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Ordinance No. 10,083ORDINANCE NO. 10,083 • AN ORDINANCE 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 U.S. DENRO STEELS, INC., D/B/A JINDAL UNITED STEEL CORPORATION; 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 U.S. Denro Steels, Inc., d/b/a Jindal United Steel Corporation, which agreement is consistent with the Industrial District Policy for industries which had an Industrial District Agreement in effect with the City of Baytown on July 26, 2002, which policy was adopted by the City Council on April 24, 2003, via Resolution No. 1584. A copy of said Industrial District Agreement is attached hereto, marked Exhibit "A." Both the Industrial District Agreement and Resolution No. 1584 by this reference are made a part hereof. 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 91h day of June, 2005, CALVIN MUNDINGER, Mayor ATTEST: ARTY W. S",,IITH, City Clerk APPROVED AS TO FORM: NACIO RAMIREZ, SR., City orney RAKarenTiles\City CounciNOrdinances\2005Uunc 9\USDenrostee1s1DA.doc ® 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 U.S. Denro Steel, Inc., d/b/a Jindal United Steel Corporation, a Delaware corporation, hereinafter referred to as "Property Owner." Inconsideration 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: 1. 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" Tax Statement Address: U.S. Denro Steel, Inc., d/b/a U.S. Denro Steel, Inc., d/b/a Jindal United Steel Corporation Jindal United Steel Corporation 5200 E. McKinney Road Attn: Daniel Meinzen, Plant Manager Baytown, Texas 77520 5200 E. McKinney Road Baytown, Texas 77520 II. Identification of PropeM 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, EMU 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 years, from June 29, 2005, through June 28, 2012, 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. This Agreement supersedes any prior existing agreements between the Property Owner and the City relating to the subject matter hereof and governing the affected area; to the extent any such prior existing agreement required payment on or after January 1, 2005, such payment obligations are hereby canceled and are superseded by the provisions contained herein. IV. Limited Immunity from Annexation b the Ci 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 s` of each year during the term hereof a sum of money equal to: (1) the fair market value as determined by the City, of all of the Property Owner's land and all other tangible property, real, personal or mixed, within the affected area and of all the Property Owner's land and all other tangible property, real, personal or mixed, within the corporate limits of the City: ➢ on January 1, 2002, or ➢ as most recently certified by the chief appraiser of the appraisal district and/or approved by the Industrial Appraisal Review Board established and appointed by the City Council, as of the date of this Agreement, whichever is greater, hereinafter referred to as the "Base Year," multiplied by PA • (2) the propertytax rate per $100.00 of assessed valuation adopted by the City Council for the City, multiplied by the applicable industrial district payment rate as detailed below, less (3) the amount actually paid by the Property Owner to the City as ad valorem taxes on that portion of the Property Owner's property, real, personal and mixed, within the corporate limits of the City. The tax payment shall be based on the value determined by the Chambers County Appraisal District or such other appraisal district as may succeed the Chambers County Appraisal District in assessing property for the City. The applicable Industrial District Payment Rate shall be determined using the following chart: ,PAYMENTIND�U�STRIAL�DISTRICT �is�YEAR ;;� .��.<� tf.S:.F..a.�MtiG1!.5.