Ordinance No. 10,758ORDINANCE NO. 10,758
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 NRG
CEDAR BAYOU DEVELOPMENT COMPANY, LLC, AND ENERGYCO
CEDAR BAYOU 4, 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 Cedar Bayou Development Company, LLC, and
EnergyCo Cedar Bayou 4, 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/Vbte of the City Council of the
City of Baytown this the 19th day of November, 2007.
ST^PHENTT DONCARLOS, Mayor
NACIO RAMIREZ, SR^pity Attorney
R:\Karcn\FiIcs\City Council\Ordinanccs\2007\Novcmber 19\IDAOrdinanceNRG.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 NRG Cedar Bayou Development
Company, LLC, a Delaware limited liability corporation, and EnergyCo Cedar Bayou 4, LLC. a
Delaware limited liability corporation, hereinafter referred to as "Property Owners." In
consideration of the promises and of the mutual covenants and agreements herein contained, it is
agreed by and between the City and Property Owners as follows:
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:
1. 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 Owners"
NRG Cedar Bayou Development
Company, LLC
Attn: David Greeson
1301 McKinney, Suite 2300
Houston, TX 77010
EnergyCo Cedar Bayou 4, LLC
Attn: President
4100 International Plaza
MS-FW93
Fort Worth, TX 76109
Tax Statement Address:
NRG Cedar Bayou Development
Company, LLC
Attn: David Greeson
1301 McKinney, Suite 2300
Houston, TX 77010
EnergyCo Cedar Bayou 4, LLC
Attn: President
4100 International Plaza
MS-FW93
Fort Worth, TX 76109
A
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 Owners. 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 2007 through 2014, 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.
rv.
Limited Immunity from Annexation bv the City
In consideration of the obligations of the Property Owners 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 area 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
Owners agree to pay to the City on or before December 31st of each year during the term hereof a
sum of money equal to the Base Value Industrial District Payment plus the Added Value
Industrial District Payment. The sum of the Base Value Industrial District Payment plus the
Added Value Industrial District Payment shall be referred to as the Industrial District Payment.
Each Industrial District Payment under this Agreement is the joint and severable liability of NRG
Cedar Bayou Development Company, LLC and EnergyCo Cedar Bayou 4, LLC.
A.
Base Value Industrial District Payment
The Base Value Industrial District Payment shall be calculated as follows:
(1) the fair market value as determined by the City, of all of the Property Owners'
land and all other tangible property, real, personal or mixed, within the affected
area, which is stipulated herein to be EIGHTY THOUSAND AND NO/100
(2)
DOLLARS ($80,000.00) hereinafter referred to as the "Base Year," less the fair
market value in the Base Year as determined by the City of that portion of the
Property Owners' property, real, personal and mixed, which was located within
the industrial district on the effective date of this agreement and subsequently
annexed by the City, the difference of which is hereinafter referred to as the "Base
Year Value," multiplied by
the property tax 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.
The applicable Base Value Industrial District Payment Rate shall be determined using the
applicable chart hereinbelow:
(1) if the Property Owners purchased Property from an owner having an industrial
district agreement with the City, which:
a. was entered into on or after July 27,2002,
b. included all or any portion of the Property,
c. is in effect on the first day of the term hereof, and
d. is fully paid for the year prior to the first payment becoming due hereunder,
then the following chart shall be used and the rate shall be based upon the
payment year of the prior owner's industrial district agreement:
The Base Value Industrial District Payment Rate shall be .60 for each year which
extends beyond the industrial district agreement of the previous owner.
(2) otherwise, the following chart shall be used:
B.
Added Value Industrial District Payment
The Added Value Industrial District Payment shall be calculated as follows:
(1) the fair market value as determined by the City, of all of the Property Owners'
land and all other tangible property, real, personal or mixed, within the affected
area on January 1 of each year in which an Industrial District Payment is due
hereunder minus the Base Year Value, hereinafter referred to as the "Added
Value," multiplied by
(2) the property tax rate per $100.00 of assessed valuation adopted by the City
Council for the City for each year of the term of this Agreement, multiplied by the
applicable added value industrial district payment rate detailed below.
