89 feet

 10-2    to a point for a corner of this tract of land, in the North line of

 10-3    C.C.A.D. Tract 24-1-3 and in the South line of C.C.A.D. Tracts

 10-4    24-9-1 and 24-9-3.

 10-5          THENCE S 77 14'14" W with a North line of this tract of land,

 10-6    the North line of C.C.A.D. Tract 24-1-3 and the South line of

 10-7    C.C.A.D. Tracts 24-9-1 and 24-9-3 a distance of 9086.19 feet to a

 10-8    point in the centerline of said Cedar Bayou for a corner of this

 10-9    tract of land, the Northwest corner of C.C.A.D.  Tract 24-1-3, and

10-10    the Southwest corner of C.C.A.D. Tracts 24-9-1 and 24-9-3;

10-11          THENCE in a Northerly direction with the centerline of Cedar

10-12    Bayou and the West line of this tract of land the following

10-13    courses:

10-14                (1)  N 11 52'00" E, a distance of 119.72 feet,

10-15                (2)  N 00 21'00" W, a distance of 75.00 feet,

10-16                (3)  N 28 14'00" W, a distance of 57.00 feet,

10-17                (4)  N 48 09'00" W, a distance of 20.00 feet,

10-18                (5)  N 73 42'00" W, a distance of 60.00 feet,

10-19                (6)  N 61 37'00" W, a distance of 83.00 feet,

10-20                (7)  N 37 16'00" W, a distance of 87.00 feet,

10-21                (8)  N 25 30'00" E, a distance of 21.00 feet,

10-22                (9)  N 30 20'00" W, a distance of 44.00 feet,

10-23                (10)  N 84 06'00" W, a distance of 61.00 feet,

10-24                (11)  S 77 25'00" W, a distance of 124.00 feet,

10-25                (12)  N 76 52'31" W, a distance of 68.74 feet;

10-26          THENCE N 77 14'14" E with a South line of this tract of land,

10-27    the North line of C.C.A.D. Tract 24-9-2, and the South line of

 11-1    24-8-1 thru 2 and 24-8-4 thru 5 a distance of 4895.46 feet to a

 11-2    point for a corner of this tract of land, the Southwest corner of

 11-3    C.C.A.D. Tract 24-8-3;

 11-4          THENCE N 35 21'00" W with a West line of this tract of land,

 11-5    the West line of C.C.A.D. Tract 24-8-3 and an interior line of

 11-6    C.C.A.D. Tracts 24-8-1 thru 2 and 24-8-4 thru 5 a distance of 27.08

 11-7    feet to a point for a corner of this tract of land, the Northwest

 11-8    corner of C.C.A.D. Tract 24-8-3, and an interior corner of C.C.A.D.

 11-9    Tracts 24-8-1 thru 2 and 24-8-4 thru 5;

11-10          THENCE N 77 14'14" E with a South line of this tract of land,

11-11    the South line of C.C.A.D. Tracts 24-8-1 thru 2 and 24-8-4 thru 5,

11-12    and the North line of C.C.A.D. Tract 24-8-3 a distance of 3626.66

11-13    feet to a point for a corner of this tract of land, the Northeast

11-14    corner of C.C.A.D. Tract 24-8-3, and an interior corner of C.C.A.D.

11-15    Tracts 24-8-1 thru 2 and 28-8-4 thru 5;

11-16          THENCE S 22 08'19" E with a East line of this tract of land,

11-17    the East line of C.C.A.D. Tract 24-8-3 and an interior line of

11-18    C.C.A.D. Tracts 24-8-1 thru 2 and 24-8-4 thru 5 a distance of 25.34

11-19    feet to a point for a corner of this tract of land, the Southeast

11-20    corner of C.C.A.D. Tract 24-8-3, a corner of C.C.A.D. Tracts 24-8-1

11-21    thru 2 and 24-8-4 thru 5, and in the North line of C.C.A.D. Tracts

11-22    24-9-1 and 24-9-3;

11-23          THENCE N 77 14'14" E with a South line of this tract of land,

11-24    the South line of C.C.A.D. Tracts 24-8-1 thru 2 and 24-8-4 thru 5,

11-25    and the North line of C.C.A.D. Tracts 24-9-1 and 24-9-3 a distance

11-26    of 1062.37 feet to a point for a corner of this tract of land, the

11-27    Northeast corner of C.C.A.D. Tracts 24-9-1 and 24-9-3, the

 12-1    Southeast corner of C.C.A.D. Tracts 24-8-1 thru 2 and 24-8-4 thru

 12-2    5, and in the West line of C.C.A.D. Tracts 24-1-2 and 24-1-2(A thru

 12-3    C);

 12-4          THENCE N 33 07'34" W with a West line of this tract of land,

 12-5    the East line of C.C.A.D. Tracts 24-8-1 thru 2, 24-8-4 thru 5,

 12-6    24-7-1, 24-6-1 thru 2, and 24-6-0, and the West Line of C.C.A.D.

 12-7    Tracts 24-1-2, 24-1-2(A thru C), and 24-2-1 a distance of 1534.51

 12-8    feet to a point for a corner of this tract of land, the Northeast

 12-9    corner of C.C.A.D. Tract 24-6-0, the Southeast corner of C.C.A.D.

12-10    Tracts 24-5-1 thru 3, and in the West line of C.C.A.D. Tract

12-11    24-2-1;

12-12          THENCE S 77 12'00" W with a North line of this tract of land,

12-13    the North line of C.C.A.D. Tract 24-6-0, and the South line of

12-14    C.C.A.D. Tract 24-5-1 thru 3 a distance of 7688.74 feet to a point

12-15    for a corner of this tract of land, the Northwest corner of

12-16    C.C.A.D. Tract 24-6-0, and the Northeast corner of C.C.A.D.  Tracts

12-17    24-6A-0 thru 1 and 24-6B-0;

12-18          THENCE S 12 48'00" E with a West line of this tract of land,

12-19    the West line of C.C.A.D. Tract 24-6-0, and the East line of

12-20    C.C.A.D. Tracts 24-6A-0 thru 1, 24-6B-0, and 24-6-0 thru 2 a

12-21    distance of 944.70 feet to a point for a corner of this tract of

12-22    land, the Southwest corner of 24-6-1 thru 2, the Southeast corner

12-23    of C.C.A.D. Tracts 24-6-0 thru 2, and in the North line of C.C.A.D.

12-24    Tract 24-8-1.

12-25          THENCE S 77 12'00" W with a South line of this tract of land,

12-26    the South line of C.C.A.D. Tracts 24-6-0 thru 2, and the North line

12-27    of C.C.A.D. Tract 24-8-1 a distance of 2668.77 feet to a point in

 13-1    the centerline of said Cedar Bayou for a corner of this tract of

 13-2    land, the Northwest corner of C.C.A.D.  Tract 24-8-1, and the

 13-3    Southwest corner of C.C.A.D. Tracts 24-6-0 thru 2;

 13-4          THENCE in a Northerly direction with the centerline of Cedar

 13-5    Bayou and the West line of this tract of land the following

 13-6    courses:

 13-7                (1)  N 81 38'00" W, a distance of 44.47 feet,

 13-8                (2)  N 17 17'00" W, a distance of 273.67 feet,

 13-9                (3)  N 11 38'22" E, a distance of 98.50 feet,

13-10                (4)  N 65 19'16" E, a distance of 183.60 feet,

13-11                (5)  N 82 31'55" E, a distance of 205.14 feet,

13-12                (6)  N 31 27'53" E, a distance of 37.86 feet,

13-13                (7)  N 16 16'46" W, a distance of 41.13 feet,

13-14                (8)  N 42 19'34" W, a distance of 185.91 feet,

13-15                (9)  N 42 14'40" W, a distance of 25.65 feet,

13-16                (10)  N 72 57'30" W, a distance of 311.47 feet,

13-17                (11)  N 67 04'00" W, a distance of 323.99 feet,

13-18                (12)  N 01 54'55" W, a distance of 227.80 feet,

13-19                (13)  N 01 55'00" W, a distance of 48.64 feet,

13-20                (14)  N 55 55'30" W, a distance of 197.31 feet,

13-21                (15)  N 21 42'00" E, a distance of 204.96 feet,

13-22                (16)  N 29 52'00" W, a distance of 211.54 feet,

13-23                (17)  N 16 13'00" E, a distance of 162.67 feet,

13-24                (18)  N 54 26'00" W, a distance of 179.69 feet,

13-25                (19)  N 40 31'00" W, a distance of 213.69 feet,

13-26                (20)  N 65 32'30" E, a distance of 392.47 feet to a

13-27    point for a corner in the South line of F.M. Highway 1942, 100 foot

 14-1    right of way;

 14-2          THENCE in a Northeasterly direction with a North line of this

 14-3    tract of land, and the South line of F.M. 1942 the following

 14-4    courses to right-of-way monuments:

 14-5                (1)  N 77 24'35" E, a distance of 144.94 feet,

 14-6                (2)  N 76 27'56" E, a distance of 1353.69 feet,

 14-7                (3)  N 76 57'17" E, a distance of 765.30 feet,

 14-8                (4)  N 76 44'00" E, a distance of 1703.32 feet,

 14-9                (5)  N 77 25'34" E, a distance of 4097.91 feet;

14-10          THENCE N 77 35'00" E with a North line of this tract of land,

14-11    and the South line of F.M. 1942 a distance of 1656.04 feet to a

14-12    point for a corner of this tract of land;

14-13          THENCE N 12 17'39" W with a West line of this tract of land

14-14    and across F.M.  1942, at 97.35 feet cross the intersection point

14-15    of the North line of F.M.  1942 and the East line of Hatcherville

14-16    Road (70 foot right of way), in all a total distance of 1160.98

14-17    feet to a point for a corner of this tract of land in the East line

14-18    of said Hatcherville Road;

14-19          THENCE N 12 17'40" W with a West line of this tract of land

14-20    and the East line of Hatcherville Road a distance of 366.42 feet to

14-21    a point for a corner of this tract of land;

14-22          THENCE N 14 47'31" W with a West line of this tract of land

14-23    and the East line of Hatcherville Road a distance of 1444.49 feet

14-24    to a point for a corner of this tract of land, the Northwest corner

14-25    of a 117.469 acre Enterprise Product Company tract of land, and a

14-26    Southwest corner of the Residue of a 572.51 acre tract of land

14-27    conveyed to J. R. Barber;

 15-1          THENCE N 57 22'27" E with a North line of this tract of land,

 15-2    the North line of said 117.469 acre Enterprise tract of land, and

 15-3    the South line of said Residue of 572.51 acre Barber tract a

 15-4    distance of 3334.07 feet to a point for a corner of this tract of

 15-5    land, the Northeast corner of said 117.469 acre Enterprise tract of

 15-6    land, the Southeast corner of said Residue of 572.51 acre Barber

 15-7    tract of land, and in the West line of the Southern Pacific

 15-8    Railroad 100 foot right of way;

 15-9          THENCE N 07 20'00" W with a East line of this tract of land,

15-10    the East line of said Residue of 572.51 acre Barber tract of land

15-11    and the West line of said Southern Pacific Railroad a distance of

15-12    1477.86 feet to a point for a corner of this tract of land, the

15-13    Northeast corner of said Residue of 572.51 acre Barber tract of

15-14    land and the Southeast corner of a 487.009 acre Exxon Corporation

15-15    tract of land;

15-16          THENCE S 66 22'27" W with a South line of this tract of land,

15-17    the South line of said 487.009 acre Exxon tract of land and the

15-18    North line of said Residue of 572.51 acre Barber tract of land a

15-19    distance of 3407.63 feet to a point for a corner of this tract of

15-20    land, the Southwest corner of said 487.009 acre Exxon tract of

15-21    land, the Northwest corner of said Residue of 572.51 acre Barber

15-22    tract of land and in the East line of Hatcherville Road;

15-23          THENCE in a Northerly direction with a West line of this

15-24    tract, the West line of said 487.009 acre Exxon tract of land and

15-25    the East line of Hatcherville Road the following courses:

15-26                (1)  N 14 18'07" W, a distance of 1753.93 feet,

15-27                (2)  N 13 22'14" W, a distance of 2541.42 feet to a

 16-1    point for a corner of this tract of land, a corner of said 487.009

 16-2    acre Exxon tract in the North line of Hatcherville Road;

 16-3          THENCE S 84 54'10" W with a North line of this tract of land,

 16-4    a North line of said 487.009 acre Exxon tract of land and the North

 16-5    line of Hatcherville Road a distance of 48.65 feet to a point for a

 16-6    corner of this tract of land and a corner of said 487.009 acre

 16-7    Exxon tract of land;

 16-8          THENCE in a Northerly direction with a North line of this

 16-9    tract and the North line of said 487.009 acre Exxon tract of land

16-10    the following courses:

16-11                (1)  N 14 43'52" E, a distance of 1968.18 feet,

16-12                (2)  N 58 30'34" E, a distance of 1013.40 feet to a

16-13    corner of this tract of land, in the North line of Chambers County,

16-14    and in the South line of Liberty County;

16-15          THENCE N 87 16'04" E with a North line of this tract, the

16-16    North line of said Chambers County, the South line of said Liberty

16-17    County, and across said 487.009 acre Exxon tract a distance of

16-18    2142.40 feet to a corner of this tract of land, in the East line of

16-19    said 487.009 acre Exxon tract, and in the West line of said

16-20    Southern Pacific Railroad;

16-21          THENCE S 07 20'00" E with a East line of this tract of land,

16-22    a East line of said 487.009 acre Exxon tract and the West line of

16-23    said Southern Pacific Railroad a distance of 3086.64 feet to a

16-24    point for a corner of this tract of land, in the Southeast line of

16-25    the J.P. Hatcher Survey, Abstract Number 661, and the Northwest

16-26    line of the T. & N. O. RR. Co. Section Number 1 Survey, Abstract

16-27    Number 503;

 17-1          THENCE N 57 42'18" E with a Northwest line of this tract, the

 17-2    Northwest line of said T. & N. O. RR. Co. Survey, the Southeast

 17-3    line of said Hatcher Survey and across said Southern Pacific

 17-4    Railroad a distance of 172.74 feet to a point for a corner of this

 17-5    tract of land and in the East line of said Southern Pacific

 17-6    Railroad;

 17-7          THENCE in a Southerly direction with a East line of this

 17-8    tract of land and the east line of said Southern Pacific Railroad

 17-9    the following courses:

17-10                (1)  S 32 11'00" E, a distance of 625.82 feet,

17-11                (2)  S 07 20'00" E, a distance of 3902.28 feet,

17-12                (3)  S 82 40'00" W, a distance of 220.00 feet,

17-13                (4)  S 37 40'00" W, a distance of 70.71 feet,

17-14                (5)  S 07 20'00" E, at 1324.05 feet cross the Southeast

17-15    line of said T. & N. O. RR. Co. Survey, the Northwest line of the

17-16    Henry Griffith League, Abstract Number 12, and the Northwest corner

17-17    of C.C.A.D. Tract 12-7A-0, in all a total distance of 1721.89 feet

17-18    to a corner of this tract of land, in the West line of C.C.A.D.

