Texas 2013 - 83rd Regular

Texas Senate Bill SB918 Compare Versions

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1	1	83R27881 PMO-F
2	2	By: Estes S.B. No. 918
3	3	(Keffer)
4	4	Substitute the following for S.B. No. 918: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the sale by the Brazos River Authority and regulation of
10	10	certain real property in the immediate vicinity of Possum Kingdom
11	11	Lake.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 8502.0132(a), Special District Local
14	14	Laws Code, is amended by amending Subdivisions (2) and (5) and
15	15	adding Subdivision (2-a) to read as follows:
16	16	(2) "Captive Property To Be Sold" means those portions
17	17	of the following tracts of real property owned by the Authority at
18	18	the Lake that as of May 27, 2009, were surrounded by the Lake and
19	19	property owned by a single freeholder and [are] located above the
20	20	1000' contour line, but does not include any portion of the
21	21	following tracts that was [is] part of Project Land or property that
22	22	was [is] leased for single-family residential purposes as of May
23	23	27, 2009 [the effective date of the Act enacting this section]:
24	24	(A) two tracts of land totaling 2019.86 acres,
25	25	more or less, in Palo Pinto County, Texas, described in Brazos River
26	26	Authority Records as Tracts 8-1-93 and 9-3-9, as such Tracts are
27	27	more particularly described in an Award of Commissioners entered
28	28	June 28, 1940, in the County Court of Palo Pinto County, Texas, in
29	29	Cause No. 2539, styled Brazos River Conservation and Reclamation
30	30	District versus Orland R. Seaman, Et Al., as the same appears on
31	31	file and of record in Volume 5, Pages 414 and 419, et seq., Civil
32	32	Minutes of the County Court of Palo Pinto County, Texas; and
33	33	(B) a 2278.3 acre tract of land, more or less, in
34	34	Palo Pinto County, Texas, described in Brazos River Authority
35	35	records as Tract 11-2-46, as such tract is more particularly
36	36	described in deeds recorded at Book 181, Page 325, Book 182, Page
37	37	339, Book 183, Page 12, and Book 183, Page 16, in Palo Pinto County
38	38	Records, Palo Pinto County, Texas.
39	39	(2-a) "Close" or "Closing" means the transfer of the
40	40	Authority's interest in properties described in the Subsection
41	41	(d)(1) or (m)(6) survey.
42	42	(5) "Offeree" means any person to whom an offer to sell
43	43	Captive Property To Be Sold is to be made under this section. To
44	44	qualify as an Offeree, a person must own in fee simple as of May 27,
45	45	2009, the real property adjacent to the Captive Property To Be Sold,
46	46	and be able to provide an attorney's opinion or other satisfactory
47	47	legal documentation that such Offeree meets the qualifications of
48	48	an Offeree under this subdivision.
49	49	SECTION 2. Section 8502.0132, Special District Local Laws
50	50	Code, is amended by amending Subsection (b) and adding Subsections
51	51	(d-1), (m), and (n) to read as follows:
52	52	(b) Notwithstanding any other provision of this chapter,
53	53	the Authority is directed to sell all Captive Property To Be Sold in
54	54	accordance with the directives of this section, including the
55	55	following:
56	56	(1) Within 90 days of the effective date of the Act
57	57	enacting this section, the Authority shall publish a list of the
58	58	parcels at the Lake that qualify as Captive Property To Be Sold and
59	59	an "Application Of Intent To Purchase" form for use by the Offerees
60	60	as provided by this section.
61	61	(2) Each listed parcel of Captive Property To Be Sold
62	62	shall be offered for sale at its fair market value to the Offeree
63	63	who owns any Adjacent Land that is adjacent to that specific parcel
64	64	of Captive Property To Be Sold, and each Adjacent Land owner has the
65	65	right (but not the obligation) to purchase the parcel in equal
66	66	proportion among those wishing to acquire same.
67	67	(3) Any Offeree who desires to purchase Captive
68	68	Property To Be Sold must, within 180 days of the inclusion of that
69	69	property on the published list of Captive Property To Be Sold under
70	70	Subdivision (1), submit a completed Application Of Intent To
71	71	Purchase form to the Authority.
72	72	(4) If the Authority does not receive an Application
73	73	Of Intent To Purchase from an Offeree within the required time, the
74	74	Offeree shall be deemed to have waived any right to purchase the
75	75	subject property under this section and the Authority shall have
76	76	the right to retain or sell such property as directed by the board.
77	77	(5) The Authority shall accept and process all
78	78	Application Of Intent To Purchase forms in the order in which they
79	79	are received.
80	80	(6) Any sale of property under this section must be
81	81	handled as if it were a private sale for fair market value under
82	82	Section 49.226(a), Water Code.
83	83	(7) The fair market value of the Captive Property To Be
84	84	Sold must be determined as follows:
85	85	(A) Within forty-five (45) days of the
86	86	Authority's receipt of the Offeree's completed Application Of
87	87	Intent To Purchase and an acceptable survey as provided by
88	88	Subsection (d)(1), the Authority shall provide the Offeree with an
89	89	appraisal of the fair market value of the Captive Property To Be
90	90	Sold dated within one year of the date of the Authority's receipt of
91	91	the Application Of Intent To Purchase (the "First Appraisal"). The
92	92	Authority's appraiser must be an appraiser certified under Chapter
93	93	1103, Occupations Code. Within fifteen (15) days of receipt of the
94	94	First Appraisal, the Offeree shall notify the Authority in writing
95	95	as to whether the Offeree agrees with or disputes the fair market
96	96	value set forth in the First Appraisal. If the Offeree does not
97	97	dispute the fair market value as determined by the First Appraisal
98	98	within such 15-day time period, then the First Appraisal shall be
99	99	final and binding on all parties to establish the fair market value
100	100	for the Captive Property To Be Sold.
101	101	(B) If the Offeree disputes the fair market value
102	102	determined by the First Appraisal, the Offeree may withdraw its
103	103	application to purchase the Captive Property To Be Sold or employ a
104	104	disinterested appraiser certified under Chapter 1103, Occupations
105	105	Code, to conduct a second appraisal of the fair market value of the
106	106	Captive Property To Be Sold (the "Second Appraisal"). The Second
107	107	Appraisal must be completed and sent to the Authority not later than
108	108	the 45th day after the date the Offeree notifies the Authority that
109	109	the Offeree disputes the First Appraisal. If the Authority does not
110	110	receive the Second Appraisal within such 45-day time period, then
111	111	the Offeree's Application Of Intent To Purchase will be deemed
112	112	withdrawn.
113	113	(C) Within fifteen (15) days of receipt of the
114	114	Second Appraisal, the Authority shall notify the Prospective
115	115	Purchaser in writing as to whether the Authority agrees with or
116	116	disputes the fair market value determined by the Second Appraisal.
117	117	If the Authority does not dispute the fair market value as
118	118	determined by the Second Appraisal within this 15-day time period,
119	119	then the Second Appraisal shall be final and binding on all parties
120	120	to establish the purchase price for the Captive Property To Be Sold.
121	121	If the Authority timely disputes the fair market value determined
122	122	by the Second Appraisal, the two appraisers (or their designated
123	123	agents) shall meet and attempt to reach an agreement on the fair
124	124	market value of the Captive Property To Be Sold, such meeting to
125	125	occur not later than the 30th day after the date the Authority
126	126	notifies the Offeree that the Authority disputes the Second
127	127	Appraisal.
128	128	(D) If the two appraisers reach agreement on the
129	129	fair market value, within 20 days after their meeting they shall
130	130	issue a report of the agreed fair market value to the Authority and
131	131	to the Offeree, and this agreed fair market value shall be final and
132	132	binding on all parties to establish the purchase price. If the two
133	133	appraisers fail to reach agreement on or before the 20th day after
134	134	the date of the meeting, then not later than the 30th day after the
135	135	date of the meeting the two appraisers shall appoint a
136	136	disinterested third appraiser certified under Chapter 1103,
137	137	Occupations Code, to reconcile the two previous appraisals (the
138	138	"Third Appraisal"). The Third Appraisal must be completed on or
139	139	before the 30th day after the date of the third appraiser's
140	140	appointment, and the fair market value determined by the Third
141	141	Appraisal is final and binding on all parties to establish the
142	142	purchase price; provided, however, the final purchase price may not
143	143	be more than the fair market value determined by the First Appraisal
144	144	or less than the fair market value determined by the Second
145	145	Appraisal.
146	146	(E) The appraisal costs must be paid by the
147	147	person who requests the appraisal, except that the Offeree and the
148	148	Authority shall each pay one-half of the cost of the Third Appraisal
149	149	if a Third Appraisal is necessary. If the Offeree fails to pay its
150	150	share of the Third Appraisal, then the Offeree's Application Of
151	151	Intent To Purchase will be deemed withdrawn.
152	152	(F) The timelines established in the appraisal
153	153	process set forth in this subdivision may be extended on joint
154	154	agreement of Authority and Offeree.
155	155	(8) Closing must occur not later than the first
156	156	anniversary of the effective date of the Act of the 83rd
157	157	Legislature, Regular Session, 2013, amending this subsection.
158	158	(d-1) Not later than 15 business days after the delivery of
159	159	an Offeree's survey to the Authority required under Subsection
160	160	(d)(1) or (m)(6), the Authority shall notify the Offeree that the
161	161	survey is acceptable or submit in writing to the Offeree a list
162	162	detailing any error in the survey that the Authority believes
163	163	requires correction. If required, the survey must be corrected at
164	164	the earliest convenience of the surveyor and a corrected survey
165	165	delivered to the Authority. The correction process repeats until
166	166	both surveys are acceptable, at which time the timetable for the
167	167	appraisal process in Subsection (b)(7)(A) begins for the properties
168	168	described in the Subsection (d)(1) and (m)(6) surveys. So long as
169	169	the Subsection (m)(6) survey is timely delivered to the Authority,
170	170	if the surveys are not both accepted by the Authority within 180
171	171	days after the effective date of the Act enacting this subsection,
172	172	then the closing deadline established by Subsection (b)(8) is
173	173	extended on a day-for-day basis for each day after the 180th day
174	174	until both surveys are accepted by the Authority.
