By Fraser                                             S.B. No. 1822
         76R6261 BDH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operations, and financing of Horseshoe Bay Water Control and
 1-4     Improvement District No. 1, Horseshoe Bay Water Control and
 1-5     Improvement District No. 2, and Horseshoe Bay Water Control and
 1-6     Improvement District No. 3; granting authority for taxation and
 1-7     bonds and the power of eminent domain.
 1-8           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-9           ARTICLE 1.  HORSESHOE BAY WATER CONTROL AND IMPROVEMENT
1-10                               DISTRICT NO. 1
1-11           SECTION 1.01.  CREATION.  (a)  A conservation and reclamation
1-12     district, to be known as Horseshoe Bay Water Control and
1-13     Improvement District No. 1, is created in Llano and Burnet
1-14     Counties, subject to approval at a confirmation election under
1-15     Section 1.09 of this article.  The district is a governmental
1-16     agency and a body politic and corporate.
1-17           (b)  The district is created under and is essential to
1-18     accomplish the purposes of Section 59, Article XVI, Texas
1-19     Constitution.
1-20           SECTION 1.02.  DEFINITIONS.  In this article:
1-21                 (1)  "Commission" means the Texas Natural Resource
1-22     Conservation Commission.
1-23                 (2)  "District" means Horseshoe Bay Water Control and
1-24     Improvement District No. 1.
 2-1           SECTION 1.03.  BOUNDARIES.  The district includes the
 2-2     territory contained within the following area:
 2-3     BEING 607.97 acres of land comprised of 61.50 acres out of the A.
 2-4     Backus Survey No. 919, Abstract No. 1125 in Llano County; 292.12
 2-5     acres out of the Nicholas Mendez Survey No.  3, Abstract No. 506 in
 2-6     Llano County; 200.10 acres out of the Jno. Darlin Survey No. 4,
 2-7     Abstract No. 170 in Llano County; and 54.25 acres out of the Jno.
 2-8     Darlin Survey No. 4, Abstract No. 248 in Burnet County, Texas; and
 2-9     further being out of that certain 5080.43 acre tract described in
2-10     Deeds to John F. Thomas, et al as recorded in Vol.  89 at Page 385
2-11     of the DEED RECORDS of Llano County, Texas and at Vol. 119 at Page
2-12     639 of the DEED RECORDS of Burnet County, Texas, said 607.97 acres
2-13     being more particularly described as follows:
2-14     BEGINNING at the most northerly Northwest corner of said 5080.43
2-15     acre tract in the westerly line of said Darlin Survey and the
2-16     easterly line of said Mendez Survey, for the most northerly
2-17     Northwest corner hereof;
2-18     THENCE N 89 30' 43" E at 2022.22 ft., cross the East line of Llano
2-19     County, and the East line of Burnet County, and at 2823.54 ft., in
2-20     all to a 1/2 inch iron pin set, for the Northeast corner hereof and
2-21     the Northwest corner of a 480.40 acre tract out of said 5080.43
2-22     acre tract; THENCE S 4 40' 35" W at 2093.34 ft., pass a 1/2 inch
2-23     iron pin set at a northerly Southwest corner of said 480.40 acre
2-24     tract and the Northwest corner of an 85.40 acre tract out of said
2-25     5080.43 acre tract, and at 3932.12 ft., in all to a 1/2 inch iron
2-26     pin set at the Southwest corner of said 85.40 acre tract in the
2-27     northerly right-of-way line of State Highway No. 71, for the
 3-1     Southeast corner hereof;
 3-2     THENCE along said highway right-of-way line in six (6) courses and
 3-3     distances as follows:
 3-4           1)    along a curve to the left of radius 3665.93 ft.,
 3-5                 central angle 8 43' 49", and along chord bearing S 78
 3-6                 43' 06" W 558.05 ft., a concrete highway monument,
 3-7                 whence a point in the easterly line of Llano County and
 3-8                 the westerly line of Burnet County bears N 75 33' 22" E
 3-9                 154.0 ft., and a 1/2 inch iron pin set in a stone mound
3-10                 found on said County Line bears additionally S 1 11'
3-11                 16" E 879.50 ft.;
3-12           2)    S 74 21' 10" W 3892.06 ft., a concrete highway
3-13                 monument;
3-14           3)    along a curve to right of radius 5638.72 ft., central
3-15                 angle 4 29' 46", and along chord bearing S 76 36' 04" W
3-16                 442.37 ft., a concrete highway monument;
3-17           4)    S 78 50' 58" W 2208.94 ft., a concrete highway
3-18                 monument;
3-19           5)    along a curve to the right of radius 3730.24 ft.,
3-20                 central angle 17 29' 00", and along chord bearing S 87
3-21                 35' 27" W 1133.84 ft., a concrete highway monument; and
3-22           6)    N 83 40' 03" W 3456.10 ft., to a 1/2 inch iron pin
3-23                 found, for the Southwest corner hereof in the westerly
3-24                 line of said 5080.43 acre tract;
3-25     THENCE N 0 24' 22" W 1566.00 FT., TO A SOUTHERLY Northwest corner
3-26     of said 5080.43 acre tract and hereof;
3-27     THENCE N 88 48' 44" E 9002.00 ft., to a reentrant corner of said
 4-1     5080.43 acre tract and hereof;
 4-2     THENCE N 0 30' 42" W 3497.61 ft., to the Place of BEGINNING hereof
 4-3     and containing 607.97 acres of land.
 4-4           SECTION 1.04.  FINDINGS RELATING TO BOUNDARIES.  The
 4-5     legislature finds that the boundaries and field notes of the
 4-6     district form a closure.  A mistake in the field notes or in
 4-7     copying the field notes in the legislative process does not affect
 4-8     the organization, existence, or validity of the district, the right
 4-9     of the district to levy and collect taxes, or the legality or
4-10     operation of the district or its governing body.
4-11           SECTION 1.05.  FINDING OF BENEFIT.  All of the land and other
4-12     property included within the boundaries of the district will be
4-13     benefited by the works and projects that are to be accomplished by
4-14     the district under the powers conferred by Section 59, Article XVI,
4-15     Texas Constitution.  The district is created to serve a public use
4-16     and benefit.
4-17           SECTION 1.06.  POWERS.  (a)  The district has all of the
4-18     rights, powers, privileges, authority, functions, and duties
4-19     provided by the general law of this state, including Chapters 49
4-20     and 51, Water Code, applicable to water control and improvement
4-21     districts created under Section 59, Article XVI, Texas
4-22     Constitution.  This article prevails over any provision of general
4-23     law that is in conflict or inconsistent with this article.
4-24           (b)  The rights, powers, privileges, authority, functions,
4-25     and duties of the district are subject to the continuing right of
4-26     supervision of the state to be exercised by and through the
4-27     commission.
 5-1           SECTION 1.07.  BOARD OF DIRECTORS.  (a)  The district is
 5-2     governed by a board of five directors.
 5-3           (b)  Temporary directors serve until initial permanent
 5-4     directors are elected under Section 1.09 of this article.
 5-5           (c)  Initial permanent directors serve until permanent
 5-6     directors are elected under Section 1.10 of this article.
 5-7           (d)  Permanent directors other than initial permanent
 5-8     directors serve staggered four-year terms.
 5-9           (e)  Each director must qualify to serve as director in the
5-10     manner provided by Section 49.055, Water Code.
5-11           (f)  A director serves until the director's successor has
5-12     qualified.
5-13           SECTION 1.08.  TEMPORARY DIRECTORS.  (a)  The temporary board
5-14     of directors is composed of:
5-15                 (1)  Shelton Thibodeaux;
5-16                 (2)  Charlie Tenbush;
5-17                 (3)  Dick Tips;
5-18                 (4)  Michael Mallick; and
5-19                 (5)  Doug Willoughby.
5-20           (b)  If a temporary director fails to qualify for office, the
5-21     temporary directors who have qualified shall appoint a person to
5-22     fill the vacancy.  If at any time there are fewer than three
5-23     qualified temporary directors, the commission shall appoint the
5-24     necessary number of persons to fill all vacancies on the board.
5-25           SECTION 1.09.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
5-26     The temporary board of directors shall call and hold an election to
5-27     confirm establishment of the district and to elect five initial
 6-1     directors as provided by Chapter 49, Water Code.
 6-2           SECTION 1.10.  ELECTION OF DIRECTORS.  On the first Saturday
 6-3     in May of the fourth year after the year in which the confirmation
 6-4     election is held, an election shall be held in the district for the
 6-5     election of two directors who shall serve two-year terms and three
 6-6     directors who shall serve four-year terms.  Thereafter, on the same
 6-7     date in each subsequent second year, the appropriate number of
 6-8     directors shall be elected to the board.
 6-9           SECTION 1.11.  PROHIBITION AGAINST IMPAIRMENT OF DISTRICT.  A
6-10     municipality in whose extraterritorial jurisdiction the district is
6-11     located may not adopt an ordinance or resolution or take any other
6-12     action that:
6-13                 (1)  impairs the ability of the district to exercise
6-14     its powers under this article; or
6-15                 (2)  limits the ability of the district to finance,
6-16     construct, or operate its water, wastewater, or drainage systems.
6-17           SECTION 1.12.  ANNEXATION.  (a)  The district may be annexed
6-18     by a municipality on the earlier of:
6-19                 (1)  the date of installation of 90 percent of all
6-20     works, improvements, facilities, plants, equipment, and appliances
6-21     necessary and adequate to:
6-22                       (A)  provide service to the proposed development
6-23     within the district;
6-24                       (B)  accomplish the purposes for which the
6-25     district was created; and
6-26                       (C)  exercise the powers provided by the general
6-27     law of this state and this article; or
 7-1                 (2)  the 20th anniversary of the date the district is
 7-2     confirmed.
 7-3           (b)  The district may add or exclude land or divide into two
 7-4     or more districts, in the manner provided by Chapters 49 and 51,
 7-5     Water Code, without the consent of any municipality.
 7-6           SECTION 1.13.  REIMBURSEMENT TO LANDOWNER OR DEVELOPER;
 7-7     INSTALLATION OF FACILITIES.  If a municipality in whose
 7-8     extraterritorial jurisdiction the district is located annexes the
 7-9     district for full or limited purposes and the annexation precludes
7-10     or impairs the ability of the district to issue bonds, the
7-11     municipality shall:
7-12                 (1)  simultaneously with the annexation, pay in cash to
7-13     the landowner or developer of the district a sum equal to all
7-14     actual costs and expenses incurred by the landowner or developer in
7-15     connection with the district that the district has, in writing,
7-16     agreed to pay and that would otherwise have been eligible for
7-17     reimbursement from bond proceeds under the rules and requirements
7-18     of the commission as such rules and requirements exist on the date
7-19     of annexation; and
7-20                 (2)  after the annexation, install all necessary water,
7-21     wastewater, and drainage facilities to serve full buildout of
7-22     development within the district.
7-23           ARTICLE 2.  HORSESHOE BAY WATER CONTROL AND IMPROVEMENT
7-24                               DISTRICT NO. 2
7-25           SECTION 2.01.  CREATION.  (a)  A conservation and reclamation
7-26     district, to be known as Horseshoe Bay Water Control and
7-27     Improvement District No. 2, is created in Llano County, subject to
 8-1     approval at a confirmation election under Section 2.09 of this
 8-2     article.  The district is a governmental agency and a body politic
 8-3     and corporate.
 8-4           (b)  The district is created under and is essential to
 8-5     accomplish the purposes of Section 59, Article XVI, Texas
 8-6     Constitution.
 8-7           SECTION 2.02.  DEFINITIONS.  In this article:
 8-8                 (1)  "Commission" means the Texas Natural Resource
 8-9     Conservation Commission.
8-10                 (2)  "District" means Horseshoe Bay Water Control and
8-11     Improvement District No. 2.
8-12           SECTION 2.03.  BOUNDARIES.  The district includes the
8-13     territory contained within the following area:
8-14     Field notes of 755.794 acres of land (756.169 acres) out of the
8-15     Madison Putman Survey No.  672, Abstract No. 587, the A. Murchison
8-16     Survey No. 85, Abstract No. 556, the J. McFarland Survey No. 1005,
8-17     Abstract No. 555 and the Nicholas Mendez Survey No. 3, Abstract No.
8-18     506 of Llano County, Texas, and consisting of all of those certain
8-19     548.638 acres conveyed to Norman C. Hurd, Trustee # 1, recorded in
8-20     Volume 385, Page 176, 0.372 acre conveyed to Norman C. Hurd,
8-21     Trustee # 1, recorded in Volume 385, Page 173, 11.036 acres
8-22     conveyed to Norman C. Hurd, Trustee # 1, recorded in Volume 408,
8-23     Page 7, 183.898 acres conveyed to Norman C. Hurd, Trustee # 1,
8-24     recorded in Volume 384, Page 148, 12.085 acres conveyed to Norman
8-25     C. Hurd, Trustee # 1, recorded in Volume 636, Page 168 and 0.141
8-26     acre of the tract conveyed to Norman C. Hurd, Trustee # 1, recorded
8-27     in Volume 408, Page 7 all of which are recorded in the Llano County
 9-1     Deed Records, Llano County, Texas, and also containing that certain
 9-2     Tract "XX", the plat of which is recorded in Volume 9, Page 89 and
 9-3     that certain Tract "YY", the plat of which is recorded in Volume 8,
 9-4     Page 90 both of which are recorded in the Llano County Plat
 9-5     Records, Llano County, Texas.
