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Ordinance No. 14,201ORDINANCE NO. 14,201 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL DISTRICT AGREEMENT WITH NRG TEXAS POWER LLC; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ***************************************************************************** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the Mayor and City Clerk of the City of Baytown to execute and attest to an Industrial District Agreement with NRG Texas Power LLC. A copy of said Industrial District Agreement is attached hereto, marked Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the City of Baytown, this the 261h day of September, 2019. BRANDON CAPETILLO, Ma r ZTTT: A BRYSCH, ' y Cler APPROVED AS TO FORM: NACIO RAMIREZ, SR , ity Attorney Ell -■e" * R: Karen.FiI&City Council\Ordinances\20191September 2611DAwithNRGTexasPowerLLC.doc Exhibit "A" Industrial District Agreement This Industrial District Agreement ("Agreement") is made and entered into between the City of Baytown, Texas, a municipal corporation in Harris and Chambers Counties, Texas, hereinafter also referred to as 'Baytown" or "City," and NRG Texas Power LLC, a Delaware limited liability company, hereinafter referred to as "Property Owner." In consideration of the promises and of the mutual covenants and agreements herein contained, it is agreed by and between the City and Property Owner as follows: I. Parties This Agreement is made under the authority of Texas Local Government Code Annotated §42.044 (Vernon 1993), article XI, §5 of the Texas Constitution and other applicable law. The parties to the Agreement and their addresses are: The "City" City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Copy to: City of Baytown Attn: City Attorney P.O. Box 424 Baytown, TX 77522 2. The "Property Owner" NRG Texas Power LLC Attn: President 910 Louisiana Houston, TX 77002 Tax Statement Address: NRG Texas Power LLC Attn: Property Tax Department 910 Louisiana Houston, TX 77002 II. Identification of Property and Industrial District This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased by the Property Owner. Real estate located outside the corporate limits of the City is sometimes referred to herein as the "affected area," and it is described in Exhibit A, which is attached to this Agreement and made a part hereof. Acting pursuant to the above mentioned authority, the City Council of the City has by ordinance, designated the affected area as an industrial district, the same to be known as Baytown Industrial District No. 3 (the "Industrial District"). III. Term The term of this Agreement is seven tax years, from 2019 through 2025, unless it is sooner terminated under the provisions hereof. This Agreement shall be effective and binding on the parties hereto upon execution hereof on behalf of the parties to this Agreement and shall remain in effect for seven years. This Agreement supersedes any prior existing agreements between the Property Owner and the City relating to the subject matter specific to the term hereof. IV. Limited Immunity from Annexation by the City In consideration of the obligations of the Property Owner herein set forth, the City hereby guarantees for the term of this Agreement the immunity of the affected area from annexation of any type by the City except for such parts of the affected property as may be necessary to annex property owned by third parties within the Industrial District that the City may decide to annex. Additionally, this Agreement shall not affect the continuation of any limited purpose annexation status to which the affected area is now subject. V. Industrial District Payment As part of the consideration for the City's undertakings as set forth above, the Property Owner agrees to pay to the City on or before December 31 St of each year during the term hereof a sum of money equal to: (1) the fair market value as agreed to and stipulated by the parties to be as follows for each year indicated: 2 2019 i $19,682,215.00 2020 $19,682,215.00 2021 $19,682,215.00 2022 $19,682,215.00 2023 $19,682,215.00 2024 $19,682,215.00 2025 $19,682,215.00 hereinafter referred to as the "Base Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City, multiplied by the applicable Yearly Payment Rate as detailed below: TAX YEAR YEARLY PAYMENT RATE 2019 .66 2020 .66 2021 .66 2022 .66 2023 .66 2024 .66 2025 .66 VI. Valuations and Collections A. Generally The parties hereto recognize that said Chambers County Appraisal District is not required to appraise for the City the land, improvements, and tangible property, real or mixed, in the affected area, which is not within the corporate limits of the City, for the purpose of computing the payments hereunder. For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owner hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the assessment of the Property Owner's property on an equal and uniform basis with property in the general corporate limits of the City, the provisions of this Agreement will control where in conflict with the provisions of such laws and (ii) the income method of appraisal as described in Section 23.012 of the Texas Property Tax Code shall not be limited to only properties for which a rental market exists. Specifically, nothing contained herein shall limit the income method of appraisal specified in Section 23.012 of the Texas Property Tax Code to only properties for which a rental market exists, instead if such method is used, the chief appraiser shall: 1. use income and expense data pertaining to the property, if possible and applicable; 2. make any projections of future income and expenses only from clear and appropriate evidence; 3. use data from generally accepted sources in determining an appropriate capitalization rate; and 