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Ordinance No. 14,859ORDINANCE NO. 14,859 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 CEDAR BAYOU DEVELOPMENT COMPANY, LLC, AND ODYSSEY ENERGY 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 Odyssey Energy 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 vote of the City Council of the City of Baytown, this the 23"d day of September, 2021. N"MAPvETILL0,Alayor ATTEST: ANGELA �CKSON,lerlie '1r.,ao f APPROVED AS TO FORM: f KAREN L. HORNER, City Attorney R:%Karen HornerlDocuments,FileslCity Counci]%Ordinances'202 [%September 23`[DAN%-ithNRGCedarBayouDevelopmentCompany&OdysseyEnergyCedarBayoua.docx 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 Cedar Bayou Development Company, LLC, a Delaware limited liability company, and Cogentrix Energy Power Management, LLC, a Delaware limited liability company, 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: 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: 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" Tax Statement Address: NRG Cedar Bayou Development Company, LLC Attn: Asset Management 910 Louisiana Street Houston, TX 77002 Cogentrix Energy Power Management, LLC Attention: Gary Heichel 13860 Ballantyne Corporate Place Suite 300 Charlotte, NC 28277 NRG Cedar Bayou Development Company, LLC Attn: Carl Harroo 804 Carnegie Center Princeton, NJ 08540-6023 Cogentrix Energy Power Management, LLC Attention: Gary Heichel 13860 Ballantyne Corporate Place, Suite 300 Charlotte, NC 28277 H. 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 2021 through 2027, 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 Owners 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 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 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 Owners agree to pay to the City on or before December 31 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 Year 2021 Base Value $118 241,500.00 2022 $118,241,500.00 2023 $118 241 500.00 2024 $118 241,500.00 2025 $118 241,500.00 2026 $118 241 500.00 2027 $118 241 500.00 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 2021 .66 2022 .66 2023 .66 2024 .66 2025 .66 2026 .66 2027 .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 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 3 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 Owners' 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 Owners' 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 Owners within thirty (30) days after receipt of the City's determination petitions for a Declaratory Judgment to the Civil District Court of Harris 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. Adjustment of Base Value for Property Inside the Corporate Limits but Subsequently Disannexed Land, improvements and tangible property, real or mixed, of the Property Owners, 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. Adjustment of Base Value for Property Outside the Corporate Limits but Subsequently Annexed Land, improvements and tangible property, real or mixed, of the Property Owners, 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 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 Owners' 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 are pursuing through a declaratory judgment action as specified in Subsection A, the Property Owners 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 Owners 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 Owners; 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 Owners' written refund request and the Chambers County Appraisal District's formal notification that the appraised value of the property has been reduced. 5 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, 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 are provided in the Texas Property Tax Code as amended. 6 IX. Default A. Default by 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 by City 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 relieved 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 designating the affected area as an industrial district. Provided, however, if the termination occurs as a result of the Citys 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 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 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 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 Owners 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 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. 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 potential liability to the registry of the Civil District Court, Harris County, Texas, pending final determination of the controversy beyond any further appeal. XIV. 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 part of the property then covered hereby, the Property Owners 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 Owners 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 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, 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 famish (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 9 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 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. 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. 10 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. XXTII. 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 Owners this 16th day of September , 2021, and on behalf of the City this 16th day of September , 2021. NRG CEDAR BAYOU DEVELOPMENT COMPANY, L�� By: Edward Christopher Krupa Printed Name Vice President Title STATE OF New Jersey § COUNTY OF Mercer § Before me, Eileen Blondek , the undersigned notary public, on this day personally appeared Edward Christopher Krupa , the Vice President of NRG Cedar Bayou Development Company, an 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/she executed the same for the purposes, in the capacity, and for the consideration therein expressed. SUBSCRIBED AND SWORN before me thisl6thday of Septemeber , 2021. Biondek Stab t SP.