175	175	(m) Notwithstanding any provision of this section to the
176	176	contrary, a sale under this section is subject to the following
177	177	requirements:
178	178	(1) If on the date Closing occurs the Project Land or
179	179	any portion of the Project Land has been removed from the FERC
180	180	License, the Captive Property To Be Sold must include all Project
181	181	Land that would have otherwise qualified as Captive Property To Be
182	182	Sold except for its status as Project Land.
183	183	(2) If on the date Closing occurs the Project Land or
184	184	any portion of the Project Land has not been removed from the FERC
185	185	License, the Authority shall convey to the Offeree a residual
186	186	interest in that portion of the Project Land that would have
187	187	otherwise qualified as Captive Property To Be Sold except for its
188	188	status as Project Land. The residual interest automatically vests
189	189	on the date that:
190	190	(A) the Federal Energy Regulatory Commission
191	191	approves an amendment to the FERC License removing the Project Land
192	192	from the boundaries under the FERC License so that the Project Land
193	193	is no longer subject to regulation by the Federal Energy Regulatory
194	194	Commission; or
195	195	(B) the FERC License expires and is not renewed
196	196	or extended, or is otherwise terminated, and thus the Project Land
197	197	is no longer subject to regulation by the Federal Energy Regulatory
198	198	Commission.
199	199	(3) Notwithstanding Subdivision (2), if the residual
200	200	interest described by Subdivision (2) has not vested on or before
201	201	August 31, 2040, then the residual interest is terminated and of no
202	202	further force and effect, and the Authority shall repay to the
203	203	Offeree any amount originally paid for that residual interest on or
204	204	before December 1, 2040. On satisfaction of a condition described
205	205	by Subdivision (2)(A) or (B) before August 31, 2040, the residual
206	206	interest conveyed under Subdivision (2) is automatically effective
207	207	without necessity of further documentation. As of the date the
208	208	conveyance is effective, the applicable portion of the Project Land
209	209	is considered to be a part of the Captive Property To Be Sold
210	210	conveyed under this section and the Offeree or then-current Owner
211	211	of the applicable portion of the Captive Property To Be Sold is the
212	212	beneficiary of the residual interest applicable to the portion of
213	213	the Project Land adjacent to such Owner's land and considered to be
214	214	a part of the Captive Property To Be Sold conveyed under this
215	215	section. The residual interest immediately vests in the Offeree or
216	216	then-current Owner of the adjacent Captive Property To Be Sold
217	217	conveyed under this section without the necessity of any additional
218	218	written conveyance.
219	219	(4) In the event that a sale under this subsection does
220	220	not include any portion of the Project Land, or only includes a
221	221	residual interest in a portion or all of the Project Land, then the
222	222	Authority shall at Closing, subject to the approval of the Federal
223	223	Energy Regulatory Commission, grant the Offeree an easement,
224	224	subject to the FERC License, for the use of that portion of the
225	225	Project Land for which the Offeree has purchased a residual
226	226	interest. The Authority shall retain ownership of that portion of
227	227	the Project Land and exercise control over that portion of the
228	228	Project Land consistent with the FERC License and this subsection.
229	229	The easement granted to the Offeree is limited to uses permitted
230	230	under the terms of the FERC License, the Authority's Shoreline
231	231	Management Plan, and any other Authority rules and regulations that
232	232	may be adopted from time to time.
233	233	(5) An appraisal of the fair market value of the
234	234	Project Land, whether the Project Land has been removed from the
235	235	FERC License or not, must be determined as if the applicable Project
236	236	Land is not subject to the FERC License, is not part of the Federal
237	237	Energy Regulatory Commission project area, is not subject to any
238	238	lease agreement, is available for immediate possession and use, and
239	239	may be used for any lawful purpose.
240	240	(6) For each parcel of Project Land that an eligible
241	241	Offeree elects to purchase under Subdivision (1), or for each
242	242	parcel of Project Land in which the Offeree purchases a residual
243	243	interest under Subdivision (2), the Offeree shall, not later than
244	244	the 90th day after the effective date of the Act enacting this
245	245	subsection, provide to the Authority a survey and calculation of
246	246	the area of the parcel prepared by a licensed state land surveyor or
247	247	a registered professional land surveyor in accordance with this
248	248	subsection. The survey is separate from any survey prepared under
249	249	Subsection (d) of Captive Property To Be Sold.
250	250	(n) On or before Closing, the Authority shall deliver
251	251	completed and executed documentation necessary to transfer the
252	252	property conveyed from the Authority to the Offeree, and the
253	253	Offeree shall deliver the purchase price and closing costs and the
254	254	countersignatures on all necessary documentation. Promptly after
255	255	Closing, the Offeree shall record the documents required for
256	256	transferring the property in the county records where the property
257	257	is located. The closing documents and funds may be held in escrow
258	258	at the election of the Authority or the Offeree until all documents
259	259	have been fully executed and all required funds have been
260	260	delivered.
261	261	SECTION 3. Chapter 8502, Special District Local Laws Code,
262	262	is amended by adding Section 8502.0133 to read as follows:
263	263	Sec. 8502.0133. SALE OF AUTHORITY PROPERTY ON AND
264	264	ASSOCIATED WITH COSTELLO ISLAND. (a) In this section:
265	265	(1) "Boat landing" means a 0.841 acre tract of land,
266	266	more or less, located above the 1000' contour line as defined in
267	267	Subdivision (8), described in authority records as Tract Costello
268	268	Island, situated in the A. J. Smith Survey, Abstract 393, Palo Pinto
269	269	County, Texas, and being a part of a tract of land purchased by the
270	270	Brazos River Conservation and Reclamation District from Mrs. Hugh
271	271	C. Thomas, as recorded in Volume 182, Page 142, Deed Records of Palo
272	272	Pinto County. The boat landing is located wholly within the FERC
273	273	Project Area.
274	274	(2) "Date of decommissioning" means the effective date
275	275	of the surrender of the FERC License for the Morris Sheppard Dam
276	276	Project No. 1490-052 under the Order Accepting the Surrender of the
277	277	License (issued December 23, 2011), 137 FERC 62,252.
278	278	(3) "Costello Island" means a 260 acre tract of land,
279	279	more or less, located above the 1000' contour line as defined in
280	280	Subdivision (8), described in authority records as Tract Costello
281	281	Island, situated in the J.W. Bunton Survey, Abstract 52, Palo Pinto
282	282	County, Texas, and being a part of that parcel that is located
283	283	wholly within the boundary of the lake, and being a part of a tract
284	284	of land acquired by the Brazos River Conservation and Reclamation
285	285	District from E.P. Costello by Court Judgment dated July 21, 1943.
286	286	The portions of Costello Island owned by the authority are located
287	287	wholly within the FERC Project Area.
288	288	(4) "Costello Island Property" means Costello Island
289	289	and the boat landing, but does not include any portion of Costello
290	290	Island owned in fee simple by a person other than the authority.
291	291	(5) "Fair market value" means the price that the
292	292	Costello Island Property would bring in an arms-length transaction
293	293	when offered for sale by one who wishes, but is not obliged, to sell
294	294	and when bought by one who is under no necessity of buying it. This
295	295	value shall be determined as if the Costello Island Property were
296	296	not subject to the FERC License, were not located within the FERC
297	297	Project Area, were not subject to any lease agreement, were
298	298	available for immediate possession and use, and could be used for
299	299	any reasonable purpose, subject only to the restrictions in
300	300	Subsection (e).
301	301	(6) "FERC License" means the order of the Federal
302	302	Energy Regulatory Commission issuing a license to the authority for
303	303	project number 1490-003-Texas on September 8, 1989, as such license
304	304	has been renewed, extended, or amended and may be further renewed,
305	305	extended, or amended at any time and from time to time, and also
306	306	including the amendment to the original FERC License, which
307	307	amendment was issued on May 15, 1980, to the extent incorporated or
308	308	referenced in the FERC License.
309	309	(7) "FERC Project Area" means that portion of
310	310	authority land that is subject to the FERC License before the date
311	311	of decommissioning, as the land is identified and defined in the
312	312	FERC License, as may be amended at any time and from time to time,
313	313	and which FERC Project Area may move or change over time due to
314	314	natural forces.
315	315	(8) "Lake" means Possum Kingdom Lake located in Young,
316	316	Palo Pinto, Stephens, and Jack Counties. The boundary of the lake
317	317	is defined by the 1000' contour line, as that contour may meander
318	318	and change over time with natural forces, including erosion and
319	319	accretion. The "1000' contour line" means the line running along
320	320	the periphery of the lake if the surface of the lake is at an
321	321	elevation of 1000 feet above mean sea level, as measured from the
322	322	top of the spillway crest gates of the Morris Sheppard Dam, as such
323	323	line may move and shift from time to time due to natural forces.
324	324	(9) "Offeree" means the individuals or corporation,
325	325	other than the authority, owning a portion of Costello Island in fee
326	326	simple.
327	327	(b) After the date of decommissioning, the authority shall
328	328	offer for sale to the offeree the Costello Island Property. The
329	329	sale shall be:
330	330	(1) for not less than the fair market value as
331	331	determined under Subsection (c); and
332	332	(2) contingent upon the termination of any leases
333	333	encumbering all or any portion of the Costello Island Property at
334	334	the time of sale.
335	335	(c)(1) The fair market value of the Costello Island Property
336	336	shall be determined as described in this subsection.