17-19    Tract 12-7A-0, and the North corner of C.C.A.D. Tract 12-8B-0;

17-20          THENCE S 33 22'55" E with a East line of this tract of land,

17-21    the East line of C.C.A.D. Tract 12-7A-0, and the West line of

17-22    C.C.A.D. Tract 12-7A-0 a distance of 355.61 feet to a point for a

17-23    corner of this tract of land, and in the Northwest line of the

17-24    Approximate Limits of the Mont Belvieu Salt Dome;

17-25          THENCE in a Easterly direction with a Northwest line of this

17-26    tract of land, the Northwest limits line of said Salt Dome, and

17-27    across C.C.A.D. Tracts 12-7A-0, 12-6-1, 12-5A-0, 12-4A-0, 12-3A-0,

 18-1    12-2A-0 and 12-240B-0 the following courses:

 18-2                (1)  N 38 40'42" E, a distance of 519.31 feet,

 18-3                (2)  N 57 06'46" E, a distance of 1048.92 feet,

 18-4                (3)  N 70 21'31" E, a distance of 993.85 feet,

 18-5                (4)  N 70 21'26" E, a distance of 161.43 feet,

 18-6                (5)  N 77 54'47" E, a distance of 1112.72 feet,

 18-7                (6)  S 88 24'35" E, a distance of 932.98 feet,

 18-8                (7)  S 68 00'09" E, a distance of 256.67 feet to a

 18-9    point for a corner of this tract of land, in the Southeast line of

18-10    said C.C.A.D. Tract 12-240B-0, and in the Northwest line of

18-11    C.C.A.D. Tract 12-241B-0;

18-12          THENCE N 57 11'08" E with the Northwest line of this tract of

18-13    land, the Northwest line of said C.C.A.D. Tract 12-241B-0, and the

18-14    Southeast line of said C.C.A.D. Tract 12-240B-0 a distance of

18-15    980.34 feet to a point for a corner of this tract of land, the

18-16    North corner of said C.C.A.D. Tract 12-241B-0, and the East corner

18-17    of said C.C.A.D. Tract 12-240B-0, in the Southwest line of the

18-18    Coastal Industrial Water Authority Canal (CIWA);

18-19          THENCE S 64 51'27" E with the Northeast line of this tract of

18-20    land, the Northeast line of said C.C.A.D. Tract 12-241B-0 and the

18-21    Southwest line of said CIWA canal a distance of 2361.73 feet to a

18-22    point for a corner of this tract of land, the East corner of said

18-23    C.C.A.D.  Tract 12-241B-0 and in the Northwest line of C.C.A.D.

18-24    Tract 12-243A-0;

18-25          THENCE S 42 27'14" W with the Southeast line of this tract of

18-26    land, the Southeast line of said C.C.A.D. Tract 12-241B-0 and the

18-27    Northwest line of C.C.A.D. Tract 12-243A-0 a distance of 85.40 feet

 19-1    to a point for a corner of this tract of land, a corner of said

 19-2    C.C.A.D. Tract 12-241B-0, the West corner of C.C.A.D. Tract

 19-3    12-243A-0 and in the North line of C.C.A.D. Tract 12-224-1 thru 9;

 19-4          THENCE S 87 13'14" W with a South line of this tract of land,

 19-5    the South line of C.C.A.D. Tract 12-241B-0, the North line of

 19-6    C.C.A.D. Tracts 12-24-1 thru 9 and the North line of the Fitzgerald

 19-7    Partition Subd. Id. 2515-12 a distance of 1634.55 feet to a point

 19-8    for a corner of this tract of land, in the Northeast line of said

 19-9    Limits of Salt Dome;

19-10          THENCE in a Southerly direction with the East line of this

19-11    tract of land, the East line of said Limits of Salt Dome and across

19-12    C.C.A.D. Tracts 2515-12, 12-224-1 thru 9, 12-186B-0 thru 1,

19-13    12-186A-0, 12-193-0, 12-196-0, 12-197A-0, 12-198A-0, 12-199-0,

19-14    12-201-1, 12-203-1, 12-204-2, 12-207A-0, 12-254-2, and F.M. 565, 70

19-15    foot right of way the following courses:

19-16                (1)  S 53 10'07" E, a distance of 871.30 feet,

19-17                (2)  S 38 13'51" E, a distance of 1792.12 feet,

19-18                (3)  S 21 31'00" E, a distance of 2274.70 feet to a

19-19    point for a corner of this tract of land, in the Southwest line of

19-20    said F.M. 565, and in the Northeast line of C.C.A.D. Tract

19-21    12-254C-0;

19-22          THENCE S 88 52'00" E with the Northeast line of this tract of

19-23    land, the Northeast line of said C.C.A.D. Tract 12-254C-0 and the

19-24    Southwest line of F.M.  565 a distance of 213.22 feet to a point

19-25    for a corner of this tract of land and the point of curvature of a

19-26    tangent curve left, concave to the North;

19-27          THENCE in a Easterly direction with the Northeast line of

 20-1    this tract of land, the Northeast line of said C.C.A.D. Tract

 20-2    12-254C-0, the Southwest line of F.M.  565 and said tangent curve

 20-3    left having a radius of 607.96 feet, a central angle of 2737'41", a

 20-4    length of 293.16 feet, chord bearing of N 7719'10" E, and distance

 20-5    of 290.33 feet;

 20-6          THENCE N 60 54'00" E with the Northeast line of this tract of

 20-7    land, the Northeast line of said C.C.A.D. Tract 12-254C-0 and the

 20-8    Southwest line of said F.M. 565 a distance of 223.14 feet to a

 20-9    point for a corner of this tract of land;

20-10          THENCE N 31 50'00" W with the East line of this tract of land

20-11    and across said F.M. 565, at 70.09 feet cross the Northeast line of

20-12    said F.M. 565, the Southwest corner of C.C.A.D. Tract 12-254B-0,

20-13    and the Southeast corner of C.C.A.D. Tract 12-254E-1, continuing

20-14    along this line, the West line of C.C.A.D.  Tracts 12-254B-0 and

20-15    12-211-0, and the East line of C.C.A.D. Tracts 12-254E-1 and

20-16    12-207A-0 a total distance of 445.45 feet to a point for a corner

20-17    of this tract of land, the Southwest corner of C.C.A.D. Tract

20-18    12-215-0, the most Southerly Northwest corner of C.C.A.D. Tract

20-19    12-211-0, the Northeast corner of C.C.A.D. Tract 12-207A-0, and the

20-20    Southeast corner of C.C.A.D. Tract 12-215-1;

20-21          THENCE N 38 58' 23" E with a Northwest line of this tract of

20-22    land, the most Southerly Northwest line of C.C.A.D. Tract 12-211-0

20-23    and the Southeast line of C.C.A.D. Tract 12-215-0 a distance of

20-24    193.14 feet to a point for a corner of this tract of land, the

20-25    Southeast cover of C.C.A.D. Tract 12-215-0, and an interior corner

20-26    of C.C.A.D. Tract 12-211-0;

20-27          THENCE N 31 50' 00" W with the East line of this tract of

 21-1    land, the East line of C.C.A.D. Tract 12-215-0 and the most

 21-2    Easterly West line of C.C.A.D.  Tract 12-211-0 a distance of 237.86

 21-3    feet to a point for a corner of this tract of land, the Northeast

 21-4    corner of C.C.A.D. Tract 12-215-0, and an interior corner of

 21-5    C.C.A.D. Tract 12-211-0;

 21-6          THENCE S 38 58'23" W with a Southeast line of this tract of

 21-7    land, the most Northerly Southeast line of C.C.A.D. Tract 12-211-0

 21-8    and the Northwest line of C.C.A.D. Tract 12-215-0 a distance of

 21-9    193.14 feet to a point for a corner of this tract of land, the most

21-10    Northerly Southwest corner of C.C.A.D. Tract 12-211-0, the

21-11    Northwest corner of C.C.A.D. Tract 12-215-0, the Northeast corner

21-12    of C.C.A.D. Tract 12-215-1, and the Southeast corner of C.C.A.D.

21-13    Tract 12-211B-0;

21-14          THENCE N 31 50'00" W with the East line of this tract of

21-15    land, the East line of C.C.A.D. Tract 12-211B-0, the East line of

21-16    C.C.A.D. Tract 12-223B-0 and the West line of C.C.A.D. Tract

21-17    12-211-0 a distance of 365.64 feet to a point for a corner of this

21-18    tract of land, the Northeast corner of C.C.A.D. Tract 12-223B-0,

21-19    the Northwest corner of C.C.A.D.  Tract 12-211-0, and in the

21-20    Southeast line of C.C.A.D. Tract 12-222-1;

21-21          THENCE N 39 26'50" E with a Northwest line of this tract of

21-22    land, the Northwest line of C.C.A.D. Tract 12-211-0 and the

21-23    Southeast line of C.C.A.D.  Tract 12-222-1 a distance of 1649.95

21-24    feet to a point for a corner of this tract of land, the Southeast

21-25    corner of C.C.A.D. Tract 12-222-1, the Northeast corner of C.C.A.D.

21-26    Tract 12-211-0, and in the West line of said CIWA canal;

21-27          THENCE in a Southerly direction with the East line of this

 22-1    tract of land, the East line of C.C.A.D. Tract 12-211-0, and the

 22-2    West line of said CIWA canal the following courses:

 22-3                (1)  S 31 44'44" E, a distance of 589.36 feet,

 22-4                (2)  S 07 06'00" E, a distance of 201.70 feet to a

 22-5    point for a corner of this tract of land, the Southeast corner of

 22-6    C.C.A.D. Tract 12-211-0, and the Northeast corner of C.C.A.D. Tract

 22-7    12-254B-0;

 22-8          THENCE in a Southerly direction with the East line of this

 22-9    tract of land, the East line of C.C.A.D. Tract 12-254B-0, and the

22-10    West line of said CIWA canal the following courses:

22-11                (1)  S 26 31'00" E, a distance of 155.50 feet,

22-12                (2)  S 08 17'00" W, a distance of 818.17 feet to a

22-13    point for a corner of this tract of land, the Southeast corner of

22-14    C.C.A.D. Tract 12-254B-0, and in the Northeast line of said F.M.

22-15    565;

22-16          THENCE S 01 06'12" W with the East line of this tract of land

22-17    and across said F.M. 565 a distance of 81.00 feet to a point for a

22-18    corner of this tract of land, the Northeast corner of C.C.A.D.

22-19    Tract 12-254C-0, in the Southwest line of said F.M. 565, and in the

22-20    West line of said CIWA canal;

22-21          THENCE S 08 17'00" W with the East line of this tract of

22-22    land, the East line of C.C.A.D. Tracts 12-254C-0, 12-255C-0, and

22-23    13-115-2 and the West line of said CIWA canal, at 632.02 feet cross

22-24    the Southeast line of said Griffith Survey, and the Northwest line

22-25    of the William H. Hodges Survey, Abstract Number 13, in all a total

22-26    distance of 1855.05 feet to a point for a corner of this tract of

22-27    land, the East corner of C.C.A.D. Tract 13-115-2, the South corner

 23-1    of C.C.A.D. CIWA Canal Tract 13-115-0 and in the Northwest line of

 23-2    C.C.A.D. Tract 13-121A-0 thru 5 and 13-121B-0 thru 2;

 23-3          THENCE S 57 21'59" W with the Southeast line of this tract of

 23-4    land, the Southeast line of C.C.A.D. Tract 13-115-2 and the

 23-5    Northwest line of C.C.A.D.  Tract 13-121A-0 thru 5 and 13-121B-0

 23-6    thru 2 a distance of 879.65 feet to a point for a corner of this

 23-7    tract of land in the Southeast line of said Limits of the Salt

 23-8    Dome;

 23-9          THENCE S 10 19'41" E with the Southeast line of this tract of

23-10    land, the Southeast line of said Limits of the Salt Dome, and

23-11    across C.C.A.D. Tracts 13-121A-0 thru 5 and 13-121B-0 thru 2,

23-12    13-120-0, 13-120-0-1 and 13-117-0 a distance of 897.05 feet to a

23-13    point for a corner of this tract of land, in the Southeast line of

23-14    C.C.A.D. Tract 13-117-0 and in the Northwest line of C.C.A.D.