�/ Cct1l11�i1i101f"�"�'w7NO. 50043995 Pubk Public in and for the State of New Jersey COGENTRIX ENERGY POWER MANAGEMENT, LLC Printed Name Title STATE OF § COUNTY OF § Before me, , the undersigned notary public, on this day personally appeared , the of Cogentrix Energy Power Management, LLC, an 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/she executed the same for the purposes, in the capacity, and for the consideration therein expressed. SUBSCRIBED AND SWORN before me this _ day of 22021. Notary Public in and for the State of Id Aw (j0je*}-jr' . 12 - -- ---- -- -__-- ATTEST: ANGELA JACKSON, City Clerk APPROVED AS TO FORM: KAREN L. HORNER, City Attorney VICTOR BROWNLEES, Finance Director CITY OF BAYTOWN BRANDON CAPETiLLO, Mayor R:1Karcn AndersonllDAs12021-202711DA-NRGCedarBayouUnit4.docx 13 DESCRIPTION OF MAIN PARCEL Metes and Bounds Description 10.763 Acres (468.381 Square Feet) Christian Smith League. Abstract No. 22 Chambers County, Texas Description of a 10.763 acre (468,381 square feet) tract of land oul of a called 324A35 acre tract described in a deed of trust from NRG Texas LP to Fidelity National Title Insurance Co., Trustee, as recorded in Volume 917, Page 447 of the Official Public Records of Chambers County, in the Christian Smith League, Abstract No. 22, In Chambers County, Texas. said 10.753 acre tract being more particularly described as follows (with bearings referenced to the Texas Coordinate System of 1983, South Central Zone. All distances shown are surface distances and may be converted to grid values by multiplying by a combined scale factor of 0.9998892): BEGINNING at a 6/8-inch Iron rod with plastic cap stamped "SURVCON INC" found for the northwest corner of this herein described tract, from which a concrete monument with brass disk bears South 58' 46' 54" West,1,305 51 feet; THENCE. North 770 49' 27" East, along the northerly line of this tract, a distance of 680.08 feet to a 5/8-inch iron rod with plastic cap stamped "SURVCON INC" found for the northeast corner of this herein described tracl, and from which a 5/8-inch iron rod with plastic cap stamped "SURVCON INC" found for the most westerly northwest comer of a called 28.822 acre tract described In a deed to TG Pipeline, L.P. as recorded In Volume 801. Page 619 of the Official Public Records of Chambers County bears North 56' 48' 41" East, 523.24 feet; THENCE, South 12' 10' 33" East, along the easterly line of this tract, a distance of 887.67 feet to a 5/8-inch iron rod with plastic cap stamped "SURVCON INC found for the southeast comer of this tract; THENCE. South 77' 49' 27" West, along the most southerly line of this tract. a distance of 380.04 feet to an "X" cut in concrete found for the most southerly southwest corner of this tract; THENCE, North 12' 10' 33" West, along a westerly tine of this tract, a distance of 232.60 feet to a 5/8-Inch Iron rod with plastic cap stamped "SURVCON INC" found for an Interior comer of this tract; THENCE, South 77' 49' 27" West, along a southerly One of this tract, a distance of 200.02 feet to an "X" cut in concrete found for the most westerly southwest corner of this tract, THENCE, North 12° 10' 33" West, along the most westerly line of this tract, a distance of 655.07 feet to the POINT OF BEGINNING and containing a computed area of 10.763 acres (488,381 square feet) of land. Compiled by. AECOM USA Group, Inc. 5757 Woodway, Suite 101 West Houston, Texas 77057 Date: June 9, 2009 Job No: 60100072 .tl60100072 NRG Cedar Bayoul7A OcttvoratucslNRG Cedar aayou 10 753 AC M39.doc As more particularly ohown on survey attached horoto as p.1. l& Eq �d, ROBERT W. TERRY .I I,M.N..0.........«.7..... a 4420 �-r , t0 ESS�.0O� No suflv�'� qq-,o`l w r 1A art" jA— DESCRIPTION OF COOLING TOWER PARCEL Metes and Bounds Description 0.712 Acres (31,007 Square Feet) Christian Smith League, Abstract No. 22 Chambers County, Texas Description of a 0.712 acre (31.007 square feet) tract of lend out of a called 324.435 acre tract described In a deed of trust from NRG Texas LP to Fidelity National Title Insurance Co.. Trustee, as recorded in Volume 017, Page 447 of the Official Public Records of Chambers County. In the Christian Smith League, Abstract No. 22, In Chambers County, Texas, said 0.712 acre tract being more particularly described as follows (with bearings referenced to the Texas Coordinate System of 1983, South Central Zone. All distances shown are surface distances and may be converted to grid values by multiplying by a combined scale factor of 0.9998892): BEGINNING at a 5/8-Inch iron rod with plastic cap stamped "SURVCON INC" found for the southwest corner of this herein described tract, from which a concrete monument with brass disk bears South 569 46' 54" West, 1.305.61 feel; THENCE. North 12° 10' 33" West, along the westerly line of this tract, a distance of 62.01 feet to a 5/8-inch Iron rod with plastic cap stamped 'SURVCON INC' found for the northwest comer of this tract; THENCE. North 77' 49' 27" East, along the northerly line of this tract. a distance of 500.06 feel to a 518-inch Iron rod with plastic cap stamped "SURVCON INC' found for the northeast corner of this herein described tract; THENCE, South 12" 10' 33" East, along the easterly line of this tract, a distance of 62.01 feet to a 518•Inch Iron rod with plastic cap stamped "SURVCON INC" found for the southeast corner of this tract, and from which a 518-inch Iron rod with plastic cap stamped 'SURVCON INC" found for the most westerly northwest corner of a called 28,822 acre tract described In a deed to TG Pipeline. L.P. as recorded In Volume 801, Page 519 of the Official Public Records of Chambers County bears North 59' 33' 30" East, 598.62 foot; THENCE, South 77' 49' 27" West, along the southerly line of this tract, a distance of 500.08 feet to the POINT OF BEGINNING and containing a computed area of 0.712 acres (31,007 square feel) of land Compiled by: AECOM USA Group, Inc. 5757 Woodway. Suite 101 West Houston, Texas 77057 Date: June 9, 2009 .fob No. 60100072 1=100072 NRG Cedar Bayou17.0 DorlvorablesMG Cedar Bayou 0 7112 Ac MlBB.doc G As more particulnrly shown on survey attached hereto as p 3.