4. determine a capitalization rate for income -producing property that includes a reasonable return on investment, taking into account the risk associated with the investment. The parties agree that the fair market value of the Property Owner's land, improvements, and tangible property subject to Subsections B and C of this section shall be determined in accordance with the market value computation contemplated in the Texas Property Tax Code for the purpose of calculating the Property Owner's payment under this Agreement on properties annexed or disannexed subsequent to the commencement of this Agreement. The City may choose to use the appraised value as finally determined by the Chambers County Appraisal District (or through administrative or judicial appeal of the Chambers County Appraisal District's determination), or by appraisal conducted by an independent appraiser of the City's selection at the City's expense. The determination of fair market values by the City shall be final and binding unless the Property Owner within thirty (30) days after receipt of the City's determination petitions for a Declaratory Judgment to the Civil District Court of Chambers County, Texas, as provided for by Section XIII hereof. Nothing contained herein shall ever be construed as in derogation of the authority of the Chambers County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion for ad valorem tax purposes. B. Adiustment of Base Value for Property Inside the Corporate Limits but Subsequently Disannexed Land, improvements and tangible property, real or mixed, of the Property Owner, which is disannexed from the corporate limits of the City during the term of this Agreement, shall become part of the affected area immediately upon disannexation. The value for such disannexed land, improvements and tangible property, real or mixed shall be determined as described in Subsection A of this Section based upon the year in which the property is disannexed and shall be added to the Base Value specified in Article V each year after the disannexation for purposes of payment hereunder. C. Adiustment of Base Value for Property Outside the Corporate Limits but Subsequently Annexed Land, improvements and tangible property, real or mixed, of the Property Owner, which is annexed into the corporate limits of the City during the term of this Agreement, shall be 4 removed from the affected area the year after the annexation. The value for such annexed land, improvements and tangible property, real or mixed shall be determined as described in Subsection A of this Section based upon the year in which the property is annexed and shall be subtracted from the Base Value specified in Article V each year after the annexation for purposes of payment hereunder. D. Statements The City shall mail one statement to the Property Owner on or about December 1 of each year showing the total amount due on December 31 of such year pursuant to this Agreement. Such statement shall be mailed to the "Tax Statement Address" noted in this Agreement. Any amounts due on December 31 that are not paid when due shall become delinquent on January 1 of the following year. Provided, however, if the tax statement is mailed after December 10, the delinquency date is postponed to the first day of the next month that will provide a period of at least 21 days after the date of mailing for payment of the amount due. Delinquent amounts shall be immediately subject to the same penalties, interest, attorneys' fees and costs of collection as recoverable by the City in the case of delinquent ad valorem taxes. The City shall have a lien upon the Property Owner's land within the affected area upon any delinquency in the Industrial District Payment. E. Valuation Contests If any differences concerning the appraised values shall not have been finally determined by the due date of the Property Owner's payment hereunder and the Property Owner is pursuing through a declaratory judgment action as specified in Subsection A, the Property Owner shall, without prejudice to such action, pay to the City by December 31 of each year (subject to the exception in the preceding paragraph for statements mailed after December 10), such amount as is provided in the Texas Property Tax Code, as amended throughout the term of this Agreement, for payments made under such conditions by owners of property within the general corporate limits of the City subject to ad valorem taxation. Any refund payable by the City to the Property Owner hereunder shall be paid within 60 days after receipt by the City of both Chambers County Appraisal District's form notification that the appraised value of the property has been reduced and a written refund request by the Property Owner; if not paid timely, the refund amount shall bear interest at the rate specified in Section 2251.025 of the Texas Government Code beginning 60 days after the City received both the Property Owner's written refund request and the Chambers County Appraisal District's formal notification that the appraised value of the property has been reduced. R V II. Compliance with Law The City and the Property Owner mutually recognize that the health and welfare of Baytown residents require adherence to high standards of quality in the air emissions, water effluents and noise, vibration and toxic levels of those industries located in the Industrial District, and that development within the District may have an impact on the drainage of surrounding areas. To this end, the Property Owner and the City agree that the same standards and criteria relative to noise, vibration and toxic levels and drainage and flood control which are adopted by the City and made applicable to portions of the City adjacent to the Industrial District shall also be applicable