 9-6     Beginning at a point in the West line of that certain Horseshoe
 9-7     Bay, Plat No. 24.1, the plat of which is recorded in Volume 2, Page
 9-8     73 of the Llano County Plat Records, being the most Southerly
 9-9     Southeast corner of that certain Horseshoe Bay, Plat No. 23.4, the
9-10     plat of which is recorded in Volume 2, Page 94 of the Llano County
9-11     Plat Records, and also being the Northeast corner of said 548.638
9-12     acres, and the Northeast corner of said Tract "XX",
9-13     Thence with the East line of said 548.638 acres and the West line
9-14     of said Plat No. 24.1, Ll.  South 01 degrees 04 minutes 38 seconds
9-15     East 400.87 ft.,
9-16     Thence L2. South 50 degrees 48 minutes 24 seconds East 67.50 ft. a
9-17     point in the South line of Lot No. 24125 in the North line of That
9-18     Away and being in a curve to the left, from which point the radius
9-19     point of said curve bears South 50 degrees 48 minutes 08 seconds
9-20     East 50.00 ft.,
9-21     Thence continuing with the East line of said 548.638 acres, and
9-22     said curve to the left, C1.  the radius of which is 50.00 ft.,
9-23     through a delta angle of 132 degrees 05 minutes 23 seconds, an arc
9-24     of 115.27 ft. and a chord bearing and distance of South 26 degrees
9-25     50 minutes 50 seconds East 91.39 ft. to a point for the end of said
9-26     curve to the left,
9-27     Thence continuing with the East line of said 548.638 acres L3.
 10-1    North 87 degrees 06 minutes 29 seconds East 21.93 ft. to the
 10-2    beginning point of a curve to the right, from which point the
 10-3    radius point of said curve bears North 63 degrees 21 minutes 16
 10-4    seconds West 374.33 ft.,
 10-5    Thence continuing with the East line of said 548.638 acres and said
 10-6    curve to the right, C2.  the radius of which is 374.33 ft., through
 10-7    a delta angle of 04 degrees 27 minutes 15 seconds, an arc of 29.10
 10-8    ft. and a chord bearing and distance of South 28 degrees 52 minutes
 10-9    22 seconds West 29.09 ft.,
10-10    Thence continuing with the East line of said 548.638 acres L4.
10-11    South 31 degrees 05 minutes 59 seconds West 41.45 ft. a point
10-12    therein, for the beginning point of a curve to the left, from which
10-13    point the radius point of said curve bears South 01 degrees 05
10-14    minutes 48 seconds West 50.00 ft.,
10-15    Thence continuing with the East line of said 548.638 acres and said
10-16    curve to the left, C3. the radius of which is 50.00 ft., through a
10-17    delta angle of 119 degrees 35 minutes 16 seconds, an arc of 104.36
10-18    ft. and a chord bearing and distance of South 31 degrees 18 minutes
10-19    10 seconds West 86.42 ft. to a point therein, in the North line of
10-20    that certain Lot No.  24126 as shown on said Plat No. 24.1,
10-21    Thence continuing with the East line of said 548.638 acres L5.
10-22    South 61 degrees 30 minutes 32 seconds West 34.10 ft., and L6.
10-23    South 01 degrees 04 minutes 38 seconds East 1142.34 ft.  to the
10-24    Southwest corner of said Plat No. 24.1 and the Northwest corner of
10-25    Horseshoe Bay, Plat No. 27.1, recorded in Volume 2, Page 81 of the
10-26    Llano County Plat Records,
10-27    Thence L7. South 77 degrees 51 minutes 56 seconds East 136.98 ft.
 11-1    the Northeast corner of said 0.372 acre, in the West line of Hi
 11-2    Mesa, a 50 ft. wide road and being in a curve to the left, from
 11-3    which point the radius point of said curve bears South 62 degrees
 11-4    23 minutes 09 seconds East 131.58 ft.,
 11-5    Thence with the East line of said 0.372 acre, the West line of said
 11-6    Hi Mesa and said curve to the left, C4. the radius of which is
 11-7    131.58 ft., through a delta angle of 58 degrees 45 minutes 11
 11-8    seconds, an arc of 134.93 ft. and a chord bearing and distance of
 11-9    South 01 degrees 45 minutes 44 seconds East 129.09 ft. to a point
11-10    for the end point of said curve,
11-11    Thence continuing with the East line of said 0.372 acre, and the
11-12    West line of said Hi Mesa L8. South 31 degrees 08 minutes 21
11-13    seconds East 6.08 ft. the Southeast corner of said 0.372 acre,
11-14    Thence with the South line of said 0.372 acre and an extension of
11-15    same L9.  South 88 degrees 55 minutes 24 seconds West 137.94 ft. a
11-16    point in the East line of said 548.638 acres, being in the West
11-17    line of said Horseshoe Bay, Plat No. 27.1,
11-18    Thence with the East line of said 548.638 acres L10.  South 01
11-19    degrees 04 minutes 39 seconds East 365.86 ft. and Lll.  South 68
11-20    degrees 22 minutes 24 seconds East 65.53 ft. a point in the West
11-21    line of said Hi Mesa and being in a curve to the left, from which
11-22    point the radius point of said curve bears South 45 degrees 34
11-23    minutes 44 seconds East 143.55 ft.,
11-24    Thence continuing with the East line of said 548.638 acres, the
11-25    West line of said Hi Mesa and said curve to the left, C5. the
11-26    radius of which is 143.55 ft., through a delta angle of 45 degrees
11-27    44 minutes 11 seconds, an arc of 114.59 ft. and a chord bearing and
 12-1    distance of South 21 degrees 33 minutes 10 seconds West 111.57 ft.,
 12-2    Thence continuing with the East line of said 548.638 acres and the
 12-3    West line of said Hi Mesa L12.  South 01 degrees 18 minutes 55
 12-4    seconds East 570.77 ft. to a point being the beginning point of a
 12-5    curve to the left, from which point the radius point of said curve
 12-6    bears North 88 degrees 41 minutes 05 seconds East 120.87 ft.,
 12-7    Thence continuing with the East line of said 548.638 acres, the
 12-8    West line of said Hi Mesa and said curve to the left, C6. the
 12-9    radius of which is 120.87 ft., through a delta angle of 43 degrees
12-10    40 minutes 03 seconds, an arc of 92.12 ft. and a chord bearing and
12-11    distance of South 23 degrees 08 minutes 57 seconds East 89.91 ft. a
12-12    point therein, in the North line of that certain Lot No. 27091 as
12-13    shown on said Plat No. 27.1,
12-14    Thence leaving said Hi Mesa with the East line of said 548.638
12-15    acres L13.  South 45 degrees 01 minutes 06 seconds West 74.49 ft.,
12-16    L14.  South 01 degrees 11 minutes 24 seconds East 708.24 ft., L15.
12-17    South 18 degrees 35 minutes 21 seconds West 250.82 ft., L16.  South
12-18    67 degrees 47 minutes 35 seconds East 41.76 ft., L17.  South 72
12-19    degrees 28 minutes 58 seconds East 148.26 ft., L18.  South 54
12-20    degrees 36 minutes 20 seconds East 19.33 ft., L19. South 07 degrees
12-21    10 minutes 29 seconds East 404.01 ft., L20.  South 25 degrees 32
12-22    minutes 27 seconds West 337.42 ft., and L21.  South 00 degrees 19
12-23    minutes 38 seconds West 241.19 ft. the Southeast corner of said
12-24    548.638 acres and the Southeast corner of said Tract "XX",
12-25    Thence with the South line of said 548.638 acres L22. South 88
12-26    degrees 54 minutes 58 seconds West 389.56 ft., L23.  South 71
12-27    degrees 07 minutes 57 seconds West 311.71 ft., L24.  North 89
 13-1    degrees 08 minutes 17 seconds West 94.55 ft., L25.  South 74
 13-2    degrees 19 minutes 29 seconds West 154.84 ft., L26. North 18
 13-3    degrees 02 minutes 37 seconds West 137.75 ft., L27.  South 88
 13-4    degrees 35 minutes 41 seconds West 823.06 ft., L28.  South 88
 13-5    degrees 48 minutes 56 seconds West 1914.18 ft., and L29.  South 88
 13-6    degrees 41 minutes 00 seconds West 1271.66 ft. the most Southerly
 13-7    Southwest corner of said 548.638 acres and the most Southerly
 13-8    Southwest corner of said Tract "XX",
 13-9    Thence with a West line of said 548.638 acres L30.  North 01
13-10    degrees 20 minutes 23 seconds West 1303.84 ft., L31.  North 11
13-11    degrees 01 minutes 25 seconds West 146.71 ft., L32.  North 01
13-12    degrees 19 minutes 19 seconds West 626.66 ft., L33.  North 01
13-13    degrees 10 minutes 40 seconds West 293.93 ft., and L34. North 88
13-14    degrees 21 minutes 44 seconds West 469.18 ft.  the most Westerly
13-15    Southwest corner of said 548.638 acres and the Southeast corner of
13-16    said 183.898 acres, the most Westerly Southwest corner of said
13-17    Tract "XX" and the Southeast corner of said Tract "YY",
13-18    Thence with the South line of said 183.898 acres and the South line
13-19    of said 11.036 acres L35.  North 88 degrees 24 minutes 37 seconds
13-20    West 702.82 ft., L36. North 88 degrees 28 minutes 02 seconds West
13-21    645.20 ft., L37. North 88 degrees 26 minutes 07 seconds West 378.92
13-22    ft., L38.  North 88 degrees 57 minutes 45 seconds West 155.89 ft.,
13-23    L39. North 87 degrees 29 minutes 03 seconds West 73.04 ft., the
13-24    Southeast corner of said 11.036 acres and the most Southerly
13-25    Southwest corner of said Tract "YY",
13-26    Thence with the South line of said 11.036 acres L40.  North 88
13-27    degrees 26 minutes 02 seconds West 1372.42 ft. to the Southwest
 14-1    corner of same,
 14-2    Thence with the West line of said 11.036 acres and the West line of
 14-3    said 183.898 acres, L41.  North 00 degrees 55 minutes 10 seconds
 14-4    West 142.41 ft., L42. North 31 degrees 42 minutes 39 seconds East
 14-5    21.31 ft., L43.  North 03 degrees 49 minutes 33 seconds West 114.17
 14-6    ft., L44.  North 04 degrees 09 minutes 53 seconds East 34.85 ft.,
 14-7    L45. North 65 degrees 22 minutes 51 seconds West 8.43 ft., L46.
 14-8    North 00 degrees 24 minutes 50 seconds West 145.92 ft., L47.  North
 14-9    00 degrees 19 minutes 56 seconds West 59.31 ft., L48. North 33
14-10    degrees 14 minutes 26 seconds East 144.21 ft., and L49.  North 68
14-11    degrees 39 minutes 43 seconds West 18.53 ft.  a point being the
14-12    beginning point of a curve to the right, from which point the
14-13    radius point of said curve bears North 21 degrees 20 minutes 16
14-14    seconds East 102.99 ft.,
14-15    Thence continuing with the West line of said 183.898 acres and said
14-16    curve to the right, C7.  the radius of which is 102.99 ft., through
14-17    a delta angle of 44 degrees 34 minutes 13 seconds, an arc of 80.12
14-18    ft. and a chord bearing and distance of North 46 degrees 22 minutes
14-19    38 seconds West 78.11 ft. to the end point of said curve,
14-20    Thence continuing with the West line of said 183.898 acres and an
14-21    extension of same L50.  North 24 degrees 05 minutes 31 seconds West
14-22    186.49 ft. the Northwest corner of said 0.141 acre and the
14-23    Northwest corner of said Tract "YY", in the South line of R. M.
14-24    Highway No.  2147,
14-25    Thence with the South line of said R. M. Highway No. 2147 L51.
14-26    North 59 degrees 02 minutes 12 seconds East 55.18 ft. a point being
14-27    the Northwest corner of that certain 1.040 acre conveyed to Gib
 15-1    Shackleford, recorded in Volume 347, Page 115 of the Llano County
 15-2    Deed Records,
 15-3    Thence L52. South 24 degrees 05 minutes 34 seconds East 193.09 ft.
 15-4    the Southwest corner of said 1.040 acre,
 15-5    Thence L53. North 59 degrees 02 minutes 12 seconds East 247.92 ft.
 15-6    the Southeast corner of said 1.040 acre,
 15-7    Thence L54. North 30 degrees 57 minutes 48 seconds West 191.70 ft.
 15-8    the Northeast corner of said 1.040 acre in the South line of R. M.
 15-9    Highway No. 2147, the North line of said 183.898 acres and the
15-10    North line of said Tract "YY",
15-11    Thence with the south line of said R. M. Highway No. 2147 the North
15-12    line of said Tract "YY" and the North line of said 183.898 acres
15-13    L55.  North 59 degrees 02 minutes 12 seconds East 3407.55 ft. to
15-14    the beginning point of a curve to the right, from which point the
15-15    radius point of said curve bears South 30 degrees 56 minutes 55
15-16    seconds East 1860.38 ft.,
15-17    Thence continuing with the South line of said R. M. Highway No.
15-18    2147, the North line of said Tract "YY", the North line of said
15-19    183.898 acres and said curve to the right, C9. the radius of which
15-20    is 1860.38 ft., through a delta angle of 29 degrees 17 minutes 23
15-21    seconds, an arc of 948.22 ft. and a chord bearing and distance of
15-22    North 73 degrees 41 minutes 46 seconds East 940.71 ft. to the end
15-23    point of said curve to the right, being the Northeast corner of
15-24    said 183.898 acres and the Northwest corner of said 12.085 acres,
15-25    the Northeast corner of said Tract "YY",
15-26    Thence continuing with the South line of said R. M. Highway No.
15-27    2147, and the North line of said 12.085 acres L60. North 88 degrees
 16-1    18 minutes 41 seconds East 1294.09 ft. the beginning point of a
 16-2    curve to the left, from which point the radius point of said curve
 16-3    bears North 01 degrees 48 minutes 50 seconds West 1956.42 ft.,
 16-4    Thence continuing with the South line of said R. M. Highway No.