337	337	(2) Not later than 45 days after the date the authority
338	338	receives the offeree's completed application of intent to purchase
339	339	and an acceptable survey as provided by Subsection (d)(1), the
340	340	authority shall provide the offeree with an appraisal of the fair
341	341	market value of the Costello Island Property. The authority may use
342	342	an existing appraisal if it is dated not more than one year before
343	343	the date the authority receives the application of intent to
344	344	purchase. The authority's appraiser must be certified under
345	345	Chapter 1103, Occupations Code. Not later than the 15th day after
346	346	the date the offeree receives the first appraisal, the offeree
347	347	shall notify the authority in writing as to whether the offeree
348	348	agrees with or disputes the fair market value provided in the first
349	349	appraisal. If the offeree does not dispute the fair market value as
350	350	determined by the first appraisal before the expiration of the
351	351	15-day period, the first appraisal is final and binding on all
352	352	parties and establishes the fair market value for the Costello
353	353	Island Property.
354	354	(3) If the offeree disputes the fair market value
355	355	determined by the first appraisal, the offeree may withdraw its
356	356	application to purchase the Costello Island Property or may employ
357	357	a disinterested appraiser certified under Chapter 1103,
358	358	Occupations Code, to conduct a second appraisal of the fair market
359	359	value of the Costello Island Property. The second appraisal must be
360	360	completed and sent to the authority not later than the 45th day
361	361	after the date the offeree notifies the authority that the offeree
362	362	disputes the first appraisal. If the authority does not receive the
363	363	second appraisal before the expiration of the 45-day period, the
364	364	offeree's application of intent to purchase will be deemed
365	365	withdrawn.
366	366	(4) Not later than the 15th day after the date of
367	367	receiving the second appraisal, the authority shall notify the
368	368	offeree in writing as to whether the authority agrees with or
369	369	disputes the fair market value determined by the second appraisal.
370	370	If the authority does not dispute the fair market value as
371	371	determined by the second appraisal before the expiration of the
372	372	15-day period, the second appraisal is final and binding on all
373	373	parties and establishes the purchase price for the Costello Island
374	374	Property. If the authority timely disputes the fair market value
375	375	determined by the second appraisal, the two appraisers, or their
376	376	designated agents, shall meet and attempt to reach an agreement on
377	377	the fair market value of the Costello Island Property. The meeting
378	378	shall occur not later than the 30th day after the date the authority
379	379	notifies the offeree that the authority disputes the second
380	380	appraisal.
381	381	(5) If the two appraisers reach an agreement on the
382	382	fair market value, they shall issue a report, not later than the
383	383	20th day after the date of their meeting, relating the agreed fair
384	384	market value to the authority and to the offeree, and this agreed
385	385	fair market value shall be final and binding on all parties and
386	386	establishes the purchase price. If the two appraisers fail to reach
387	387	an agreement on or before the 20th day after the date of the
388	388	meeting, then, not later than the 30th day after the date of the
389	389	meeting, the two appraisers shall appoint a disinterested third
390	390	appraiser certified under Chapter 1103, Occupations Code, to
391	391	reconcile the two previous appraisals in a third appraisal. The
392	392	third appraisal must be completed on or before the 30th day after
393	393	the date of the third appraiser's appointment, and the fair market
394	394	value determined by the third appraisal is final and binding on all
395	395	parties and establishes the purchase price; provided, however, that
396	396	the final purchase price may not be more than the fair market value
397	397	determined by the first appraisal or less than the fair market value
398	398	determined by the second appraisal.
399	399	(6) The appraisal costs shall be paid by the person who
400	400	requests the appraisal, except that the offeree and the authority
401	401	shall each pay one-half of the cost of the third appraisal if a
402	402	third appraisal is necessary. If the offeree fails to pay its share
403	403	of the third appraisal, the offeree's application of intent to
404	404	purchase will be deemed withdrawn.
405	405	(7) The timelines for the appraisal process under this
406	406	subsection may be extended upon joint agreement of the authority
407	407	and the offeree.
408	408	(d) To purchase the Costello Island Property, the offeree
409	409	must:
410	410	(1) provide to the authority a survey of the Costello
411	411	Island Property that is:
412	412	(A) prepared by a licensed state land surveyor or
413	413	a registered professional land surveyor;
414	414	(B) dated not earlier than one year before the
415	415	effective date of the Act enacting this section; and
416	416	(C) acceptable to the authority and any title
417	417	company providing title insurance for the offeree; and
418	418	(2) pay all closing costs associated with the sale of
419	419	the property.
420	420	(e) For any property sold under this section:
421	421	(1) the authority shall provide a special warranty
422	422	deed that encompasses and includes all interests in the Costello
423	423	Island Property held by the authority, subject only to:
424	424	(A) the restrictions, covenants, and
425	425	prohibitions contained in the deed of conveyance under which the
426	426	authority originally acquired title to the property, including
427	427	without limitation any releases of the authority for the
428	428	inundation, overflowing, or flooding of the lake;
429	429	(B) the restrictions, covenants, and
430	430	prohibitions described in Section 8502.020(d);
431	431	(C) all encumbrances and other matters filed of
432	432	record in the public records of the county in which the property is
433	433	located;
434	434	(D) any other matters or conditions that are
435	435	apparent on the ground or that would be reasonably disclosed or
436	436	discovered by an inspection of the property; and
437	437	(E) any other rules, regulations, or policies of
438	438	the authority in effect as of January 1, 2013, prohibiting or
439	439	limiting commercial, private, or other on-water facilities for new
440	440	development, and as such rules, regulations, or policies may be
441	441	amended, modified, or discontinued from time to time; and
442	442	(2) the offeree shall release and agree to hold the
443	443	authority harmless from, and the authority may not be held liable
444	444	for, damages, claims, costs, injuries, or any other harm to any
445	445	offeree or any other person or the Costello Island Property, or to
446	446	any improvements on the property, caused by or arising from any
447	447	temporary flooding of any portion of the Costello Island Property.
448	448	(f) Any sale of the Costello Island Property under this
449	449	section must allow the authority the right to enter onto the
450	450	Costello Island Property and the lake and other bodies of water, if
451	451	any, located within the Costello Island Property with essential
452	452	equipment for all purposes reasonably necessary for the authority
453	453	to fulfill its obligations as a river authority and any obligations
454	454	set forth in the FERC License, state water rights, or other
455	455	governmental regulations, or for any purpose that the authority
456	456	considers necessary for public safety, health, and welfare. Any
457	457	exercise by the authority of rights described by this subsection
458	458	may be conducted only after written notice is given to the offeree
459	459	at least 48 hours in advance of entry onto the property, except in
460	460	the event of an emergency, in which case advance notice is not
461	461	required, but the authority shall provide written notice as soon as
462	462	practicable. The authority shall use reasonable efforts to avoid
463	463	interfering with the offeree's use of the Costello Island Property
464	464	and shall promptly repair any damage to the property caused by the
465	465	authority's entrance. Any claim to governmental immunity on behalf
466	466	of the authority is waived with respect to the recovery of any
467	467	damage caused by the authority's breach of this subsection.
468	468	(g) Chapters 232 and 272, Local Government Code, Section
469	469	49.226, Water Code, and Section 8502.013 of this code do not apply
470	470	to a sale of property under this section.
471	471	(h) The authority may use proceeds from the sale of property
472	472	under this section for any authority purpose.
473	473	(i) The authority shall reserve its interest in all oil,
474	474	gas, and other minerals in and under the property to be sold, or any
475	475	portion thereof, to the extent the authority owns an interest in
476	476	those minerals.
477	477	(j) If the conveyance described by this section is not
478	478	completed before the second anniversary of the effective date of
479	479	this Act, this section shall no longer be effective and expires on
480	480	the date of the second anniversary.
481	481	(k) To the extent of any conflict with other laws of this
482	482	state, this section prevails.
483	483	SECTION 4. Section 8502.020, Special District Local Laws
484	484	Code, is amended to read as follows:
485	485	Sec. 8502.020. SALE OF AUTHORITY PROPERTY.
486	486	(a) Definitions. In this section:
487	487	(1) "Authority Land" means the FERC Project Area and
488	488	all other real property owned by the Authority at the Lake as of the
489	489	date before Closing, save and except for the Leased Tract.
490	490	(2) "Buffer Zone" means that twenty-five or fifty foot
491	491	strip of land measured landward horizontally from the 1000' contour
492	492	line that is included in the FERC Project Area as defined in the
493	493	FERC License.
494	494	(3) "Close" or "Closing" means the date on which the
495	495	Authority transfers its interest in the Leased Tract, in whole or in
496	496	part, to a Purchaser. There may be multiple closing dates if the
497	497	Leased Tract is sold in portions.
498	498	(4) "Commercial Leased Land" means all or any [that]
499	499	portion of the Initial Commercial Leased Land and the Remaining
500	500	Commercial Leased Land [Tract that is located wholly outside the
501	501	FERC Project Area and that is leased for commercial purposes as of
502	502	the date the Restrictions are placed of record].
503	503	(5) "Consumer Price Index" means the consumer price
504	504	index for Housing, Dallas-Fort Worth, TX area, Series Id:
505	505	CUURA316SAH, CUUSA316SAH, Base Period: 1982-84 = 100, as published
506	506	by the Bureau of Labor Statistics of the United States Department of
507	507	Labor, or its equivalent substitute should this series be
508	508	discontinued.
509	509	(6) "Contract" means the Authority entering into a
510	510	purchase and sale agreement with a Purchaser for the transfer of the
511	511	Authority's interest in the Initial Leased Tract or the Remaining
512	512	Leased Tract, in whole or in part.
513	513	(7) "Driveways" means those certain private gravel
514	514	and/or paved driveways that connect a Road or other street or
515	515	thoroughfare to an individual Leased Tract or any improvements
516	516	thereon; Driveways also includes those shared or common Driveways
517	517	that serve more than one Leaseholder or individual Leased Tract.