to the affected area. The Property Owner agrees that any industrial or other activity carried on within the affected area will be constructed in strict compliance with all applicable valid state and federal air and water pollution control standards. If the Property Owner's property within the affected area is subject to the Occupational Safety and Health Act, 29 U.S.C. 65, et seq., as amended, then the Property Owner shall undertake to ensure that its facilities and improvements in the affected area comply with the applicable fire safety standards of such act and the resolutions from time to time promulgated hereunder (the "OSHA Standards"), but there shall be no obligation to obtain any permits of any kind from the City in connection with the construction, operation or maintenance of improvements and facilities in the affected area not located within the corporate limits of the City. Nonetheless, the Property Owner agrees that any structure built within the affected area shall be built in accordance with the building code adopted by the City in effect at the time of construction. The City and the Property Owner recognize that activities in the City's industrial districts are subject to regulation by other governmental entities, including the state and federal governments and their various departments and agencies. The City and the Property Owner also recognize that the City may have an interest in activities in the City's industrial districts that are regulated by other governmental entities. Nothing in this Agreement is intended to limit the City's right and authority to communicate its interest in, or opposition to, those activities to the applicable regulatory agencies or to participate, to the extent allowed by law, in any related administrative or judicial proceeding. VIII. Inspections The Chief Appraiser of the Chambers County Appraisal District and the City or its independent appraiser shall have the same right to enter and inspect the Property Owner's premises and the same right to examine the Property Owner's books and records to determine the value of the Property Owner's properties as are provided in the Texas Property Tax Code as amended. IX. Default A. Default by Property Owner In the event of default by the Property Owner in the performance of any of the terms of this Agreement, including the obligation to make the payments above provided for, the City shall have the option, if such default is not fully corrected within sixty (60) days from the giving of written notice of such default to the Property Owner to either (i) declare this Agreement terminated or (ii) continue the term of this Agreement and collect the payments required hereunder. Notwithstanding anything to the contrary contained herein, should the City determine the Property Owner is in default according to the terms and conditions of Section VII hereof, the City shall notify the Property Owner in writing by U.S. Mail, certified return receipt requested, at the address stated in this Agreement, and if such default is not cured within sixty (60) days from the date of such notice (the "Cure Period") then such failure to cure shall constitute a material breach of this Agreement; provided that, in the case of a default under Section VII for causes beyond the Property Owner's control that cannot with due diligence be cured within such sixty (60) day period or in the event that the failure to cure results from ongoing negotiations with federal or state officials, administrative proceedings or litigation regarding the necessary cure steps, then the cure period shall be extended until such negotiations, administrative proceedings or litigation are concluded. B. Default by City In the event of default by the City, the Property Owner may, if such default is not fully corrected within 60 days from giving written notice of such default to the City, terminate this Agreement. Upon such termination, both the Property Owner and the City shall be relieved of all further obligations hereunder, but the Property Owner shall not be relieved of the obligation to pay any amounts that accrued prior to such termination. In the event of termination, the City shall have the right to repeal the ordinance designating the affected area as an industrial district. Provided, however, if the termination occurs as a result of the City's exercising its option to terminate (as provided in the first sentence of this Section IX), the City shall not have the right to annex the affected area into the general corporate limits of the City so as to subject the affected area to ad valorem taxes for any part of the period covered by the Property Owner's last payment hereunder. X. Notice Any notice to the Property Owner or the City concerning the matters to which the Agreement relates may be given in writing by registered or certified mail addressed to the Property Owner or the City at the appropriate respective addresses set forth on the cover page of this Agreement. Any such notice in writing may be given in any other manner. If given by 7 registered or certified mail, the notice shall be effective when mailed. With the exception of annual bills for payments due herein, notice given in any other manner shall be effective when received by the Property Owner or the City, as the case may be. XI. No Further Expansion of Taxing Jurisdiction Nothing herein contained shall be construed to change or enlarge the jurisdiction, power or authority of the City over or with respect to the affected area as prescribed by applicable law, except as specifically provided in this Agreement. The Property Owner shall not be obligated by virtue of this Agreement, or the establishment of the industrial district covering the affected area not within the corporate limits of the City, to make any