 16-5    2147, the North line of said 12.085 acres and said curve to the
 16-6    left, C8. the radius of which is 1956.42 ft., through a delta angle
 16-7    of 02 degrees 58 minutes 49 seconds, an arc of 101.76 ft. and a
 16-8    chord bearing and distance of North 89 degrees 40 minutes 34
 16-9    seconds East 101.75 ft. the Northeast corner of said 12.085 acres
16-10    and the Northwest corner of that certain L.C.R.A. Tract 3, 6.005
16-11    acres recorded in Volume 173, Page 740 of the Llano County Deed
16-12    Records,
16-13    Thence with the East line of said 12.085 acres and the West line of
16-14    said 6.005 acres L61.  South 14 degrees 09 minutes 41 seconds East
16-15    360.20 ft. the Southeast corner of said 12.085 acres, the Southwest
16-16    corner of said 6.005 acres and being a point on the North line of
16-17    that certain 34.545 acres conveyed to Glenn Salem, Trustee,
16-18    recorded in Volume 527, Page 321 of the Llano County Deed Records,
16-19    Thence with the South line of said 12.085 acres and the North line
16-20    of said 34.545 acres L62.  South 50 degrees 25 minutes 59 seconds
16-21    West 94.08 ft. the most Westerly corner of said 34.545 acres in the
16-22    North line of said 548.638 acres,
16-23    Thence with the North line of said 548.638 acres, the North line of
16-24    said Tract "XX" and the Southwest line of said 34.545 acres L63.
16-25    South 39 degrees 51 minutes 56 seconds East 1461.46 ft. the most
16-26    Southerly corner of same,
16-27    Thence continuing with the North line of said 548.638 acres, the
 17-1    North line of said Tract "XX" and the Southeast line of said 34.545
 17-2    acres L64.  North 50 degrees 04 minutes 42 seconds East 1862.25
 17-3    ft., and L65.  North 01 degrees 28 minutes 05 seconds West 34.29
 17-4    ft.  the Northeast corner of said 34.545 acres in the South line of
 17-5    Horseshoe Bay, Plat No. 23.4, the plat of which is recorded in
 17-6    Volume 2, Page 94 of the Llano County Plat Records,
 17-7    Thence with the South line of said Plat No. 23.4, the North line of
 17-8    said Tract "XX" and the North line of said 548.638 acres L66. North
 17-9    89 degrees 33 minutes 03 seconds East 996.10 ft. to the place of
17-10    beginning.
17-11          SECTION 2.04.  FINDINGS RELATING TO BOUNDARIES.  The
17-12    legislature finds that the boundaries and field notes of the
17-13    district form a closure.  A mistake in the field notes or in
17-14    copying the field notes in the legislative process does not affect
17-15    the organization, existence, or validity of the district, the right
17-16    of the district to levy and collect taxes, or the legality or
17-17    operation of the district or its governing body.
17-18          SECTION 2.05.  FINDING OF BENEFIT.  All of the land and other
17-19    property included within the boundaries of the district will be
17-20    benefited by the works and projects that are to be accomplished by
17-21    the district under the powers conferred by Section 59, Article XVI,
17-22    Texas Constitution.  The district is created to serve a public use
17-23    and benefit.
17-24          SECTION 2.06.  POWERS.  (a)  The district has all of the
17-25    rights, powers, privileges, authority, functions, and duties
17-26    provided by the general law of this state, including Chapters 49
17-27    and 51, Water Code, applicable to water control and improvement
 18-1    districts created under Section 59, Article XVI, Texas
 18-2    Constitution.  This article prevails over any provision of general
 18-3    law that is in conflict or inconsistent with this article.
 18-4          (b)  The rights, powers, privileges, authority, functions,
 18-5    and duties of the district are subject to the continuing right of
 18-6    supervision of the state to be exercised by and through the
 18-7    commission.
 18-8          SECTION 2.07.  BOARD OF DIRECTORS.  (a)  The district is
 18-9    governed by a board of five directors.
18-10          (b)  Temporary directors serve until initial permanent
18-11    directors are elected under Section 2.09 of this article.
18-12          (c)  Initial permanent directors serve until permanent
18-13    directors are elected under Section 2.10 of this article.
18-14          (d)  Permanent directors other than initial permanent
18-15    directors serve staggered four-year terms.
18-16          (e)  Each director must qualify to serve as director in the
18-17    manner provided by Section 49.055, Water Code.
18-18          (f)  A director serves until the director's successor has
18-19    qualified.
18-20          SECTION 2.08.  TEMPORARY DIRECTORS.  (a)  The temporary board
18-21    of directors is composed of:
18-22                (1)  Glena Yates;
18-23                (2)  Steve Bartholomew;
18-24                (3)  Mike Smith;
18-25                (4)  Val White; and
18-26                (5)  Sandy Senter.
18-27          (b)  If a temporary director fails to qualify for office, the
 19-1    temporary directors who have qualified shall appoint a person to
 19-2    fill the vacancy.  If at any time there are fewer than three
 19-3    qualified temporary directors, the commission shall appoint the
 19-4    necessary number of persons to fill all vacancies on the board.
 19-5          SECTION 2.09.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
 19-6    The temporary board of directors shall call and hold an election to
 19-7    confirm establishment of the district and to elect five initial
 19-8    directors as provided by Chapter 49, Water Code.
 19-9          SECTION 2.10.  ELECTION OF DIRECTORS.  On the first Saturday
19-10    in May of the fourth year after the year in which the confirmation
19-11    election is held, an election shall be held in the district for the
19-12    election of two directors who shall serve two-year terms and three
19-13    directors who shall serve four-year terms.  Thereafter, on the same
19-14    date in each subsequent second year, the appropriate number of
19-15    directors shall be elected to the board.
19-16          SECTION 2.11.  PROHIBITION AGAINST IMPAIRMENT OF DISTRICT.  A
19-17    municipality in whose extraterritorial jurisdiction the district is
19-18    located may not adopt an ordinance or resolution or take any other
19-19    action that:
19-20                (1)  impairs the ability of the district to exercise
19-21    its powers under this article; or
19-22                (2)  limits the ability of the district to finance,
19-23    construct, or operate its water, wastewater, or drainage systems.
19-24          SECTION 2.12.  ANNEXATION.  (a)  The district may be annexed
19-25    by a municipality on the earlier of:
19-26                (1)  the date of installation of 90 percent of all
19-27    works, improvements, facilities, plants, equipment, and appliances
 20-1    necessary and adequate to:
 20-2                      (A)  provide service to the proposed development
 20-3    within the district;
 20-4                      (B)  accomplish the purposes for which the
 20-5    district was created; and
 20-6                      (C)  exercise the powers provided by the general
 20-7    law of this state and this article; or
 20-8                (2)  the 20th anniversary of the date the district is
 20-9    confirmed.
20-10          (b)  The district may add or exclude land or divide into two
20-11    or more districts, in the manner provided by Chapters 49 and 51,
20-12    Water Code, without the consent of any municipality.
20-13          SECTION 2.13.  REIMBURSEMENT TO LANDOWNER OR DEVELOPER;
20-14    INSTALLATION OF FACILITIES.  If a municipality in whose
20-15    extraterritorial jurisdiction the district is located annexes the
20-16    district for full or limited purposes and the annexation precludes
20-17    or impairs the ability of the district to issue bonds, the
20-18    municipality shall:
20-19                (1)  simultaneously with the annexation, pay in cash to
20-20    the landowner or developer of the district a sum equal to all
20-21    actual costs and expenses incurred by the landowner or developer in
20-22    connection with the district that the district has, in writing,
20-23    agreed to pay and that would otherwise have been eligible for
20-24    reimbursement from bond proceeds under the rules and requirements
20-25    of the commission as such rules and requirements exist on the date
20-26    of annexation; and
20-27                (2)  after the annexation, install all necessary water,
 21-1    wastewater, and drainage facilities to serve full buildout of
 21-2    development within the district.
 21-3          ARTICLE 3.  HORSESHOE BAY WATER CONTROL AND IMPROVEMENT
 21-4                              DISTRICT NO. 3
 21-5          SECTION 3.01.  CREATION.  (a)  A conservation and reclamation
 21-6    district, to be known as Horseshoe Bay Water Control and
 21-7    Improvement District No. 3, is created in Llano County, subject to
 21-8    approval at a confirmation election under Section 3.09 of this
 21-9    article.  The district is a governmental agency and a body politic
21-10    and corporate.
21-11          (b)  The district is created under and is essential to
21-12    accomplish the purposes of Section 59, Article XVI, Texas
21-13    Constitution.
21-14          SECTION 3.02.  DEFINITIONS.  In this article:
21-15                (1)  "Commission" means the Texas Natural Resource
21-16    Conservation Commission.
21-17                (2)  "District" means Horseshoe Bay Water Control and
21-18    Improvement District No. 3.
21-19          SECTION 3.03.  BOUNDARIES.  The district includes the
21-20    territory contained within the following area:
21-21    A 549.969 acre tract of land out of the Levi Mercer Survey No. 2
21-22    consisting of all of that certain 27.002 acre tract of land
21-23    conveyed by James E. Bauerle et. ux. to Sidney S.  McClendon III,
21-24    Trustee, described in a Warranty Deed recorded June 6, 1977 in
21-25    Volume 220, Pages 326-332 of the Llano County Deed Records, a
21-26    portion of that certain 14.93 acre tract of land described as
21-27    Exhibit "C", a portion of that certain 765.315 acre tract of land
 22-1    described as Exhibit "A" and all of that certain Tract Two of
 22-2    192.117 acres in a Warranty Deed from Buena Vista Corporation to
 22-3    Sidney McClendon III, dated August 1, 1977 and recorded in Volume
 22-4    220, Pages 750-760 of the Llano County Deed Records, Llano County,
 22-5    Texas, being the same called 549.972 acre tract conveyed to Morris
 22-6    D. Jaffe, Jr. by Special Warranty Deed with Vendor's Lien, dated
 22-7    September 1, 1996, recorded in Volume 791, Page 45 of the Llano
 22-8    County Official Records of Real Property and being described in
 22-9    three tracts as follows:
22-10                                 TRACT I-A
22-11                  BEING SAME TRACT ONE, CALLED 0.869 ACRE
22-12                     CONVEYED TO MORRIS D. JAFFE, JR. 
22-13                       BY SPECIAL WARRANTY DEED WITH
22-14                   VENDOR'S LIEN DATED SEPTEMBER 1, 1996
22-15               RECORDED IN VOLUME 791, PAGE 45 L.C.O.R.R.P. 
22-16    Beginning at a 1/2" steel stake found in the East right-of-way line
22-17    of Indian Hollow Drive as shown on the plat of Sandy Harbor,
22-18    Section One, recorded in Volume 86, Page 627 of the Llano County
22-19    Deed Records, Llano County, Texas and the West line of said 27.002
22-20    acre tract from which point the Southeast corner of the Levi Mercer
22-21    Survey No. 2 bears South 44 degrees 26 minutes 13 seconds East, a
22-22    distance of 12,798.88 feet and the Southeast corner of said 957.432
22-23    acre tract bears South 25 degrees 20 seconds 46 minutes East, a
22-24    distance of 10,229.49 feet, said 1/2" steel stake being the
22-25    Northwest corner of that certain 0.542 acre tract conveyed by James
22-26    E. Bauerle et. ux. to F. E.  Holloman et. ux. by deed recorded in
22-27    Volume 190, Page 239 of the Llano County Deed Records, Llano
 23-1    County, Texas and the Southwest corner hereof.
 23-2    THENCE with the East right-of-way line of Indian Hollow Drive, the
 23-3    West line of said 27.002 acre tract and the West line hereof with
 23-4    (3) calls as follows:  North 01 degrees 08 minutes 42 seconds East,
 23-5    a distance of 37.37 feet to a 1/2" iron pipe found for the P. C. of
 23-6    a curve to the right, from which the radius point of said curve to
 23-7    the right bears South 88 degrees 47 minutes 14 seconds East, a
 23-8    distance of 876.18 feet;
 23-9    THENCE with said curve in a clockwise direction having a delta
23-10    angle of 08 degrees 53 minutes 19 seconds, an arc distance of
23-11    135.92 feet, a radius of 876.18 feet, and a chord of North 05
23-12    degrees 39 minutes 26 seconds East, a distance of 135.79 feet to a
23-13    3/8" iron pipe found therein for the P. T. of same;
23-14    THENCE North 10 degrees 06 minutes 38 seconds East, a distance of
23-15    145.07 feet to a 3/4" iron pipe found therein for the most
23-16    Northerly corner of said 27.002 acre tract, the Southwest corner of
23-17    that certain Lot No. 1, Block No. 1 of said Sandy Harbor, Section
23-18    One, and the Northwest corner hereof, from which a 1/2 inch iron
23-19    pipe found bears North 05 degrees 14 minutes 53 seconds East 2.22
23-20    ft., a 3/4 inch iron pipe found for the Northwest corner of said
23-21    Lot No. 1 bears North 10 degrees 34 minutes 18 seconds East 89.91
23-22    ft. (called North 10 degrees 40 minutes 25 seconds East 89.99 ft.