518	518	(8) "Environmental Laws" means the Comprehensive
519	519	Environmental Response, Compensation and Liability Act of 1980, the
520	520	Toxic Substances Control Act, the Clean Water Act, the Resource
521	521	Conservation and Recovery Act and any other similar federal, state
522	522	or local law, rule or regulation respecting the environment or
523	523	Hazardous Materials, together with all rules and regulations
524	524	promulgated thereunder and all present or future amendments
525	525	thereto.
526	526	(9) "FERC License" means the order of the Federal
527	527	Energy Regulatory Commission issuing a license to the Authority for
528	528	project number 1490-003-Texas on September 8, 1989, as such license
529	529	has been renewed, extended, or amended and may be further renewed,
530	530	extended, or amended at any time and from time to time, and also
531	531	including the Amendment to the original FERC License, which
532	532	amendment was issued on May 15, 1980, to the extent incorporated or
533	533	referenced in the FERC License.
534	534	(10) "FERC Project Area" means that portion of
535	535	Authority Land [property] that is subject to the FERC License
536	536	before the Date of Decommissioning, as identified and defined in
537	537	the FERC License, as may be amended at any time and from time to
538	538	time, and which FERC Project Area may move or change over time due
539	539	to natural forces.
540	540	(11) "Ground Lease" means each of those certain
541	541	residential and/or commercial ground leases between the Authority
542	542	and a Leaseholder, and the respective heirs, successors, and
543	543	assigns.
544	544	(12) "Hazardous Materials" means underground storage
545	545	tanks, petroleum and petroleum products, asbestos, PCB's,
546	546	urea-formaldehyde and any hazardous or toxic substances,
547	547	pollutants, contaminants, wastes, or materials as defined under any
548	548	Environmental Laws.
549	549	(13) "Lake" means Possum Kingdom Lake located in
550	550	Young, Palo Pinto, Stephens, and Jack Counties. The boundary of
551	551	the Lake is defined by the 1000' contour line, as that contour may
552	552	meander and change over time with natural forces, including erosion
553	553	and accretion. The "1000' contour line" means the line running
554	554	along the periphery of the Lake if the surface of the Lake is at an
555	555	elevation of 1000 feet above mean sea level, as measured from the
556	556	top of the spillway crest gates of the Morris Sheppard Dam, as such
557	557	line may move and shift from time to time due to natural forces.
558	558	(14) "Leased Tract" or "Tract" means all or any
559	559	portion of the Initial Leased Tract or the Remaining Leased Tract
560	560	[Commercial Leased Land, the Residential Leased Land, and
561	561	Undeveloped Strips], whether owned by the Authority, Purchaser, or
562	562	Owner and whether or not subject to a lease or Ground Lease or owned
563	563	in fee simple.
564	564	(15) "Leaseholder" means a person or entity that has a
565	565	residential lease or a commercial lease with the Authority,
566	566	including the Leaseholder's heirs, successors, and assigns.
567	567	(16) "Lienholder" means any mortgagee under a
568	568	mortgage, or a trustee or beneficiary under a deed of trust,
569	569	constituting a lien on any portion of the Leased Tract.
570	570	(17) "Owner" means the record holder of fee simple
571	571	title to any portion of the Leased Tract sold pursuant to this
572	572	section, including its heirs, personal representatives,
573	573	successors, and assigns. This term does not include a Purchaser
574	574	who acquires the Leased Tract from the Authority in accordance with
575	575	Subsection (b).
576	576	(18) "Property" means the Leased Tract and the
577	577	Authority Land.
578	578	(19) "Purchaser" means any person or entity, including
579	579	its successors in interest, heirs, or assigns, that acquires the
580	580	Leased Tract (or any portion thereof) from the Authority in
581	581	accordance with Subsection (b). This term does not include those
582	582	Leaseholders that acquire individual Leased Tracts from the
583	583	Purchaser in accordance with Subsection (b).
584	584	(20) "Ranch" means that certain subdivision of record
585	585	in Palo Pinto County, Texas, according to the map or plat of record
586	586	in Volume 7, Page 71, Plat Records of Palo Pinto County, Texas, as
587	587	it may be amended or modified from time to time, which subdivision
588	588	includes a portion of the Leased Tract and a portion of the
589	589	Authority Land.
590	590	(21) "Ranch Agreement" means that certain agreement by
591	591	and among the Authority, The Ranch on Possum Kingdom, L.P., and Hill
592	592	Country Harbor Village, L.P., effective as of August 1, 1997, and
593	593	dated December 12, 1997.
594	594	(22) "Ranch Declarations" means that certain
595	595	Declaration of Covenants, Conditions and Restrictions for The Ranch
596	596	on Possum Kingdom Palo Pinto County, Texas, dated December 8, 1997,
597	597	as recorded in Volume 944, Page 403, Official Public Records of Palo
598	598	Pinto County, Texas.
599	599	(23) "Residential Leased Land" means all or any [that]
600	600	portion of the Initial Residential Leased Land and the Remaining
601	601	Residential Leased Land [Leased Tract located outside the FERC
602	602	Project Area that is leased for single-family residential purposes
603	603	only as of the date the Restrictions are placed of record. This
604	604	term does not include land that is subject to a commercial lease,
605	605	where such lessee is authorized to sublease for residential
606	606	purposes].
607	607	(24) "Restrictions" means the easements, covenants,
608	608	restrictions, liens, encumbrances, and requirements contained in
609	609	the Declaration of Restrictive Covenants, Easements, and
610	610	Conditions to be recorded by the Authority as set forth in
611	611	Subsection (d), as amended from time to time.
612	612	(25) "Roads" means those paved or gravel streets,
613	613	roads, and thoroughfares owned and maintained by the Authority that
614	614	are located in Stephens, Jack, Young, or Palo Pinto County and that
615	615	provide access, ingress, and egress to and from the Leased Tract,
616	616	the Lake, and/or Authority Land; provided, however, that the
617	617	definition of Roads, as used herein, does not include:
618	618	(A) Driveways;
619	619	(B) paved or gravel roads located wholly within
620	620	Authority public use areas;
621	621	(C) paved or gravel roads located within gated
622	622	Authority operations areas; and
623	623	(D) paved or gravel roads located wholly within
624	624	an individual tract that is part of the Commercial Leased Land,
625	625	which roads only serve that individual commercial Tract.
626	626	(26) "Shoreline Management Plan" means that certain
627	627	Possum Kingdom Shoreline Management Plan and Customer Guide,
628	628	adopted May 22, 2006, and amended July 31, 2006, and as may be
629	629	revised and/or further amended by the Authority at any time and from
630	630	time to time.
631	631	(27) "Undeveloped Strips" means all or any portion of
632	632	the Initial Undeveloped Strips and the Remaining Undeveloped Strips
633	633	[small strips of unleased land located between individual lots
634	634	within the Leased Tract and small parcels of land between the Leased
635	635	Tract and Roads that the Authority determines in its sole
636	636	discretion to include in any sale of all or any portion of the
637	637	Leased Tract].
638	638	(28) "Amendments to the Restrictions" means the
639	639	amendments to the Restrictions under Subsection (d).
640	640	(29) "Date of Decommissioning" means the effective
641	641	date of the surrender of the FERC License for the Morris Sheppard
642	642	Dam Project No. 1490-052 under the Order Accepting the Surrender of
643	643	the License (issued December 23, 2011), 137 FERC 62,252.
644	644	(30) "Initial Commercial Leased Land" means the
645	645	portion of the Initial Leased Tract located wholly outside the FERC
646	646	Project Area that is leased for commercial purposes as of the date
647	647	the Restrictions are recorded in the applicable county records.
648	648	(31) "Initial Leased Tract" means all or any portion
649	649	of the Initial Commercial Leased Land, the Initial Residential
650	650	Leased Land, and the Initial Undeveloped Strips, whether owned by
651	651	the Authority, Purchaser, or Owner and whether or not subject to a
652	652	lease or Ground Lease or owned in fee simple.
653	653	(32) "Initial Residential Leased Land" means the
654	654	portion of the Initial Leased Tract located outside the FERC
655	655	Project Area that is leased only for single-family residential
656	656	purposes as of the date the Restrictions are recorded in the
657	657	applicable county records. The term does not include land that is
658	658	subject to a commercial lease that may be subleased for residential
659	659	purposes.
660	660	(33) "Initial Undeveloped Strips" means small strips
661	661	of unleased land located between individual lots in the Initial
662	662	Leased Tract and small parcels of land between the Initial Leased
663	663	Tract and Roads that the Authority determines in its sole
664	664	discretion to include in a sale of all or any portion of the Initial
665	665	Leased Tract.
666	666	(34) "Remaining Commercial Leased Land" means the
667	667	portion of the Remaining Leased Tract that is located wholly or
668	668	partly within the FERC Project Area as of the date preceding the
669	669	Date of Decommissioning and that is leased for commercial purposes
670	670	as of the date the Amendments to the Restrictions are recorded in
671	671	the applicable county records. The term does not include a special
672	672	use lease, hangar lease, grass lease, hunting lease, or mineral
673	673	lease, any other lease for noncommercial purposes, or any portion
674	674	of the Initial Commercial Leased Land.
675	675	(35) "Remaining Leased Tract" means all or any portion
676	676	of the Remaining Commercial Leased Land, the Remaining Residential
677	677	Leased Land, and the Remaining Undeveloped Strips, whether owned by
678	678	the Authority, Purchaser, or Owner and whether or not subject to a
679	679	lease or Ground Lease or owned in fee simple.
680	680	(36) "Remaining Residential Leased Land" means the
681	681	portion of the Remaining Leased Tract that is located wholly within
682	682	the FERC Project Area as of the date preceding the Date of
683	683	Decommissioning and that is leased only for single-family
684	684	residential purposes as of the date the Amendments to the
685	685	Restrictions are recorded in the applicable county records. The
686	686	term does not include land that is subject to a commercial lease
687	687	that may be subleased for residential purposes. The term does not
688	688	include a special use lease, hangar lease, grass lease, hunting
689	689	lease, or mineral lease, any other lease for nonresidential
690	690	purposes, or any portion of the Initial Residential Leased Land.