++'�7,r.s 1 -ext YMENT�RATF} i t5a�•.SvYR'.:i•:1�0�.'K1:35;i�`SiA'ft 2/r �.L�PI��LN . .50 2 .55 3 .55 4 .55 5 .60 6 .60 7 .60 VI. Valuations 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; • 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. A. Valuation of Property Inside the Corporate Limits The payments required hereunder shall be based upon the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District or its legal successor (or through administrative or judicial appeal of the Chambers County Appraisal District's determination), for (i) the land within the corporate limits of the City and owned by the Property Owner as of January 1 of the Base Year, and (ii) all improvements and tangible property, real or mixed, situated within the corporate limits of the City and owned by the Property Owner as of January 1 of the Base Year. B. Valuation of Property Outside the Corporate Limits The parties hereto recognize that said Chambers County Appraisal District is not required to appraise 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. Therefore, the parties agree that to determine the fair market value of all of the Property Owner's land, improvements, and tangible property located outside the corporate limits of the City in accordance with the market value computation contemplated in the Texas Property Tax Code for the purpose of calculating the Property Owner's payment in the manner described above; the City may choose to use the appraised value for the Base Year, 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 the City and/or by an independent appraiser of the 'City's selection, and at the City's expense. 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. C. Binding Effect Determination of Industrial District fair market values in the above -stated manner outside the corporate limits shall be made by the City and approved by the Industrial Appraisal Review Board. Such final fair market value as approved by the Industrial Appraisal Review Board shall be final and binding unless either party within thirty (30) days after receipt of the Board's determination petitions for a Declaratory .Judgment to the Civil District Court of Harris County, Texas, as provided for by Section XIII hereof. In determining the fair market value of property and improvements as used herein, the Industrial District Appraisal Board shall base its determination on the fair market value as defined in Section VI herein, giving due consideration to comparable present day facilities considering and giving effect to sound engineering valuation practices relative to service life, life expectancy, process and functional obsolescence. 4 • 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 becom6 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 desires to pursue any additional available remedies, the Property Owner shall, without prejudice to such remedies, 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 eight percent per annum 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. VI1. 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 ProngProngly 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 any 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 relived 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 designated 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 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. 9 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. XIV. Assignrrient 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 the authority to enter into this Agreement by virtue of being either the legal or equitable owner of a possessory estate (including a leasehold estate) in the land comprising the affected area, which will not terminate before the expiration date of this Agreement. Additionally, the officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the. party he represents. 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 XVI 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. 6 0 M. 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. Headin&s 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 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 day of , 2005, and on behalf of the City this ® day of , 2005. 