payments to the City in the nature of a tax or assessment based upon the value of the Property Owner's property in the affected area during the term of this Agreement other than the payments specified herein. Specifically, the Property Owner shall not be liable for any City taxes within the affected area, including, without limitation, City ad valorem taxes on taxable property within the affected area. XII. Reimbursement for Services If the Property Owner requests and receives mutual aid firefighting assistance and is a member of Channel Industries Mutual Aid organization ("CIMA") or similar organization, the Property Owner shall reimburse the City for costs incurred by the City in providing fire protection services to the Property Owner as shall be provided in the charter, bylaws and agreements pursuant to which CIMA or such similar organization is organized and operates. If the Property Owner requests and receives mutual aid firefighting assistance and is not a member of CIMA or a similar organization, then the Property Owner shall be required to reimburse the City for costs actually expended by the City in providing any firefighting assistance to the Property Owner, including chemical and personnel costs. XIII. Declaratory Judgment Action If any disagreement arises between the parties concerning the interpretation of this Agreement, it is agreed that either of the said parties may petition any Civil District Court of Harris County, Texas, for a Declaratory Judgment determining said controversy and the cause shall be tried as other civil causes. If the controversy affects an Industrial District Payment, the Property Owner shall, pending final determination of said controversy, pay to the City on the due date the same amount which was paid to the City for the last preceding period as to which there was no controversy concerning the amount owed by the Property Owner to the City. The Property Owner agrees to tender any additional amount of potential liability to the registry of the Civil District Court, Harris County, Texas, pending final determination of the controversy beyond any further appeal. 8 XIV. Assignment This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Property Owner and the City only. If the Property Owner conveys all or any part of the property then covered hereby, the Property Owner shall notify the City within 30 days of the conveyance and shall thereafter cease to be obligated with respect to the property so conveyed and the Base Value shall be apportioned between the Property Owner and the grantee based upon the property conveyed, only if the grantee thereof enters into an Industrial District Agreement with the City with respect to such property so conveyed. No right or obligation under this Agreement may be sold, assigned or transferred. XV. Authority The Property Owner covenants that it has t: by virtue of being either the legal or equitable of leasehold estate) in the land comprising the affected expiration date of this Agreement. Additionally, i behalf of the parties hereby represent that such of Agreement and to bind the party he represents. e authority to enter into this Agreement ,ner of a possessory estate (including a area, which will not terminate before the ie officers executing this Agreement on cers have full authority to execute this XVI. No Municipal Services It is agreed that during the term of this Agreement, the City is under no obligation to provide any governmental, proprietary or other municipal services to the affected area. Specifically, but without limitation, it is agreed that the City shall not be required to furnish (1) sewer or water service, (2) police protection, (3) fire protection (4) road or street repairs, and (5) garbage pickup service. XVII. Severability If any provision of this Agreement, or any covenant, obligation or agreement contained herein, including, without limitation, that term hereof, is determined by a court to be invalidated or unenforceable, such provision, covenant, obligation or agreement shall be reformed so as to comply with applicable law. If it is not possible to so reform such provision, covenant, obligation or agreement, such determination shall not affect any 'other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. Provided, further that such invalidity or unenforceability shall not affect any valid and enforceable provision thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Notwithstanding the above, if the application of this Section XVII requires reformation or revision of any term that removes or materially diminishes the obligation of the Property Owner to make the payments to the City described herein (except in the event of a reformation that shortens the term of this Agreement), the City shall have the option to declare this Agreement terminated. XVIII. Complete Agreement This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. XIX. Non -waiver Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. XX. Ambiguities In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. XXI. Headings The headings appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. XXII. Choice of Law, Venue This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution 10 or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. XXIII. Agreement Read The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on behalf of the Property Owner this _jeday of to I ttx-&K , 2019, and on behalf of the City this day of �— , 2019. NRG TEXAS POWE C By. Ga fah rro it ¢- Printed Name Title STATE OF N J br y COUNTY OF / 4eMt✓ I ''r-e.t-rq re r- Before me, _ '�> hord m , the undersigned notary public, on this day personally appeared A W & , the Sur,, r- of NRG Texas Power LLC, the owner of the affected property, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes, in the capacity, and for the consideration therein expressed. SUBSCRIBED AND SWORN before me this V day of SePlemher , 2019. . — /-O,-av &4 Z� - Notary Public in and for the a of KJ7- EDEBORAH R. FRY . Notary Public, stateo!ov.Jersey .p.