By: Seaman H.B. No. 1740
Substitute the following for H.B. No. 1740:
By: Miller C.S.H.B. No. 1740
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the City of Aransas Pass to acquire certain
state property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The City of Aransas Pass may acquire all right,
title, and interest of the State of Texas in and to the real
property described by Section 5 of this Act in exchange for
conveyance to the State of Texas, for the benefit of the Permanent
School Fund, of the real property described by Section 6 of this
Act; provided, however, that the State of Texas, for the benefit of
the Permanent School Fund, shall retain any and all oil, gas and
other minerals and mineral royalty rights in and to the property
described in Section 5 of this Act, and that the State of Texas
waives its right to use the surface of such property for the purpose
of exploration and development of the reserved oil, gas and other
minerals and mineral royalty rights, which shall be accomplished by
directional drilling or pooling; unless the City of Aransas Pass
and the commissioner of the General Land Office mutually agree not
later than August 31, 2009 to enter into a lease agreement affecting
the property described in Section 5 of this Act.
SECTION 2. Simultaneously with the conveyance of real
property described by Section 6 of this Act, together with
execution of a quitclaim deed of any interest of the City of Aransas
Pass in and to 9,644 acres, more or less, consisting of that portion
of Special Award No. 1, dated May 22, 1944, save and except the
tract of land described in Section 5 of this Act, to the General
Land Office for the use and benefit of the Permanent School Fund,
and, solely if necessary under the terms of this Act, delivery of
additional consideration by the City of Aransas Pass, the
commissioner of the General Land Office shall convey on behalf of
the state the state's right, title, and interest in and to the
property described by Section 5 of this Act, subject to the mineral
and royalty reservation set forth in Section 1 of this Act.
SECTION 3. The legislature finds that the real property
described by Section 5 of this Act has a fair market value equal to
the fair market value of the real property described by Section 6 of
this Act. The commissioner of the General Land Office shall request
the opinion of the Attorney General on the question of whether the
tracts described in Sections 5 and 6 may be conveyed in the manner
prescribed by Sections 1 and 2 of this Act in compliance with
applicable law and the Constitution of the State of Texas. Both the
City of Aransas Pass and the General Land Office shall have the
opportunity to bring factual and legal arguments relevant to such
question to the attention of the Attorney General.
SECTION 4. Solely in the event that the Attorney General is
of the opinion that the tracts described in Sections 5 and 6 of this
Act cannot, under applicable law and the Constitution of the State
of Texas, be conveyed in the manner described in Sections 1 and 2 of
this Act, the commissioner of the General Land Office and the City
of Aransas Pass shall follow the procedures outlined in this
Section. The tracts described in Sections 5 and 6 of this Act shall
be appraised by an appraiser acceptable to both the City of Aransas
Pass and the commissioner of the General Land Office, with the cost
of such appraisals paid by the General Land Office. In the event
that the City of Aransas Pass and the commissioner of the General
Land Office cannot agree on the market value of the tracts described
in Sections 5 and 6 of this Act, the City of Aransas Pass and the
commissioner of the General Land Office shall submit the question
of market value to a mutually acceptable mediator, with the cost of
the mediator paid by the General Land Office, who shall determine
the market value of the tracts described in Sections 5 and 6 of this
Act. The mediator's determination of market value shall be binding
on both the City of Aransas Pass and the General Land Office. In the
event that the market value of the tract described in Section 5 of
this Act is determined to exceed the market value of the tract
described in Section 6 of this Act, the City of Aransas Pass and the
commissioner of the General Land Office shall negotiate an
agreement whereby additional consideration, which may take the form
of cash, a lien or similar encumbrance in favor of the Permanent
School Fund, or some combination thereof, sufficient to equal the
difference in value between the tract described in Section 5 of this
Act and the tract described in Section 6 of this Act, as well as the
cost of any survey and appraisal performed and mediator retained in
accordance with the terms of this Act, shall be provided to the
commissioner of the General Land Office for the benefit of the
Permanent School Fund, with the cash component of such
consideration, including installment payments, if any, to be
deposited in the special fund account of the Permanent School Fund
created pursuant to Tex. Nat. Res. Code Section 51.401.
SECTION 5. The real property referred to in Sections 1 and 2
of this Act is the real property described as Tracts 3, 4, 7 and 8 of
the Bullitt-Hutchins, Inc. appraisal dated April 24, 2000 performed
for the General Land Office under GLO Contract No. 00-229R and on
file in the records of the General Land Office, comprising 115
acres, more or less, which property shall be surveyed at the cost of
the General Land Office prior to the appraisal described in Section
4 of this Act, if such survey and appraisal are required by the
terms of this Act.
SECTION 6. The real property described in Sections 1 and 2
of this Act is the following described land and sea bottom below
high tide:
Beginning in the North line of a survey in the name of Wm.