23-23    in Vol. 86, Pg. 627 L.C.D.R.);
23-24    THENCE leaving the East right-of-way line of said Indian Hollow
23-25    Drive with the South line of said Lot No. 1 and the North line
23-26    hereof South 79 degrees 53 minutes 22 seconds East, at a distance
23-27    of 96.97 feet pass 0.15 ft. South of a 1/2" steel stake found, at
 24-1    116.95 ft.  passing 1.44 ft. North of a 3/8 inch steel stake in
 24-2    concrete found, at 117.04 ft. passing an "X" found on rock (called
 24-3    117.11 ft. in Vol. 86, Pg. 627 L.C.D.R.), in all a total distance
 24-4    of 128.42 feet to a point at the approximate 825.0 ft. contour line
 24-5    of Lake Lyndon B. Johnson for the Northeast corner hereof;
 24-6    (1)  THENCE with the approximate 825.0 ft. contour line of said
 24-7    Lake Lyndon B.  Johnson and the East line hereof with (11) calls as
 24-8    follows:  South 04 degrees 07 minutes 25 seconds West, a distance
 24-9    of 16.45 feet to a point;
24-10    (2)  THENCE South 61 degrees 36 minutes 12 seconds West, a distance
24-11    of 6.70 feet to a point;
24-12    (3)  THENCE South 39 degrees 09 minutes 06 seconds West, a distance
24-13    of 5.54 feet to a point;
24-14    (4)  THENCE South 04 degrees 45 minutes 49 seconds West, a distance
24-15    of 6.96 feet to a point;
24-16    (5)  THENCE South 40 degrees 17 minutes 33 seconds West, a distance
24-17    of 38.10 feet to a point;
24-18    (6)  THENCE South 03 degrees 32 minutes 11 seconds East, a distance
24-19    of 70.03 feet to a point;
24-20    (7)  THENCE South 10 degrees 15 minutes 48 seconds East, a distance
24-21    of 29.95 feet to a point;
24-22    (8)  THENCE South 18 degrees 25 minutes 46 seconds East, a distance
24-23    of 23.35 feet to a point;
24-24    (9)  THENCE South 15 degrees 50 minutes 42 seconds East, a distance
24-25    of 23.55 feet to a point;
24-26    (10)  THENCE South 18 degrees 28 minutes 42 seconds East, a
24-27    distance of 29.80 feet to a point;
 25-1    (11)  THENCE South 21 degrees 43 minutes 46 seconds East, a
 25-2    distance of 19.83 feet to a point in the North line of said 0.542
 25-3    acre tract for the Southeast corner hereof;
 25-4    THENCE with the North line of said 0.542 acre tract and the South
 25-5    line hereof South 76 degrees 09 minutes 16 seconds West, at 8.01
 25-6    ft. passing a 1/2 inch steel stake found, at 172.35 ft. passing a
 25-7    3/4 inch galvanized pipe found and in all a total distance of
 25-8    175.59 feet to the PLACE OF BEGINNING containing 37,844 square feet
 25-9    or 0.869 acres.
25-10                          TRACT I-B, 537.2 ACRES
25-11                BEING SAME TRACT TWO, CALLED 537.164 ACRES
25-12                     CONVEYED TO MORRIS D. JAFFE, JR. 
25-13                       BY SPECIAL WARRANTY DEED WITH
25-14                   VENDOR'S LIEN DATED SEPTEMBER 1, 1996
25-15               RECORDED IN VOLUME 791, PAGE 45 L.C.O.R.R.P. 
25-16    BEGINNING at a 1/2" steel stake found in the west right-of-way line
25-17    of R.  M. Highway No. 2831 for the Northeast corner of that certain
25-18    Tract No. 15 of Quail Ridge Subdivision an unrecorded subdivision
25-19    as described in a deed from Jack L. Carroll and James R. Ellis to
25-20    the Veterans' Land Board of the State of Texas as recorded in
25-21    Volume 239, Page 706 of the Llano County Deed Records, Llano
25-22    County, Texas and the Southeast corner hereof, from which point the
25-23    Southeast corner of the Levi Mercer Survey No. 2 bears South 58
25-24    degrees 04 minutes 09 East, a distance of 9,005.61 and the
25-25    Southeast corner of said 957.432 acre tract bears South 32 degrees
25-26    09 minutes 27 seconds East, a distance of 5,751.49 feet;
25-27    THENCE leaving the West right-of-way line of said R. M. Highway No.
 26-1    2831 along a fence line with the North line of said Tract No. 15,
 26-2    the North line of that certain Tract No. 16 of said Quail Ridge
 26-3    Subdivision as conveyed to Lloyd P. Nelson, recorded in Volume 227,
 26-4    Page 400 of the Llano County Deed Records, Llano County, Texas and
 26-5    the South line hereof South 88 degrees 55 minutes 28 seconds West,
 26-6    a distance of 2,283.01 feet to a 1/2" steel stake found in the East
 26-7    right-of-way line of Llano County Road No. 311 conveyed to the
 26-8    County of Llano recorded in Volume 86, Page 624 of the Llano County
 26-9    Deed Records, for the Northwest corner of said Tract No. 16 and the
26-10    Southwest corner hereof;
26-11    THENCE with the East right-of-way line of said Llano County Road
26-12    No. 311 and the West line hereof with (5) calls as follows:  North
26-13    25 degrees 33 minutes 52 seconds West, a distance of 762.14 feet to
26-14    a 1/2" steel stake set therein for the P. C. of a curve to the
26-15    right, from which the radius point of said curve to the right bears
26-16    North 64 degrees 26 minutes 09 seconds East, a distance of 283.85
26-17    feet;
26-18    THENCE around said curve in a clockwise direction having a delta
26-19    angle of 35 degrees 53 minutes 00 seconds, an arc distance of
26-20    177.77 feet, a radius of 283.85 feet, and a chord of North 07
26-21    degrees 37 minutes 21 seconds West, a distance of 174.88 feet to a
26-22    1/2" steel stake set therein for the P. T. of same;
26-23    THENCE North 10 degrees 19 minutes 09 seconds East, a distance of
26-24    2452.54 feet to a 1/2" steel stake set therein for the P. C. of a
26-25    curve to the left, from which the radius point of said curve to the
26-26    left bears North 79 degrees 40 minutes 51 seconds West, a distance
26-27    of 721.04 feet;
 27-1    THENCE around said curve in a counterclockwise direction having a
 27-2    delta angle of 16 degrees 21 minutes 00 seconds, an arc distance of
 27-3    205.76 feet, a radius of 721.04 feet, and a chord of North 02
 27-4    degrees 08 minutes 39 seconds East, a distance of 205.06 feet to a
 27-5    1/2" steel stake set therein for the P. T. of same;
 27-6    THENCE North 06 degrees 01 minutes 51 seconds West, a distance of
 27-7    89.14 feet to a 1/2" steel stake found therein for the Southeast
 27-8    corner of Indian Hollow Drive as shown on the plat of Sandy Harbor,
 27-9    Section One, recorded in Volume 86, Page 627 of the Llano County
27-10    Plat Records, Llano County, Texas;
27-11    THENCE with the East right-of-way line of said Indian Hollow Drive
27-12    and continuing with the West line hereof North 05 degrees 55
27-13    minutes 58 seconds West, a distance of 260.54 feet to a 1/2" steel
27-14    stake found therein for the P. C. of a curve to the right, from
27-15    which the radius point of said curve to the right bears North 84
27-16    degrees 04 minutes 02 seconds East, a distance of 217.42 feet;
27-17    THENCE around said curve in a clockwise direction having a delta
27-18    angle of 44 degrees 50 minutes 00 seconds, an arc distance of
27-19    170.13 feet, a radius of 217.42 feet, and a chord of North 16
27-20    degrees 29 minutes 02 seconds East, a distance of 165.82 feet to
27-21    1/2" steel stake set therein for the P. T. of same and for the P.
27-22    C. of another curve to the right, from which the radius point of
27-23    said curve to the right bears South 51 degrees 11 minutes 25 East,
27-24    a distance of 527.88 feet;
27-25    THENCE with the Southeast right-of-way line of said Indian Hollow
27-26    Drive, the North line hereof and around said curve in a clockwise
27-27    direction having a delta angle of 24 degrees 06 minutes 18 seconds,
 28-1    an arc distance of 222.08 feet, a radius of 527.88 feet, and a
 28-2    chord of North 50 degrees 51 minutes 44 seconds East, a distance of
 28-3    220.45 feet to 1/2" steel stake found therein for the P. T. of
 28-4    same;
 28-5    THENCE North 63 degrees 02 minutes 02 seconds East, a distance of
 28-6    71.82 feet to a 1/2" iron pipe found therein for the P. C. of a
 28-7    Curve to the right, from which the radius point of said curve to
 28-8    the right bears South 26 degrees 53 minutes 58 seconds East, a
 28-9    distance of 216.42 feet;
28-10    THENCE with the South right-of-way line of said Indian Hollow Drive
28-11    with (4) calls as follows:  around said curve in a clockwise
28-12    direction having a delta angle of 45 degrees 02 minutes 45 seconds,
28-13    an arc distance of 170.15 feet, a radius of 216.42 feet, and a
28-14    chord of North 85 degrees 37 minutes 24 seconds East, a distance of
28-15    165.80 feet to 1/2" steel stake found therein for the P. T. of
28-16    same;
28-17    THENCE South 71 degrees 57 minutes 58 seconds East, a distance of
28-18    156.52 feet to a 3/8" iron pipe found therein for the P. C. of a
28-19    curve to the left, from which the radius point of said curve to the
28-20    left bears North 17 degrees 59 minutes 34 seconds East, a distance
28-21    of 367.56 feet;
28-22    THENCE around said curve in a counterclockwise direction having a
28-23    delta angle of 30 degrees 35 minutes 00 seconds, an arc distance of
28-24    196.20 feet, a radius of 367.56 feet, and a chord of South 87
28-25    degrees 17 minutes 56 seconds East, a distance of 193.88 feet to
28-26    1/2" steel stake found therein for the P. T. of same and for the P.
28-27    C. of another curve to the left, from which the radius point of
 29-1    said curve to the left bears North 12 degrees 35 minutes 26 seconds
 29-2    West, a distance of 144.41 feet;
 29-3    THENCE around said curve in a counterclockwise direction having a
 29-4    delta angle of 24 degrees 41 minutes 33 seconds, an arc distance of
 29-5    62.23 feet, a radius of 144.41 feet, and a chord of North 65
 29-6    degrees 03 minutes 47 seconds East, a distance of 61.76 feet to
 29-7    1/2" steel stake found in a fence therein for the most Westerly
 29-8    corner of that certain 0.240 acre tract of land conveyed by C.
 29-9    Wayne Lewis et. ux. to J. E. Holloman et. ux. as recorded in Volume
29-10    156, Page 51 of the Llano County Deed Records, Llano County, Texas
29-11    and the end of said curve;
29-12    THENCE leaving the South right-of-way line of said Indian Hollow
29-13    Drive with said fence and a projection thereof being the Southwest
29-14    line of said 0.240 acre tract, the Southwest line of that certain
29-15    0.743 acre tract conveyed by James E. Bauerle et. ux. to Archie
29-16    Neubauer et. ux. as recorded in Volume 190, Page 242 of the Llano
29-17    County Deed Records, Llano County, Texas and a Northeasterly line
29-18    hereof South 46 degrees 47 minutes 21 seconds East, a distance of
29-19    177.88 feet to a 1/2" steel stake found in the center of Indian
29-20    Hollow Creek for the most Southerly corner of said 0.743 acre tract
29-21    and an angle point hereof;
29-22    THENCE with the Southeast line of said 0.743 acres tract North 51
29-23    degrees 46 minutes 12 seconds East, a distance of 180.20 feet to a
29-24    1/2" steel stake found therein for an angle point of said 0.743
29-25    acre tract in the center of said creek and an angle point hereof;
29-26    THENCE with the East line of said 0.743 acre tract with (2) calls
29-27    as follows: North 04 degrees 21 minutes 18 seconds East, a distance
 30-1    of 134.51 feet to a 1/2" steel stake found in a stone mound therein
 30-2    in the center of said creek;
 30-3    THENCE North 09 degrees 35 minutes 03 seconds West, a distance of
 30-4    70.80 feet to a drill hole found on rock therein at the approximate
 30-5    825.0 ft. contour line of Lake Lyndon B.  Johnson in the center of
 30-6    said creek for an angle point hereof;
 30-7    (13)  THENCE leaving the East line of said 0.743 acre tract with
 30-8    the approximate 825.0 ft.  contour line of said Lake Lyndon B.