1101 U.S. DENRO STEEL, INC., d/b/a JINDAL UNITED STEEL CORPORATION B Com. Y Printed Name Title ATTE T: Secretary ATTEST: GARY W. SMITH, City Clerk APPROVED AS TO FORM: 4IACIO RAMIREZ, SR. 'ty Attorney RHONDA YOUNG financei ector CITY OF BAYTOWN CALVIN MUNDINGER, Mayor • R:Ueanene\My Documen ts\ContractslMDA\USDenroSteeIIDA Rene waI2005.doc 11 • EXHIBIT "A" TRACT I ATTACHMENT I MAIN MILL TRACT THE STATE OF TEXAS) COUNTY OF CHAMBERS) FIELD NOTES of a 331.1178 acre tract of land situated in the John Ijams Survey, Abstract No. 15, Chambers County, Texas, and being out of and a part of the following tracts of land. 1. 276.963 acres USX Tract. 3-A described in a deed from John Raymond Kilgore to United States Steel Corporation dated February 21, 1967, and recorded in Volume 282 at Page 696 of the Deed Records of Chambers County, Texas. - 2. 219.502 acres USX -Tract 5-A described in a deed from Truvy A. James and Ella A. James to United States Steel Corporation dated March 6, 1967, and recorded'in Volume 283 at Page 326 of the Deed Records of Chambers County, Texas. 3. 66.242 acres USX Tract 2"1-2 described in a deed from.Sam C. Stassi to United States Steel Corporation dated March 20, 1967, and recorded in Volume 283 at Page 870 of the Deed Records of Chambers County, Texas. 4. 53.109 acres USX Tract 27 described in a deed from Edwin Lammond and James W. Lammond to United States Steel Corporation dated February 23, 1967, and recorded in Volume 283. at Page 1 of the Deed Records of Chambers County, Texas. 5. 53.5 acres USX Tract 29 described in a deed from Ethel W. Gilbert and Harry L. Gilbert, Sr. to United States Steel Corporation dated February 23, 1967, and recorded in Volume 283 at Page 9 of the Deed Records of Chambers County, Texas. 6. 42.6945 acres USX Tract 30 described in a deed from Alice Schmidt and W. Kosse Schmidt to United States Steel Corporation dated February 18, 1967, and recorded. in Volume 282 at Page 447 of the Deed Records.of Chambers ounty, Texas. 7. 49.827 acres USX Tract 31 described in a deed from Ervin L. Laughlin and Chloe Delle Laughlin to United States Steel Corporation dated February 27, 1967, and' recorded in Volume 283 at Page 43 of the Deed Records of Chambers County, Texas. 8. 49.948 acres USX Tract 32 described'in'a deed from Emma Farr to United States Steel Corporation dated February 23, 1967, and recorded in Volume 283 at -Page 5 of the Deed Records of Chambers County, Texas. • 9. 4.999 acres USX Tract 140 described in a deed from David T. Searls, Trustee to United States Steel Corporation dated May 24, 1966, and recorded in Volume 275 at Page 224 of the Deed Records of Chambers County, Texas. 10. 1897.098 acres called J & L Tract 1 described in a deed from Jones and Laughlin Steel Corporation to United States Steel Corporation dated December 28, 1966, and recorded in Volume 281 at Page 128 of the Deed Records. of Chambers County, Texas. 11. 12.586 acres called SP RR Tract 2 described in a deed from Southern Pacific Company to United States'Steel Corporation dated May 24,,.1966, and recorded in Volume 276 at Page 114 of the Deed Records of Chambers County, Texas. 12. McKinney Road Abandonment as adopted by Commissioner's Court of Chambers -County, Texas, dated April 10, 1967, and recorded 'in Volume 285 at Page 532 of the Deed Records of Chambers County, Texas. NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, 1927 DATUM, AS DEFINED IN ARTICLE 5300A OF THE REVISED CIVIL STATUES OF THE STATE OF TEXAS. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR =0.9998819 REFERENCE IS MADE TO PLAT OF EVEN DATE, ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 3/4 inch iron rod set for the most Westerly Northwest corner of this tract of land, said corner being in the East right-of-way line of F.M. Highway 1405 (300 foot right-of- way). From this corner the Northeast corner -of said Item No. 9 above bears South 71 degrees 36 minutes 47 seconds East a distance of 7358.39 feet. This corner has a State Plane Coordinate Value of Y = 703,370.00 and X = 3,296,698,25. THENCE North 90 degrees 00 minutes 00 -seconds East with the most Westerly North line of this tract of land a distance of 1052.68 feet to a 3/4 inch iron rod set for a corner of this tract of land. THENCE South 00 degrees 00 minutes 09 seconds West with the East line of this tract of land a distance of 912.24 feet to a 3/4 ® inch iron rod set for a corner of this tract of land. THENCE South 60 degrees 45 minutes 31. seconds East with the North'east line of this tract of. land a distance of 744.40 feet to a-3/4 inch iron rod set for a corner of this tract of land. • • THENCE south 89 degrees 58 minutes 48 seconds East with the North line of this tract of land a distance of 2496.10 feet to a 3/4 inch iron rod set for a corner of this tract of land. THENCE North 54 degrees 05 minutes 32 seconds' East with the Northwest line of this tract of land a distance.of 1745.93 feet to a- 3/4 inch iron rod set for a corner of this tract of land. THENCE North 00 degrees 00 minutes 00 seconds East with the most Easterly West line of'this tract of land a distance of 2954.26 feet to a 3/4 inch .iron rod set for the most Northerly Northwest corner of this tract of land. THENCE North 90 degrees 00 minutes 00 seconds East with the North line of this tract of land a distance of 280.03 feet to a 3/4 inch iron rod set for the most Northerly Northeast corner of this tract of land. THENCE South 00 degrees 00 minutes 00 seconds East with the most Northerly East line of this tract of land a distance of 2902.56 feet to a 3/4 inch iron rod set for a corner of this tract of land. THENCE South 30 degrees 19 minutes 36 seconds East with the Northeast line of this tract of land a distance of 872.85 feet to a 3/4 inch iron. rod set for a corner of this tract of land. THENCE South 44 degrees 32 minutes 54 seconds East with the Northeast line of this tract of land a distance of. 514.87 feet to a 3/4 -inch iron rod set for a corner of this tract of land. THENCE South 00 degrees 04 minutes 09 seconds West with the East line of this tract of land a distance of 50.02 feet to a 3/4 inch iron rod set for a corner of this tract of land. THENCE South 44 degrees 32 minutes 54 seconds East with'the Northeast line of this tract of land a distance of 312.12 feet to a 3/4 inch iron rod set for the Northeast corner of this tract of land. THENCE South 00 degrees 00 minute 00 seconds East with the East line of this tract of land a distance of 1265.77 feet to a 3/4 inch iron rod set for the most Northerly Southeast corner of this tract of land. THENCE South 89 degrees 59 minutes 03 seconds West with the middle South line of this tract of land a distance of 776.52 feet to a 3/4 inch iron rod set for -an interior corner of this tract of land. :7 THENCE South 00 degrees 08 minutes 00 seconds West with the East line of this tract of land a distance of 2617.64 feet to a 3/4 inch iron rod set for an interior corner of this tract of land. THENCE North 90 degrees 00 minutes 00 seconds East -with the North line of this tract of land a distance of 753.55 feet to a 3/4 inch iron rod set for the most Southerly Northeast corner of this tract of land. THENCE South 00 degrees 00 minutes 00 seconds East with the•East line of this tract of land a distance. of 1359.82 feet to a 3/4 inch iron rod set -.for the Southeast corner of this tract of land. THENCE South 89 degrees 40 minutes '17 seconds West with the South line of this tract of land a distance of 1620.61 feet to a 3/4 inch iron rod set for an angle point in the South line of this tract of land. THENCE North 52 degrees 04 minutes 14 seconds West with the Southwest line of this tract of land a distance of 1196.59 feet to a 3/4 inch iron rod set for the most Southern Southwest corner of this tract of land. THENCE North 00 degrees 01 minute 24 seconds East with the West line of this tract of land a distance of 4261.01 feet to a 3/4 inch iron rod