23-15    Tract 13-116-0;

23-16          THENCE S 58 36'30" W with the Southeast line of this tract of

23-17    land, the Southeast line of said C.C.A.D. Tract 13-117-0 and the

23-18    Northwest line of C.C.A.D. Tract 13-116-0 a distance of 75.52 feet

23-19    to a point for a corner of this tract of land, the Northwest corner

23-20    of C.C.A.D. Tract 13-116-0 and the Northeast corner of C.C.A.D.

23-21    Tract 13-125-0;

23-22          THENCE S 32 08'35" E with the East line of this tract of

23-23    land, the East line of C.C.A.D. Tract 13-125-0 and 13-126-0, and

23-24    the West line of C.C.A.D. Tract 13-116-0 a distance of 1791.89 feet

23-25    to a point for a corner of this tract of land, the Southeast corner

23-26    of C.C.A.D. Tract 13-126-0, the Northeast corner of C.C.A.D. Tract

23-27    13-134-0;

 24-1          THENCE S 54 44'47" W with the Southeast line of this tract of

 24-2    land, the Southeast line of C.C.A.D. Tract 13-126-0 and the

 24-3    Northwest line of C.C.A.D.  Tract 13-134-0 a distance of 290.78

 24-4    feet to a corner of this tract of land, the Southwest corner of

 24-5    C.C.A.D. Tract 13-126-0 and the Southeast corner of C.C.A.D. Tract

 24-6    13-124-0;

 24-7          THENCE S 55 15'30" W with the Southeast line of this tract of

 24-8    land, the Southeast line of C.C.A.D. Tract 13-124-0 and the

 24-9    Northwest line of C.C.A.D. Tract 13-134-0 a distance of 273.62 feet

24-10    to a point for a corner of this tract of land, the Southwest corner

24-11    of C.C.A.D. Tract 13-124-0 and a Northwest corner of C.C.A.D. Tract

24-12    13-134-0;

24-13          THENCE N 35 30'13" W with a West line of this tract of land,

24-14    the West line of C.C.A.D. Tract 13-133B-0 and a East line of

24-15    C.C.A.D. Tract 13-134-0 a distance of 530.73 feet to a point for a

24-16    corner of this tract of land, a corner of C.C.A.D. Tract 13-124-0,

24-17    the Northwest corner of C.C.A.D. Tract 13-134-0 and the Northeast

24-18    corner of C.C.A.D. Tract 13-133B-0;

24-19          THENCE S 59 07'28" W with the Southeast line of this tract of

24-20    land, the Southeast line of C.C.A.D. Tract 13-124-0 and the

24-21    Northwest line of C.C.A.D. Tracts 13-133B-0 and 13-132-0 a distance

24-22    of 936.70 feet to a point for a corner of this tract of land, the

24-23    Northwest corner of C.C.A.D. Tract 13-132-0 and the Northeast

24-24    corner of C.C.A.D. Tract 13-130-0;

24-25          THENCE S 32 47'08" E with a East line of this tract of land,

24-26    the East line of C.C.A.D. Tract 13-130-0 and the West line of

24-27    C.C.A.D. Tract 13-132-0 a distance of 582.44 feet to a point for a

 25-1    corner of this tract of land, the Southwest corner of C.C.A.D.

 25-2    Tract 13-132-0, the Southeast corner of C.C.A.D. Tract 13-130-0 and

 25-3    in the Northwest line of C.C.A.D. Tract 13-136-0;

 25-4          THENCE N 59 07'28" E with the Northwest line of this tract of

 25-5    land, the Northwest line of C.C.A.D. Tracts 13-136-0 and 13-135-0,

 25-6    and the Southeast lines of C.C.A.D.  Tract 13-132-0 and 13-133B-0 a

 25-7    distance of 933.91 feet to a point for a corner of this tract of

 25-8    land, the Northeast corner of C.C.A.D. Tract 13-135-0 and in the

 25-9    West line of C.C.A.D. Tract 13-124-0;

25-10          THENCE S 32 30'42" E with a East line of this tract of land,

25-11    the East line of C.C.A.D. Tracts 13-135-0 and 13-130-0, and the

25-12    West line of C.C.A.D. Tract 13-134-0 a distance of 1168.49 feet to

25-13    a point for a corner of this tract of land, the Northeast corner of

25-14    C.C.A.D. Tract 13-144A-0;

25-15          THENCE S 59 07'28" W with the Southeast line of this tract of

25-16    land, the Southeast line of C.C.A.D. Tract 13-130-0 and the

25-17    Northwest line of C.C.A.D. Tract 13-144A-0 a distance of 997.04

25-18    feet to a point for a corner of this tract of land, the Northwest

25-19    corner of C.C.A.D. Tract 13-144A-0 and a corner of C.C.A.D.  Tract

25-20    13-130-0;

25-21          THENCE S 32 47'08" E with a East line of this tract of land,

25-22    the East line of C.C.A.D.  Tracts 13-130-0 and the West line of

25-23    C.C.A.D. Tract 13-144A-0 a distance of 598.09 feet to a point for a

25-24    corner of this tract of land, the Southwest corner of C.C.A.D.

25-25    Tract 13-144A-0, the Southeast corner of C.C.A.D. Tract 13-130-0

25-26    and in the Northwest line of C.C.A.D. Tract 13-145-0;

25-27          THENCE S 57 12'00" W with the Southeast line of this tract of

 26-1    land, the Southeast line of C.C.A.D. Tract 13-130-0 and the

 26-2    Northwest line of C.C.A.D. Tract 13-145-0, at 245.83 feet cross the

 26-3    West line of said Hodges Survey, and the East line of the William

 26-4    Bloodgood Augmentation, Abstract Number 5, in all a total distance

 26-5    of 300.83 feet to a point for a corner of this tract of land, in

 26-6    the East line of C.C.A.D. Tract 5-25A-0 and in the West line of

 26-7    C.C.A.D. Tract 13-144A-0;

 26-8          THENCE N 32 47'08" W with a West line of this tract of land,

 26-9    the West line of 13-144A-0 and the East line of 5-25A-0 a distance

26-10    of 118.13 feet to a point for a corner of this tract of land;

26-11          THENCE S 55 57'58" W with the Southeast line of this tract of

26-12    land, across C.C.A.D.  Tract 5-25A-0 a distance of 1712.02 feet to

26-13    a point for a corner of this tract of land, the Southwest corner of

26-14    C.C.A.D. Tract 5-25A-0, and the Southeast corner of C.C.A.D. Tract

26-15    5-25B-0;

26-16          THENCE N 32 47'08" W with the West line of this tract of

26-17    land, the West line of said C.C.A.D. Tract 5-25A-0 and the East

26-18    line of C.C.A.D. Tract 5-25B-0 a distance of 1128.55 feet to a

26-19    point for a corner of this tract of land, an interior corner of

26-20    C.C.A.D. Tract 5-25A-0 and the Northeast corner of C.C.A.D. Tract

26-21    5-25B-0;

26-22          THENCE in a West and Southwesterly direction with the South

26-23    and Southeast lines of this tract of land, the South and Southeast

26-24    line of C.C.A.D. Tract 5-25A-0 and the North and Northwest lines of

26-25    C.C.A.D. Tract 5-25B-0 the following courses:

26-26                (1)  S 54 53'22" W, a distance of 727.23 feet,

26-27                (2)  S 05 06'38" E, a distance of 262.65 feet,

 27-1                (3)  S 37 58'31" W, a distance of 184.85 feet,

 27-2                (4)  S 04 34'04" W, a distance of 199.40 feet,

 27-3                (5)  S 10 31'56" E, a distance of 137.00 feet,

 27-4                (6)  S 12 24'34" W, a distance of 313.61 feet to a

 27-5    point for a corner of this tract of land, the Southwest corner of

 27-6    C.C.A.D. Tract 5-25A-0, the Northwest corner of C.C.A.D. Tract

 27-7    5-25B-0 and in the East line of C.C.A.D.  Tract 5-43B-0;

 27-8          THENCE in a Northerly direction with the West line of this

 27-9    tract of land, the East line of C.C.A.D. Tracts 5-43B-0, 5-41-0,

27-10    5-15B-0 THRU 2, AND 5-15A-0 the following courses:

27-11                (1)  N 32 45'41" W, a distance of 102.38 feet,

27-12                (2)  N 34 10'31" W, a distance of 830.40 feet,

27-13                (3)  N 32 56'17" W, a distance of 929.98 feet to a

27-14    point for a corner of this tract of land, the Northeast corner of

27-15    C.C.A.D. Tract 5-15A-0, and the Southeast corner of C.C.A.D. Tract

27-16    5-8-0;

27-17          THENCE S 57 10'50" W with the Southeast line of this tract of

27-18    land, the Southeast line of C.C.A.D. Tract 5-8-0, and the Northwest

27-19    line of C.C.A.D. Tract 5-15A-0 a distance of 2027.00 feet to a

27-20    point for a corner of this tract of land, and the Southeast corner

27-21    of C.C.A.D. Tract 5-13-0;

27-22          THENCE N 12 01'30" W with a West line of this tract of land,

27-23    the West line of C.C.A.D. Tract 5-8-0, and the East line of

27-24    C.C.A.D. Tract 5-13-0 a distance of 215.86 feet to a point for a

27-25    corner of this tract of land, the Northeast corner of C.C.A.D.

27-26    Tract 5-13-0, a corner of C.C.A.D. Tract 5-8-0, and in the

27-27    Southeast line of C.C.A.D. Tract 5-9C-0;

 28-1          THENCE N 57 10'50" E with a South line of this tract of land,

 28-2    the South line of C.C.A.D. Tract 5-9C-0, and an interior line of

 28-3    C.C.A.D. Tract 5-8-0 a distance of 193.19 feet to a point for a

 28-4    corner of this tract of land, the Southeast corner of C.C.A.D.

 28-5    Tract 5-9C-0, and an interior corner of C.C.A.D. Tract 5-8-0;

 28-6          THENCE N 12 50'58" E with a East line of this tract of land,

 28-7    the East line of C.C.A.D. Tract 5-9C-0, and a west line of C.C.A.D.

 28-8    Tract 5-8-0 a distance of 353.09 feet to a point for a corner of

 28-9    this tract of land, the Northeast corner of C.C.A.D. Tract 5-9C-0,

28-10    and an interior corner of C.C.A.D. Tract 5-8-0;

28-11          THENCE S 57 10'50" W with a South line of this tract of land,

28-12    the North line of C.C.A.D. Tract 5-9C-0 and 5-9B-0, an interior

28-13    line of C.C.A.D. Tract 5-8-0 a distance of 353.38 feet to a point

28-14    for a corner of this tract of land, the Northwest corner of

28-15    C.C.A.D. Tract 5-9B-0, the Southwest corner of C.C.A.D.  Tract

28-16    5-8-0, and in the East line of State Highway 146, 120 foot right of

28-17    way;

28-18          THENCE N 12 50'58" E with a East line of this tract of land,

28-19    the East line of Highway 146 and the West line of C.C.A.D. Tract

28-20    5-8-0 a distance of 1231.49 feet to a point for a corner of this

28-21    tract of land, the Northwest corner of C.C.A.D.  Tract 5-8-0, and

28-22    the Southwest corner of C.C.A.D. Tract 5-23-0;

28-23          THENCE S 57 47'52" W with a South line of this tract of land,

28-24    and across Highway 146 a distance of 167.55 feet to a point for a

28-25    corner of this tract of land, the Southeast corner of C.C.A.D.

28-26    Tract 5-23-0, and the Northeast corner of C.C.A.D.  Tract 5-10A-0;

28-27          THENCE S 57 48'09" W with a South line of this tract of land,

 29-1    the South line of C.C.A.D. Tract 5-23-0, and the North line of

 29-2    C.C.A.D. Tract 5-10A-0 a distance of 596.04 feet to a point for a

 29-3    corner of this tract of land, the Northwest corner of C.C.A.D.

 29-4    Tract 5-10A-0, the Southwest corner of C.C.A.D. Tract 5-23-0, in

 29-5    the West line of the Bloodgood Augmentation, Abstract Number 5, in

 29-6    the East line of the Bloodgood Survey, Abstract Number 4, and in

 29-7    the East line of C.C.A.D. Tract 4-79A-0;

 29-8          THENCE N 11 52'10" W with a East line of this tract of land,

 29-9    the East line of C.C.A.D. Tract 4-79A-0 and the Bloodgood Survey,

29-10    Abstract Number 4, the West line of C.C.A.D. Tract 5-23-0 and the

29-11    Bloodgood Augmentation, Abstract Number 5 a distance of 298.64 feet

29-12    to a point for a corner of this tract of land, the Northeast corner

29-13    of C.C.A.D.  Tract 4-79A-0, and the Southeast corner of C.C.A.D.