 30-9    Johnson and the Northwest line hereof with (141) calls as follows:
30-10    North 83 degrees 29 minutes 28 seconds East, a distance of 17.27
30-11    feet to a point;
30-12    (14)  THENCE North 12 degrees 24 minutes 15 seconds West, a
30-13    distance of 59.54 feet to a point;
30-14    (15)  THENCE North 13 degrees 03 minutes 59 seconds West, a
30-15    distance of 83.60 feet to a point;
30-16    (16)  THENCE North 15 degrees 48 minutes 57 seconds West, a
30-17    distance of 50.77 feet to a point;
30-18    (17)  THENCE North 15 degrees 00 minutes 06 seconds West, a
30-19    distance of 57.34 feet to a point;
30-20    (18)  THENCE North 00 degrees 03 minutes 54 seconds West, a
30-21    distance of 34.64 feet to a point;
30-22    (19)  THENCE North 07 degrees 34 minutes 38 seconds East, a
30-23    distance of 36.76 feet to a point;
30-24    (20)  THENCE North 67 degrees 14 minutes 53 seconds East, a
30-25    distance of 8.85 feet to a point;
30-26    (21)  THENCE North 35 degrees 22 minutes 36 seconds East, a
30-27    distance of 42.02 feet to a point;
 31-1    (22)  THENCE North 14 degrees 06 minutes 25 seconds East, a
 31-2    distance of 41.59 feet to a point;
 31-3    (23)  THENCE South 81 degrees 55 minutes 46 seconds East, a
 31-4    distance of 6.98 feet to a point;
 31-5    (24)  THENCE North 01 degrees 23 minutes 49 seconds East, a
 31-6    distance of 74.18 feet to a point;
 31-7    (25)  THENCE North 22 degrees 24 minutes 52 seconds East, a
 31-8    distance of 40.54 feet to a point;
 31-9    (26)  THENCE North 27 degrees 14 minutes 44 seconds East, a
31-10    distance of 44.27 feet to a point;
31-11    (27)  THENCE North 40 degrees 58 minutes 18 seconds East, a
31-12    distance of 40.41 feet to a point;
31-13    (28)  THENCE North 78 degrees 52 minutes 18 seconds East, a
31-14    distance of 24.39 feet to a point;
31-15    (29)  THENCE South 67 degrees 23 minutes 33 seconds East, a
31-16    distance of 74.80 feet to a point;
31-17    (30)  THENCE South 44 degrees 12 minutes 51 seconds East, a
31-18    distance of 28.84 feet to a point;
31-19    (31)  THENCE South 53 degrees 05 minutes 55 seconds East, a
31-20    distance of 33.00 feet to a point;
31-21    (32)  THENCE South 58 degrees 09 minutes 55 seconds East, a
31-22    distance of 64.83 feet to a corner of a concrete retaining wall;
31-23    (33)  THENCE with bends in said concrete retaining wall the next
31-24    (38) calls as follows:  South 13 degrees 43 minutes 30 seconds
31-25    West, a distance of 18.00 feet to a point;
31-26    (34)  THENCE South 47 degrees 40 minutes 31 seconds West, a
31-27    distance of 4.32 feet to a point;
 32-1    (35)  THENCE South 76 degrees 48 minutes 57 seconds West, a
 32-2    distance of 44.34 feet to a point;
 32-3    (36)  THENCE South 59 degrees 45 minutes 03 seconds West, a
 32-4    distance of 7.99 feet to a point;
 32-5    (37)  THENCE South 45 degrees 16 minutes 31 seconds West, a
 32-6    distance of 23.62 feet to a point;
 32-7    (38)  THENCE South 40 degrees 31 minutes 00 seconds West, a
 32-8    distance of 7.86 feet to a point;
 32-9    (39)  THENCE South 31 degrees 55 minutes 44 seconds West, a
32-10    distance of 12.57 feet to a point;
32-11    (40)  THENCE South 18 degrees 18 minutes 36 seconds West, a
32-12    distance of 11.63 feet to a point;
32-13    (41)  THENCE South 07 degrees 19 minutes 36 seconds West, a
32-14    distance of 10.05 feet to a point;
32-15    (42)  THENCE South 00 degrees 29 minutes 31 seconds East, a
32-16    distance of 11.68 feet to a point;
32-17    (43)  THENCE South 07 degrees 29 minutes 16 seconds East, a
32-18    distance of 12.64 feet to a point;
32-19    (44)  THENCE South 13 degrees 34 minutes 11 seconds East, a
32-20    distance of 12.40 feet to a point;
32-21    (45)  THENCE South 17 degrees 00 minutes 59 seconds East, a
32-22    distance of 11.49 feet to a point;
32-23    (46)  THENCE South 18 degrees 53 minutes 35 seconds East, a
32-24    distance of 95.44 feet to a point;
32-25    (47)  THENCE South 21 degrees 31 minutes 11 seconds East, a
32-26    distance of 13.59 feet to a point;
32-27    (48)  THENCE South 23 degrees 40 minutes 53 seconds East, a
 33-1    distance of 17.05 feet to a point;
 33-2    (49)  THENCE South 27 degrees 11 minutes 55 seconds East, a
 33-3    distance of 18.14 feet to a point;
 33-4    (50)  THENCE South 31 degrees 05 minutes 57 seconds East, a
 33-5    distance of 8.91 feet to a point;
 33-6    (51)  THENCE South 37 degrees 20 minutes 42 seconds East, a
 33-7    distance of 33.74 feet to a point;
 33-8    (52)  THENCE South 45 degrees 51 minutes 55 seconds East, a
 33-9    distance of 7.95 feet to a point;
33-10    (53)  THENCE South 71 degrees 23 minutes 12 seconds East, a
33-11    distance of 7.98 feet to a point;
33-12    (54)  THENCE North 82 degrees 41 minutes 19 seconds East, a
33-13    distance of 7.50 feet to a point;
33-14    (55)  THENCE North 70 degrees 19 minutes 10 seconds East, a
33-15    distance of 6.27 feet to a point;
33-16    (56)  THENCE North 66 degrees 26 minutes 47 seconds East, a
33-17    distance of 34.40 feet to a point;
33-18    (57)  THENCE North 59 degrees 22 minutes 25 seconds East, a
33-19    distance of 12.39 feet to a point;
33-20    (58)  THENCE North 53 degrees 02 minutes 01 seconds East, a
33-21    distance of 10.42 feet to a point;
33-22    (59)  THENCE North 48 degrees 28 minutes 05 seconds East, a
33-23    distance of 7.93 feet to a point;
33-24    (60)  THENCE North 41 degrees 28 minutes 18 seconds East, a
33-25    distance of 8.35 feet to a point;
33-26    (61)  THENCE North 21 degrees 52 minutes 35 seconds East, a
33-27    distance of 7.48 feet to a point;
 34-1    (62)  THENCE North 00 degrees 22 minutes 00 seconds East, a
 34-2    distance of 7.42 feet to a point;
 34-3    (63)  THENCE North 25 degrees 32 minutes 29 seconds West, a
 34-4    distance of 62.08 feet to a point;
 34-5    (64)  THENCE North 19 degrees 19 minutes 43 seconds West, a
 34-6    distance of 81.41 feet to a point;
 34-7    (65)  THENCE North 12 degrees 56 minutes 41 seconds West, a
 34-8    distance of 12.86 feet to a point;
 34-9    (66)  THENCE North 05 degrees 18 minutes 47 seconds East, a
34-10    distance of 18.86 feet to a point;
34-11    (67)  THENCE North 15 degrees 35 minutes 41 seconds East, a
34-12    distance of 47.35 feet to a point;
34-13    (68)  THENCE North 19 degrees 34 minutes 14 seconds East, a
34-14    distance of 7.53 feet to a point;
34-15    (69)  THENCE North 28 degrees 57 minutes 41 seconds East, a
34-16    distance of 8.06 feet to a point;
34-17    (70)  THENCE North 53 degrees 23 minutes 52 seconds East, a
34-18    distance of 15.78 feet to a point at the end of said concrete
34-19    retaining wall;
34-20    (71)  THENCE North 29 degrees 23 minutes 33 seconds West, a
34-21    distance of 5.72 feet to a point;
34-22    (73)  THENCE North 60 degrees 28 minutes 19 seconds East, a
34-23    distance of 86.30 feet to a point;
34-24    (74)  THENCE North 33 degrees 57 minutes 37 seconds East, a
34-25    distance of 47.30 feet to a point;
34-26    (75)  THENCE North 21 degrees 57 minutes 15 seconds East, a
34-27    distance of 19.48 feet to a point;
 35-1    (76)  THENCE North 02 degrees 55 minutes 43 seconds East, a
 35-2    distance of 10.38 feet to a point;
 35-3    (77)  THENCE North 18 degrees 10 minutes 36 seconds West, a
 35-4    distance of 40.92 feet to a point;
 35-5    (78)  THENCE North 16 degrees 42 minutes 19 seconds East, a
 35-6    distance of 17.16 feet to a point;
 35-7    (79)  THENCE North 21 degrees 44 minutes 58 seconds West, a
 35-8    distance of 10.54 feet to a point;
 35-9    (80)  THENCE North 03 degrees 42 minutes 41 seconds East, a
35-10    distance of 17.79 feet to a point;
35-11    (81)  THENCE North 04 degrees 23 minutes 14 seconds West, a
35-12    distance of 47.82 feet to a point;
35-13    (82)  THENCE North 50 degrees 33 minutes 59 seconds West, a
35-14    distance of 11.88 feet to a point;
35-15    (83)  THENCE North 72 degrees 38 minutes 50 seconds West, a
35-16    distance of 7.21 feet to a point;
35-17    (84)  THENCE South 05 degrees 13 minutes 32 seconds West, a
35-18    distance of 3.72 feet to a point;
35-19    (85)  THENCE North 04 degrees 07 minutes 39 seconds West, a
35-20    distance of 16.40 feet to a point;
35-21    (86)  THENCE North 57 degrees 01 minutes 48 seconds West, a
35-22    distance of 40.96 feet to a point;
35-23    (87)  THENCE North 34 degrees 50 minutes 42 seconds West, a
35-24    distance of 16.49 feet to a point;
35-25    (88)  THENCE North 12 degrees 24 minutes 52 seconds East, a
35-26    distance of 8.79 feet to a point;
35-27    (89)  THENCE North 63 degrees 25 minutes 57 seconds East, a
 36-1    distance of 14.03 feet to a point;
 36-2    (90)  THENCE South 88 degrees 24 minutes 55 seconds East, a
 36-3    distance of 52.75 feet to a point;
 36-4    (91)  THENCE North 74 degrees 52 minutes 00 seconds East, a
 36-5    distance of 25.87 feet to a point;
 36-6    (92)  THENCE South 77 degrees 56 minutes 51 seconds East, a
 36-7    distance of 18.45 feet to a point;
 36-8    (93)  THENCE North 60 degrees 11 minutes 16 seconds East, a
 36-9    distance of 20.53 feet to a point;
36-10    (94)  THENCE North 82 degrees 21 minutes 16 seconds East, a
36-11    distance of 26.46 feet to a point;
36-12    (95)  THENCE North 83 degrees 25 minutes 09 seconds East, a
36-13    distance of 15.51 feet to a point;
36-14    (96)  THENCE North 20 degrees 28 minutes 21 seconds East, a
36-15    distance of 6.95 feet to a point;
36-16    (97)  THENCE North 79 degrees 02 minutes 33 seconds East, a
36-17    distance of 35.63 feet to a point;
36-18    (98)  THENCE North 53 degrees 50 minutes 02 seconds East, a
36-19    distance of 35.76 feet to a point;
36-20    (99)  THENCE South 35 degrees 26 minutes 36 seconds East, a
36-21    distance of 6.85 feet to a point;
36-22    (100)  THENCE North 61 degrees 04 minutes 31 seconds East, a
36-23    distance of 77.07 feet to a point;
36-24    (101)  THENCE South 75 degrees 12 minutes 13 seconds East, a
36-25    distance of 26.62 feet to a point;
36-26    (102)  THENCE North 74 degrees 57 minutes 35 seconds East, a
36-27    distance of 29.30 feet to a point;
 37-1    (103)  THENCE North 44 degrees 07 minutes 11 seconds East, a
 37-2    distance of 30.28 feet to a point;
 37-3    (104)  THENCE North 71 degrees 25 minutes 06 seconds East, a
 37-4    distance of 133.56 feet to a point;
 37-5    (105)  THENCE North 60 degrees 09 minutes 31 seconds East, a
 37-6    distance of 86.47 feet to a point;
 37-7    (106)  THENCE North 69 degrees 29 minutes 32 seconds East, a
 37-8    distance of 51.47 feet to a point;
 37-9    (107)  THENCE North 33 degrees 12 minutes 02 seconds East, a
37-10    distance of 14.63 feet to a point;
37-11    (108)  THENCE North 48 degrees 34 minutes 50 seconds East, a
37-12    distance of 13.32 feet to a point;
37-13    (109)  THENCE South 48 degrees 36 minutes 44 seconds East, a
37-14    distance of 14.50 feet to a point;
37-15    (110)  THENCE North 66 degrees 50 minutes 52 seconds East, a
37-16    distance of 51.08 feet to a point;
37-17    (111)  THENCE South 48 degrees 08 minutes 26 seconds East, a
37-18    distance of 37.81 feet to a point;
37-19    (112)  THENCE South 66 degrees 30 minutes 09 seconds East, a
37-20    distance of 20.15 feet to a point;
37-21    (113)  THENCE North 10 degrees 37 minutes 26 seconds East, a
37-22    distance of 35.92 feet to a point;
37-23    (114)  THENCE North 13 degrees 06 minutes 46 seconds East, a
37-24    distance of 47.23 feet to a point;
37-25    (115)  THENCE North 42 degrees 04 minutes 23 seconds East, a
37-26    distance of 49.91 feet to a point;
37-27    (116)  THENCE North 05 degrees 10 minutes 29 seconds East, a
 38-1    distance of 16.24 feet to a point;
 38-2    (117)  THENCE North 28 degrees 50 minutes 51 seconds East, a
 38-3    distance of 71.95 feet to a point;
 38-4    (118)  THENCE North 40 degrees 13 minutes 50 seconds East, a
 38-5    distance of 104.28 feet to a point;
 38-6    (119)  THENCE North 24 degrees 55 minutes 43 seconds East, a
 38-7    distance of 98.92 feet to a point;
 38-8    (120)  THENCE North 11 degrees 40 minutes 28 seconds East, a
 38-9    distance of 58.89 feet to a point;
38-10    (121)  THENCE North 27 degrees 50 minutes 42 seconds East, a
38-11    distance of 144.61 feet to a point;
38-12    (122)  THENCE North 14 degrees 11 minutes 18 seconds West, a
38-13    distance of 14.58 feet to a point;
38-14    (123)  THENCE North 28 degrees 44 minutes 01 seconds East, a
38-15    distance of 117.10 feet to a point;
38-16    (124)  THENCE North 30 degrees 23 minutes 35 seconds East, a
38-17    distance of 107.11 feet to a point;
38-18    (125)  THENCE North 26 degrees 06 minutes 12 seconds East, a
38-19    distance of 82.06 feet to a point;
38-20    (126)  THENCE North 08 degrees 20 minutes 13 seconds East, a
38-21    distance of 69.28 feet to a point;
38-22    (127)  THENCE North 23 degrees 01 minutes 00 seconds East, a
38-23    distance of 53.34 feet to a point;
38-24    (128)  THENCE North 38 degrees 19 minutes 03 seconds East, a
38-25    distance of 63.20 feet to a point;
38-26    (129)  THENCE North 08 degrees 23 minutes 42 seconds West, a
38-27    distance of 23.70 feet to a point;
 39-1    (130)  THENCE North 57 degrees 06 minutes 28 seconds East, a
 39-2    distance of 25.06 feet to a point;
 39-3    (131)  THENCE North 60 degrees 27 minutes 55 seconds East, a
 39-4    distance of 10.88 feet to a point;
 39-5    (132)  THENCE South 76 degrees 33 minutes 09 seconds East, a
 39-6    distance of 23.37 feet to a point;
 39-7    (133)  THENCE North 27 degrees 14 minutes 59 seconds East, a
 39-8    distance of 20.82 feet to a point;
 39-9    (134)  THENCE North 30 degrees 19 minutes 25 seconds East, a
39-10    distance of 27.79 feet to a point;
39-11    (135)  THENCE North 14 degrees 55 minutes 11 seconds East, a
39-12    distance of 24.22 feet to a point;
39-13    (136)  THENCE North 86 degrees 39 minutes 22 seconds East, a
39-14    distance of 1.28 feet to a point;
39-15    (137)  THENCE North 12 degrees 00 minutes 25 seconds East, a
39-16    distance of 15.09 feet to a point;
39-17    (138)  THENCE North 06 degrees 55 minutes 59 seconds West, a
39-18    distance of 4.55 feet to a point;
39-19    (139)  THENCE North 19 degrees 18 minutes 41 seconds East, a
39-20    distance of 28.15 feet to a point;
39-21    (140)  THENCE North 32 degrees 43 minutes 21 seconds East, a
39-22    distance of 23.00 feet to a point;
39-23    (141)  THENCE North 19 degrees 52 minutes 41 seconds West, a
39-24    distance of 11.63 feet to a point;
39-25    (142)  THENCE North 13 degrees 55 minutes 53 seconds East, a
39-26    distance of 14.48 feet to a point;
39-27    (143)  THENCE North 32 degrees 12 minutes 02 seconds East, a
 40-1    distance of 18.70 feet to a point;
 40-2    (144)  THENCE North 57 degrees 56 minutes 21 seconds East, a
 40-3    distance of 23.94 feet to a point;
 40-4    (145)  THENCE North 55 degrees 15 minutes 15 seconds East, a
 40-5    distance of 26.07 feet to a point;
 40-6    (146)  THENCE North 47 degrees 33 minutes 45 seconds East, a
 40-7    distance of 15.35 feet to a point;
 40-8    (147)  THENCE North 59 degrees 30 minutes 04 seconds East, a
 40-9    distance of 21.09 feet to a point;
40-10    (148)  THENCE North 38 degrees 34 minutes 01 seconds East, a
40-11    distance of 24.20 feet to a point;
40-12    (149)  THENCE North 71 degrees 25 minutes 23 seconds East, a
40-13    distance of 21.29 feet to a point;
40-14    (150)  THENCE South 80 degrees 43 minutes 34 seconds East, a
40-15    distance of 31.65 feet to a point;
40-16    (151)  THENCE North 82 degrees 39 minutes 58 seconds East, a
40-17    distance of 52.15 feet to a point;
40-18    (152)  THENCE North 60 degrees 26 minutes 14 seconds East, a
40-19    distance of 50.01 feet to a point;
40-20    (153)  THENCE North 69 degrees 32 minutes 24 seconds East, a
40-21    distance of 22.54 feet to a point for the Northwest corner hereof;
40-22    THENCE leaving the approximate 825.0 ft. contour line with a fence
40-23    along the South line of Blue Lake Estates, Unit Seven, the plat of
40-24    which is recorded in Volume 1, Page 18 of the Llano County Plat
40-25    Records, Llano County, Texas and the North line hereof with (2)
40-26    calls as follows: South 87 degrees 45 minutes 50 seconds East, at a
40-27    distance of 4.0 feet a 1/2" steel stake set on line, in all a total
 41-1    distance of 620.47 feet to a 3/8" iron pipe found for an angle
 41-2    point hereof.;
 41-3    THENCE with a fence North 74 degrees 12 minutes 10 seconds East, a
 41-4    distance of 1601.74 feet to a 1/2" steel stake set in the West
 41-5    right-of-way line of said R.  M. Highway No. 2831 and the South
 41-6    line of that certain Lot No. 135 as shown on the plat of Blue Lake
 41-7    Estates, Unit One, recorded in Volume 93, Page 79 of the Llano
 41-8    County Deed Records, Llano County, Texas for the Northeast corner
 41-9    hereof;
41-10    THENCE with the West right-of-way line of said R. M. Highway No.