691	691	The term does not include a lease of land in the Buffer Zone that is
692	692	subject to a residual interest that will automatically vest on the
693	693	Date of Decommissioning or other expiration or termination of the
694	694	FERC License.
695	695	(37) "Remaining Undeveloped Strips" means small
696	696	strips of unleased land located between individual lots in the
697	697	Remaining Leased Tract and small parcels of land between the
698	698	Remaining Leased Tract and Roads that the Authority determines in
699	699	its sole discretion to include in a sale of all or any portion of the
700	700	Remaining Leased Tract.
701	701	(b) Sale to Purchaser. Prior to January 1, 2011, the
702	702	Authority may sell the Initial Leased Tract in whole or in part, to
703	703	a Purchaser in accordance with applicable law, this subsection, and
704	704	Subsections (d), (e), (f), (g), (h), and (i). For a period of two
705	705	years after the Date of Decommissioning, the Authority may sell the
706	706	Remaining Leased Tract in whole or in part, to a Purchaser in
707	707	accordance with applicable law, this subsection, and Subsections
708	708	(d), (e), (f), (g), (h), and (i). Any sale of the Initial Leased
709	709	Tract or the Remaining Leased Tract to a Purchaser under this
710	710	subsection shall be subject to the following:
711	711	(1) Each Leaseholder shall have the opportunity to buy
712	712	such Leaseholder's individual portion of the Leased Tract from the
713	713	Purchaser or to continue leasing the applicable portion of the
714	714	Leased Tract from the Purchaser in accordance with the following
715	715	purchase or lease options. The Purchaser shall:
716	716	(A) Permit the Leaseholder to purchase such
717	717	Leaseholder's individual Leased Tract in cash or through lender
718	718	financing for 90% of land only assessed value without any
719	719	exemptions (as determined by the appraisal district) for the year
720	720	2008 if the tract is part of the Initial Leased Tract, or for the
721	721	year 2012 if the tract is part of the Remaining Leased Tract, such
722	722	options [option] to be available at Closing as set forth in
723	723	Subdivision (2) and for a period of at least one year from Closing.
724	724	(B) Permit the Leaseholder to purchase for the
725	725	percent of assessed value only as set forth in Paragraph (A) such
726	726	Leaseholder's individual portion of the Leased Tract via seller
727	727	financing, with a down payment of ten percent (10%) and an interest
728	728	rate of six percent (6%), with a 30-year amortization, such seller
729	729	financing option to be available at Closing as set forth in
730	730	Subdivision (2) and for a period of at least one year from Closing
731	731	to the Leaseholder of any portion of the Commercial Leased Tract and
732	732	to the Leaseholder of any portion of the Residential Leased Tract to
733	733	the extent the Leaseholder of any portion of the Residential Leased
734	734	Tract qualifies for financing under the Dodd-Frank Wall Street
735	735	Reform and Consumer Protection Act (Pub. L. No. 111-203) and any
736	736	related regulations. The Leaseholder [leaseholder] shall not be
737	737	charged any origination fees or points by the Purchaser [purchaser]
738	738	as a part of the closing costs involved in the seller financing
739	739	option.
740	740	(C) Offer a new 99-year lease at a rental rate of
741	741	6% of the land only assessed value without any exemptions (as
742	742	determined by the appraisal district) for the year 2008 if the tract
743	743	is part of the Initial Leased Tract, or the 2012 land only assessed
744	744	value without any exemptions if the tract is part of the Remaining
745	745	Leased Tract, with annual Consumer Price Index increases or
746	746	decreases, such options [option] to be available for a period of at
747	747	least one year from Closing. The 99-year lease will include an
748	748	option for the Leaseholder to purchase the applicable portion of
749	749	the Leased Tract at the land only assessed value without any
750	750	exemptions (as determined by the appraisal district) at the time of
751	751	purchase (but not less than the 2008 land only assessed value
752	752	without any exemptions if the tract is part of the Initial Leased
753	753	Tract, or the 2012 land only assessed value without any exemptions
754	754	if the tract is part of the Remaining Leased Tract).
755	755	(D) Offer a new 20-year lease with a rental rate
756	756	as determined by the current Authority lease rate methodology or
757	757	other lease rate structure as set forth in the Ground Lease as
758	758	applicable (and including increases and adjustments to such rates)
759	759	with annual Consumer Price Index increases or decreases, to
760	760	Leaseholders who are over the age of 65 and who receive an ad
761	761	valorem tax exemption under Section 11.13, Tax Code, for a
762	762	structure on the Leaseholder's individual Leased Tract, such option
763	763	to be available for a period of at least one year from the date of
764	764	Closing. The Leaseholder must have received the ad valorem tax
765	765	exemption for a structure on the Leaseholder's individual Leased
766	766	Tract by January 1, 2009, if the tract is part of the Initial Leased
767	767	Tract or January 1, 2013, if the tract is part of the Remaining
768	768	Leased Tract. The 20-year lease will include an option for the
769	769	Leaseholder to purchase the applicable portion of the Leased Tract
770	770	at the land only assessed value without any exemptions (as
771	771	determined by the appraisal district) at the time of purchase (but
772	772	not less than the 2008 land only assessed value without any
773	773	exemptions if the tract is part of the Initial Leased Tract or the
774	774	2012 land only assessed value without any exemptions if the tract is
775	775	part of the Remaining Leased Tract).
776	776	(E) Ratify the existing Ground Lease of any
777	777	Leaseholder who does not timely exercise one of the foregoing
778	778	options, such ratification to include:
779	779	(i) adoption of the current Authority lease
780	780	rate methodology or other lease rate structure as set forth in the
781	781	Ground Lease, as applicable (and including increases and
782	782	adjustments to such rates) for a period of 8 years from Closing;
783	783	(ii) an option permitting the Leaseholder
784	784	to purchase such Leaseholder's individual portion of the Leased
785	785	Tract for the land only assessed value without any exemptions (as
786	786	determined by the appraisal district) at the time of purchase, or
787	787	for the year 2008 if the tract is part of the Initial Leased Tract,
788	788	or for the year 2012 if the tract is part of the Remaining Leased
789	789	Tract, whichever is greater, for a period of 8 years from Closing;
790	790	and
791	791	(iii) an agreement to extend Ground Leases
792	792	as necessary to allow for this full 8-year purchase option period.
793	793	Nothing in this subsection shall preclude the Purchaser from
794	794	offering additional purchase or lease options to the Leaseholders,
795	795	provided any additional options are made available to all similarly
796	796	situated Leaseholders on an equal basis.
797	797	(2) A Leaseholder who desires to buy such
798	798	Leaseholder's individual Leased Tract from the Purchaser pursuant
799	799	to the option set forth in either Subdivision (1)(A) or (B)
800	800	concurrently with the Purchaser's Closing must exercise the desired
801	801	option as follows:
802	802	(A) notify the Authority and Purchaser in writing
803	803	within 90 days after the effective date of the Contract between the
804	804	Authority and Purchaser of Leaseholder's intent to purchase the
805	805	applicable Leased Tract;
806	806	(B) Leaseholder and Purchaser will enter into a
807	807	purchase and sale agreement in substantially the form as agreed to
808	808	between the Authority and Purchaser, which form will be attached to
809	809	the Contract, and which individual purchase and sale agreements
810	810	will be ratified by Purchaser at the Closing; the purchase and sale
811	811	agreement shall contain, at a minimum, the following terms and
812	812	conditions:
813	813	(i) the purchase price for the individual
814	814	Leased Tract in accordance with the applicable purchase option;
815	815	(ii) earnest money in the amount of $1,000
816	816	to be delivered to the title company agreed to by Leaseholder and
817	817	Purchaser and approved by the Authority along with the executed
818	818	purchase and sale agreement;
819	819	(iii) the Leaseholder's obligation to
820	820	provide a survey as set forth in this subsection and a title
821	821	commitment from the agreed upon title company;
822	822	(iv) a 60-day period commencing on the date
823	823	of the purchase and sale agreement for the Leaseholder to obtain
824	824	financing (if exercising its option pursuant to Subdivision (1)(A)
825	825	above);
826	826	(v) the Leaseholder must notify Purchaser
827	827	of any objections to any items on the title commitment and/or survey
828	828	within fifteen (15) days after receipt of same, but in no event less
829	829	than 45 days prior to the anticipated date of Closing, provided
830	830	however that neither the Purchaser nor the Authority shall have any
831	831	obligation to cure any such items or to incur any expenses in curing
832	832	any items, except that Purchaser and/or the Authority, as
833	833	applicable, shall use good faith efforts to address and/or remove
834	834	those requirements or exceptions shown on Schedule C of the title
835	835	commitment that are applicable to or created by the Purchaser
836	836	and/or Authority, as applicable, and, notwithstanding the
837	837	foregoing, neither the Purchaser nor the Authority shall have any
838	838	obligation to cure any exceptions on the attached Schedule C
839	839	regarding legal right of access to or from the applicable Leased
840	840	Tract;
841	841	(vi) Leaseholder is purchasing the
842	842	applicable individual Leased Tract in its "as-is" condition and
843	843	Purchaser shall have no obligation to make any improvements or
844	844	modifications thereto, nor will Purchaser make any representations
845	845	or warranties as to the condition or use of the applicable Leased
846	846	Tract;
847	847	(vii) Purchaser shall not be responsible
848	848	for any broker fees or commissions due to any broker or agent
849	849	engaged or claiming to have been engaged by Leaseholder for the
850	850	purchase and sale of the applicable Leased Tract;
851	851	(viii) Purchaser shall be responsible for
852	852	costs related to the release of any existing liens placed on the
853	853	applicable portion of the Leased Tract by Purchaser, including
854	854	prepayment penalties and recording fees, release of Purchaser's
855	855	loan liability to the extent applicable to the individual Leased
856	856	Tract, tax statements or certificates, preparation of the deed, and
857	857	one-half of any escrow fee;
858	858	(ix) Leaseholder shall be responsible for
859	859	any costs associated with a loan or financing for the applicable
860	860	portion of the Leased Tract, including, without limitation, loan
861	861	origination, discount, buy-down, and commitment fees, appraisal
862	862	fees, loan application fees, credit reports, preparation of loan
863	863	documents, loan-related inspection fees, and interest on the notes
864	864	from the date of disbursement to date of first monthly payment; the
865	865	cost of the survey; recording fees; copies of easements and
866	866	restrictions; mortgagee title policy with endorsements required by
867	867	lender, if any; one-half of any escrow fee; any prepaid items,
868	868	including without limitation, insurance premiums and reserves and
869	869	taxes; underwriting fee; and any title policy (including
870	870	endorsements) obtained by Leaseholder;
871	871	(x) Taxes will be prorated as of the date of
872	872	Closing; if taxes are not paid as of the date of Closing, then
873	873	Leaseholder shall be responsible for the payment of taxes; and
874	874	(xi) the agreement between Leaseholder and
875	875	Purchaser shall be contingent on Closing occurring within the
876	876	timeframes set forth in this subsection.