29-14    Tract 4-50A-0;

29-15          THENCE S 77 59'50" W with a South line of this tract of land,

29-16    the South line of C.C.A.D. Tract 4-50A-0 and the North line of

29-17    C.C.A.D. Tract 4-79A-0 a distance of 962.58 feet to a point for a

29-18    corner of this tract of land, the Northwest corner of C.C.A.D.

29-19    Tract 4-79A-0, and in the Northeast line of C.C.A.D. Tract 4-50B-0;

29-20          THENCE S 32 47'47" E with a Southwest line of this tract of

29-21    land, the Northeast line of C.C.A.D. Tract 4-50B-0, and the

29-22    Southwest line of C.C.A.D.  Tract 4-79A-0 a distance of 386.33 feet

29-23    to a point for a corner of this tract of land, the Southwest corner

29-24    of C.C.A.D. Tract 4-79A-0, and a corner of C.C.A.D. Tract 4-50B-0;

29-25          THENCE N 87 02'25" E with a North line of this tract of land,

29-26    the North line of C.C.A.D. Tract 4-50B-0, and the South line of

29-27    C.C.A.D. Tract 4-79A-0 a distance of 834.66 feet to a point for a

 30-1    corner of this tract of land, the Southeast corner of C.C.A.D.

 30-2    Tract 4-79A-0, the Northeast corner of C.C.A.D.  Tract 4-50B-0, in

 30-3    the East line of the Bloodgood Survey, Abstract Number 4, and in

 30-4    the West line of C.C.A.D. Tract 5-10A-0 and the Bloodgood

 30-5    Augmentation, Abstract Number 5;

 30-6          THENCE S 11 52'10" E with a East line of this tract of land,

 30-7    the East line of C.C.A.D. Tract 4-50B-0 and the Bloodgood Survey,

 30-8    Abstract Number 4, the West line of C.C.A.D. Tract 5-10A-0 and the

 30-9    Bloodgood Augmentation, Abstract Number 5 a distance of 101.11 feet

30-10    to a point for a corner of this tract of land, the Southeast corner

30-11    of C.C.A.D. Tract 4-50B-0, the Southwest corner of C.C.A.D.  Tract

30-12    5-10A-0, the Northeast corner of C.C.A.D. Tract 4-78B-0, and the

30-13    Northwest corner of C.C.A.D. Tract 5-10B-0;

30-14          THENCE S 87 02'25" W with a South line of this tract of land,

30-15    the South line of C.C.A.D. Tract 4-50B-0, the North line of

30-16    C.C.A.D. Tracts 4-78A-0 and 4-79A-0 a distance of 1081.84 feet to a

30-17    point for a corner of this tract of land, the Southwest corner of

30-18    C.C.A.D. Tract 4-50B-0, the Northwest corner of C.C.A.D. Tract

30-19    4-79A-0, the Northeast corner of C.C.A.D. Tract 4-77A-0, and the

30-20    Southeast corner of C.C.A.D. Tract 4-77B-0;

30-21          THENCE S 77 48'33" W with a South line of this tract of land,

30-22    the South line of C.C.A.D. Tract 4-77B-0, and the North line of

30-23    C.C.A.D. Tract 4-77A-0 a distance of 153.77 feet to a point for a

30-24    corner of this tract of land, the Southwest corner of C.C.A.D.

30-25    Tract 4-77B-0, the Northwest corner of C.C.A.D.  Tract 4-77A-0, and

30-26    in the Southeast line of C.C.A.D. Tract 4-76A-0;

30-27          THENCE N 11 52'54" W with a East line of this tract of land,

 31-1    the East line of C.C.A.D. Tract 4-76A-0, and the West line of

 31-2    C.C.A.D. Tract 4-77B-0 a distance of 423.43 feet to a point for a

 31-3    corner of this tract of land, the Northeast corner of C.C.A.D.

 31-4    Tract 4-76A-0, the Northwest corner of C.C.A.D. Tract 4-77B-0, and

 31-5    in the South line of C.C.A.D. Tract 4-50C-0;

 31-6          THENCE S 77 48'33" W with a South line of this tract of land,

 31-7    the South line of C.C.A.D. Tract 4-50C-0, and the North line of

 31-8    C.C.A.D. Tract 4-76A-0 a distance of 318.47 feet to a point for a

 31-9    corner of this tract of land, the Northwest corner of C.C.A.D.

31-10    Tract 4-76A-0, and an interior corner of C.C.A.D. Tract 4-50C-0;

31-11          THENCE S 11 32'58" E with a West line of this tract of land,

31-12    the West line of C.C.A.D. Tract 4-76A-0 and the East line of

31-13    C.C.A.D. Tract 4-50C-0 a distance of 247.82 feet to a point for a

31-14    corner of this tract of land, the Southeast corner of C.C.A.D.

31-15    Tract 4-50C-0, and the Northeast corner of C.C.A.D. Tract 4-71B-0;

31-16          THENCE S 11 18'34" E with a West line of this tract of land,

31-17    the West line of C.C.A.D. Tract 4-76A-0 and the East line of

31-18    C.C.A.D. Tract 4-71B-0 a distance of 110.07 feet to a point for a

31-19    corner of this tract of land, the Southwest corner of C.C.A.D.

31-20    Tract 4-76A-0, and a corner of C.C.A.D. Tract 4-71B-0;

31-21          THENCE N 77 58'10" E with a North line of this tract of land,

31-22    the South line of C.C.A.D. Tract 4-76A-0, and the North line of

31-23    C.C.A.D. Tract 4-71B-0 a distance of 170.05 feet to a point for a

31-24    corner of this tract of land, a corner of C.C.A.D.  Tract 4-76A-0,

31-25    and the most Southern Northeast corner of C.C.A.D. Tract 4-71B-0;

31-26          THENCE S 11 18'41" E with a East line of this tract of land,

31-27    the East line of C.C.A.D. Tract 4-71B-0 and the West line of

 32-1    C.C.A.D. Tract 4-76A-0 a distance of 70.00 feet to a point for a

 32-2    corner of this tract of land, the most Southern Southwest corner of

 32-3    C.C.A.D. Tract 4-76A-0, the most Northern Southeast corner of

 32-4    C.C.A.D.  Tract 4-71B-0, and in the North line of the Warren

 32-5    Petroleum Subdivision C.C.A.D.  I.D.  6150-4;

 32-6          THENCE N 77 58'09" E with a North line of this tract of land,

 32-7    the North line of the Warren Subdivision, and the South line of

 32-8    C.C.A.D. Tract 4-76A-0 a distance of 151.65 feet to a point for a

 32-9    corner of this tract of land, the Southeast corner of C.C.A.D.

32-10    Tract 4-76A-0, the Northeast corner of the Warren Subdivision, and

32-11    in the West line of C.C.A.D. Tract 4-77A-0;

32-12          THENCE S 11 52'54" E with a East line of this tract of land,

32-13    the East line of the Warren Subdivision, and the West line of

32-14    C.C.A.D. Tract 4-77A-0, at 778.94 feet the Southeast corner of the

32-15    Warren Subdivision and the North line of Warren Road (60 foot right

32-16    of way), in all a total distance of 838.94 feet to a point for a

32-17    corner of this tract of land, in the South line of Warren Road, and

32-18    in the North line of C.C.A.D. Tract 4-87D-0;

32-19          THENCE S 77 45'39" W with a South line of this tract of land,

32-20    the South line of Warren Road and C.C.A.D. Tract 4-71B-0, and the

32-21    North line of C.C.A.D. Tract 4-87D-0, at 330.08 feet the Southeast

32-22    corner of C.C.A.D. Tract 4-71B-0 and the Southwest corner of the

32-23    Warren Subdivision, in all a total distance of 3157.73 feet to a

32-24    point for a corner of this tract of land, the Southwest corner of

32-25    C.C.A.D. Tract 4-71B-0, and in the East line of the Southern

32-26    Pacific Railroad;

32-27          THENCE S 24 53'10" W with a East line of this tract of land

 33-1    and across the Southern Pacific Railroad a distance of 273.92 feet

 33-2    to a point in the centerline of said Cedar Bayou for a corner of

 33-3    this tract of land;

 33-4          THENCE in a Northerly direction with the centerline of Cedar

 33-5    Bayou and the South and West line of this tract of land the

 33-6    following courses:

 33-7                (1)   N 63 48'18" W, a distance of 122.55 feet,

 33-8                (2)   N 39 12'49" W, a distance of 314.88 feet,

 33-9                (3)   N 42 32'46" W, a distance of 109.63 feet,

33-10                (4)   N 58 05'10" W, a distance of 167.61 feet,

33-11                (5)   N 88 35'34" W, a distance of 38.41 feet,

33-12                (6)   N 68 18'00" W, a distance of 235.15 feet,

33-13                (7)   N 76 06'00" W, a distance of 123.72 feet,

33-14                (8)   N 89 57'00" W, a distance of 60.78 feet,

33-15                (9)   N 78 13'58" W, a distance of 6.88 feet,

33-16                (10)  N 86 50'05" W, a distance of 95.19 feet,

33-17                (11)  N 80 28'03" W, a distance of 304.67 feet,

33-18                (12)  N 36 53'43" W, a distance of 36.32 feet,

33-19                (13)  N 08 13'18" E, a distance of 142.32 feet,

33-20                (14)  N 04 40'35" W, a distance of 71.40 feet,

33-21                (15)  N 36 53'21" W, a distance of 261.44 feet,

33-22                (16)  N 45 44'20" W, a distance of 81.15 feet,

33-23                (17)  N 71 58'33" W, a distance of 65.71 feet,

33-24                (18)  S 87 37'09" W, a distance of 69.82 feet,

33-25                (19)  S 57 12'55" W, a distance of 77.78 feet,

33-26                (20)  S 54 21'43" W, a distance of 82.25 feet,

33-27                (21)  S 86 38'25" W, a distance of 49.49 feet,

 34-1                (22)  N 69 05'38" W, a distance of 52.89 feet,

 34-2                (23)  N 31 05'16" W, a distance of 132.27 feet,

 34-3                (24)  N 46 01'02" W, a distance of 58.56 feet,

 34-4                (25)  N 84 05'59" W, a distance of 84.74 feet,

 34-5                (26)  S 84 42'29" W, a distance of 175.78 feet,

 34-6                (27)  S 71 04'19" W, a distance of 93.36 feet,

 34-7                (28)  S 48 50'01" W, a distance of 52.68 feet,

 34-8                (29)  S 08 58'06" W, a distance of 60.44 feet,

 34-9                (30)  S 33 42'19" E, a distance of 41.88 feet,

34-10                (31)  S 86 45'35" E, a distance of 154.28 feet,

34-11                (32)  S 72 27'17" E, a distance of 120.39 feet,

34-12                (33)  S 44 34'30" E, a distance of 132.51 feet,

34-13                (34)  S 28 26'18" E, a distance of 140.37 feet,

34-14                (35)  S 21 48'50" E, a distance of 93.85 feet,

34-15                (36)  S 47 44'48" W, a distance of 64.79 feet,

34-16                (37)  S 70 37'34" W, a distance of 83.18 feet,

34-17                (38)  S 45 01'01" W, a distance of 71.90 feet,

34-18                (39)  S 17 32'22" W, a distance of 57.88 feet,

34-19                (40)  S 20 41'20" E, a distance of 82.26 feet,

34-20                (41)  S 10 43'12" E, a distance of 54.68 feet,

34-21                (42)  S 17 31'14" W, a distance of 28.94 feet,

34-22                (43)  S 54 52'54" W, a distance of 47.97 feet,

34-23                (44)  N 85 14'08" W, a distance of 52.50 feet,

34-24                (45)  N 68 12'44" W, a distance of 258.21 feet,

34-25                (46)  N 85 51'01" W, a distance of 260.79 feet,

34-26                (47)  N 74 10'36" W, a distance of 101.19 feet,

34-27                (48)  N 11 54'06" W, a distance of 56.40 feet,

 35-1                (49)  N 23 40'48" E, a distance of 141.11 feet,

 35-2                (50)  N 07 42'04" E, a distance of 108.44 feet,

 35-3                (51)  N 15 24'25" W, a distance of 103.94 feet,

 35-4                (52)  N 34 28'38" W, a distance of 89.84 feet,

 35-5                (53)  N 68 28'16" W, a distance of 59.36 feet,

 35-6                (54)  S 75 08'56" W, a distance of 73.67 feet,

 35-7                (55)  S 36 53'18" W, a distance of 312.28 feet,

 35-8                (56)  S 61 19'47" W, a distance of  87.78 feet,

 35-9                (57)  North a distance of 30.51 feet,

35-10                (58)  N 36 16'03" W, a distance of 27.02 feet,

35-11                (59)  N 07 04'22" E, a distance of 188.77 feet,

35-12                (60)  N 22 46'01" W, a distance of 48.82 feet,

35-13                (61)  N 55 43'35" W, a distance of 38.68 feet,

35-14                (62)  S 88 05'41" W, a distance of 43.62 feet,

35-15                (63)  S 49 16'21" W, a distance of 124.63 feet,

35-16                (64)  S 61 31'18" W, a distance of 57.87 feet,

35-17                (65)  North a distance of 49.41 feet,

35-18                (66)  N 53 59'25" W, a distance of 59.28 feet,

35-19                (67)  N 00 33'34" E, a distance of 149.57 feet,

35-20                (68)  N 36 48'16" E, a distance of 201.31 feet,

35-21                (69)  N 24 36'59" E, a distance of 132.58 feet,

35-22                (70)  N 09 21'38" E, a distance of 384.12 feet,

35-23                (71)  N 18 05'20" W, a distance of 74.86 feet,

35-24                (72)  N 57 24'16" W, a distance of 43.13 feet,

35-25                (73)  N 88 18'08" W, a distance of 146.83 feet,

35-26                (74)  N 76 14'33" W, a distance of 73.30 feet,

35-27                (75)  N 43 26'01" W, a distance of 73.98 feet,

 36-1                (76)  N 24 43'54" W, a distance of 402.89 feet,

 36-2                (77)  N 39 39'56" W, a distance of 66.03 feet,

 36-3                (78)  N 79 07'15" W, a distance of 76.94 feet,

 36-4                (79)  S 77 12'14" W, a distance of 65.57 feet,

 36-5                (80)  S 36 07'20" W, a distance of 86.28 feet,

 36-6                (81)  S 00 36'43" W, a distance of 271.57 feet,

 36-7                (82)  S 20 41'20" W, a distance of 82.26 feet,

 36-8                (83)  S 62 19'06" W, a distance of 65.64 feet,

 36-9                (84)  N 85 25'40" W, a distance of 72.89 feet,

36-10                (85)  N 69 17'18" W, a distance of 172.44 feet,

36-11                (86)  S 88 54'02" W, a distance of 75.57 feet,

36-12                (87)  S 53 08'45" W, a distance of 65.38 feet,

36-13                (88)  S 11 38'25" W, a distance of 252.05 feet,

36-14                (89)  S 29 56'01" W, a distance of 122.32 feet,

36-15                (90)  S 44 00'38" W, a distance of 117.11 feet,

36-16                (91)  S 50 27'49" W, a distance of 86.68 feet,

36-17                (92)  S 85 25'48" W, a distance of 109.33 feet,

36-18                (93)  N 63 04'36" W, a distance of 99.41 feet,

36-19                (94)  N 40 12'06" W, a distance of 85.56 feet,

36-20                (95)  N 09 05'36" W, a distance of 73.53 feet,

36-21                (96)  N 14 53'44" E, a distance of 118.70 feet,

36-22                (97)  N 02 15'45" E, a distance of 110.46 feet,

36-23                (98)  N 24 44'08" W, a distance of 100.72 feet,

36-24                (99)  N 73 40'56" W, a distance of 149.89 feet,

36-25                (100)  N 86 09'34" W, a distance of 195.16 feet,

36-26                (101)  S 64 39'51" W, a distance of 61.09 feet,

36-27                (102)  S 25 17'35" W, a distance of 57.82 feet,

 37-1                (103)  S 06 33'01" E, a distance of 178.32 feet,

 37-2                (104)  S 18 47'22" W, a distance of 76.69 feet,

 37-3                (105)  S 64 02'19" W, a distance of 126.06 feet,

 37-4                (106)  N 76 40'05" W, a distance of 144.86 feet,

 37-5                (107)  N 30 41'40" W, a distance of 99.63 feet,

 37-6                (108)  N 17 20'41" W, a distance of 238.85 feet,

 37-7                (109)  N 01 06'10" W, a distance of 226.57 feet,

 37-8                (110)  N 06 39'30" W, a distance of 87.72 feet,

 37-9                (111)  N 24 38'15" W, a distance of 345.08 feet,

37-10                (112)  N 34 40'16" W, a distance of 120.06 feet,

37-11                (113)  N 62 57'23" W, a distance of 376.88 feet,

37-12                (114)  N 77 34'06" W, a distance of 101.18 feet,

37-13                (115)  S 87 42'37" W, a distance of 145.43 feet,

37-14                (116)  S 69 27'21" W, a distance of 186.21 feet,

37-15                (117)  S 36 53'51" W, a distance of 58.10 feet,

37-16                (118)  S 09 04'04" E, a distance of 101.47 feet,

37-17                (119)  S 29 36'46" E, a distance of 208.79 feet,

37-18                (120)  S 08 32'19" W, a distance of 58.74 feet,

37-19                (121)  S 27 29'31" W, a distance of 81.85 feet,

37-20                (122)  S 57 39'44" W, a distance of 328.48 feet,

37-21                (123)  S 48 40'15" W, a distance of 193.51 feet,

37-22                (124)  S 37 33'18" W, a distance of 150.20 feet,

37-23                (125)  S 25 58'16" W, a distance of 428.04 feet,

37-24                (126)  S 45 01'09" W, a distance of 168.45 feet,

37-25                (127)  S 78 42'01" W, a distance of 133.37 feet,

37-26                (128)  N 82 59'29" W, a distance of 95.16 feet,

37-27                (129)  N 63 27'04" W, a distance of 347.63 feet,

 38-1                (130)  N 55 50'07" W, a distance of 328.41 feet,

 38-2                (131)  N 34 38'24" W, a distance of 74.13 feet,

 38-3                (132)  N 03 04'10" W, a distance of 81.44 feet,

 38-4                (133)  N 42 05'04" E, a distance of 80.22 feet,

 38-5                (134)  N 72 18'21" E, a distance of 396.57 feet,

 38-6                (135)  N 46 23'40" E, a distance of 128.43 feet,

 38-7                (136)  N 02 47'55" E, a distance of 59.61 feet,

 38-8                (137)  N 11 57'28" W, a distance of 77.18 feet,

 38-9                (138)  N 45 59'54" W, a distance of 179.78 feet,

38-10                (139)  N 01 49'20" W, a distance of 91.53 feet,

38-11                (140)  N 22 37'26" E, a distance of 75.55 feet,

38-12                (141)  N 37 00'52" E, a distance of 403.72 feet,

38-13                (142)  N 28 32'26" E, a distance of 115.61 feet,

38-14                (143)  North a distance of 75.15 feet,

38-15                (144)  N 14 35'00" W, a distance of 114.08 feet,

38-16                (145)  N 29 08'12" W, a distance of 251.40 feet,

38-17                (146)  N 14 40'13" W, a distance of 57.70 feet,

38-18                (147)  N 19 55'19" W, a distance of 79.36 feet,

38-19                (148)  N 18 41'20" W, a distance of 70.76 feet,

38-20                (149)  N 30 48'47" W, a distance of 41.68 feet,

38-21                (150)  N 25 01'33" W, a distance of 88.61 feet to the

38-22    POINT OF BEGINNING said described tract containing within said

38-23    boundaries 4,384.0971 acres of land, more or less.

38-24          (b)  Boundaries of the district may be adjusted after a

38-25    hearing as provided by Section 10 of this Act.

38-26          SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature

38-27    finds that the boundaries and field notes of the district form a

 39-1    closure.  If a mistake is made in the field notes or in copying the

 39-2    field notes in the legislative process, it does not affect the

 39-3    organization, existence, or validity of the district, the right of

 39-4    the district to issue any type of bonds or to issue any other type

 39-5    of obligations for the purposes for which the district is created

 39-6    or to pay the principal of and interest on the bonds or

 39-7    obligations, or the right of the district to levy and collect

 39-8    taxes, or affect in any other manner the legality or operation of

 39-9    the district or its governing body.

39-10          SECTION 5.  BOARD OF DIRECTORS.  (a)  The district is

39-11    governed by a board of seven directors who shall serve for

39-12    staggered terms of four years.

39-13          (b)  At the time this Act takes effect, the following persons

39-14    shall be appointed to the designated places on and shall constitute

39-15    the initial board and shall serve as provided herein:

39-16                Place 1:  Cissy Coon

39-17                Place 2:  Bill Wallace

39-18                Place 3:  Jean Nix

39-19                Place 4:  Charles Dyer

39-20                Place 5:  Appointee of Lyondell Petrochemical Co.

39-21                Place 6:  Appointee of ENRON Gas Liquids

39-22                Place 7:  Appointee of Texas Eastern Products Pipeline

39-23    Co.

39-24          (c)  Of the initial directors, the directors appointed to

39-25    Places 1, 2, 3 and 4 shall serve until the earliest of (i) the

39-26    completion of the purchase program in the district, or (ii) June 1,

39-27    2001, and directors appointed to Places 5, 6, and 7 shall serve

 40-1    until June 1, 1999.  Subsequent directors shall be nominated by the

 40-2    board to places on the board for appointment by the Commissioners

 40-3    Court of the county, from names submitted by the owners of land

 40-4    within the district.  If the commissioners court is not satisfied

 40-5    with one or more of the recommendations submitted by the board, the

 40-6    board, on the request of the commissioners court, shall submit to

 40-7    the commissioners court additional recommendations.

 40-8          (d)  Of the initial directors, the directors appointed to

 40-9    Places 1, 2, 3, and 4 will resign on or before 30 days subsequent

40-10    to the completion of the purchase program in the district, and the

40-11    number of directors constituting the board shall increase from

40-12    seven to eleven.

40-13          (e)  To qualify to serve as a director a person must be at

40-14    least 18 years old and one or more of the following:  (i) a

40-15    resident of the district; (ii) an owner of property in the

40-16    district; (iii) an agent, employee, lessee, or tenant of an owner

40-17    of property in the district.  The place of a director who at any

40-18    time fails to meet the requirements for service as a director set

40-19    forth in this subsection shall be considered vacant and such

40-20    director shall be replaced by the board within 60 days of the board

40-21    becoming aware of such failure, except for the initial board of

40-22    directors which shall remain intact until such time as the purchase

40-23    program in the district has been completed.

40-24          (e)  A vacancy in the office of director shall be filled by

40-25    appointment of the remaining members of the board, provided that

40-26    there are at least three members of the board remaining, and if

40-27    less than three members remain on the board shall be filled by

 41-1    appointment of the Commissioners Court of the county.

 41-2          (f)  The commissioners court of the county may remove a

 41-3    director for misconduct or failure to carry out his duties upon

 41-4    petition by a majority of the remaining directors.

 41-5          (g)  As soon as practicable after a director is appointed, he

 41-6    shall execute a bond for $10,000 payable to the district and

 41-7    conditioned on the faithful performance of his duties.  All bonds

 41-8    of the directors shall be approved by the board, and each director

 41-9    shall take the oath of office prescribed by the constitution for

41-10    public officers.  The bond and oath shall be filed with the

41-11    district and retained in its records.

41-12          (h)  After the directors have been appointed and have

41-13    qualified by executing a bond and taking the proper oath, they

41-14    shall organize by electing a president, a vice-president, a

41-15    secretary, and any other officers as in the judgment of the board

41-16    are considered necessary.

41-17          (i)  Four directors shall constitute a quorum for the

41-18    consideration of matters pertaining to the purposes of the

41-19    district, and a concurrence of four directors shall be required for

41-20    any official action of the district.

41-21          (j)  The board is governed by Chapter 375, Local Government

41-22    Code, to the extent that such chapter does not conflict with this

41-23    Act, and specifically excluding Section 375.169 of such Chapter.  A

41-24    person who qualifies to serve on the board is qualified to serve as

41-25    a director and participate in all votes pertaining to the business

41-26    of the district regardless of any other statutory provision to the

41-27    contrary.  A director who has a beneficial interest in a business

 42-1    entity that will receive a pecuniary benefit from an action of the

 42-2    board may participate in discussion and vote on that action if a

 42-3    majority of the board has a similar interest in the same action or

 42-4    if all other similar business entities in the district will receive

 42-5    a similar pecuniary benefit.  An employee of a public entity may

 42-6    serve on the board, but the public employee may not participate in

 42-7    the discussion of or vote on any matter regarding contracts with

 42-8    the public entity of which the director is an employee.

 42-9          (k)  Directors may be compensated in the manner provided by

42-10    Section 49.060, Water Code.

42-11          SECTION 6.  PURPOSES.  The district is created to:

42-12          (a)  regulate land use in the district to preserve, protect,

42-13    and enhance the area in the district for industrial and other

42-14    conforming uses;

42-15          (b)  acquire property in the district which is not in

42-16    conformity with the district's zoning regulations or comprehensive

42-17    plan by purchase, lease, or eminent domain, and sell or lease or

42-18    otherwise dispose of such property, with or without taking

42-19    competitive bids or competitive proposals, upon such terms and

42-20    conditions as the board deems appropriate, and may at the request

42-21    of the landowner or landowners, acquire property which is in

42-22    conformity with the district's zoning regulations and comprehensive

42-23    plan;

42-24          (c)  exercise such regulatory authority over businesses,

42-25    whether commercial or industrial, within the boundaries of the

42-26    district as could otherwise be exercised by the city; and

42-27          (d)  contract with the city, the county, or any other

 43-1    political subdivision, which now or hereafter includes all or any

 43-2    part of the district, to provide police power regulatory services

 43-3    for the city, the county, or other political subdivision on such

 43-4    terms and conditions as the parties agree, and to aid and assist

 43-5    the city, the county, and other overlapping political subdivisions

 43-6    with one or more projects.