41-11    2831 and the East line hereof with (15) calls as follows:  South 13
41-12    degrees 48 minutes 59 seconds East, a distance of 1.94 feet to a
41-13    concrete highway monument found therein for the P. C. of curve to
41-14    the right, from which the radius point of said curve to the right
41-15    bears South 76 degrees 11 minutes 00 seconds West, a distance of
41-16    1,095.89 feet;
41-17    THENCE around said curve in a clockwise direction having a delta
41-18    angle of 09 degrees 40 minutes 05 seconds, an arc distance of
41-19    184.92 feet, a radius of 1,095.89 feet, and a chord of South 08
41-20    degrees 58 minutes 57 seconds East, a distance of 184.70 feet to
41-21    1/2" steel stake set therein for the P. T. of same;
41-22    THENCE South 04 degrees 20 minutes 49 seconds East, a distance of
41-23    189.51 feet to a concrete highway monument found for the P. C. of a
41-24    curve to the left, from which the radius point of said curve to the
41-25    left bears North 85 degrees 39 minutes 11 seconds East, a distance
41-26    of 1,482.42 feet;
41-27    THENCE around said curve in a counterclockwise direction having a
 42-1    delta angle of 08 degrees 38 minutes 00 seconds, an arc distance of
 42-2    223.37 feet, a radius of 1,482.42 feet, and a chord of South 08
 42-3    degrees 39 minutes 49 seconds East, a distance of 223.16 feet to
 42-4    concrete highway monument found therein for the P. T. of same;
 42-5    THENCE South 12 degrees 58 minutes 49 seconds East, a distance of
 42-6    490.53 feet to a concrete highway monument found for the P. C. of a
 42-7    curve to the left, from which the radius point of said curve to the
 42-8    left bears North 77 degrees 01 minutes 11 seconds East, a distance
 42-9    of 1,959.92 feet;
42-10    THENCE around said curve in a counterclockwise direction having a
42-11    delta angle of 02 degrees 55 minutes 00 seconds, an arc distance of
42-12    99.77 feet, a radius of 1,959.92 feet, and a chord of South 14
42-13    degrees 26 minutes 19 seconds East, a distance of 99.76 feet to
42-14    1/2" steel stake set therein for the P. T. of same;
42-15    THENCE South 15 degrees 43 minutes 51 seconds East, a distance of
42-16    116.83 feet to a concrete highway monument found for the P. C. of a
42-17    curve to the right, from which the radius point of said curve to
42-18    the right bears South 74 degrees 07 minutes 25 seconds West, a
42-19    distance of 1,382.38 feet;
42-20    THENCE around said curve in a clockwise direction having a delta
42-21    angle of 12 degrees 28 minutes 30 seconds, an arc distance of
42-22    300.98 feet, a radius of 1,382.38 feet, and a chord of South 09
42-23    degrees 38 minutes 20 seconds East, a distance of 300.39 feet to a
42-24    concrete highway monument found therein for the P. T. of same;
42-25    THENCE South 03 degrees 34 minutes 40 seconds East, a distance of
42-26    107.43 feet to a concrete highway monument found therein for the P.
42-27    C. of a curve to the right, from which the radius point of said
 43-1    curve to the right bears South 86 degrees 25 minutes 20 seconds
 43-2    West, a distance of 1,859.83 feet;
 43-3    THENCE around said curve in a clockwise direction having a delta
 43-4    angle of 07 degrees 02 minutes 00 seconds, an arc distance of
 43-5    228.30 feet, a radius of 1,859.83 feet, and a chord of South 00
 43-6    degrees 03 minutes 40 seconds East, a distance of 228.16 feet to
 43-7    1/2" steel stake set therein for the P. T. of same;
 43-8    THENCE South 03 degrees 44 minutes 16 seconds West, a distance of
 43-9    608.32 feet to a concrete highway monument found therein for the P.
43-10    C. of a curve to the right, from which the radius point of said
43-11    curve to the right bears North 86 degrees 17 minutes 33 seconds
43-12    West, a distance 1,095.91 feet;
43-13    THENCE around said curve in a clockwise direction having a delta
43-14    angle of 47 degrees 02 minutes 56 seconds, an arc distance of
43-15    899.91 feet, a radius of 1,095.91 feet, and a chord of South 27
43-16    degrees 13 minutes 55 seconds West, a distance of 874.84 feet to
43-17    concrete highway monument found therein for the P. T. of same;
43-18    THENCE South 50 degrees 45 minutes 10 seconds West, a distance of
43-19    3,181.07 feet to a concrete highway monument found therein for the
43-20    P. C. of a curve to the left, from which the radius point of said
43-21    curve to the left bears South 39 degrees 18 minutes 17 seconds
43-22    East, a distance of 1,195.15 feet;
43-23    THENCE around said curve in a counterclockwise direction having a
43-24    delta angle of 51 degrees 47 minutes 06 seconds, an arc distance of
43-25    1080.19 feet, a radius of 1,195.15 feet, and a chord of South 24
43-26    degrees 48 minutes 10 seconds West, a distance of 1043.80 feet to
43-27    concrete highway monument found therein for the P. T. of same;
 44-1    THENCE South 01 degrees 01 minutes 08 seconds East, a distance of
 44-2    741.66 feet to the PLACE OF BEGINNING containing 23398861 square
 44-3    feet or 537.2 acres.
 44-4                           TRACT I-C: 11.9 ACRES
 44-5                BEING SAME TRACT THREE, CALLED 11.939 ACRES
 44-6                     CONVEYED TO MORRIS D. JAFFE, JR. 
 44-7                       BY SPECIAL WARRANTY DEED WITH
 44-8                   VENDOR'S LIEN DATED SEPTEMBER 1, 1996
 44-9               RECORDED IN VOLUME 791, PAGE 45 L.C.O.R.R.P. 
44-10    Beginning at a point inundated by the waters of Lake Lyndon B.
44-11    Johnson for the Southeast corner of that certain Lot No. 1, Block
44-12    No. 1 of Sandy Harbor, Section One, as recorded in Volume 86, Page
44-13    627 of the Llano County Deed Records, Llano County, Texas and an
44-14    angle point corner hereof, from which point the Southeast corner of
44-15    the Levi Mercer Survey No. 2 bears South 42 degrees 59 minutes 13
44-16    seconds East, a distance of 12,892.00 feet and the Southeast corner
44-17    of said 957.432 acre tract bears South 23 degrees 48 seconds 41
44-18    minutes East, a distance of 10,424.03 feet;
44-19    THENCE with the South line of said Lot No. 1, and a Northerly line
44-20    hereof (12) North 79 degrees 53 minutes 22 seconds West, a distance
44-21    of 4.71 feet (called North 79 degrees 57 minutes 53 seconds West
44-22    4.71 ft.) to a point at the approximate 825.0 ft.  contour line of
44-23    Lake Lyndon B. Johnson for an angle point hereof, from which an "X"
44-24    on rock found bears North 79 degrees 53 minutes 22 seconds West
44-25    11.38 ft., and a 3/4 inch iron pipe found for the Southwest corner
44-26    of said Lot No. 1 bears North 79 degrees 53 minutes 22 seconds West
44-27    117.04 ft. (called 117.11 ft. in vol. 86, Pg. 627 L.C.D.R.);
 45-1    (1)  THENCE with the approximate 825.0 ft. contour line of said
 45-2    Lake Lyndon B.  Johnson and the East line of said Tract One with
 45-3    (11) calls as follows:  South 04 degrees 07 minutes 25 seconds
 45-4    West, a distance of 16.62 feet to a point;
 45-5    (2)  THENCE South 61 degrees 36 minutes 12 seconds West, a distance
 45-6    of 6.70 feet to a point;
 45-7    (3)  THENCE South 39 degrees 09 minutes 06 seconds West, a distance
 45-8    of 5.54 feet to a point;
 45-9    (4)  THENCE South 04 degrees 45 minutes 49 seconds West, a distance
45-10    of 6.96 feet to a point;
45-11    (5)  THENCE South 40 degrees 17 minutes 33 seconds West, a distance
45-12    of 38.10 feet to a point;
45-13    (6)  THENCE South 03 degrees 32 minutes 11 seconds East, a distance
45-14    of 70.03 feet to a point;
45-15    (7)  THENCE South 10 degrees 15 minutes 48 seconds East, a distance
45-16    of 29.95 feet to a point;
45-17    (8)  THENCE South 18 degrees 25 minutes 46 seconds East, a distance
45-18    of 23.35 feet to a point;
45-19    (9)  THENCE South 15 degrees 50 minutes 42 seconds East, a distance
45-20    of 23.55 feet to a point;
45-21    (10)  THENCE South 18 degrees 28 minutes 42 seconds East, a
45-22    distance of 29.80 feet to a point;
45-23    (11)  THENCE South 21 degrees 43 minutes 46 seconds East, a
45-24    distance of 19.83 feet to a 1/2" steel stake found in the North
45-25    line of that certain 0.542 acre tract of land conveyed by James E.
45-26    Bauerle et. ux. to F. E. Holloman et. ux. by deed recorded in
45-27    Volume 190, Page 239 of the Llano County Deed Records, Llano
 46-1    County, Texas for an angle point hereof;
 46-2    THENCE leaving said approximate 825.0 ft. contour line with the
 46-3    North line of said 0.542 acre tract North 76 degrees 09 minutes 15
 46-4    seconds East, a distance of 16.96 feet to a point inundated by said
 46-5    Lake Lyndon B. Johnson for the Northeast corner of said 0.542 acre
 46-6    tract an angle point hereof;
 46-7    THENCE with the East line of said 0.542 acre tract and the East
 46-8    line of that certain 0.743 acre tract of land conveyed by James E.