-Ys. My Commission ExRares October 23. 20'-*" CITY OF BAYTOWN BRANDON CAPETILLO, Mayor ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney WADE NICKERSON, Finance Director cobfs0I legal Karen Files Contracts Industrial District Agreements NRG Texas Power LLC NRG Texas Power LLC -Existing Company IDA --Now Logistics.docx 12 EXHIBIT "A' PAGE 1 OF 14 A 324.435-acre tract out of the Christian Smith League, Abstract 22, Chambers County, Texas, being out of a called 413.081 acre tract of land described in a deed to Texas Genco and recorded under Chambers County Clerks File Number 69528. All coordinates and bearings stated herein are referred to the Texas Coordinate System of 1927, South Central Zone, as defined in the Texas Natural Resources Code, section 21.071 et seq. With the coordinates based on a found concrete monument with brass disk (S=580.00 E=130.00) having Grid values of: Northing (1I=718,271.55 and Easting (X)=3,292,359.92 and the position of a found concrete monument with brass disk (N=669.00 E=130.00) bearing . N 120 10'50" W.1,249.13 (found 0.13 feet long) and having Grid values of: Northing (1)=719,492.42 and Easting (X7=3,292,096.39 per Reliant Energy. All distances shown hereon are surface. To convert to grid distance, multiply by the applied scale factor of 0.9998892. Said 324.435-acre tract is described by metes and bounds as follows: PARCEL PS12-CO2 413.081 ACRES BEGINNING at a'/: -inch iron rod having Grid coordinates X=3,296,930.35; Y=722,047.91, being the northeast corner of said Exhibit "A" (PS12-CO2). from which a found concrete monument with brass disk for plant baseline monument (S=580.00 E=130.00) bears South 50026'04" West, a distance of 5,929.38 feet and from which a second concrete monument with brass disk found for plant baseline monument (N=669.00 E=130.00) bears South 62°08'12" West, a distance of 5,468.49 feet and being in the westerly right-of-way line of West Bay Road (an 80-foot wide right-of-way) as recorded in Volume 133, Page 487 of the Deed Records of Chambers County; J/60003950 CEDAR BAYOU UPDATE%Docs%CEOAR BAYOU MB.doc Lest printed 1/30/2005 5.57 00 AM EXHIBIT "A" PAGE 2 OF 14 THENCE, South 07°35'47" East, with said westerly right-of-way line, a distance of 91.79 feet to a'/ -inch iron rod with plastic cap found for corner; THENCE, South 06"27'04" East, continuing with said right-of-way line, a distance of 1,539.96 feet to a %-inch iron rod with plastic cap found for comer; THENCE, South 06°26'36" East, continuing with said right-of-way line, a distance of 972.14 feet to a 3/.-inch iron rod with plastic cap found for corner; THENCE, South 83°33'06" West, a distance of 10.00 feet to a %cinch iron rod found in the westerly right-of-way line of West Bay Road (100-foot wide at this point) right-of-way as recorded under Film Code No. 97-332-500 of the Chambers County Official Public Records of Real Property; THENCE, South 06°26'54" East, with said 100-foot wide right-of-way line, a distance of 788.91 feet to a %-inch iron rod found with plastic cap found for the northwest cutback corner of the westerly right-of-way line of said West Bay Road with the northerly right-of- way line of West Bay Road (80-foot wide right-of-way at this point) recorded in Volume 133, Page 447 of the Deed Records of Chambers County; THENCE, South 35°42'09" West, with said cutback, a distance of 66.72 feet to a '/cinch iron rod found in the northerly right-of-way line of said West Bay Road; THENCE, South 77051'12" West, with said northerly right-of-way line, a distance of 474.20 feet to a 3/.-inch iron rod with plastic cap found for corner; THENCE, South 77055'20" West, continuing with said right-of-way line, a distance of 303.77 feet to a 5/8-inch iron rod found for corner; THENCE, South 77049'10" West, continuing with said right-of-way line, a distance of 2,239.06 feet to a concrete monument found for corner; THENCE, South 77049'00" West, continuing with said right-of-way line, a distance of 786.46 feet to a %-inch iron rod with plastic cap found for comer; THENCE, North 12°24'50" West, continuing with said right-of-way line, a distance of 4.41 feet to a %-inch iron rod with plastic cap found for a corner of the herein described tract and being a northeast corner of a called 5.368 acre tract recorded in Volume 297. Page 398 of the Chambers County Deed Records; THENCE, South 78° 12'00" West, with a northerly line of said 5.368 acre tract, a distance of 1,461.68 feet to a %-inch iron rod with plastic cap found for corner; J 160003950 CEDAR BAYOU UPDATECOWCEDAR BAYOU MB doc Last pnnted 1/3012006 6 57:00 AM EXHIBIT "A" PAGE 3 OF 14 THENCE, North 19031'50" West, with an easterly line of said 5.368 acre tract, a distance of 450.00 feet to a Winch iron rod with plastic cap found for a comer of the herein described tract also being the most northerly northeast comer of said 5.368 acre tract; THENCE, South 78012'00" West, with a northerly line of said 5.368 acre tract, a distance of 377.86 feet to a point for corner; THENCE, South 28008'10" East, with the westerly line of said 5.368 acre tract, a distance of 49.05 feet to the beginning of a curve to the right; THENCE, southeasterly, with said curve to the right, having a radius of 1,454.50 feet, through a delta angle of 17012'58", the chord bears South 19031'50" East, a distance of 435.40 feet for a total arc length of 437.04 feet to a point for comer; THENCE, South 1005620 East, a distance of 7.37 feet to a point for corner; THENCE, South 78012'00" West, a distance of 114.53 feet to a point in the westerly deed line of a called 33.041 acre tract recorded in Volume 275, Page 81 of the Chambers County Deed Records; THENCE, with the called westerly deed lines of said 33.041 acre tract, a called 5.846 acre tract, a called 68.766 acre tract recorded in Volume 283, Page 863, a called 4.0 acre tract recorded in Volume284, Page 228 and a called 50.000 acre tract recorded in Volume 284, Page 821, the following courses: North 13*11'20" West, a distance of 138.83 feet; North 20°27'00" West, a distance of 142.04 feet; North 24006'20" West, a distance of 120.02 feet; North 29006'30" West, a distance of 79.80 feet; North 23055*29" West, a distance of 254.64 feet; North 18015'00" West, a distance of 62.94 feet; North 12052'00" West, a distance of 189.02 feet; North 05013'40" West, a distance of 83.75 feet; J.