set for a corner of this tract of land. THENCE North 32 degrees 43 minutes 53 seconds West with the Southwest line of this tract of land a distance of 182.10 feet to a 3/4 inch iron rod set for a corner of this tract ..of land. THENCE -North 89 degrees 56 minutes 33 seconds West with the most. Northerly South line of this tract of land a distance of 3359.37 feet to a 3/4 inch iron rod set for a corner of this tract of land, said corner being the beginning of a curve to the left, concave to the South.. THENCE in a Southwesterly direction with the South line of this tract of land, and said curve to the left having a central angle of 38 deg 10 min 28 sec, a radius of 549.12 feet, a length of 365.86 feet and a chord bearing and distance of South 70 deg 10 min 23 sec West 35.9.13 feet to a 3/4 inch iron rod set for the most Westerly South. corner of this tract of land; said corner being in the East right-of-way line of said F.M. Highway No. 1405. ® THENCE North 16 degrees 09 minutes 18 seconds West with the West line of this tract of land and the East right-of-way line of said F.M. Highway 1405 a distance of 1889.96 feet to the PLACE OF BEGINNING, containing within said boundaries 391.0705 Gross Acres less the two acreage listed below, leaving 331.1178 Net Acres total. 10 EXCEPT a 59.5108 acre tract of land conveyed to Sawpipes Usa, Inc. by USX Corp. by deed dated May 6, 1993, and recorded in Volume 205 at Page 456 of the Official Public Records of Chambers County, Texas. ALSO EXCEPT a 0.4419 acre tract of land conveyed to Sawpipes Usa, Inc. by USX Corp. 'by deed dated May 6; 1993, and recorded in Volume 205 at Page 456 -of the Official Public Records of Chambers County, Texas. SURVEYED: 1996, 1997 SURVEYORS CERTIFICATE I, Robert L. HaLL, Jr. Reg. Professional Land Surveyor No. 1610 do hereby certify that the foregoing field notes were prepared from a survey made on the ground on the date shown and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Tex of September, A.D.,1997 Reg. Professional Land Surveyor No. 1610 USX-DEED-MainmillA.fdn 0 this the 26th., day .................... ROSERT L HALL, a ..................... 161 • EXHIBIT "A" TRACT II - ATTAC HXZNT I SUB -STATION TRACT THE STATE OF TEXAS) COUNTY OF CHAMBERS) FIELD NOTES of a 1.429 acre tract of land situated in the John Ijams Survey, Abstract No. 15, Chambers County, Texas; and being out of and a part of 1897.098 acre tract of land called J&L Tract 1 described in a'deed from Jones and Laughlin Steel' Corporation to United States Steel Corporation dated December 28, 1966, and recorded in Volume 281 at Page 128 of the Deed Records of Chambers County, Texas. This 1.429 acre tract of land is more particularly described by metes and bounds as follows, to -wit: NOTE: ALL BEARING97:ktE LAMBERT STEMBEINGS SOUTHp10ENTRALLL COORDINATES REFER TO THE STATE PLANE COORDINATE SY 1927 DATUM, AS DEFINED IN ARTICLE 5300A OF THE REVISED CIVIL - STATUES OF THE STATE OF TEXAS. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR - 0.9998819 REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 3/4 inch iron rod set for the Northeast corner of this tract of land having a State Plane Coordinate Valve of Y s 697,536.84 and X = 3,297,996.62. From this corner the Northeast corner of said 1897.098 acre tract of land bears North 58 deg 16 min 49 sec East a distance of 6684.02 feet. THENCE South 00 deg 03 min 33 sec East with the East line of this tract of' land a distance of 283.01 feet to a 3/4 inch iron rod set for the Southeast corner of this tract of land. THENCE South 89 deg 56 min 27 sec West with the South line of, this tract of land a distance of 220.00 feet to a 3/4 inch iron rod set for the Southwest corner of. this tract of land. THENCE North 00 deg 03 min 33 sec West with the West line of this tract of land a distance of 283.01 feet to a 3/4 inch iron rod set for the Northwest corner- of this tract of land. THENCE North 89 deg 56 min 27 sec East with the North line of • this tract of land a distance of 220.00 feet to the PLACE OF BEGINNING, containing within said boundaries 1.429 acres of land: SURVEYOR'S CERTIFICATE I, Robert L. Hall, Jr., Reg..Professional Land Surveyor No. 1610, do hereby certify that the foregoing field notes were prepared from a survey made on the ground on the date shown and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Bayto,, of September, A.D. , .1997— `d.