 46-9    Bauerle et. ux. to Archie Neubauer et.  ux. as recorded in Volume
46-10    190, Page 242 of the Llano County Deed Records, Llano County, Texas
46-11    South 09 degrees 35 minutes 03 seconds East, a distance of 134.53
46-12    feet to a 1/2" steel stake set at the approximate 825.0 ft. contour
46-13    line of said Lake Lyndon B. Johnson for an angle point hereof;
46-14    (13)  THENCE leaving the East line of said 0.743 acre tract with
46-15    said approximate 825.0 ft.  contour line and the Southeast line
46-16    hereof with (141) calls as follows: North 83 degrees 29 minutes 28
46-17    seconds East, a distance of 17.27 feet to a point;
46-18    (14)  THENCE North 12 degrees 24 minutes 15 seconds West, a
46-19    distance of 59.54 feet to a point;
46-20    (15)  THENCE North 13 degrees 03 minutes 58 seconds West, a
46-21    distance of 83.60 feet to a point;
46-22    (16)  THENCE North 15 degrees 48 minutes 57 seconds West, a
46-23    distance of 50.77 feet to a point;
46-24    (17)  THENCE North 15 degrees 00 minutes 06 seconds West, a
46-25    distance of 57.34 feet to a point;
46-26    (18)  THENCE North 00 degrees 03 minutes 54 seconds West, a
46-27    distance of 34.64 feet to a point;
 47-1    (19)  THENCE North 07 degrees 34 minutes 38 seconds East, a
 47-2    distance of 36.76 feet to a point;
 47-3    (20)  THENCE North 67 degrees 14 minutes 53 seconds East, a
 47-4    distance of 8.85 feet to a point;
 47-5    (21)  THENCE North 35 degrees 22 minutes 36 seconds East, a
 47-6    distance of 42.02 feet to a point;
 47-7    (22)  THENCE North 14 degrees 06 minutes 25 seconds East, a
 47-8    distance of 41.59 feet to a point;
 47-9    (23)  THENCE South 81 degrees 55 minutes 46 seconds East, a
47-10    distance of 6.98 feet to a point;
47-11    (24)  THENCE North 01 degrees 23 minutes 49 seconds East, a
47-12    distance of 74.18 feet to a point;
47-13    (25)  THENCE North 22 degrees 24 minutes 52 seconds East, a
47-14    distance of 40.54 feet to a point;
47-15    (26)  THENCE North 27 degrees 14 minutes 44 seconds East, a
47-16    distance of 44.27 feet to a point;
47-17    (27)  THENCE North 40 degrees 58 minutes 18 seconds East, a
47-18    distance of 40.41 feet to a point;
47-19    (28)  THENCE North 78 degrees 52 minutes 18 seconds East, a
47-20    distance of 24.39 feet to a point;
47-21    (29)  THENCE South 67 degrees 23 minutes 33 seconds East, a
47-22    distance of 74.80 feet to a point;
47-23    (30)  THENCE South 44 degrees 12 minutes 51 seconds East, a
47-24    distance of 28.84 feet to a point;
47-25    (31)  THENCE South 53 degrees 05 minutes 55 seconds East, a
47-26    distance of 33.00 feet to a point;
47-27    (32)  THENCE South 58 degrees 09 minutes 55 seconds East, a
 48-1    distance of 64.83 feet to a corner of a concrete retaining wall;
 48-2    (33)  THENCE with bends in said concrete retaining wall the next
 48-3    (38) calls as follows:  South 13 degrees 43 minutes 30 seconds
 48-4    West, a distance of 18.00 feet to a point;
 48-5    (34)  THENCE South 47 degrees 40 minutes 31 seconds West, a
 48-6    distance of 4.32 feet to a point;
 48-7    (35)  THENCE South 76 degrees 48 minutes 57 seconds West, a
 48-8    distance of 44.34 feet to a point;
 48-9    (36)  THENCE South 59 degrees 45 minutes 03 seconds West, a
48-10    distance of 7.99 feet to a point;
48-11    (37)  THENCE South 45 degrees 16 minutes 31 seconds West, a
48-12    distance of 23.62 feet to a point;
48-13    (38)  THENCE South 40 degrees 31 minutes 00 seconds West, a
48-14    distance of 7.86 feet to a point;
48-15    (39)  THENCE South 31 degrees 55 minutes 44 seconds West, a
48-16    distance of 12.57 feet to a point;
48-17    (40)  THENCE South 18 degrees 18 minutes 36 seconds West, a
48-18    distance of 11.63 feet to a point;
48-19    (41)  THENCE South 07 degrees 19 minutes 36 seconds West, a
48-20    distance of 10.05 feet to a point;
48-21    (42)  THENCE South 00 degrees 29 minutes 31 seconds East, a
48-22    distance of 11.68 feet to a point;
48-23    (43)  THENCE South 07 degrees 29 minutes 16 seconds East, a
48-24    distance of 12.64 feet to a point;
48-25    (44)  THENCE South 13 degrees 34 minutes 11 seconds East, a
48-26    distance of 12.40 feet to a point;
48-27    (45)  THENCE South 17 degrees 00 minutes 59 seconds East, a
 49-1    distance of 11.49 feet to a point;
 49-2    (46)  THENCE South 18 degrees 53 minutes 35 seconds East, a
 49-3    distance of 95.44 feet to a point;
 49-4    (47)  THENCE South 21 degrees 31 minutes 11 seconds East, a
 49-5    distance of 13.59 feet to a point;
 49-6    (48)  THENCE South 23 degrees 40 minutes 53 seconds East, a
 49-7    distance of 17.05 feet to a point;
 49-8    (49)  THENCE South 27 degrees 11 minutes 55 seconds East, a
 49-9    distance of 18.14 feet to a point;
49-10    (50)  THENCE South 31 degrees 05 minutes 57 seconds East, a
49-11    distance of 8.91 feet to a point;
49-12    (51)  THENCE South 37 degrees 20 minutes 42 seconds East, a
49-13    distance of 33.74 feet to a point;
49-14    (52)  THENCE South 45 degrees 51 minutes 55 seconds East, a
49-15    distance of 7.95 feet to a point;
49-16    (53)  THENCE South 71 degrees 23 minutes 12 seconds East, a
49-17    distance of 7.98 feet to a point;
49-18    (54)  THENCE North 82 degrees 41 minutes 19 seconds East, a
49-19    distance of 7.50 feet to a point;
49-20    (55)  THENCE North 70 degrees 19 minutes 10 seconds East, a
49-21    distance of 6.27 feet to a point;
49-22    (56)  THENCE North 66 degrees 26 minutes 47 seconds East, a
49-23    distance of 34.40 feet to a point;
49-24    (57)  THENCE North 59 degrees 22 minutes 25 seconds East, a
49-25    distance of 12.39 feet to a point;
49-26    (58)  THENCE North 53 degrees 02 minutes 01 seconds East, a
49-27    distance of 10.42 feet to a point;
 50-1    (59)  THENCE North 48 degrees 28 minutes 05 seconds East, a
 50-2    distance of 7.93 feet to a point;
 50-3    (60)  THENCE North 41 degrees 28 minutes 18 seconds East, a
 50-4    distance of 8.35 feet to a point;
 50-5    (61)  THENCE North 21 degrees 52 minutes 35 seconds East, a
 50-6    distance of 7.48 feet to a point;
 50-7    (62)  THENCE North 00 degrees 22 minutes 00 seconds East, a
 50-8    distance of 7.42 feet to a point;
 50-9    (63)  THENCE North 25 degrees 32 minutes 29 seconds West, a
50-10    distance of 62.08 feet to a point;
50-11    (64)  THENCE North 19 degrees 19 minutes 43 seconds West, a
50-12    distance of 81.41 feet to a point;
50-13    (65)  THENCE North 12 degrees 56 minutes 41 seconds West, a
50-14    distance of 12.86 feet to a point;
50-15    (66)  THENCE North 05 degrees 18 minutes 47 seconds East, a
50-16    distance of 18.86 feet to a point;
50-17    (67)  THENCE North 15 degrees 35 minutes 41 seconds East, a
50-18    distance of 47.35 feet to a point;
50-19    (68)  THENCE North 19 degrees 34 minutes 14 seconds East, a
50-20    distance of 7.53 feet to a point;
50-21    (69)  THENCE North 28 degrees 57 minutes 41 seconds East, a
50-22    distance of 8.06 feet to a point;
50-23    (70)  THENCE North 53 degrees 23 minutes 52 seconds East, a
50-24    distance of 15.78 feet to a point at the end of said concrete
50-25    retaining wall;
50-26    (71)  THENCE North 29 degrees 23 minutes 33 seconds West, a
50-27    distance of 5.72 feet to a point;
 51-1    (73)  THENCE North 60 degrees 28 minutes 19 seconds East, a
 51-2    distance of 86.30 feet to a point;
 51-3    (74)  THENCE North 33 degrees 57 minutes 37 seconds East, a
 51-4    distance of 47.30 feet to a point;
 51-5    (75)  THENCE North 21 degrees 57 minutes 15 seconds East, a
 51-6    distance of 19.48 feet to a point;
 51-7    (76)  THENCE North 02 degrees 55 minutes 43 seconds East, a
 51-8    distance of 10.38 feet to a point;
 51-9    (77)  THENCE North 18 degrees 10 minutes 36 seconds West, a
51-10    distance of 40.92 feet to a point;
51-11    (78)  THENCE North 16 degrees 42 minutes 19 seconds East, a
51-12    distance of 17.16 feet to a point;
51-13    (79)  THENCE North 21 degrees 44 minutes 58 seconds West, a
51-14    distance of 10.54 feet to a point;
51-15    (80)  THENCE North 03 degrees 42 minutes 41 seconds East, a
51-16    distance of 17.79 feet to a point;
51-17    (81)  THENCE North 04 degrees 23 minutes 14 seconds West, a
51-18    distance of 47.82 feet to a point;
51-19    (82)  THENCE North 50 degrees 33 minutes 59 seconds West, a
51-20    distance of 11.88 feet to a point;
51-21    (83)  THENCE North 72 degrees 38 minutes 50 seconds West, a
51-22    distance of 7.21 feet to a point;
51-23    (84)  THENCE South 05 degrees 13 minutes 32 seconds West, a
51-24    distance of 3.72 feet to a point;
51-25    (85)  THENCE North 04 degrees 07 minutes 39 seconds West, a
51-26    distance of 16.40 feet to a point;
51-27    (86)  THENCE North 57 degrees 01 minutes 48 seconds West, a
 52-1    distance of 40.96 feet to a point;
 52-2    (87)  THENCE North 34 degrees 50 minutes 42 seconds West, a
 52-3    distance of 16.49 feet to a point;
 52-4    (88)  THENCE North 12 degrees 24 minutes 52 seconds East, a
 52-5    distance of 8.79 feet to a point;
 52-6    (89)  THENCE North 63 degrees 25 minutes 57 seconds East, a
 52-7    distance of 14.03 feet to a point;
 52-8    (90)  THENCE South 88 degrees 24 minutes 55 seconds East, a
 52-9    distance of 52.75 feet to a point;
52-10    (91)  THENCE North 74 degrees 52 minutes 00 seconds East, a
52-11    distance of 25.87 feet to a point;
52-12    (92)  THENCE South 77 degrees 56 minutes 51 seconds East, a
52-13    distance of 18.45 feet to a point;
52-14    (93)  THENCE North 60 degrees 11 minutes 16 seconds East, a
52-15    distance of 20.53 feet to a point;
52-16    (94)  THENCE North 82 degrees 21 minutes 16 seconds East, a
52-17    distance of 26.46 feet to a point;
52-18    (95)  THENCE North 83 degrees 25 minutes 09 seconds East, a
52-19    distance of 15.51 feet to a point;
52-20    (96)  THENCE North 20 degrees 28 minutes 21 seconds East, a
52-21    distance of 6.95 feet to a point;
52-22    (97)  THENCE North 79 degrees 02 minutes 33 seconds East, a
52-23    distance of 35.63 feet to a point;
52-24    (98)  THENCE North 53 degrees 50 minutes 02 seconds East, a
52-25    distance of 35.76 feet to a point;
52-26    (99)  THENCE South 35 degrees 26 minutes 36 seconds East, a
52-27    distance of 6.85 feet to a point;
 53-1    (100)  THENCE North 61 degrees 04 minutes 31 seconds East, a
 53-2    distance of 77.07 feet to a point;
 53-3    (101)  THENCE South 75 degrees 12 minutes 13 seconds East, a
 53-4    distance of 26.62 feet to a point;
 53-5    (102)  THENCE North 74 degrees 57 minutes 35 seconds East, a
 53-6    distance of 29.30 feet to a point;
 53-7    (103)  THENCE North 44 degrees 07 minutes 11 seconds East, a
 53-8    distance of 30.28 feet to a point;
 53-9    (104)  THENCE North 71 degrees 25 minutes 06 seconds East, a
53-10    distance of 133.56 feet to a point;
53-11    (105)  THENCE North 60 degrees 09 minutes 31 seconds East, a
53-12    distance of 86.47 feet to a point;
53-13    (106)  THENCE North 69 degrees 29 minutes 32 seconds East, a
53-14    distance of 51.47 feet to a point;
53-15    (107)  THENCE North 33 degrees 12 minutes 02 seconds East, a
53-16    distance of 14.63 feet to a point;
53-17    (108)  THENCE North 48 degrees 34 minutes 50 seconds East, a
53-18    distance of 13.32 feet to a point;
53-19    (109)  THENCE South 48 degrees 36 minutes 44 seconds East, a
53-20    distance of 14.50 feet to a point;
53-21    (110)  THENCE North 66 degrees 50 minutes 51 seconds East, a
53-22    distance of 51.08 feet to a point;
53-23    (111)  THENCE South 48 degrees 08 minutes 26 seconds East, a
53-24    distance of 37.81 feet to a point;
53-25    (112)  THENCE South 66 degrees 30 minutes 09 seconds East, a
53-26    distance of 20.15 feet to a point;
53-27    (113)  THENCE North 10 degrees 37 minutes 26 seconds East, a
 54-1    distance of 35.92 feet to a point;
 54-2    (114)  THENCE North 13 degrees 06 minutes 46 seconds East, a
 54-3    distance of 47.23 feet to a point;
 54-4    (115)  THENCE North 42 degrees 04 minutes 23 seconds East, a
 54-5    distance of 49.91 feet to a point;
 54-6    (116)  THENCE North 05 degrees 10 minutes 29 seconds East, a
 54-7    distance of 16.24 feet to a point;
 54-8    (117)  THENCE North 28 degrees 50 minutes 51 seconds East, a
 54-9    distance of 71.95 feet to a point;
54-10    (118)  THENCE North 40 degrees 13 minutes 50 seconds East, a
54-11    distance of 104.28 feet to a point;
54-12    (119)  THENCE North 24 degrees 55 minutes 43 seconds East, a
54-13    distance of 98.92 feet to a point;
54-14    (120)  THENCE North 11 degrees 40 minutes 28 seconds East, a
54-15    distance of 58.89 feet to a point;
54-16    (121)  THENCE North 27 degrees 50 minutes 42 seconds East, a
54-17    distance of 144.61 feet to a point;
54-18    (122)  THENCE North 14 degrees 11 minutes 18 seconds West, a
54-19    distance of 14.58 feet to a point;
54-20    (123)  THENCE North 28 degrees 44 minutes 01 seconds East, a
54-21    distance of 117.10 feet to a point;
54-22    (124)  THENCE North 30 degrees 23 minutes 35 seconds East, a
54-23    distance of 107.11 feet to a point;
54-24    (125)  THENCE North 26 degrees 06 minutes 12 seconds East, a
54-25    distance of 82.06 feet to a point;
54-26    (126)  THENCE North 08 degrees 20 minutes 13 seconds East, a
54-27    distance of 69.28 feet to a point;
 55-1    (127)  THENCE North 23 degrees 01 minutes 00 seconds East, a