The applicable Added Value Industrial District Payment Rate shall be determined using
the following chart:
If the formula used in calculating the Added Value Industrial District Payment produces a
negative number, then the Added Value Industrial District Payment shall be $0.00.
VI.
Valuations
For the purpose of providing a procedure for determining and collecting the amounts
payable by the Property Owners 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 Owners' 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 appraised value of the Property Owners' property, real, personal and mixed, which
was located within the industrial district on the effective date of this agreement and subsequently
annexed by the City shall be 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) in accordance with state law.
B.
Valuation of Property Outside the Corporate Limits
The parties hereto recognize that the Chambers 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 Owners' 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 Owners' payment in the manner described
above, the City may choose to use the appraised value for each year in which an Industrial
District Payment is due hereunder, 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 an 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 the Base Year Value and the Added Value 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.
D.
Statements
The City shall mail one statement to the Property Owners 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 Owners' payment hereunder and the Property Owners desire to
pursue any additional available remedies, the Property Owners 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 Owners
hereunder shall be paid within 60 days after receipt by the City of both the appraisal district's
form notification that the appraised value of the property has been reduced and a written refund
request by the Property Owners; 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 Owners' written
refund request and the appraisal district's formal notification that the appraised value of the
Dronertv has heen roHiiroH rr property has been reduced.
VII.
Compliance with Law
The City and the Property Owners 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 Owners 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 Owners agree 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
Owners' 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 Owners 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, for construction
which commences after the execution of this Agreement, the Property Owners agree 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 Owners 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 Owners
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 Owners'
premises and the same right to examine the Property Owners' books and records to determine the
value of the Property Owners' properties as provided in the Texas Property Tax Code as
amended.
IX.
Default
A.
Default bv Property Owners
In the event of default by the Property Owners 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 Owners 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 Owners are in default according to the terms and conditions of Section VII hereof, the
City shall notify the Property Owners 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 Owners' 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 bv Citv
In the event of default by the City, the Property Owners 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 Owners and the City shall be relived of all
further obligations hereunder, but the Property Owners 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 Owners' last payment
hereunder.
X.
Notice
Any notice to the Property Owners 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 Owners 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 Owners or the City, as the case may be.
8
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 Owners 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 Owners' property in the affected area
during the term of this Agreement other than the payments specified herein. Specifically, the
Property Owners 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 Owners request and receive mutual aid firefighting assistance and is a
member of Channel Industries Mutual Aid organization ("CIMA") or similar organization, the
Property Owners shall reimburse the City for costs incurred by the City in providing' fire
protection services to the Property Owners 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 Owners request and receive mutual aid firefighting assistance and is not a member
of CIMA or a similar organization, then the Property Owners shall be required to reimburse the
City for costs actually expended by the City in providing any firefighting assistance to the
Property Owners, including chemical and personnel costs.
j
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 Owners 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 Owners to the City. The
Property Owners agree to tender any additional amount of disputed Industrial District Payment
into the registry of the Civil District Court, Harris County, Texas, pending final determination of
the; controversy beyond any further appeal.
XIV.
No Assignment
; This Agreement shall not bestow any rights upon any third party, but rather, shall bind
and; benefit the Property Owners and the City only. If the Property Owners convey all or any
partjof the property then covered hereby, the Property Owners shall notify the City within 30
days o f the conveyance.
> If such notice is given and the grantee in such transaction enters into an Industrial
District Agreement with the City with respect to the property involved, the
Property Owners shall cease to be obligated with respect to the property so
conveyed and the Base Year Value plus the Added Value shall be apportioned
between the Property Owners and the grantee based upon the property conveyed.