• REG. PROFESSIONAL• D SURVEYOR No. 1610 USX-DEED-Substation.fdn 0 ' ' he 26th. , day . • EXHIBIT "A" TRACT III ATTACHMENT I BARGE DOCK TRACT THE STATE OF TEXAS) COUNTY OF CHAMBERS) FIELD NOTES of a 145.7145 acre tract of land situated in the John Ijams Survey, Abstract No. 15, Chambers County, Texas, and being out of and a part of 117.434 acre tract of land called J & L Tract 2 described in a deed from Jones & Laughlin Steel Corporation to United States Steel Corporation dated December 28, 1966, and recorded in Volume 281 at Page 128 of the Deed Records of Chambers County, Texas; and also being out of and a part of a 91.349 acre tract of land USX Tract 26 described in a deed from Ethel W. Gilbert to'United States Steel Corporation dated February 18, 1967, ?tnd.recorded in Volume 283 at Page 71 of the Deed Records of Chambers County, Texas. This 145.7145 acre tract of land is more particularly described by metes and bounds as follows, to -wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, 1927 DATUM, AS DEFINED IN ARTICLE 5300A OF THE REVISED CIVIL STATUES OF THE STATE OF TEXAS. ALL DISTANCES ARE ACTUAL DISTANCES: SCALE FACTOR — 0.9998819 REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at -a 3/4 inch iron rod set for the Southeast corner of this tract of land, the Southeast corner of said J L Tract 2 and the Northeast corner of a 95.7206 acre tract of land described in a deed from USX Corporation formerly United States Steel Corporation to Hazelwood Enterprises, dated April 14, 1987, and recorded in Volume 10 at Page 641 of the Official Public Records of Chambers County, Texas. This corner is in the West R.O.W. line of F.M. Highway No. 1405 (120 Ft. R.O.W.). This BEGINNING corner has a State Plane Coordinate Valve of Y = 696,146.00 and X = 3,297,231.20. From this corner the Northeast corner of a 1897.098 acre tract of land called J & L Tract described in a deed from Jones and Laughlin Steel Corporation to United States Steel Corporation, dated December 28, 1966, and recorded in Volume 281 at Page 128 of the Deed Records of Chambers County, Texas bears North 52 deg 45 min 14 sec East a distance of 8,102.20 feet. THENCE South 88 degrees 28 minutes 03 seconds West with the South line of this tract, the South line of said 117.434 acre tract of land and the North line of said 95.7206 acre tract of land a distance of 1,858.13 feet to a 3/4 .inch iron rod set for the Southwest corner of this tract of and the Southwest corner of said 117.434 acre tract of land. • 0 THENCE with the of said 117.434 distances: West line of this tract of land and the Wast line acre tract of land the following courses and N 01° 21' 50" N 30°'08' 20" N 110 08' 20" S 860 51' 40" S 13° 51'.401, S 00° 08' 20" S 34° 36' 40" S 72° 21'.40" N 360 08' 21" N 76° 53' ,20" N 37° 38' 20" N 170 21' 40" N 260 421 40" N 130 34' 20" N 22° 14' 24" N 19° 21' 40" N 250 21' 40" N 100 21' 39" N 50° 27' 50" S 680 14'. 57" N 710.16' 04" N 74° 34' 58" N 710.54' 23" N 73° 53' 49" N 75° 47' 40" S 620 45' 00" S 020 50' 00" S 140 36' 00" S 33° 10' 00" S 03° 00' 00" N 340 27' 00" N 010 10' -00" N 450 15' 00" N 620 47' 46" N 570 06' 18" N 68° 46' 06" N 62° 47' 46" N 630 33' 49" N 30° .13' 48" E,. 258.00 feet; E, 283.37 feet; E, 197.24 feet; E, 83.34 feet; E, 194.47 feet; W, 277.73 feet; E, 155.58 feet; E, 194.47 feet; E, 116.68 feet; E, 491.73 feet; E, 194.47 feet; W, 280.28 feet; E, 428.70 feet; E, 79.06 feet; E, 91.63 feet; W, 175.16 feet; W,l 213.92 feet; W, 130.58 feet; W, 535.14 feet; W, 15.49 feet; W, 209.23 feet; W, 373.97 feet; W, 126.18 feet W, . 