%WO03950 CEDAR BAYOU UPDATE10ocs10EDAR BAYOU M8.doc Lest pnnted 1/30/2006 6:57:00 AM EXHIBIT "A" PAGE 4 OF 14 North 01 °09'40" East, a distance of 51.59 feet; North 02°20'20" East, a distance of 67.54 feet; North 03052'20" East, a distance of 133.28 feet; North 04"56'30" East, a distance of 75.15 feet; North 06'07'00" East, a distance of 89.12 feet; North 05°46'00" East, a distance of 101.32 feet; North 03°37'00" West, a distance of 64.09 feet; North 00*05'10" West, a distance of 71.87 feet; North 02054'30" East, a distance of 59.16 feet; North 05033'30" East, a distance of 143.08 feet; North 18022'00" East, a distance of 147.62 feet, North 25046'58" East, a distance of 35.90 feet; North 25"37'00" East, a distance of 143.43 feet; North 31 "25'00" East, a distance of 128.22 feet; North 40032'00" East, a distance of 79.04 feet; North 45052'00" East, a distance of 77.81 feet; North 55016'00" East, a distance of 133.31 feet; North 61 °54'00" East, a distance of 145.61 feet; North 71021'00" East, a distance of 177.21 feet; North 77056'00" East, a distance of 101.39 feet; North 66054'00" East, a distance of 144.42 feet; J'%60003950 CEDAR BAYOU UPDATE%DOCSICEDAR BAYOU MB.40C Last printed IMM006 6.57 CO AM EXHIBIT "A" PAGE 5 OF 14 North 60°50'00" East, a distance of 81.33 feet; North 63°37'00" East, a distance of 75.56 feet; North 55057'00" East, a distance of 165.66 feet; North 4003245" East, a distance of 305.26 feet; North 31 °51'12" East, a distance of 531.84 feet; North 37°47'00" East, a distance of 228.20 feet; North 53"34'00" East, a distance of 325.60 feet; North 66031'00" East, a distance of 107.50 feet; North 89036'00" East, a distance of 112.00 feet; North 03005'00" East, a distance of 45.70 feet; North 87°05'00" East, a distance of 142.40 feet; South 82005'00" East, a distance of 124.50 feet; South 70002'00" East, a distance of 167.60 feet; South 74°18'00" East, a distance of 204.10 feet; South 88056'00" East, a distance of 187.80 feet; North 80024'00" East, a distance of 159.60 feet; North 65°12'00" East, a distance of 88.40 feet; North 49009'00" East, a distance of 85.90 feet; North 67°00'00" East, a distance of 45.30 feet; North 18°28'00" East, a distance of 22.20 feet; North 39°55'10" East, a distance of 104.07 feet; J:%W03950 CEDAR BAYOU UPDATE%Docs10EDAR BAYOU MB.doc Last pnnted 1130M06 6.57:00 AM EXHIBIT "A" PAGE 6 OF 14 THENCE, North 2300930" East, a distance of 144.73 feet to a point in the southerly line of a called 20.19 acre tract of land recorded in Volume 313, Page 250 of the Deed Records of Chambers County; THENCE, North 77*35'16" East, with the southerly line of said 20.19 acre tract, a distance of 169.03 feet to a chain link fence comer found for comer; THENCE, North 77035'16" East, continuing with said southerly line, a distance of 1,858.79 feet to the POINT OF BEGINNING and containing a computed area of 413.081 acres (17,993,808 square feet) of land of which approximately 14 acres are within the Spoil Disposal Area recorded in Permit No.7486 of the Galveston District Corps of Engineers. SAVE AND EXCEPT THE FOLLOWING 3 PARCELS: PARCEL PS12-010 19.102 ACRES A 19.102-acre tract out of the Christian Smith League, Abstract 22, Chambers County, Texas, and being out of the said 413.081 described in Exhibit "A" (PS12-0O2). All coordinates and bearings stated herein are referred to the Texas Coordinate System of 1927, South Central Zone, as defined in the Texas Natural Resources Code, section 21.071 et seq. With the coordinates based on a found concrete monument with brass disk (S=580.00 E=130.00) having Grid values of: Northing (10=716,271.55 and Easting (X)=3,292,359.92 and the position of a found concrete monument with brass disk (N=669.00 E=130.00) bearing . N 120 1 0'50"W.1,249.13 (found 0.13 feet long) and having Grid values of: Northing (1)=719,492.42 and Easting (X)=3,292,096.39 per Reliant Energy. All distances shown hereon are surface. To convert to grid distance, multiply by the J:160003950 CEDAR BAYOU UPDATE%Docs%CEDAR BAYOU MB.doc Lest pnMed 1/30/2006 6:57.00 AM EXHIBIT "A" PAGE 7 OF 14 applied scale factor of 0.9998892. Said 19.102-acre tract is described by metes and bounds as follows: COMMENCING at a 1/2-inch iron rod having Grid coordinates X=3,296,930.35; Y=722,047.91, being the northeast comer of said Exhibit "A" (PS12-CO2), from which a found concrete monument with brass disk for plant baseline monument (S=580.00 E=130.00) bears South 50°26'04" West, a distance of 5,929.38 feet and from which a second concrete monument with brass disk found for plant baseline monument (N=669.00 E=130.00) bears South 62008'12" West, a distance of 5,468.49 feet and being in the westerly right-of-way line of West Bay Road (an 80-foot wide right-of-way) as recorded in Volume 133, Page 487 of the Deed Records of Chambers County; THENCE, South 0703547" East, with the easterly line of said Exhibit "A" (PS12-0O2), a distance of 91.79 feet to a'/ -inch iron rod with plastic cap found for