 43-7          SECTION 7.  POWERS.  (a)  In addition to the specific

 43-8    additional rights, powers, privileges, authority, and functions set

 43-9    forth herein, the district has all of the rights, powers,

43-10    privileges, authority, and functions conferred by the general laws

43-11    of this state applicable to districts created under Chapter 375,

43-12    Local Government Code, which are necessary and convenient to

43-13    accomplish the purposes set forth in Section 6 of this Act.

43-14          (b)  If any provision of any referenced law is in conflict

43-15    with or is inconsistent with this Act, this Act prevails.  All laws

43-16    or provisions of laws referenced in this Act, and subsequent

43-17    amendments of those laws, are adopted and incorporated into this

43-18    Act for all purposes and may be used by the district independently

43-19    of each other.

43-20          SECTION 8.  ADDITIONAL SPECIFIC POWERS AND DUTIES.  (a)  In

43-21    addition to the rights, powers, privileges, authority, and

43-22    functions set forth in Section 6 of this Act, the district has and

43-23    the board may undertake the additional rights, powers, privileges,

43-24    authority, and functions set forth in this section.

43-25          (b) (1)  Except as described in this Subsection (b), the

43-26    board may exercise the power granted by Chapter 211, Local

43-27    Government Code, to the governing body of a general law

 44-1    municipality to restrict the use or uses of property in the

 44-2    district.  In exercising their powers, the board shall follow the

 44-3    procedures in Chapter 211, Local Government Code, applicable to a

 44-4    general law municipality, including the provisions applicable to

 44-5    the adoption of a comprehensive plan and the appointment of a

 44-6    zoning commission and a board of adjustment.

 44-7                (2)  No restrictions on the use of property within the

 44-8    district will be effective, until 30 days after the governing body

 44-9    of the city certifies that each owner of land which the board

44-10    determines is then used for a nonconforming use has received an

44-11    offer for purchase of the affected estate of the land pursuant to

44-12    Subsection (c) of this section from the board.

44-13                (3)  If the board is ultimately dissolved by the city,

44-14    or otherwise under Section 17 hereof, then such restrictions shall

44-15    be treated as if they had been adopted by the governing body of the

44-16    city.

44-17                (4)  After initial adoption of zoning restrictions and

44-18    a comprehensive plan by the board, no additional changes to the

44-19    plan or other restrictions of uses of property within the district

44-20    shall be imposed without the consent of the governing body of the

44-21    city.

44-22          (c) (1)  After adoption of zoning restrictions and a

44-23    comprehensive plan by the board, the district will acquire any real

44-24    property, including improvements thereon, which are used for

44-25    purposes that are nonconforming to the uses permitted by the

44-26    district's zoning regulations or comprehensive plan, and may

44-27    acquire any personal property which is currently being used or

 45-1    which may in the future be used for purposes that are nonconforming

 45-2    to the uses permitted by the district's zoning regulations and

 45-3    comprehensive plan.  The district may hold, improve, clear, or

 45-4    otherwise prepare the property so acquired for redevelopment or

 45-5    development, mortgage or otherwise encumber or dispose of or sell

 45-6    the property, insure or provide for the insurance of the property,

 45-7    and enter into any other contracts or agreements with respect to

 45-8    such property.  To the extent the district has funds available for

 45-9    such purpose, the district shall acquire nonconforming residential

45-10    property and, after acquisition of such nonconforming residential

45-11    property, may acquire at the owners request nonconforming

45-12    nonresidential property or the property held for future conforming

45-13    or nonconforming uses.  The district may use the proceeds of its

45-14    bonds to carry out the purposes of this Act.

45-15                (2)  Property purchased pursuant to this Subsection (c)

45-16    shall be purchased by application of a formula or formulas to be

45-17    established by the board prior to confirmation of the district's

45-18    creation, which formula or formulas must be on file in the City

45-19    Hall of the city, during a period commencing 30 days prior to the

45-20    confirmation of the district's creation, and which formula or

45-21    formulas shall be confirmed as part of the confirmation of the

45-22    district's creation.  To establish the purchase price for property

45-23    within the district, the formula or formulas adopted by the board

45-24    may include such elements as the board determines, including the

45-25    type and estate of land and current use of the property, the

45-26    replacement cost of houses, mobile homes, or businesses, the

45-27    replacement costs of barns, carports, sheds, pump houses, or other

 46-1    outbuildings, an allowance for the replacement of pools, spas,

 46-2    decks, patios, ornamental fencing, specimen trees, or other

 46-3    amenities, moving costs, including moving costs for mobile homes,

 46-4    utility connection fees, and disruption or relocation costs for

 46-5    residents or businesses.

 46-6                (3)  In addition to the purchase price for property,

 46-7    the district may pay the relocation costs for single family

 46-8    tenants, including tenants with mobile homes, in connection with

 46-9    the purchase of rental property.  The formula for relocation cost

46-10    payments to tenants must also be confirmed as part of the

46-11    confirmation of the district's creation, and may include moving

46-12    payments, including the cost of moving mobile homes, utility

46-13    connection fees, security deposits and rental deposits, and

46-14    disruption/relocation fees.

46-15                (4)  In addition to the purchase price for property,

46-16    the district may pay the relocation costs for businesses, including

46-17    moving payments, signage and other amenity replacement costs,

46-18    utility connections fees, security deposits and rental deposits,

46-19    and disruption/relocation fees.

46-20                (5)  The purchase prices paid for property within the

46-21    district may not be considered by the Chambers County Appraisal

46-22    District in establishing values for property for ad valorem tax

46-23    purposes, and may not be used by the Comptroller of Public Accounts

46-24    for establishing property values under Subchapter M, Chapter 403,

46-25    Property Code.

46-26          (d) (1)  When the board considers it necessary to accomplish

46-27    any of its purposes, including the removal of nonconforming uses

 47-1    under a comprehensive zoning plan, the district may exercise the

 47-2    right of eminent domain to acquire public or private property

 47-3    located inside the district.

 47-4                (2)  The district may acquire or condemn property in

 47-5    its entirety, or may acquire or condemn less than the entire estate

 47-6    of property.  If property is not currently used for a nonconforming

 47-7    use, the board may elect to acquire the right of an owner to use

 47-8    property for a nonconforming use.  Any landowner whose property is

 47-9    conveyed to the district, whether through sale or the exercise of

47-10    the power of eminent domain, shall have the right but not the duty

47-11    to save and except from such conveyance any private roads which

47-12    provide the landowner access to portions of the landowner's

47-13    property which are not conveyed to the district.

47-14                (3)  An exercise of the power of eminent domain granted

47-15    by this Section is governed by Chapter 21 of the Texas Property

47-16    Code, except that the district shall not be required to give bond

47-17    for appeal or bond for costs under Sections 21.021(a)(2) and (3) of

47-18    the Texas Property Code in any condemnation suit or other suit to

47-19    which it is a party and shall not be required to deposit more than

47-20    the amount of any award in any suit.

47-21                (4)  In the event that the amount of damages due to the

47-22    landowner under Section 21.042 of the Texas Property Code is not

47-23    sufficient to allow a landowner to obtain a reasonably comparable

47-24    replacement dwelling or structure, then under Section 21.046 of the

47-25    Texas Property Code, the district shall pay to the landowner an

47-26    additional amount which, when added to the amount of damages under

47-27    Section 21.042 of the Texas Property Code, will be sufficient to

 48-1    allow the landowner to obtain a reasonably comparable replacement

 48-2    dwelling or structure.

 48-3          (e) (1)  The district may adopt regulations governing the

 48-4    businesses, whether commercial or industrial, within the boundaries

 48-5    of the district and rules to enforce such regulations to the extent

 48-6    that the city could otherwise adopt such regulations and rules, but

 48-7    any regulations and rules adopted by the district, including

 48-8    restrictions or regulations governing zoning, will be uniform in

 48-9    application within the boundaries of the district and will

48-10    encourage the use of land within the district for industrial and

48-11    compatible purposes.  No regulations within the district, including

48-12    zoning regulations, will affect agricultural uses of property

48-13    within the district.

48-14                (2)  The district may adopt regulations that regulate

48-15    the health, safety and general welfare of residents and property

48-16    owners within the district, including land use and zoning

48-17    regulations.  If the district adopts regulations and those

48-18    regulations are approved by the governing body of the city by

48-19    ordinance, then the city may not thereafter adopt an ordinance

48-20    regulating the matters regulated by the district.   In adopting

48-21    this section, it is the intention of the legislature that only one

48-22    entity be responsible for regulating matters of the district, and

48-23    after regulations are approved by the city, further oversight by

48-24    the city of the matters regulated by the district is duplicative of

48-25    the district's regulatory authority and an unnecessary burden on

48-26    the residents and property owners in the district.

48-27          (f)  If the district, in exercising a power conferred by this

 49-1    Act, requires a relocation, adjustment, raising, lowering,

 49-2    rerouting, or changing the grade of or altering the construction of

 49-3    any street, alley, highway, overpass, underpass, road, railroad

 49-4    track, bridge, facility or property, electric line, conduit,

 49-5    facility or property, telephone or telegraph line, conduit,

 49-6    facility or property, gas transmission or distribution pipe,

 49-7    pipeline, main, facility or property, water, sanitary sewer or

 49-8    storm sewer pipe, pipeline, main, facility or property, cable

 49-9    television line, cable, conduit, facility or property, or other

49-10    pipeline or facility or property relating to the pipeline, that

49-11    relocation, adjustment, raising, lowering, rerouting, changing of

49-12    grade, or altering of construction must be accomplished at the sole

49-13    cost and expense of the district, and damages that are suffered by

49-14    owners of the property or facilities shall be borne by the

49-15    district.

49-16          (g)  The district shall have no right to permanently close

49-17    any existing public roads or to otherwise impede public access to

49-18    existing public roads, except in connection with temporary closures

49-19    for repair of district facilities.

49-20          (h)  Unless specifically set forth herein, nothing in this

49-21    Act shall authorize the district to exercise any regulatory

49-22    authority, including zoning authority, outside of the boundaries of

49-23    the district, and under no circumstances or for any purpose shall

49-24    any area outside of the boundaries of the district be deemed or

49-25    designated as extraterritorial to the district.

49-26          SECTION 9.  TORT CLAIMS.  The district is a unit of

49-27    government for purposes of Chapter 101, Civil Practice and Remedies

 50-1    Code.  The operations of the district are essential governmental

 50-2    functions for all purposes and not proprietary functions.

 50-3          SECTION 10.  EXCLUDING TERRITORY.  (a)  At any time, the

 50-4    board may on its own motion call a hearing on the question of the

 50-5    exclusion of land from the district as provided in Chapters 49 and

 50-6    54 of the Water Code, if the exclusions are practicable, just, or

 50-7    desirable.

 50-8          (b)  The board must call a hearing on the exclusion of land

 50-9    or other property from the district on the written petition of any

50-10    landowner or property owner in the district filed with the

50-11    secretary of the board before the issuance of bonds has been

50-12    authorized.

50-13          SECTION 11.  AD VALOREM TAXES.  The district may:

50-14          (a)  levy ad valorem taxes to pay the costs of acquiring

50-15    property in accordance with this Act and to pay principal,

50-16    interest, and the redemption price on bonds, notes, or other

50-17    obligations of the district issued for a district corporate

50-18    purpose; and

50-19          (b)  levy and collect an annual ad valorem tax on taxable

50-20    property in the district for maintenance, operation, and upkeep of

50-21    the district and the property acquired by the district and the

50-22    provision of services to industrial and commercial businesses and

50-23    property owners.

50-24          Chapter 375, Local Government Code, and the Tax Code shall

50-25    govern the powers and procedures of the district to levy and

50-26    collect ad valorem taxes and penalties, interest, and collection

50-27    charges thereon and the remedies of taxpayers.

 51-1          The board may not levy or collect assessments.

 51-2          SECTION 12.  BONDS, NOTES, AND OTHER OBLIGATIONS.  (a)  The

 51-3    district may issue its bonds or other obligations secured by

 51-4    revenues (whether from provision of services or by contract with

 51-5    public or private entities), by the levy of ad valorem taxes (which

 51-6    shall be unlimited in rate or amount), grants, gifts, contracts,

 51-7    leases, or any combination thereof.  Obligations of the district

 51-8    may be issued in the form of bonds, notes, certificates of

 51-9    participation, including other instruments evidencing a

51-10    proportionate interest in payments to be made by the district, or

51-11    other obligations that are issued in the exercise of the district's

51-12    borrowing power and may be issued in bearer or registered form or

51-13    otherwise issued in the name of a specific purchaser, or not

51-14    represented by an instrument but the transfer of which is

51-15    registered on books maintained by or on behalf of the district.

51-16          (b)  Bonds may be issued in accordance with the provisions of

51-17    Chapter 375, Local Government Code.