Docker, assignee of Lewis Von Zacharias as called for by Letters
Patent issued February 7th, 1842, Abstract No. 272, said point
being in the Southeast line of State F. M. Road No. 2725;
THENCE, with the North line of said Wm. Docker Survey,
Abstract No. 272, N. 88 deg. 27 min. 53 sec. East 1013.81 feet set a
2 inch iron pipe and a cedar post for the Northeast corner of said
Wm. Docker Survey and a corner of this tract;
THENCE, S. 21 deg. 12 min. 53 sec. West 166.67 feet along the
Southeast line of said Docker Survey to the Northwest corner of a
survey made in the name of Samuel Kenney, Abstract No. 182 as called
for in Letters Patent dated Dec. 4th, 1907;
THENCE, N. 88 deg. 27 min. 53 sec. East along the North line
of said Samuel Kenney Survey at 2247.22 feet the Northeast corner of
said Kenney Survey, and an internal corner of the Edmond St. John
Survey, Abstract No. 250, as called for by Letters Patent dated July
17th, 1880, and continuing along same course a total distance of
3533.19 feet to the East line of said Edmond St. John Survey in the
shoreline of Red Fish Bay for the Northeast corner of this tract;
THENCE, S. 35 deg. 27 min. 53 sec. West along the shoreline
1089.37 feet;
THENCE, S. 01 deg. 32 min. 07 sec. West along the shoreline
305.55 feet;
THENCE, S. 30 deg. 27 min. 53 sec. West along the shoreline
26.41 feet to the Southeast corner of this tract;
THENCE, S. 88 deg. 27 min. 53 sec. West 2905.53 feet to the
most Southerly Southwest corner of this tract;
THENCE, N. 01 deg. 32 min. 07 sec. East 1097.95 feet to a
corner in the Southeast line of said Wm. Docker Abstract No. 272;
THENCE, N. 46 deg. 02 min. 07 sec. West 215.5 feet to a
corner;
THENCE, S. 88 deg. 27 min. 53 sec. West 829.05 feet to a
corner, the most Westerly Southwest corner of this tract in the
Southeast boundary line of State F. M. Road No. 2725;
THENCE, N. 34 deg. 28 min. 19 sec. East along said road
boundary line 123.62 feet to the POINT OF BEGINNING, containing
89.5288 acres, more or less, and being partly out of the Wm. Docker
Survey Abstract No. 272, partly out of the Edmond St. John Survey
Abstract No. 250 and partly out of the Samuel Kenney Survey Abstract
No. 182;
SAVE AND EXCEPT THEREFROM the area contained in a narrow
strip out of the Northeast corner of the Wm. Docker Survey, Abstract
No. 272, which is more fully described in one certain Warranty Deed
dated January 15, 1969, executed by INGLESIDE LAND COMPANY, to
NATIONAL STEEL CORPORATION, recorded in Volume 382, Page 452, Deed
Records, San Patricio County, Texas, reference here being made to
Exhibit A, Tract 10, and being page 9 of said deed, for all
purposes.
EXCEPTIONS:
(1) Right-of-way Easement executed by SAN PATRICIO COUNTY
NAVIGATION DISTRICT No. 1, to CENTRAL POWER AND LIGHT COMPANY,
dated June 17, 1982, recorded in Volume 650, Page 493, Deed Records,
San Patricio County, Texas.
(2) Any visible and apparent roadways or easements over or
across the subject property, the existence of which does not appear
of record.
(3) Spoils Disposal Easement granted by INGLESIDE LAND
COMPANY, to Nueces County Navigation District No. 1, by instrument
dated April 22, 1952, recorded in Volume 177, Page 07, Deed Records,
San Patricio County, Texas.
(4) Those certain erosions thereof by the water of Red Fish
Bay and/or Red Fish Cove.
(5) Easement executed by INGLESIDE LAND COMPANY, to UNITED
STATES OF AMERICA, for the Gulf Intracoastal Waterway, dated
September 11, 1958.
(6) Any and all easements and sites for storage tanks,
separators, flow lines and roadways in the development and
operation of outstanding Mineral Lease recorded in Volume 173, Page
468, Deed Records, San Patricio County, Texas.
(7) Pipeline Right-of-way dated December 11, 1950, executed
by INGLESIDE LAND COMPANY, to HUMBLE PIPE LINE COMPANY, recorded in
Volume 168, Page 192, Deed Records, San Patricio County, Texas.
(8) Pipeline Right-of-way dated June 8, 1965, executed by
INGLESIDE LAND COMPANY, to SHELL OIL COMPANY, recorded in Volume
318, Page 144, Deed Records, San Patricio County, Texas.
(9) Reservation of all of the oil, gas and other minerals by
virtue of the wording "Surface Estate Only" in Deed dated January
15, 1969, executed by INGLESIDE LAND COMPANY, to NATIONAL STEEL
CORPORATION, recorded in Volume 382, Page 452 et seq., Deed
Records, San Patricio County, Texas. Title to said interest not
investigated subsequent to said date.
SECTION 7. This Act shall only apply to lands granted
pursuant to special awards issued by the commissioner of the
General Land Office prior to January 1, 1945.
SECTION 8. If the appraisals, surveys, conveyances and
transactions contemplated by this Act do not occur prior to August
31, 2009, this Act shall expire and be void.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.