corner THENCE, South 06°27'04" East, continuing with said easterly line, a distance of 1,539.96 feet to a %-inch iron rod with plastic cap found for corner; THENCE, South 06°26'36" East, continuing with said easterly line, a distance of 972.14 feet to a %-inch iron rod with plastic cap found for corner; THENCE, South 83°33'06" West, a distance of 10.00 feet to a '/2-inch iron rod found for corner; THENCE, South 06°26'54" East, with said easterly line, a distance of 12.08 feet to a point for corner; THENCE, South 83°33'06" West, departing said easterly line, a distance of 3,403.49 feet to a %-inch iron rod with plastic cap having coordinates of X=3,293,834.42; Y=719,065.69 found for the POINT OF BEGINNING of the herein described tract; THENCE, South 11 047'01" East, a distance of 490.65 feet to a %-inch iron rod with plastic cap found for corner; THENCE, South 77047'30" West, a distance of 1,686.90 feet to a 3/,-inch iron rod with plastic cap found for corner; THENCE, North 12° 11'42" West, a distance of 393.23 feet to a %-inch iron rod with plastic cap found for comer; J 160003960 CEDAR BAYOU UPOATEWocMCE0AR BAYOU MB.doc Last printed 1/30/2006 6:57:00 AM EXHIBIT "A" PAGE 8OF14 THENCE, North 32021'07" East, a distance of 164.89 feet to a %-inch iron rod with plastic cap found for comer; THENCE, North 77049'26" East, a distance of 675.77 feet to a %-inch iron rod with plastic cap found for corner; THENCE, South 12002'55" East, a distance of 30.02 feet to a chain link fence corner post found for comer; THENCE, North 77048'10" East, a distance of 541.77 feet to a %-inch iron rod with plastic cap found for corner; THENCE, North 1002946" West, a distance of 11.61 feet to a'/ -inch iron rod with plastic cap found for corner; THENCE, North 77°58'59" East, a distance of 356.94 feet to the POINT OF BEGINNING and containing a computed area of 19.102 acres of land; PARCEL CBY TANK-001 40.722 ACRES A 40.722-acre tract out of the Christian Smith League, Abstract 22, Chambers County, Texas, being out of a called 413.081 acre tract of land described in a deed to Texas Genco and recorded under Volume 575. Page 835 of the Chambers County Public Records. All coordinates and bearings stated herein are referred to the Texas Coordinate System of 1927, South Central Zone, as defined in the Texas Natural Resources Code, section 21.071 et seq. With the coordinates based on a found concrete monument with brass disk (S=580.00 E=130.00) having Grid values of: Northing (Y)=718,271.55 and Easting (X)=3,292,359.92 and the position of a found concrete monument with brass disk (N=669.00 E=130.00) bearing. N 120 1 0'50"W. 1,249.13 (found 0.13 feet long) and having J/60003950 CEDAR BAYOU UPDATE%Docs10EDAR BAYOU MB d0c Lost onnted 1/30/2006 6 57.00 AM EXHIBIT "A" PAGE 9OF14 Grid values of: Northing (17=719,492.42 and Easting (X)=3,292,096.39 per Reliant Energy. All distances shown hereon are surface. To convert to grid distance, multiply by the applied scale factor of 0.9998892. Said 40.722-acre tract is described by metes and bounds as follows: COMMENCING at a 1/2-inch iron rod having Grid coordinates X=3,296,930.35; Y=722,047.91, being the northeast comer of 413.081-acre tract, from which a found concrete monument with brass disk for plant baseline monument (S=580.00 E=130.00) bears South 50026'04" West, a distance of 5,929.38 feet and from which a second concrete monument with brass disk found for plant baseline monument (N=669.00 E=130.00) bears South 62008'12" West, a distance of 5,468.49 feet and being in the westerly right-of-way line of West Bay Road (an 80-foot wide right-of-way) as recorded in Volume 133, Page 487 of the Deed Records of Chambers County; THENCE, South 00049'15" West, a distance of 676.34 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for the POINT OF BEGINNING of the herein described tract and having Grid coordinates of X=3,296,940.04; Y=721,371.71 THENCE, South 09°03'15" East, a distance of 520.37 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 03°30'27" East, a distance of 431.43 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for the beginning of a non -tangent curve to the right THENCE, southwesterly, along said non -tangent curve to the right, having a radius of 268.47 feet, through a delta angle of 75047'14", the chord bears South 38035'12" West a distance of 329.79 feet, for a total arc length of 355.12 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, South 31018'38" West, a distance of 64.64 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 81 °07'52" West, a distance of 1568.76 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 68006'48" West, a distance of 193.95 feet to a 5/8-inch iron rod with J:160003950 CEDAR BAYOU UPOATE%Docs%CEDAR BAYOU MB doc Last printed 113012005 5:57:00 AM EXHIBIT "A" PAGE 10 OF 14 Survcon Inc. plastic cap set for corner; THENCE, North 49011'34" West, a distance of 52.87 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 41 °05'54" East, a distance of 283.43 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 48°54'06" West, a distance of 3.98 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 41 °05'54" East, a distance of 5.00 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 48054'06" East, a distance of 3.98 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 41"05'54" East, a distance of 806.02 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 48054'06" West, a distance of 4.07 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 41 °05'54" East, a distance of 5.00 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 48°54'06" East, a distance of 4.07 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE. North 41 005'54" East, a distance of 303.28 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 52055'40" East, a