51-18          (c)  If so provided in the bond order or resolution, the

51-19    proceeds from the sale of the bonds or other obligations of the

51-20    district may be used to pay interest on the bonds during and after

51-21    the period of the acquisition or construction of any improvement to

51-22    be provided through the issuance of the bonds or obligations, for

51-23    creating a reserve fund for the payment of the principal of and

51-24    interest on the bonds or obligations, or paying initial costs of

51-25    operation and maintenance for any project for a period of up to two

51-26    years, for reimbursing the city or owners of the property within

51-27    the district for the costs of creating the district and for

 52-1    administrative costs relating to the establishment of the district,

 52-2    and for paying any costs relating to the purchase of land,

 52-3    including the administrative costs of the district and costs of

 52-4    appraisal, surveying, eminent domain proceedings, or title

 52-5    insurance or reports, and for creating any other funds.

 52-6          (d)  No approval of bonds or other obligations issued by the

 52-7    district is required other than the approval of the city, as

 52-8    provided in Section 14, and the attorney general of Texas to the

 52-9    extent required by Article 717k-8, Revised Civil Statutes.

52-10          (e)  All bonds or other obligations of the district are legal

52-11    and authorized investments for all banks, trust companies, building

52-12    and loan associations, savings and loan associations, insurance

52-13    companies of all kinds and types, fiduciaries, trustees, and

52-14    guardians, and for all interest and sinking funds and other public

52-15    funds of the state and all agencies, subdivisions, and

52-16    instrumentalities of the state, including all counties, cities,

52-17    towns, villages, school districts, and all other kinds and types of

52-18    districts, public agencies, and bodies politic.  The bonds or other

52-19    obligations also are eligible and lawful security for all deposits

52-20    of public counties, cities, towns, villages, school districts, and

52-21    all other kinds and types of districts, public agencies, and bodies

52-22    politic, to the extent of the market value of the bonds or

52-23    obligations, when accompanied by any unmatured interest coupons

52-24    appurtenant thereto.

52-25          SECTION 13.  ELECTIONS.  (a)  An election shall be called and

52-26    held to confirm establishment of the district as provided by

52-27    Chapters 49 and 54, Water Code, including confirmation of the

 53-1    formulas for purchase of property as provided in Section 8.  In the

 53-2    event a majority of the votes cast at a confirmation election are

 53-3    against the creation of the district, the board shall not call

 53-4    another confirmation election for six months after the date the

 53-5    former confirmation election is held.  Prior to a successful

 53-6    confirmation the district may not issue bonds or levy taxes or

 53-7    assessments; however, the district has the power to carry on such

 53-8    other business as the board may determine to the extent not

 53-9    otherwise in conflict with this Act.

53-10          (b)  A bond election, maintenance tax election, and any other

53-11    election held within the district may be held at the same time and

53-12    in conjunction with a confirmation election.

53-13          (c)  Elections held within the district are not required to

53-14    be held on the uniform election dates specified in Section 41.001

53-15    of the Election Code.

53-16          (d)  The district may hold an election in the manner provided

53-17    by Chapter 375, Subchapter L, Local Government Code, for the

53-18    purpose of approval for the district to levy an ad valorem tax or

53-19    to issue bonds payable from ad valorem taxes.

53-20          (e)  The board may submit multiple purposes in a single

53-21    proposition at an election.

53-22          (f)  Except as otherwise expressly provided herein, all

53-23    elections shall be held in accordance with the applicable

53-24    provisions of the Texas Election Code.

53-25          SECTION 14.  CITY APPROVAL.  (a)  In addition to the

53-26    provisions of this Act where approval of the governing body of the

53-27    city may be otherwise required, the district must obtain the prior

 54-1    approval of the governing body of the city for any one or more of

 54-2    the following:

 54-3                (1)  issuance of bonds for any improvement project

 54-4    comprised of the purchase or construction of facilities; or

 54-5                (2)  plans and specifications of any improvement

 54-6    project that involves the use of the rights-of-ways of streets,

 54-7    roads, or highways or the use of municipal land.

 54-8          (b)  The city shall never be obligated to pay any bonds,

 54-9    notes, or other obligations of the district, except as provided by

54-10    Subsection (c) or (d) of Section 17 of this Act.

54-11          SECTION 15.  ANNEXATION.  The district may annex land upon

54-12    petition of the owners thereof in accordance with Chapter 49 and

54-13    54, Water Code, subject to the approval of the governing body of

54-14    the city.

54-15          SECTION 16.  CONTRACTS WITH DISTRICT.  The district is

54-16    authorized to contract with a city, county, other political

54-17    subdivision, corporation, or other persons to carry out the

54-18    purposes of this Act upon such terms and conditions and for such

54-19    period of time as the governing body may determine.  A state

54-20    agency, city, county, other political subdivision, corporation,

54-21    individual, or other entity may contract with the district to carry

54-22    out the purposes of this Act without any further authorization,

54-23    notwithstanding any other law or charter provision to the contrary.

54-24          SECTION 17.  DISSOLUTION.  (a)  The board may elect by

54-25    majority vote to dissolve the district at any time; provided,

54-26    however, the district may not be dissolved by the board if the

54-27    district has any outstanding bonded indebtedness until such bonded

 55-1    indebtedness has been repaid or otherwise discharged in accordance

 55-2    with Texas Revised Civil Statutes article 717k or the order or

 55-3    resolution authorizing the issuance of the bonds.

 55-4          (b)  The board shall dissolve the district upon written

 55-5    petition filed with the board by the owners of 75 percent of the

 55-6    assessed value of the property in the district based on the most

 55-7    recent certified county property tax rolls at the time or the

 55-8    owners of 75 percent or more of the surface area of the district

 55-9    (excluding roads, streets, highways, and utility rights-of-way)

55-10    based on the most recent certified county property tax rolls;

55-11    provided, however, the district may not be dissolved by the board

55-12    if the district has any outstanding bonded indebtedness until such

55-13    bonded indebtedness has been repaid or discharged in accordance

55-14    with Texas Revised Civil Statutes article 717k or the order of

55-15    resolution authorizing the issuance of the bonds.

55-16          (c)  The governing body of the city shall be authorized, by a

55-17    vote of not less than two-thirds of the entire membership, to adopt

55-18    an ordinance dissolving the district.  Upon the adoption of such an

55-19    ordinance the district shall be dissolved, and, in accordance with

55-20    Chapter 128, Acts of the 50th Legislature, 1947 (section 43.074,

55-21    Texas Local Government Code), the city shall:

55-22                (1)  succeed to the property and assets of the

55-23    district;

55-24                (2)  assume all debts, obligations and liabilities of

55-25    the district; and

55-26                (3)  enforce any applicable land uses imposed through

55-27    the zoning authority of the district.

 56-1          (d)  The district shall be dissolved without further action

 56-2    if there are no bonds or other obligations of the district

 56-3    outstanding and the district has not completed the purchase program

 56-4    by September 1, 1999.  It is the intent of the legislature in

 56-5    creating the district that the purchase program proceed

 56-6    expeditiously, and if it is determined by the commissioners court

 56-7    of the county upon application by the city that (i) the purchase

 56-8    program is not complete, and (ii) that as of any September 1 the

 56-9    board has not proceeded expeditiously with completion of the

56-10    purchase program, then the district shall be dissolved and the city

56-11    shall:

56-12                (1)  succeed to the property and assets of the

56-13    district;

56-14                (2)  assume all debts, obligations and liabilities of

56-15    the district;

56-16                (3)  enforce any applicable land uses imposed through

56-17    the zoning authority of the district; and

56-18                (4)  complete the purchase program from and to the

56-19    extent of assets of the district.

56-20          SECTION 18.  POWERS OF THE CITY.  Notwithstanding anything

56-21    herein, the creation of the district, the exercise of its powers

56-22    and duties within its boundaries, or the issuance of its bonds or

56-23    the levy of any taxes or assessments within its boundaries will

56-24    have no effect on the power or authority of the city, to exercise

56-25    its powers and duties within its boundaries or extraterritorial

56-26    jurisdiction, or to issue its bonds or levy its taxes or

56-27    assessments within its boundaries, including within the portion of

 57-1    the city's boundaries or extraterritorial jurisdiction which lies

 57-2    within the district.

 57-3          SECTION 19.  NOTICE AND CONSENT.  The legislature finds that

 57-4    proper and legal notice of the intention to introduce this Act,

 57-5    setting forth the general substance of this Act, has been published

 57-6    as provided by law, and the notice and a copy of this Act have been

 57-7    furnished to all persons, agencies, officials, or entities to which

 57-8    they are required to be furnished by the constitution and laws of

 57-9    this state, including the governor of Texas, who has submitted the

57-10    notice and Act to the Texas Natural Resource Conservation

57-11    Commission.  Also the legislature finds that the Texas Natural

57-12    Resource Conservation Commission has filed its recommendations

57-13    relating to this Act with the governor, lieutenant governor, and

57-14    speaker of the house of representatives within the required time.

57-15    The general law relating to consent by political subdivisions to

57-16    the creation of conservation and reclamation districts and the

57-17    inclusion of land in those districts has been complied with, and

57-18    all requirements of the constitution and laws of this state and the

57-19    rules and procedures of the legislature with respect to the notice,

57-20    introduction, and passage of this Act have been fulfilled and

57-21    accomplished.

57-22          SECTION 20.  SEVERABILITY.  The provisions of this Act are

57-23    severable.  If any word, phrase, clause, sentence, section,

57-24    provision, or part of this Act should be held to be invalid or

57-25    unconstitutional, it shall not affect the validity of the remaining

57-26    portions, and it is hereby declared to be the legislative intent

57-27    that this Act would have been passed as to the remaining portions,

 58-1    regardless of the invalidity of any part.

 58-2          SECTION 21.  EMERGENCY.  The importance of this legislation

 58-3    and the crowded condition of the calendar in both houses create an

 58-4    emergency and an imperative public necessity that the

 58-5    constitutional rule requiring bills to be read on three several

 58-6    days in each house be suspended, and this rule is hereby suspended,

 58-7    and that this Act take effect and be in force from and after its

 58-8    passage, and it is so enacted.

 58-9                         COMMITTEE AMENDMENT NO. 1

58-10          Amend H.B. No. 3571 as follows:

58-11          1.  Substitute in lieu of Section 5 the following:

58-12          SECTION 5.  THE BOARD OF DIRECTORS.  (a)  The district is

58-13    governed by a board of fifteen directors.

58-14          (b)  Except for the initial directors, the commissioners

58-15    court of Chambers County shall appoint directors to represent a

58-16    director district from a list of candidates recommended by the

58-17    board in the manner provided in subsection (j) of this section.

58-18    Directors serve staggered four-year terms.  A vacancy in the office

58-19    of director shall be filled by an appointment made by the remaining

58-20    directors for the remainder of the unexpired term.

58-21          (c)  Board members may serve successive terms.

58-22          (d)  On the effective date of this Act, the following persons

58-23    constitute the initial board and are appointed for the terms

58-24    prescribed by subsection (d) of this section to represent the

58-25    following director district positions:

58-26          Director District Position       Name of Director

58-27                1                                          Cissy Coon

 59-1                2                                          Bill Wallace

 59-2                3                                          Jean Nix

 59-3                4                                          Charles Dyer

 59-4                5                                          City Appointee

 59-5                6                                          City Appointee

 59-6                7                                          George G. Persyn

 59-7                8                                          James Prentice

 59-8                9                                          Joe Speelman

 59-9                10                                         Robert M. Cooper

59-10                11                                         Buddy J. Shipp

59-11                12                                         David Langley

59-12                13                                         Paul Jackson

59-13                14                                         Dale Volz

59-14                15                                         James Gernentz

59-15          (e)  The mayor of the city shall be an advisory non-voting

59-16    member of the Board.  The mayor may require an item to be placed on

59-17    the Board agenda.

59-18          (f)  The initial directors appointed for positions 1-6 serve

59-19    until June 1, 1999, and the initial directors appointed for

59-20    positions 7-15 serve until June 1, 2001.

59-21          (g)  As soon as practicable after a director is appointed,

59-22    the director shall execute a $10,000 bond payable to the district

59-23    and conditioned on the faithful performance of the director's

59-24    duties.  Each director's bond must be approved by the board, and

59-25    each director shall take the oath of office prescribed by the

59-26    constitution for public officers.  The bond and oath shall be filed

59-27    with the district and retained in its records.

 60-1          (h)  After directors are appointed and have qualified by

 60-2    executing a bond and taking the oath, they shall organize by

 60-3    electing a chairman, a vice-chairman, a secretary, and any other

 60-4    officers the board considers necessary.

 60-5          (i)  Each position on the board represents a separate area of

 60-6    the district to be known as a director district.  As soon as

 60-7    possible after the effective date of this Act, the board shall

 60-8    establish the boundaries of the director districts over areas in

 60-9    the district that in the board's judgment provide a reasonable

60-10    balance in the board representation between acreage, value,

60-11    improvements, and interests of the property owners and residents in

60-12    the district.  All land in the district shall be in a director

60-13    district.  Director districts may not overlap.  Director districts

60-14    may be composed of noncontiguous areas.  The board from time to

60-15    time may establish new boundaries for one or more director

60-16    districts if it is necessary to provide a reasonable balance in the

60-17    board representation between acreage, value, improvements, and

60-18    interests of the property owners and residents in the district.

60-19          (j)  Each director appointed by the commissioners court of

60-20    the county shall be at least 18 years old and be:

60-21                (1)  a resident of the director district which such

60-22    person represents; or

60-23                (2)  an owner of property in the director district

60-24    which such person represents; or

60-25                (3)  an agent, employee, lessee, or tenant of an owner

60-26    of property in the director district which such person represents.