> If such notice is given and the grantee in such transaction is the State of Texas
(the "State"), the Property Owners shall remain obligated for the Base Year Value
plus the Added Value, including the leasehold estate and personalty retained by
the Property Owners.
No right or obligation under this agreement may be sold, assigned or transferred.
XV.
Authority
The Property Owners covenant that they have 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. 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.
Severabilitv
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 the reformation or revision of any term that removes or materially
diminishes the obligation of the Property Owners 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.
10
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
ors 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 of this Agreement for all
purposes shall be 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.
11
IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on behalf
of NRG Cedar Bayou Development Company, LLC this day of , 2007; on
behalf of Energyco Cedar Bayou 4, LLC this day of , 2007; and on
behalf of the City this day of , 2007.
NRG CEDAR BAYOU
DEVELOPMENT COMPANY, LLC
ATTEST:
Secretary
Printed Name
Title
ENERGYCO CEDAR BAYOU 4, LLC
By.
Printed
, G><ne**£u*>
Title
ATTEST:
Secretary
12
CITY OF BAYTOWN
STEPHEN H. DONCARLOS, Mayor
ATTEST:
LORRICOODY, City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR., City Attorney
RHONDA L. YOUNG, Direfcior of Finance
R:\Jeanenc\My Documents\Coniracts\[DA\NRGCcdarBayou&EncrgyCoCcdarBayouIDA2007.doc
13
EXHIBIT A
FIELD NOTES FOR A
13.520 ACRES (588,931 SF)
SEVERANCE SURVEY
COMPLETED JUNE 14, 2007
execmed 15My2005,ndrecordedinVolume801, P»e= 519ofbeJd OfficS
°* * re"ei"n'"' C™er f°' ** SM i24A" °*™ « *" te»" N 67-51-20-E a,
if S.'f" l0"»" f ■taw «i eis, line of ibis herein described me. and Continuins ihroush said 324.435 a ^iT^Sb^rSr ^ M ptaic iden(itoiio"cip sMi)ed •■survcon' inc -acres
' inc -
THENCE: N 77a49'27" E along a north line of this herein described tract and continuing through said 324.435 acres
ot land for a distance of 310.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON [NC " set
..cr,™^™,°^e herei" described tract of land and frc"n which an iron rod with plastic identification cap stamped "SURVCON, INC." found bears N 10° 17*31" Eat a distance of 284.07 feet;
THENCE: S 12°1O'33" E along an east line of this herein described tract and continuing through said 324 435 acres
of land fora distance of 320.00 feet to a 5/8" iron rod with plastic identification cap stamped "SLmVCON INC " set
for the southeast corner of the herein described tract of land;
THENCE: S 77°49'|?7"
THENCE: N12°1O'33"
THENCE: N 12>1
Prepared by:
SURVCON INC.
5757 Woodway
Houston, Texas 77057
Ph. 713-780-4123
Job No. 60024374.11
June 14,2007
Revised: June 25,2007
^f^^cherein *«*ed tract and continuing through said ™ 43S
W at a dunance of 1232.48 feet;
July 03,2007
THE STATE OF TEXAS-COUNTY OF HARRIS
ion and
DESCRIPTION OF COOLING TOWER PARCEL
FIELD NOTES FOR A
0.712 ACRES (31,000 SF)
SEVERANCE SURVEY
COMPLETED JUNE 26,2007
Being 0.712 acres (31,000 SF) of land ostensibly lying wholly within the Christian Smith League, Abstract 22,
Chambers County, Texas and being out of and a part of that certain 324.435 acres of land described in "Deed of Trust"
by NRG TEXAS LP. to Fidelity National Title Insurance Company, Trustee, dated 21 November 2006, and recorded in
Volume 917, Page 447 of the official Public Records of Chambers County, Texas, said 324.435 acres being a
remainder of that certain 413.081 acres of land described in "Deed" from Reliant Energy, Incorporated to Texas Genco
Holdings, Inc., executed 31 August 2002, and recorded in Volume 575, Page 835 of said Official Public Records of
Chambers County and Chambers County Clerks File Number 6952B and being more particularly described by metes
and bounds as follows: (The courses, distances, and areas shown herein and on the corresponding plat conform to the
Texas State Plane Coordinate System, North American Datum 1983 HARN South Central Zone Grid, and were based
on the position of a found concrete monument with brass disk having a Grid values of Northing (Y) = 13842928.39
feet and Easting (X) = 3260502.20 feet, Plant Grid values of N=669.00 E= 130.00, and the position of a second found
concrete monument with brass disk bearing S 12°10'33" E at a Grid distance of 1248.99 feet and having Grid values of
Northing (Y) = 13841707.50 feet and Easting (X) = 3260765.62 feet. Plant Grid values of S=580.00 E=130.00, and
were established by survey grade global positioning equipment) (All distances shown hereon and on the corresponding
plat are Grid and can be converted to surface by dividing by the applied scale factor of 0.9998892.) (All corners called
for as being set are marked on the ground with 5/8" diameter iron rods with plastic identification caps stamped
"SURVCON, INC." attached unless otherwise noted or shown.)