distance of 249.77 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 74°41'22" East, a distance of 254.66 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 12025'33" West, a distance of 3.97 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; J MM3950 CEOAR BAYOU UPOATE%DocstCEOAR BAYOU MB doc Last Printed 113012006 6 57-00 AM EXHIBIT "A" PAGE 11 OF 14 THENCE, North 77°34'27" East, a distance of 5.00 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 12025'33" East, a distance of 3.97 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 77°34'27" East, a distance of 541.81 feet to the POINT OF BEGINNING and containing a computed area of 40.722 acres of land. PARCEL CBY-TANK-0O2 28.822 ACRES A 28.822-acre tract out of the Christian Smith League, Abstract 22, Chambers County, Texas, being out of a called 413.081 acre tract of land described in a deed to Texas Genco and recorded under Volume 575, Page 835 of the Chambers County Public Records. All coordinates and bearings stated herein are referred to the Texas Coordinate System of 1927, South Central Zone, as defined in the Texas Natural Resources Code, section 21.071 et seq. With the coordinates based on a found concrete monument with brass disk (S=580.00 E=130.00) having Grid values of: Northing (1g=718,271.55 and Easting (X)=3,292,359.92 and the position of a found concrete monument with brass disk (N=669.00 E=130.00) bearing. N 120 10'50" W.1,249.13 (found 0.13 feet long) and having Grid values of: Northing (V7=719,492.42 and Easting (V=3,292,096.39 per Reliant Energy. All distances shown hereon are surface. To convert to grid distance, multiply by the JW003950 CEDAR BAYOU UPDATE%DocslCEDAR BAYOU M8.doc Last printed 1/3012006 0:57.00 AM EXHIBIT "A" PAGE 12 OF 14 applied scale factor of 0.9998892. Said 28.822-acre tract is described by metes and bounds as follows: COMMENCING at a 1/2-inch iron rod having Grid coordinates X=3,296,930.35; Y=722,047.91, being the northeast comer of 413.081-acre tract, from which a found concrete monument with brass disk for plant baseline monument (S=580.00 E=130.00) bears South 50026'04" West, a distance of 5,929.38 feet and from which a second concrete monument with brass disk found for plant baseline monument (N=669.00 E=130.00) bears South 62008'12" West, a distance of 5,468.49 feet and being in the westerly right-of-way line of West Bay Road (an 80-foot wide right-of-way) as recorded in Volume 133, Page 487 of the Deed Records of Chambers County; THENCE, South 67037'18" West, a distance of 2357.41 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for the POINT OF BEGINNING of the herein described tract and having Grid coordinates of X=3,294,750.72; Y=721,150.49 THENCE, South 61037'54" East, a distance of 210.92 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, South 69030'53" East, a distance of 771.04 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, South 4100654" West, a distance of 1240.54 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 43053'25" West, a distance of 37.11 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, South 47028'03" West, a distance of 24.13 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for the beginning of a non -tangent curve to the right; THENCE, southwesterly, along said non -tangent curve to the right, having a radius of 548.31 feet, through a delta angle of 31051'20", the chord bears South 62018'53" West a distance of 300.94 feet, for a total arc length of 304.85 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, South 77'45'17" West, a distance of 100.18 feet to a found fence corner; THENCE, North 11022'05" West, a distance of 196.86 feet to a found fence comer; J'=003950 CEDAR BAYOU UPDATEXD=%CEDAR BAYOU MB.dcc Last printed 1/3012008 8.57.00 AM EXHIBIT "A" PAGE 13 OF 14 THENCE, North 77°3926" East, a distance of 49.53 feet to a found fence corner; THENCE, North 12014'37" West, a distance of 225.69 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, South 78"29'31" West, a distance of 82.88 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE. North 12°25'38" West, a distance of 121.89 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 07036'17" West, a distance of 30.04 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 12°26'13" West, a distance of 428.31 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 78051'29" East, a distance of 117.76 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 12"10*15" West, a distance of 332.77 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for corner; THENCE, North 27°27'34" East, a distance of 63.45 feet to a 5/8-inch iron rod with Survcon Inc. plastic cap set for comer; THENCE, North 76°59'49" East, a distance of 86.01 feet to a point for corner; THENCE, North 68°1651" East, a distance of 83.23 feet to a point for corner; THENCE, North 69°43'39" East, a distance of 49.92 feet to a point for corner; THENCE, North 76'37'32" East, a distance of 50.16 feet to a point for corner; THENCE, North 79006'22" East, a distance of 49.93 feet to a point for corner; THENCE, North 81 *17'06" East, a distance of 50.04 feet to a point for corner; THENCE, North 88000'45" East, a distance of 50.25 feet to a point for corner; J:%60003950 CEDAR BAYOU UPOATE%Oocs%CEDAR BAYOU MB.doc Last pnnted I13=006 6:57:00 AM EXHIBIT "A" PAGE 14 OF 14 THENCE, South 89015'32" East, a distance of 49.76 feet to a point for corner; THENCE, North 40°03'32" East, a distance of 42.86 feet to the POINT OF BEGINNING of the herein described tract and containing a computed area of 28.822-acres of land. FOR A TOTAL NET ACERAGE OF 324.436 ACRES OF LAND. OF l� �F9F'_.9cf� ..... U JEROMYALVIN CHAN:.ER ..�.....»..»................... i •09 1711 J-%0003050 CEDAR BAYOU UPDATMocs%CEDAR BAYOU M840C Last printed 1/30/2006 6.57.00 AM