132.85 feet; W, 147.60 feet; W, 190..02 feet; W, 240.03 feet; E, 300.04 feet; E, 315.04 feet; E, 240.03 feet; W, 1010.12 feet; W, 440.05 feet; E, 450.05 feet; E, 156.67 feet; E, 104.50 feet; E, 99.60 feet; E, 153..77 feet; E, 772.95 feet; E, 601.28 feet; THENCE North 09 deg 19 min .56 sec East with the West line of this tract of land and 'the West line of said 117.434 acre tract of land a distance of 704.99 feet to the Northwest corner of said 117.434 acre tract of land and the Southwest corner of said 91.349 acre tract of land. • THENCE with the West line of this tract 'of land and the West line of said 91.349 acre tract of land the following. courses and distances.: N 210 12' 13" W, 173.63 feet; N 36° 58' 35-1 W, 124.42 feet; N 540 08' 01" W, 131.36 feet; N 76° 58' 00" W, 311.15 feet; N 330 4.3" 00" W, 91.67 feet; N 190 47' 00" E, 208.36 feet; S 870 22' 00" W, 152.80 feet; S 32° 47',,03" W, 130.58 feet; S 120 02' '06" W, 161.32 feet; S '58a 43' .•25" E, 52.79 feet; S 120 42' '44" E, 41.68 feet; S 180 01' 50" W, 111.12 feet; S 51° 01-' 56" W, 69.45 feet; S 71° 23' 10" W, 220.87 feet; THENCE North 66 deg 15 min 27 sec West with the West line of this tract of land and the West line of said 91.349 acre tract of land a distance of 123.61 feet to a 3/4 inch iron rod set for the Northwest corner of this tract of land. THENCE North 36 deg 47. min 49 sec East with the North line of this tract.of land a distance of 1968.20 to a 3/4 inch iron rod set for the Northeast corner of this tract of land. This corner is in the West R.O.W. Line of said F.M. Highway No. 1405 (300 Ft. R.O.W.). THENCE South 16 deg 01 min 30 sec East with .the East line of this tract -of land and-the'West R.O.W. line of said F.M. Highway No. 1405, at 1784.67 feet the Southeast corner of said 91.349 acre and the Northeast corner of said 117.434 acre, in all a total distance of 1995.04 feet to a 3/4 inch iron rod set for the beginning of a curve, concave to the West. THENCE in a Southerly direction with the East line of this tract of land, the East line of said 117.434 acre tract of land and the West R.O.W. line of said Highway No. 1405;_ and said curve to the right having a central angle of 21 deg 09 min 26 sec, a radius of 2804.49 feet, a length of 1035.71 feet and a chord .bearing and distance of South 05 deg 26 min 47 sec West 1029.83 feet to a 3/4 inch iron rod set for a corner of this tract of land, and a corner of said 117.434 acre tract of' land. ® THENCE South 05 deg 00 min 29 sec West with the East line of this tract of land and the East line of said 117.434 acre tract of land, and the West R.O.W. line .of said Highway No. 1405 a distance of 1434.63 feet to a 3/4 inch iron rod set for the beginning of a curve to the left, concave East. r` • THENCE in a Southerly direction with the East line of this tract of land and the East line of said 117.434 acre tract of -land, and the West R.O.W. line of said Highway No. 1405, and said curve to the left having a central angle of 08 deg 00 min 34 sec, a radius of 5789.58 feet, a length of 809.34 feet and a chord bearing and distance of South 01 deg 00 min 13 sec West 808.68 feet to a 3/4 inch iron rod set for a corner of this tract of land and a corner of said 117.434 acre tract of land. THENCE South 03 deg 00 min 04 sec East with the East line of this tract of land and the East line of said 117:434 acre tract of land and the West-R.O.W. line of said Highway No. 1405 a distance of 1089.93 feet to the PLACE OF BEGINNING, containing within said boundaries 145.7145 -acres of land. SURVEYED: 1996, 1997 SURVEYOR'S CERTIFICATE I, Robert L. Hall, Jr., Reg. Professional Land Surveyor No. 1610, do hereby certify that the foregoing field notes were prepared from a survey made on the ground on the date shown and that all lines, boundaries and landmarks are -accurately described therein. WITNESS my hand and.seal of September, , 19 7 at Baytown, Texas, this the 26th., day REG. PROFESSIONAL D SURVEYOR No. 1610 USX-DEED-Bayou.fdn 0 .................... A08MT L ML A 9'�d f,Fea��+•' 0 S�R��