877	877	(C) Leaseholder shall deliver to Authority and
878	878	Purchaser no less than forty-five days prior to Closing, at the
879	879	Leaseholder's expense, an accurate survey of the individual Leased
880	880	Tract (including any Undeveloped Strips being included in such
881	881	Leased Tract), which survey is acceptable to the Authority and
882	882	Purchaser. To be acceptable to the Authority and Purchaser, the
883	883	survey must:
884	884	(i) be acceptable to the title company
885	885	selected by the Purchaser and Leaseholder and approved by the
886	886	Authority for purposes of issuing any policy of title insurance on
887	887	the applicable portion of the Leased Tract;
888	888	(ii) be prepared by a licensed state land
889	889	surveyor or a registered professional land surveyor acceptable to
890	890	the Authority;
891	891	(iii) include the boundary of the
892	892	Leaseholder's Leased Tract and any Undeveloped Strips being
893	893	conveyed, which boundaries must be consistent with the master
894	894	survey prepared on behalf of the Authority in conjunction with the
895	895	sale of the Leased Tract to the Purchaser;
896	896	(iv) include all improvements on the Leased
897	897	Tract and indicate any encroachments across the applicable boundary
898	898	lines [or into the FERC Project Area or Buffer Zone]; Leaseholder
899	899	must provide evidence that any such encroachments across boundary
900	900	lines, including encroachments onto Authority Land, [or into the
901	901	FERC Project Area or Buffer Zone] have been cured by the Leaseholder
902	902	(either by removal of such encroachment or by written agreement
903	903	between the affected parties permitting such encroachment to
904	904	continue) prior to the survey being deemed acceptable; and
905	905	(v) be reviewed and approved by the
906	906	Authority and Purchaser; the Authority, Purchaser, and their
907	907	representatives or agents may perform an inspection of the
908	908	applicable Leased Tract to verify the accuracy of the survey
909	909	[Survey] and any encroachments thereon;
910	910	(D) On or before Closing, the purchase and sale
911	911	agreement between the Leaseholder and Purchaser and any earnest
912	912	money that may be required pursuant to such agreement shall be
913	913	timely delivered to a title company or escrow agent acceptable to
914	914	the Authority and agreed to by Leaseholder and Purchaser in such
915	915	agreement;
916	916	(E) On or before Closing, Purchaser and
917	917	Leaseholder shall complete all documentation necessary to
918	918	effectuate transfer of the applicable Leased Tract from the
919	919	Purchaser to the Leaseholder and deliver such completed and
920	920	executed documents to the applicable escrow agent; and
921	921	(F) Promptly after Closing, the deed and any
922	922	other applicable documents effectuating transfer of such Leased
923	923	Tract to the Leaseholder shall be recorded in the county records
924	924	where the Leased Tract is located promptly after such escrow agent
925	925	receives written notice from the Authority or title company or
926	926	escrow agent facilitating the Closing of the Leased Tract from the
927	927	Authority to Purchaser that such Closing has been completed and the
928	928	necessary documents have been recorded pursuant to such Closing.
929	929	In no event shall the deed or any other documents transferring the
930	930	applicable portion of the Leased Tract to the Leaseholder be
931	931	recorded prior to Closing.
932	932	(3) Closing shall occur no later than December 31,
933	933	2010, for the Initial Leased Tract and not later than two years
934	934	after the Date of Decommissioning for the Remaining Leased Tract.
935	935	The Authority shall post on its website no later than thirty days
936	936	after entering into a Contract for sale with Purchaser the
937	937	effective date of such Contract and the anticipated date of
938	938	Closing, which date shall be at least six (6) months from the
939	939	effective date of the Contract. Any changes to the anticipated date
940	940	of Closing shall also be posted on the Authority's website. These
941	941	dates shall be used to establish the time periods provided in
942	942	Subdivision (2).
943	943	(c) Sale to Leaseholders. This subsection shall only apply
944	944	to, and be effective for, those portions of the Remaining Leased
945	945	Tract (if any) for which Closing has not occurred on or before the
946	946	second anniversary of the Date of Decommissioning [December 31,
947	947	2010], pursuant to Subsection (b), in which case the effective date
948	948	of this subsection shall be the second anniversary of the Date of
949	949	Decommissioning [January 1, 2011]. Upon the effective date of this
950	950	subsection, the Authority shall suspend any applicable sale efforts
951	951	under Subsection (b) for a period of two years beginning on the
952	952	effective date of this subsection and initiate a tract by tract sale
953	953	of the Remaining Leased Tract to the then-current Leaseholders as
954	954	follows:
955	955	(1) For a period of two years beginning on the
956	956	effective date of this subsection and in accordance with the
957	957	procedures set forth in this subsection, and subject to Subsections
958	958	(d), (e), (f), (g), (h), and (i), the Authority shall provide
959	959	Leaseholders the opportunity to purchase their individual portion
960	960	of the Remaining Leased Tract [Tracts] directly from the Authority.
961	961	Leaseholders shall have until the expiration of such two-year
962	962	period to submit a completed application of intent to purchase
963	963	their individual Remaining Leased Tracts as provided by Subdivision
964	964	(4).
965	965	(2) The Authority shall determine if, and how, any
966	966	Remaining Undeveloped Strips will be divided between adjacent
967	967	Leaseholders and incorporated into any individual Remaining Leased
968	968	Tract; provided, however, Leaseholders shall not be required to
969	969	accept any such Remaining Undeveloped Strips.
970	970	(3) On or before the effective date of this
971	971	subsection, the Authority shall make available to the Leaseholders
972	972	a form for an application of intent to purchase the Leaseholder's
973	973	individual Remaining Leased Tract. Such application shall be
974	974	deemed a contract subject to the provisions set out herein. The
975	975	application of intent shall provide the Leaseholder a 30-day
976	976	feasibility period beginning on the date such application is
977	977	submitted in which the Leaseholder can determine the feasibility of
978	978	purchasing the applicable individual Remaining Leased Tract,
979	979	including the ability of such Leaseholder to obtain financing for
980	980	such purchase.
981	981	(4) A Leaseholder who desires to purchase such
982	982	Leaseholder's individual Remaining Leased Tract must submit a
983	983	completed application to the Authority on or before the second
984	984	anniversary of the effective date of this subsection [December 31,
985	985	2012]. An application will be deemed "complete" upon the
986	986	following:
987	987	(A) Leaseholder delivers to the Authority an
988	988	executed application of intent to purchase with all required
989	989	information included in the application;
990	990	(B) Leaseholder delivers an earnest money
991	991	deposit, in good funds acceptable to the title company or escrow
992	992	agent selected by the Authority, in the amount of $1,000 to such
993	993	title company or escrow agent, which earnest money shall be
994	994	nonrefundable after the expiration of the feasibility period except
995	995	in the event closing does not occur due to the fault of the
996	996	Authority;
997	997	(C) any and all rent and other fees or amounts due
998	998	to the Authority pursuant to such Leaseholder's Ground Lease have
999	999	been paid and there are no amounts then outstanding which are past
1000	1000	due;
1001	1001	(D) Leaseholder has delivered to the Authority a
1002	1002	survey that is acceptable to the Authority of the applicable
1003	1003	Remaining Leased Tract (and any Remaining Undeveloped Strips being
1004	1004	included in such Remaining Leased Tract). To be acceptable to the
1005	1005	Authority, the survey must:
1006	1006	(i) be acceptable to the title company
1007	1007	selected by the Authority for purposes of issuing any policy of
1008	1008	title insurance on the applicable portion of the Remaining Leased
1009	1009	Tract;
1010	1010	(ii) be prepared by a licensed state land
1011	1011	surveyor or a registered professional land surveyor acceptable to
1012	1012	the Authority;
1013	1013	(iii) include the boundary of the
1014	1014	Leaseholder's Remaining Leased Tract and any Remaining Undeveloped
1015	1015	Strips being conveyed, which boundaries must be consistent with the
1016	1016	master survey of the Remaining Leased Tract prepared on behalf of
1017	1017	the Authority;
1018	1018	(iv) include all improvements on the
1019	1019	Remaining Leased Tract and indicate any encroachments across the
1020	1020	applicable boundary lines, including encroachments onto Authority
1021	1021	Land [or into the FERC Project Area or Buffer Zone]; Leaseholder
1022	1022	must provide evidence that any such encroachments across boundary
1023	1023	lines [or into the FERC Project Area or Buffer Zone] have been cured
1024	1024	by the Leaseholder (either by removal of such encroachment or by
1025	1025	written agreement between the affected parties permitting such
1026	1026	encroachment to continue) prior to the survey being deemed
1027	1027	acceptable; and
1028	1028	(v) be reviewed and approved by the
1029	1029	Authority; the Authority or its representatives or agents may
1030	1030	perform an inspection of the individual Remaining Leased Tract to
1031	1031	verify the accuracy of the survey [Survey] and any encroachments
1032	1032	thereon.
