By:  Seaman (Senate Sponsor - Armbrister)                         H.B. No. 1740
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on Natural 
Resources; May 20, 2005, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 9, Nays 0; 
May 20, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1740                                   By:  Armbrister

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 4 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 5 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 4 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 4 of this Act. SECTION 2. Simultaneously with the conveyance of real property described by Section 5 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 4 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 4 of this Act, subject to the mineral and royalty reservation set forth in Section 1 of this Act. SECTION 3. 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 4 and 5 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 4 and 5 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 4 and 5 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 4 of this Act is determined to exceed the market value of the tract described in Section 5 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 4 of this Act and the tract described in Section 5 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 Section 51.401, Natural Resources Code, in order to effect the conveyances of property contemplated by this Act. SECTION 4. 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 3 of this Act. SECTION 5. 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 6. 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 7. 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 8. 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.
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