 55-2    distance of 53.34 feet to a point;
 55-3    (128)  THENCE North 38 degrees 19 minutes 03 seconds East, a
 55-4    distance of 63.20 feet to a point;
 55-5    (129)  THENCE North 08 degrees 23 minutes 42 seconds West, a
 55-6    distance of 23.70 feet to a point;
 55-7    (130)  THENCE North 57 degrees 06 minutes 28 seconds East, a
 55-8    distance of 25.06 feet to a point;
 55-9    (131)  THENCE North 60 degrees 27 minutes 55 seconds East, a
55-10    distance of 10.88 feet to a point;
55-11    (132)  THENCE South 76 degrees 33 minutes 09 seconds East, a
55-12    distance of 23.37 feet to a point;
55-13    (133)  THENCE North 27 degrees 14 minutes 59 seconds East, a
55-14    distance of 20.82 feet to a point;
55-15    (134)  THENCE North 30 degrees 19 minutes 25 seconds East, a
55-16    distance of 27.79 feet to a point;
55-17    (135)  THENCE North 14 degrees 55 minutes 11 seconds East, a
55-18    distance of 24.22 feet to a point;
55-19    (136)  THENCE North 86 degrees 39 minutes 22 seconds East, a
55-20    distance of 1.28 feet to a point;
55-21    (137)  THENCE North 12 degrees 00 minutes 25 seconds East, a
55-22    distance of 15.09 feet to a point;
55-23    (138)  THENCE North 06 degrees 55 minutes 59 seconds West, a
55-24    distance of 4.55 feet to a point;
55-25    (139)  THENCE North 19 degrees 18 minutes 41 seconds East, a
55-26    distance of 28.15 feet to a point;
55-27    (140)  THENCE North 32 degrees 43 minutes 21 seconds East, a
 56-1    distance of 23.00 feet to a point;
 56-2    (141)  THENCE North 19 degrees 52 minutes 41 seconds West, a
 56-3    distance of 11.63 feet to a point;
 56-4    (142)  THENCE North 13 degrees 55 minutes 53 seconds East, a
 56-5    distance of 14.48 feet to a point;
 56-6    (143)  THENCE North 32 degrees 12 minutes 02 seconds East, a
 56-7    distance of 18.70 feet to a point;
 56-8    (144)  THENCE North 57 degrees 56 minutes 21 seconds East, a
 56-9    distance of 23.94 feet to a point;
56-10    (145)  THENCE North 55 degrees 15 minutes 15 seconds East, a
56-11    distance of 26.07 feet to a point;
56-12    (146)  THENCE North 47 degrees 33 minutes 45 seconds East, a
56-13    distance of 15.35 feet to a point;
56-14    (147)  THENCE North 59 degrees 30 minutes 04 seconds East, a
56-15    distance of 21.09 feet to a point;
56-16    (148)  THENCE North 38 degrees 34 minutes 01 seconds East, a
56-17    distance of 24.20 feet to a point;
56-18    (149)  THENCE North 71 degrees 25 minutes 23 seconds East, a
56-19    distance of 21.29 feet to a point;
56-20    (150)  THENCE South 80 degrees 43 minutes 34 seconds East, a
56-21    distance of 31.65 feet to a point;
56-22    (151)  THENCE North 82 degrees 39 minutes 58 seconds East, a
56-23    distance of 52.15 feet to a point;
56-24    (152)  THENCE North 60 degrees 26 minutes 14 seconds East, a
56-25    distance of 50.01 feet to a point;
56-26    (153)  THENCE North 69 degrees 32 minutes 24 seconds East, a
56-27    distance of 22.54 feet to a point in the South line of Blue Lake
 57-1    Estates, Unit Seven recorded in Volume 1, Page 18 of the Llano
 57-2    County Plat Records, Llano County, Texas for the Northeast corner
 57-3    hereof;
 57-4    THENCE leaving said approximate 825.0 ft. contour line with the
 57-5    North line hereof North 87 degrees 45 minutes 50 seconds West, a
 57-6    distance of 482.53 feet to a point inundated by said Lake Lyndon B.
 57-7    Johnson for the Southwest corner of that certain 403.1 acre tract
 57-8    of land conveyed to Gerald D. Hines as recorded in Volume 92, Page
 57-9    181 of the Llano County Deed Records, Llano County, Texas;
57-10    THENCE with the Northwest line hereof inundated by said Lake Lyndon
57-11    B. Johnson with (14) calls as follows:  South 21 degrees 14 minutes
57-12    04 seconds West, a distance of 427.73 feet to a point;
57-13    THENCE South 29 degrees 08 minutes 04 seconds West, a distance of
57-14    775.29 feet to a point;
57-15    THENCE South 00 degrees 57 minutes 53 seconds East, a distance of
57-16    205.25 feet to a point;
57-17    THENCE South 66 degrees 02 minutes 07 seconds West, a distance of
57-18    27.80 feet to a point;
57-19    THENCE South 73 degrees 02 minutes 07 seconds West, a distance of
57-20    205.00 feet to a point;
57-21    THENCE South 80 degrees 32 minutes 07 seconds West, a distance of
57-22    220.00 feet to a point;
57-23    THENCE North 85 degrees 57 minutes 53 seconds West, a distance of
57-24    220.00 feet to a point;
57-25    THENCE South 21 degrees 02 minutes 07 seconds West, a distance of
57-26    120.00 feet to a point;
57-27    THENCE South 30 degrees 42 minutes 53 seconds East, a distance of
 58-1    180.00 feet to a point;
 58-2    THENCE South 05 degrees 22 minutes 07 seconds West, a distance of
 58-3    150.00 feet to a point;
 58-4    THENCE South 80 degrees 17 minutes 07 seconds West, a distance of
 58-5    50.00 feet to a point;
 58-6    THENCE North 59 degrees 27 minutes 53 seconds West, a distance of
 58-7    210.00 feet to a point;
 58-8    THENCE South 63 degrees 17 minutes 07 seconds West, a distance of
 58-9    100.00 feet to a point;
58-10    THENCE South 16 degrees 17 minutes 07 seconds West, a distance of
58-11    211.01 feet to the PLACE OF BEGINNING containing 520053 square feet
58-12    or 11.9 acres.
58-13          SECTION 3.04.  FINDINGS RELATING TO BOUNDARIES.  The
58-14    legislature finds that the boundaries and field notes of the
58-15    district form a closure.  A mistake in the field notes or in
58-16    copying the field notes in the legislative process does not affect
58-17    the organization, existence, or validity of the district, the right
58-18    of the district to levy and collect taxes, or the legality or
58-19    operation of the district or its governing body.
58-20          SECTION 3.05.  FINDING OF BENEFIT.  All of the land and other
58-21    property included within the boundaries of the district will be
58-22    benefited by the works and projects that are to be accomplished by
58-23    the district under the powers conferred by Section 59, Article XVI,
58-24    Texas Constitution.  The district is created to serve a public use
58-25    and benefit.
58-26          SECTION 3.06.  POWERS.  (a)  The district has all of the
58-27    rights, powers, privileges, authority, functions, and duties
 59-1    provided by the general law of this state, including Chapters 49
 59-2    and 51, Water Code, applicable to water control and improvement
 59-3    districts created under Section 59, Article XVI, Texas
 59-4    Constitution.  This article prevails over any provision of general
 59-5    law that is in conflict or inconsistent with this article.
 59-6          (b)  The rights, powers, privileges, authority, functions,
 59-7    and duties of the district are subject to the continuing right of
 59-8    supervision of the state to be exercised by and through the
 59-9    commission.
59-10          SECTION 3.07.  BOARD OF DIRECTORS.  (a)  The district is
59-11    governed by a board of five directors.
59-12          (b)  Temporary directors serve until initial permanent
59-13    directors are elected under Section 3.09 of this article.
59-14          (c)  Initial permanent directors serve until permanent
59-15    directors are elected under Section 3.10 of this article.
59-16          (d)  Permanent directors other than initial permanent
59-17    directors serve staggered four-year terms.
59-18          (e)  Each director must qualify to serve as director in the
59-19    manner provided by Section 49.055, Water Code.
59-20          (f)  A director serves until the director's successor has
59-21    qualified.
59-22          SECTION 3.08.  TEMPORARY DIRECTORS.  (a)  The temporary board
59-23    of directors is composed of:
59-24                (1)  Mindy Rowe;
59-25                (2)  Leon Stewart;
59-26                (3)  Jennie Thibodeaux;
59-27                (4)  Dave Cleary; and
 60-1                (5)  Gary Turner.
 60-2          (b)  If a temporary director fails to qualify for office, the
 60-3    temporary directors who have qualified shall appoint a person to
 60-4    fill the vacancy.  If at any time there are fewer than three
 60-5    qualified temporary directors, the commission shall appoint the
 60-6    necessary number of persons to fill all vacancies on the board.
 60-7          SECTION 3.09.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
 60-8    The temporary board of directors shall call and hold an election to
 60-9    confirm establishment of the district and to elect five initial
60-10    directors as provided by Chapter 49, Water Code.
60-11          SECTION 3.10.  ELECTION OF DIRECTORS.  On the first Saturday
60-12    in May of the fourth year after the year in which the confirmation
60-13    election is held, an election shall be held in the district for the
60-14    election of two directors who shall serve two-year terms and three
60-15    directors who shall serve four-year terms.  Thereafter, on the same
60-16    date in each subsequent second year, the appropriate number of
60-17    directors shall be elected to the board.
60-18          SECTION 3.11.  PROHIBITION AGAINST IMPAIRMENT OF DISTRICT.  A
60-19    municipality in whose extraterritorial jurisdiction the district is
60-20    located may not adopt an ordinance or resolution or take any other
60-21    action that:
60-22                (1)  impairs the ability of the district to exercise
60-23    its powers under this article; or
60-24                (2)  limits the ability of the district to finance,
60-25    construct, or operate its water, wastewater, or drainage systems.
60-26          SECTION 3.12.  ANNEXATION.  (a)  The district may be annexed
60-27    by a municipality on the earlier of:
 61-1                (1)  the date of installation of 90 percent of all
 61-2    works, improvements, facilities, plants, equipment, and appliances
 61-3    necessary and adequate to:
 61-4                      (A)  provide service to the proposed development
 61-5    within the district;
 61-6                      (B)  accomplish the purposes for which the
 61-7    district was created; and
 61-8                      (C)  exercise the powers provided by the general
 61-9    law of this state and this article; or
61-10                (2)  the 20th anniversary of the date the district is
61-11    confirmed.
61-12          (b)  The district may add or exclude land or divide into two
61-13    or more districts, in the manner provided by Chapters 49 and 51,
61-14    Water Code, without the consent of any municipality.
61-15          SECTION 3.13.  REIMBURSEMENT TO LANDOWNER OR DEVELOPER;
61-16    INSTALLATION OF FACILITIES.  If a municipality in whose
61-17    extraterritorial jurisdiction the district is located annexes the
61-18    district for full or limited purposes and the annexation precludes
61-19    or impairs the ability of the district to issue bonds, the
61-20    municipality shall:
61-21                (1)  simultaneously with the annexation, pay in cash to
61-22    the landowner or developer of the district a sum equal to all
61-23    actual costs and expenses incurred by the landowner or developer in
61-24    connection with the district that the district has, in writing,
61-25    agreed to pay and that would otherwise have been eligible for
61-26    reimbursement from bond proceeds under the rules and requirements
61-27    of the commission as such rules and requirements exist on the date
 62-1    of annexation; and
 62-2                (2)  after the annexation, install all necessary water,
 62-3    wastewater, and drainage facilities to serve full buildout of
 62-4    development within the district.
 62-5                     ARTICLE 4.  FINDINGS RELATING TO
 62-6                    PROCEDURAL REQUIREMENTS; EMERGENCY
 62-7          SECTION 4.01.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
 62-8    (a)  The proper and legal notice of the intention to introduce this
 62-9    Act, setting forth the general substance of this Act, has been
62-10    published as provided by law, and the notice and a copy of this Act
62-11    have been furnished to all persons, agencies, officials, or
62-12    entities to which they are required to be furnished by the
62-13    constitution and other laws of this state, including the governor,
62-14    who has submitted the notice and Act to the Texas Natural Resource
62-15    Conservation Commission.
62-16          (b)  The Texas Natural Resource Conservation Commission has
62-17    filed its recommendations relating to this Act with the governor,
62-18    lieutenant governor, and speaker of the house of representatives
62-19    within the required time.
62-20          (c)  All requirements of the constitution and laws of this
62-21    state and the rules and procedures of the legislature with respect
62-22    to the notice, introduction, and passage of this Act are fulfilled
62-23    and accomplished.
62-24          SECTION 4.02.  EMERGENCY.  The importance of this legislation
62-25    and the crowded condition of the calendars in both houses create an
62-26    emergency and an imperative public necessity that the
62-27    constitutional rule requiring bills to be read on three several
 63-1    days in each house be suspended, and this rule is hereby suspended,
 63-2    and that this Act take effect and be in force from and after its
 63-3    passage, and it is so enacted.