1033	1033	(E) Leaseholder has delivered to the Authority a
1034	1034	title commitment and, if requested by the Authority, any exception
1035	1035	documents referenced therein, prepared by the applicable title
1036	1036	company or escrow agent selected by the Authority; and
1037	1037	(F) Leaseholder has delivered to the Authority
1038	1038	written evidence from Leaseholder's lender or financial
1039	1039	institution that Leaseholder has the financing or funds available,
1040	1040	as applicable, to complete the purchase of Leaseholder's Remaining
1041	1041	Leased Tract.
1042	1042	(5) Completed applications that are timely delivered
1043	1043	will be accepted and processed by the Authority in the order in
1044	1044	which they are received; except that the Authority shall give
1045	1045	preference in processing applications to Leaseholders who receive
1046	1046	an ad valorem tax exemption under Section 11.13, Tax Code, for a
1047	1047	structure on the Leaseholder's Remaining Leased Tract.
1048	1048	(6) An individual Remaining [A] Leased Tract sold
1049	1049	under this subsection shall be sold for 90% of the land only
1050	1050	assessed value without any exemptions, as determined by the
1051	1051	appraisal district, for the year in which the Leaseholder's
1052	1052	application of intent to purchase is submitted to the Authority, or
1053	1053	for the year 2012 [2008], whichever is greater.
1054	1054	(7) The Leaseholder purchasing such Leaseholder's
1055	1055	Remaining Leased Tract is responsible for:
1056	1056	(A) timely paying all rent and other fees or
1057	1057	amounts due to the Authority pursuant to such Leaseholder's Ground
1058	1058	Lease through the date of closing on the Leaseholder's portion of
1059	1059	the Remaining Leased Tract;
1060	1060	(B) obtaining and delivering to the Authority a
1061	1061	survey of the applicable Remaining Leased Tract in accordance with
1062	1062	Subdivision (4)(D) and curing any encroachments shown thereon, all
1063	1063	at Leaseholder's expense;
1064	1064	(C) obtaining and delivering to the Authority, at
1065	1065	such Leaseholder's expense, a title commitment in accordance with
1066	1066	Subdivision (4)(E); the Authority may, but shall have no obligation
1067	1067	to, cure any objections that Leaseholder may have to the
1068	1068	exceptions, covenants, easements, reservations or any other items
1069	1069	reflected on the title commitment; provided, however, that the
1070	1070	Authority shall use good faith efforts to address and/or remove
1071	1071	those requirements or exceptions shown on Schedule C of the title
1072	1072	commitment that are applicable to or created by the Authority, and,
1073	1073	notwithstanding the foregoing, the Authority shall have no
1074	1074	obligation to cure any exceptions on the attached Schedule C
1075	1075	regarding legal right of access to or from the applicable Remaining
1076	1076	Leased Tract;
1077	1077	(D) delivering to the applicable title company or
1078	1078	escrow agent on or before closing on the Leaseholder's Remaining
1079	1079	Leased Tract, in good funds, the purchase price and all reasonable,
1080	1080	normal, customary, and documented costs associated with the
1081	1081	transfer of the individual Remaining Leased Tract to the
1082	1082	Leaseholder including, without limitation, all escrow fees,
1083	1083	recording fees, taxes on the land after the date of such closing,
1084	1084	document preparation fees, the cost of any Title Policy (including
1085	1085	any endorsements thereon) obtained by Leaseholder, and any costs
1086	1086	associated with removing any liens on the applicable Remaining
1087	1087	Leased Tract; and
1088	1088	(E) timely delivering to the escrow agent any
1089	1089	notices, statements, affidavits, or other documents required by the
1090	1090	application, escrow agent, or at law to effectuate the transfer of
1091	1091	the applicable Remaining Leased Tract to the Leaseholder.
1092	1092	(8) For those completed applications of intent to
1093	1093	purchase timely delivered to the Authority under this subsection,
1094	1094	the purchase must be completed no later than the expiration of 30
1095	1095	months after the effective date of this subsection [June 30, 2013].
1096	1096	For any individual Remaining Leased Tract [Tracts] for which
1097	1097	closing has not occurred by such date, the application shall be
1098	1098	deemed terminated. The Authority shall not accept any applications
1099	1099	of intent to purchase after the second anniversary of the effective
1100	1100	date of this subsection [December 31, 2012]; and any applications
1101	1101	of intent to purchase that are delivered to the Authority prior to
1102	1102	such date but that are not "complete" as of such date in accordance
1103	1103	with Subdivision (4) shall be rejected by the Authority.
1104	1104	Leaseholders submitting an application of intent to purchase their
1105	1105	individual Remaining Leased Tracts are responsible for ensuring
1106	1106	that such application is deemed "complete" on or before the second
1107	1107	anniversary of the effective date of this subsection [December 31,
1108	1108	2012].
1109	1109	(9) Any Ground Lease that would otherwise expire shall
1110	1110	be automatically extended as necessary for one year terms to permit
1111	1111	such Leaseholder the full two-year period to deliver such
1112	1112	application of intent to purchase such Leaseholder's individual
1113	1113	Remaining Leased Tract and to complete such transaction no later
1114	1114	than the expiration of 30 months after the effective date of this
1115	1115	subsection [June 30, 2013].
1116	1116	(10) The Owner of a Remaining Leased Tract sold under
1117	1117	this subsection shall pay the Authority any reasonable fees set by
1118	1118	the Authority for any services the Owner accepts from the
1119	1119	Authority. However, the Owner of a Remaining Leased Tract is under
1120	1120	no obligation to accept services from the Authority.
1121	1121	(11) Any Remaining Leased Tract subject to the Ranch
1122	1122	Agreement shall only be subject to sale under this subsection if the
1123	1123	Authority is released from its obligations under the Ranch
1124	1124	Agreement relating to such Remaining Leased Tract.
1125	1125	(12) The following laws do not apply to sale of an
1126	1126	individual Remaining Leased Tract under this subsection:
1127	1127	(A) Chapter 272, Local Government Code;
1128	1128	(B) Section 49.226, Water Code; and
1129	1129	(C) Section 8502.013 of this code.
1130	1130	(13) A provision that applies to the Leaseholder of an
1131	1131	individual Remaining [a] Leased Tract under this section applies to
1132	1132	any subsequent Owner of the individual Remaining Leased Tract.
1133	1133	(14) At closing on the individual Remaining Leased
1134	1134	Tract, the Leaseholder shall pay any indebtedness secured by a lien
1135	1135	on the Leaseholder's leasehold estate (including the applicable
1136	1136	portion of the Buffer Zone that is[, whether or not included as]
1137	1137	part of the leasehold estate [Leased Tract pursuant to Subsection
1138	1138	(e)]) or deliver the express written consent of the Lienholder on
1139	1139	the leasehold estate in the Remaining Leased Tract permitting the
1140	1140	Leaseholder to grant a purchase money lien on the fee simple estate
1141	1141	in the Remaining Leased Tract.
1142	1142	(15) At the closing of the applicable Remaining Leased
1143	1143	Tract, the Authority will deliver a special warranty deed.
1144	1144	(16) For any portion of the Remaining Leased Tract
1145	1145	that has not been sold pursuant to this subsection on or before the
1146	1146	expiration of 30 months after the effective date of this subsection
1147	1147	[June 30, 2013], the Board shall sell any such remaining portion of
1148	1148	the Remaining Leased Tract pursuant to terms and conditions
1149	1149	determined by such Board.
1150	1150	(d) Restrictions on Property [Leased Tract]. The Property
1151	1151	is [Leased Tract (or any portion thereof) sold in accordance with
1152	1152	Subsection (b) or (c) shall be] subject to the [following]
1153	1153	Restrictions recorded in Palo Pinto, Stephens, Young, and Jack
1154	1154	Counties, as amended from time to time. After the Date of
1155	1155	Decommissioning and before the date the Remaining Leased Tract is
1156	1156	conveyed under Subsection (b) or (c), the Authority, without
1157	1157	requiring the consent of any Owner, shall further amend the
1158	1158	Restrictions and record the Amendments to the Restrictions in the
1159	1159	records of each applicable county, which amendments must (i) add
1160	1160	the Remaining Commercial Leased Land as part of the Commercial
1161	1161	Leased Land in the Restrictions; (ii) add the Remaining Residential
1162	1162	Leased Land as part of the Residential Leased Land in the
1163	1163	Restrictions; (iii) add the Remaining Undeveloped Strips as part of
1164	1164	the Undeveloped Strips in the Restrictions; (iv) add the Remaining
1165	1165	Leased Tract as part of the Leased Tract; and (v) otherwise amend
1166	1166	the Restrictions to be substantively in accordance with the
1167	1167	following[, which shall be included, in substance, in a Declaration
1168	1168	of Restrictive Covenants, Easements, and Conditions to be prepared
1169	1169	by the Authority substantively in accordance with the following and
1170	1170	recorded by the Authority, as declarant, in the applicable county
1171	1171	records prior to any sale pursuant to Subsection (b) or (c)]:
1172	1172	[(1) Subject to Subdivision (10), no Owner, Purchaser,
1173	1173	or Leaseholder may forbid, restrict, or take any action which
1174	1174	effectively forbids or restricts the public from using the FERC
1175	1175	Project Area and the adjacent areas of the Lake in accordance with
1176	1176	the terms of the FERC License.]