BEGINNING at a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." found marking, the
northwest comer of a previously surveyed 13.520 acres tract of land and also being the southwest corner of this herein
described tract of land and lying inside said 324.435 acres of land and from which said concrete monument with brass
disk bears S 56°46'54" W at a distance of 1305.37 feet and from which the northeast corner of said 324.435 acres of
land bears N 63°48'56" E at a distance of 4169.31 feet and also from which an iron rod with plastic identification cap
stamped "SURVCON, INC." found marking an exterior corner for that certain 28.822 acres tract of land described in
"Schedule 1" as "CBY-TANK-C02" in "Special Warranty Deed" from Texas GENCO II, LP, to TG Pipeline, L.P.,
executed 15 July 2005, and recorded in Volume 801, Page 519 of the said Official Public Records Chambers County,
Texas, and a re-entrant comer for the said 324.435 acres of land bears N 67°51 *29" E at a distance of 1084.74 feet and
; also from which an "X" cut in concrete found marking the southwest corner of said 13.520 acres tract of land bears S
J 12°10'33"E at a distance of 655.00 feet:
THENCE: N l2°10'33" W along the west line of this herein described tract of land and through said 324.435 acres of
[land for a distance of 62.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." set for
the northwest corner of the herein described tract of land;
THENCE: N 77°49'27" E along the north line of this herein described tract of land and continuing through said
324.435 acres of land for a distance of 500.00 feet to a 5/8" iron rod with plastic identification cap stamped
"SURVCON, INC." set for the northeast corner of the herein described tract of land;
THENCE: S 12° 10*33" E along the east line of this herein described tract and continuing through said 324.435 acres
of land for a distance of 62.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." set for
the southeast corner of the herein described tract of land and being in the north line of said 13.520 acres tract of land
and from which a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." found marking the
northeast corner of said 13.520 aces tract of land bears N 77°49'27" E at a distance of 150.00 feet:
THENCE: S 77°49'27" W along the north line of said 13.520 acres tract of land and being the south line of this
herein described tract of land and continuing through said 324.435 acres of land for a distance of 500.00 feet to the
POINT OF BEGINNING and containing 0.712 acres (31,000 SF) of land within the herein described boundary as
determined by a survey performed by SURVCON, INC. and completed on July 26, 2007.
Prepared by:
SURVCON INC.
5757 Woodway
Houston, Texas 77057
Ph.713-780-4123
Job No. 60024374.11
July 25, 2007
THE STATE OF TEXAS:
COUNTY OF HARRIS
ll is hereby certified that the foregoing field note description and
Attached plat were prepared from an actual on the ground survey
Made by personnel working under my direct supervision and that
Same are true and correct according to same said survey.
Steven M. Coleman-Regnlered Professional Land Surveyor
No. 5063