60-27          Except for the directors appointed in this Act, no person may

 61-1    be appointed as a director or continue to serve as a director

 61-2    unless they satisfy the requirements set forth in this subsection.

 61-3          (k)  The initial and each succeeding board of directors shall

 61-4    recommend to the commissioners court of the county persons to serve

 61-5    as successor directors.   After reviewing the recommendations, the

 61-6    commissioners court shall approve or disapprove the directors

 61-7    recommended by the board.  If the commissioners court is not

 61-8    satisfied with the recommendations submitted by the board, the

 61-9    board, on the request of the commissioners court, shall submit to

61-10    the commissioners court additional recommendations.

61-11          (l)  The board is governed by Chapter 375, Local Government

61-12    Code, to the extent that chapter does not conflict with this Act.

61-13    A person who qualifies to serve on the board is qualified to serve

61-14    as a director and participate in all votes pertaining to the

61-15    business of the district regardless of any other statutory

61-16    provision to the contrary.  A director who has a beneficial

61-17    interest in a business entity that will receive a pecuniary benefit

61-18    from an action of the board may participate in discussion and vote

61-19    on that action if a majority of the board has a similar interest in

61-20    the same action or if all other similar business entities in the

61-21    district will receive a similar pecuniary benefit.  An employee of

61-22    a public entity may serve on the board of directors of the

61-23    district, but the public employee may not participate in the

61-24    discussion of or vote on any matter regarding contracts with the

61-25    public entity of which the director is an employee.

61-26          (m)  One-half of the directors constitutes a quorum, and a

61-27    concurrence of a majority of a quorum of directors is required for

 62-1    any official action of the district.  In addition to board

 62-2    approval, the written consent of at least two-thirds of the

 62-3    directors is required to call an election, to authorize the levy of

 62-4    taxes, the approval of the adoption of a buyout plan and buyout

 62-5    formula, the approval of the issuance of bonds or other

 62-6    obligations, or the approval of the adoption of zoning or other

 62-7    regulations.

 62-8          (n)  Directors may be compensated in the manner provided by

 62-9    Section 49.060, Water Code.

62-10          2.  Substitute in lieu of Section 8 the following:

62-11          SECTION 8.  ADDITIONAL SPECIFIC POWERS AND DUTIES.  (a)  In

62-12    addition to the rights, powers, privileges, authority, and

62-13    functions set forth in Sections 6 and 7 of this Act, the district

62-14    has and the board may undertake the additional rights, powers,

62-15    privileges, authority, and functions set forth in this section.

62-16          (b)  The board and the district may exercise the power

62-17    granted by Chapter 211, Local Government Code, to the governing

62-18    body of a general law municipality to zone and restrict the use or

62-19    uses of property in the district by adopting zoning regulations.

62-20    In exercising their powers the board and the district shall follow

62-21    the procedures in Chapter 211, Local Government Code, applicable to

62-22    a general law municipality, including the provisions applicable to

62-23    the adoption of a comprehensive plan and the appointment of a

62-24    zoning commission and a board of adjustment.  If the district is

62-25    ultimately dissolved by the city, or otherwise dissolved under

62-26    Section 21 hereof, then the zoning regulations and comprehensive

62-27    plan, until modified by the city, shall survive and be enforced by

 63-1    the city as if they had been adopted by the governing body of the

 63-2    city.

 63-3          (c)  After adoption of zoning regulations and a comprehensive

 63-4    plan by the board, the district may acquire real property,

 63-5    including improvements thereon which are used for purposes that are

 63-6    nonconforming to the uses permitted by the district's zoning

 63-7    regulations or comprehensive plan, and may acquire any personal

 63-8    property which is currently being used or which may in the future

 63-9    be used for purposes that are nonconforming to the uses permitted

63-10    by the district's zoning regulations and comprehensive plan.  The

63-11    district may hold, improve, clear, or otherwise prepare the

63-12    property so acquired for redevelopment or development, mortgage or

63-13    otherwise encumber or dispose of or sell the property, insure or

63-14    provide for the insurance of the property, and enter into any other

63-15    contracts or agreements with respect to such property.  To the

63-16    extent the district has funds available for such purpose, the

63-17    district may acquire nonconforming residential property.  If the

63-18    board determines that sufficient funds will be available to the

63-19    district, after acquisition of such noncomforming residential

63-20    property, the district may acquire nonconforming nonresidential

63-21    property or other property held for conforming or nonconforming

63-22    uses.  If the board deems it advisable, the district may acquire by

63-23    purchase or eminent domain a property owner's right to use property

63-24    for nonconforming uses without acquiring an ownership interest in

63-25    the property.  The district may use the proceeds of its bonds or

63-26    other obligations, or other available funds, to carry out the

63-27    purposes of this Act.

 64-1          (d)(1)  When the board considers it necessary to accomplish

 64-2    any of its purposes, including the removal of nonconforming uses

 64-3    under a comprehensive plan, the district may exercise the right of

 64-4    eminent domain to acquire public or private property, whether

 64-5    located inside or outside the district, or any interest therein,

 64-6    except that if the exercise of eminent domain is for the removal of

 64-7    nonconforming uses under the district's comprehensive plan, or for

 64-8    the right of a property owner to use property for nonconforming

 64-9    uses under the district's comprehensive plan, the property must be

64-10    inside the district.

64-11                (2)  The district may acquire or condemn the property

64-12    in its entirety, or may acquire or condemn less than the entire

64-13    estate of property.  The board may elect to acquire the right of an

64-14    owner to use property for a nonconforming use.

64-15                (3)  An exercise of the power of eminent domain granted

64-16    by this section is governed by Chapter 21 of the Texas Property

64-17    Code, except that the district shall not be required to give bond

64-18    for appeal or bond for costs under Section 21.021(a)(2) and (3) of

64-19    the Texas Property Code in any condemnation suit or other suit to

64-20    which it is a party and shall not be required to deposit more than

64-21    the amount of any award in any suit.

64-22                (4)  In the event that the amount of compensation due

64-23    to the landowner for a taking of residential nonconforming property

64-24    under Section 21.042 of the Texas Property Code is not sufficient

64-25    to allow a landowner to obtain a reasonably comparable replacement

64-26    dwelling or structure, then under Section 21.046 of the Texas

64-27    Property Code, the district may (but is not required to) pay to the

 65-1    landowner an additional amount which, when added to the amount of

 65-2    damages under Section 21.042 of the Texas Property Code, will be

 65-3    sufficient to allow the landowner to obtain a reasonably comparable

 65-4    replacement dwelling or structure.

 65-5          (e)  If the district, in exercising a power conferred by this

 65-6    Act, requires a relocation, adjustment, raising, lowering,

 65-7    rerouting, or changing the grade of or altering the construction of

 65-8    any street, alley, highway, overpass, underpass, road, railroad

 65-9    track, bridge, facility or property, electric line, conduit,

65-10    facility or property, telephone or telegraph line, conduit,

65-11    facility or property, gas transmission or distribution pipe,

65-12    pipeline, main, facility or property, water, sanitary sewer or

65-13    storm sewer pipe, pipeline, main, facility or property, cable

65-14    television  line, cable, conduit, facility or property, or other

65-15    pipeline or facility or property relating to the pipeline, that

65-16    relocation, adjustment, raising, lowering, rerouting, changing of

65-17    grade, or altering of construction  must be accomplished at the

65-18    sole cost and expense of the district, and damages that are

65-19    suffered by owners of the property or facilities shall be borne by

65-20    the district.

65-21          (f)  For purposes of this Act, the following definitions

65-22    apply:

65-23                (1)  "comprehensive plan" means the comprehensive plan

65-24    approved by the board of directors in accordance with the

65-25    provisions of this Act and  Chapter 211, Local Government Code.

65-26                (2)  "conforming property" means property which is used

65-27    or proposed to be used in conformity with the district's zoning

 66-1    regulations and comprehensive plan.

 66-2          3.  Substitute in lieu of Section 14 the following:

 66-3          SECTION 14.  APPROVAL OF THE CITY.  (a)  The district must

 66-4    obtain the prior approval of the governing body of the city for any

 66-5    one or more of the following:

 66-6                (1)  issuance of bonds or other obligations;

 66-7                (2)  plans and specifications of any project that

 66-8    involves the use of the rights-of-way of streets, roads, or

 66-9    highways or the use of municipal land;

66-10                (3)  valuation procedures for a district property

66-11    acquisition program;

66-12                (4)  property acquisition plan;

66-13                (5)  property acquisition formula;

66-14                (6)  bond proposition and bond elections;

66-15                (7)  zoning or other district regulations; or

66-16                (8)  the exercise of the powers of eminent domain by

66-17    the district.

66-18          (b)  The city shall never be obligated to pay any bonds,

66-19    notes, or other obligations of the district, except as provided in

66-20    subsection (c) of section 21 of this Act.

66-21          4.  Add a new sentence in Section 15 at the end of the first

66-22    sentence ending with city as follows:

66-23          The confirmation election will be held during April 1998.

66-24          5.  Substitute in lieu of Section 16 the following:

66-25          SECTION 16.  CONTRACTS.  (a)  The city, the county, or any

66-26    other political subdivision of the state, without further

66-27    authorization, may contract with the district to jointly pay the

 67-1    cost of a project of the district, jointly pay the cost of property

 67-2    acquisition by the district, or aid and assist the district in

 67-3    providing the services authorized under this Act.  A contract under

 67-4    this subsection may:

 67-5                (1)  be for a period of time on which the parties

 67-6    agree;

 67-7                (2)  include terms on which the parties agree;

 67-8                (3)  be payable from taxes or any other sources of

 67-9    revenue that may be available for such purpose, including tax

67-10    increments from a tax increment reinvestment zone; or

67-11                (4)  provide that taxes or other revenue collected at a

67-12    district project or from a person using or purchasing a commodity

67-13    or service at a district project may be paid or rebated to the

67-14    district under the terms of the contract.

67-15          (b)  The district may enter into a contract, lease, or

67-16    agreement with or make or accept grants and loans to or from:

67-17                (1)  the United States, including federal departments

67-18    and agencies;

67-19                (2)  the state or a state agency;

67-20                (3)  a county, municipality, or other political

67-21    subdivision of the state;

67-22                (4)  a public or private corporation, including a

67-23    nonprofit corporation created by the board under this Act; and

67-24                (5)  any other person.

67-25          (c)  The initial term of a district lease, contract, or

67-26    agreement shall not exceed a term of forty (40) years.

67-27          (d)  The district may perform all acts necessary for the full

 68-1    exercise of the powers vested in the district on terms and

 68-2    conditions and for the term the board may determine to be

 68-3    advisable.

 68-4          6.  Substitute in lieu of subsection (c) in Section 17 as

 68-5    follows:

 68-6          (c)  With the consent of the board, the governing body of the

 68-7    city shall be authorized, by a vote of not less than two-thirds of

 68-8    the entire membership, to adopt an ordinance dissolving the

 68-9    district.  Upon the adoption of such an ordinance the district

68-10    shall be dissolved, and, in accordance with Chapter 128, Acts of

68-11    the 50th Legislature, 1947 (section 43.074, Texas Local Government

68-12    Code), the city shall:

68-13                (1)  succeed to the property and assets of the

68-14    district;

68-15                (2)  assume all debts, obligations and liabilities of

68-16    the district; and

68-17                (3)  enforce any applicable land uses imposed through

68-18    the zoning authority of the district.

68-19          7.  Add a new subsection (d) to Section 17 as following:

68-20          (d)  If the district does not issue bonds or commence a land

68-21    acquisition program by September 1, 1998, the city council by

68-22    majority vote may thereafter dissolve the district at any time

68-23    before the district issues bonds.

68-24          8.  Substitute in lieu of Section 18 the following:

68-25          SECTION 18.  POWERS OF THE CITY.  Except as provided herein,

68-26    the creation of the district, the exercise of its powers and duties

68-27    within its boundaries, or the issuance of its bonds or the levy of

 69-1    any taxes within its boundaries will have no effect on the power or

 69-2    authority of the city to exercise its powers and duties within its

 69-3    boundaries or extraterritorial jurisdiction, or to issue its bonds

 69-4    or levy its taxes within its boundaries, including within the

 69-5    portion of the city's boundaries or extraterritorial jurisdiction

 69-6    which lies within the district.  After zoning regulations, a

 69-7    comprehensive plan, or other district regulations have been adopted

 69-8    by the district, the city may not adopt regulations or ordinances

 69-9    regulating the matters regulated by the district.  It is the

69-10    intention of the legislature that only one entity be responsible

69-11    for regulating matters within the district, and after regulations

69-12    are approved by the district, further oversight by the city of the

69-13    matters regulated by the district is duplicative of the district's

69-14    regulatory authority and an unnecessary burden on the residents and

69-15    property owners in the district.

69-16                                                                 Counts

69-17                         COMMITTEE AMENDMENT NO. 2

69-18          Amend H.B. 3571 as follows:

69-19    On page 12, strike line 9 through line 24. 

69-20    On page 13, strike line 1 through 11. 

69-21    On page 24, line 6, strike, "Southeast", and insert, "East"

69-22    On page 24, strike, lines 7 through 24. 

69-23    On page 25, strike, lines 1 through 11. 

69-24                                                                 Counts