1177	1177	(2) Each Owner, Purchaser, and Leaseholder shall agree
1178	1178	to not block, restrict, or otherwise prohibit access over, through,
1179	1179	or across any Road and further agrees that such Roads or portion
1180	1180	thereof shall remain open for use by the Authority, other Owners or
1181	1181	Purchasers, lessees of any portion of the Property (including
1182	1182	Leaseholders) and the general public. Except for (i) those
1183	1183	portions of the Property that are accessible by water only as of the
1184	1184	effective date of the Restrictions, and/or (ii) restrictions of
1185	1185	access existing as of the effective date of the Restrictions (e.g.,
1186	1186	access to and from public roads that requires traversing real
1187	1187	property not owned by the Authority, Owners, or Purchasers
1188	1188	hereunder), and/or (iii) the covenants and restrictions of the
1189	1189	Ranch Declarations (to the extent applicable to the Roads) or other
1190	1190	restrictive covenants existing prior to the date the Restrictions
1191	1191	are recorded of record, no Owner, Purchaser, or Leaseholder shall
1192	1192	be permitted to block, restrict, or otherwise prohibit access on,
1193	1193	over, or across the Roads.
1194	1194	(3) The Driveways are not part of the Roads and shall
1195	1195	be maintained by the Owner, Purchaser, or Leaseholder of the
1196	1196	applicable Driveways. No Owner, Purchaser, or Leaseholder shall
1197	1197	obstruct, prevent, or otherwise restrict access on, over or across
1198	1198	any portion of a common Driveway by any such other Owner, Purchaser,
1199	1199	or Leaseholder, or their guests or invitees, whose portion of the
1200	1200	Property is served by such common Driveway. Owners, Purchasers,
1201	1201	and/or Leaseholders whose portion of the Property is served by a
1202	1202	common Driveway shall at all times have a nonexclusive right of
1203	1203	ingress and egress over and across such common Driveway to access
1204	1204	their portion of the Property.
1205	1205	(4) All grants and dedications of easements,
1206	1206	rights-of-way, restrictions, and related rights affecting the
1207	1207	Leased Tract, made prior to the Leased Tract becoming subject to the
1208	1208	Restrictions and any Amendments to the Restrictions that are of
1209	1209	record, or visible or apparent, shall be incorporated into such
1210	1210	Restrictions by reference and made a part of the Restrictions for
1211	1211	all purposes as if fully set forth therein and shall be construed as
1212	1212	being adopted in each and every contract, deed, or conveyance
1213	1213	executed or to be executed by or on behalf of the Authority
1214	1214	conveying any part of the Leased Tract. The foregoing adoption of
1215	1215	such easements includes, without limitation, any and all written
1216	1216	easements or agreements, whether or not recorded, between the
1217	1217	Authority and any other party for the installation, maintenance,
1218	1218	repair, or replacement of utility lines located on, above, over,
1219	1219	under, or beneath the Property.
1220	1220	(5) The Authority shall reserve for itself and its
1221	1221	successors, assigns, and designees the nonexclusive right and
1222	1222	easement, but not the obligation, to enter upon the Property, the
1223	1223	Lake and other bodies of water, if any, located within the Property
1224	1224	(a) to install, keep, maintain, and replace pumps in order to obtain
1225	1225	water for the irrigation of any portion of the Authority Land, (b)
1226	1226	to construct, maintain, replace, and repair any wall, dam, or other
1227	1227	structure retaining water therein, (c) to access, construct,
1228	1228	maintain, replace, and repair any measurement stations, monuments,
1229	1229	or other similar improvements, (d) to remove trash and other
1230	1230	debris, and (e) to fulfill the Authority's obligations as a river
1231	1231	authority and any obligations set forth in [the FERC License,]
1232	1232	state water rights[,] or other governmental regulations. The
1233	1233	Authority and its designees shall have an access easement through,
1234	1234	over, and across any portion of the Leased Tract to the extent
1235	1235	reasonably necessary to exercise the rights and responsibilities
1236	1236	under this subdivision; provided, however, that (i) the Authority
1237	1237	shall provide written notice at least 48 hours in advance of such
1238	1238	entry to the Purchaser or Owner of such portion of the Leased Tract
1239	1239	(except in the event of an emergency, in which case advance notice
1240	1240	shall not be required, but the Authority shall provide such written
1241	1241	notice as soon as practicable thereafter); (ii) the Authority shall
1242	1242	promptly repair any damage to the portion of the Leased Tract caused
1243	1243	by the Authority's entrance onto such Owner's or Purchaser's portion
1244	1244	of the Leased Tract; and (iii) the Authority shall use reasonable
1245	1245	efforts to avoid interfering with the Owner's or Purchaser's use of
1246	1246	the portion of the Leased Tract.
1247	1247	(6) The Authority shall reserve for itself and its
1248	1248	successors, assigns, and designees a perpetual right, power,
1249	1249	privilege, and easement to occasionally overflow, flood, and
1250	1250	submerge that portion of the Property located at or below the
1251	1251	elevation contour of 1015' above mean sea level in connection with
1252	1252	the Authority's operation and maintenance of the Lake. The
1253	1253	Authority shall have no liability to any Owner, Purchaser,
1254	1254	Leaseholder, or any other person for any damages, claims, costs,
1255	1255	injuries, or liabilities to any person or the Property or any
1256	1256	improvements thereon that are caused by or arise from any act or
1257	1257	omission by the Authority in connection with the foregoing right
1258	1258	and easement.
1259	1259	(7) Additional land may be included in the Property or
1260	1260	Leased Tract at any time by the Authority, as long as the Authority
1261	1261	owns any portion of the Property, by recording an amendment to these
1262	1262	Restrictions in each of the counties in which the Property is
1263	1263	located. Upon such additions, the Restrictions shall apply to the
1264	1264	added land and the rights, privileges, duties, and liabilities of
1265	1265	the Owners or Purchasers subject to the Restrictions shall be the
1266	1266	same with respect to the added land as with respect to the Property
1267	1267	originally covered by the Restrictions. As additional lands are
1268	1268	added hereto, the Authority shall, with respect to said land,
1269	1269	record amendments that may incorporate the Restrictions therein by
1270	1270	reference and that may supplement or modify the Restrictions with
1271	1271	such additional covenants, restrictions, and conditions that may be
1272	1272	appropriate for those added lands.
1273	1273	(8) The Restrictions may not be modified in any
1274	1274	respect whatsoever or terminated, in whole or in part, except with
1275	1275	the consent of (i) the Owners or Purchasers of at least sixty
1276	1276	percent (60%) of the individual lots that comprise the Residential
1277	1277	Leased Land and Commercial Leased Land, and (ii) the Owners or
1278	1278	Purchasers of at least sixty percent (60%) of the land area of the
1279	1279	Authority Land, and (iii) the Authority, for so long as the
1280	1280	Authority has any interest in the Property, whether as an Owner or
1281	1281	[holder of the FERC License or] otherwise. Notwithstanding the
1282	1282	foregoing, the Authority, without the joinder of any other party,
1283	1283	shall have the absolute right to make minor changes or amendments to
1284	1284	the Restrictions to correct or clarify errors, omissions, mistakes,
1285	1285	or ambiguities contained therein. No amendment shall be effective
1286	1286	until such amendment has been recorded in the Official Public
1287	1287	Records of each of the counties in which the Property is located.
1288	1288	(9) No improvements (except as specifically set forth
1289	1289	in Subdivision (11)) shall be constructed or located on the Leased
1290	1290	Tract within twenty-five feet (25') landward measured horizontally
1291	1291	from the 1000' contour line of the Lake, a meander line that changes
1292	1292	over time due to natural forces, such as erosion and accretion;
1293	1293	provided, however, this restriction shall not include improvements
1294	1294	inside this setback that are existing at the time the Restrictions
1295	1295	are filed that [(i)] have been approved in writing by the
1296	1296	Authority[, and (ii) if such improvements are located within the
1297	1297	FERC Project Area, have been approved by the Federal Energy
1298	1298	Regulatory Commission (and to the extent not already approved by
1299	1299	the Federal Energy Regulatory Commission, the Authority intends to
1300	1300	file an application to obtain permission for the existing
1301	1301	encroachments into the FERC Project Area to remain in place)]. In
1302	1302	addition, no improvements on the Leased Tract (or any portion
1303	1303	thereof) shall be constructed or located within five feet (5') of
1304	1304	any other boundary line (i.e., the side and back boundary lines),
1305	1305	other than fences; provided, however, this restriction shall not
1306	1306	include improvements located within this 5' setback that are
1307	1307	existing at the time the Restrictions are filed and that have been
1308	1308	approved in writing by the Authority.
1309	1309	[(10) No Owner, Purchaser, or Leaseholder shall have
1310	1310	any rights to construct any improvements or fencing that block or
1311	1311	restrict access to the FERC Project Area, except with the written
1312	1312	consent of the Authority, to be granted or withheld in its sole
1313	1313	discretion, and except in compliance with the FERC License. This
1314	1314	limitation does not apply to fences located within the Leased Tract
1315	1315	and outside the FERC Project Area.]
1316	1316	(11) Erosion control improvements (such as retaining
1317	1317	walls, rip rap, etc.) and landscape planting may not be constructed
1318	1318	or located [within the FERC Project Area or] at or below the 1000'
1319	1319	contour line without the prior written approval of the Authority.
1320	1320	Such improvements shall be subject to the terms and conditions set
1321	1321	forth in the Restrictions[, in the FERC License, in any other
1322	1322	Federal Energy Regulatory Commission rules and regulations,] and in
1323	1323	the Authority's regulations, including without limitation, the
1324	1324	Shoreline Management Plan.
1325	1325	(12) No Owner, Purchaser, or Leaseholder shall have
1326	1326	the right to place, or permit to be placed, any advertisements,
1327	1327	private notices, signs, or billboards on the Residential Leased
1328	1328	Land [Tract] except that temporary signage customarily found on
1329	1329	residential property may be placed on the Residential Leased Land
1330	1330	at the reasonable discretion of the Owner, Purchaser, and/or
1331	1331	Leaseholder of that portion of the Residential Leased Land.
1332	1332	(13) No activities shall be conducted on the Leased
1333	1333	Tract and no improvements constructed on the Leased Tract that are
1334	1334	or might be unsafe or hazardous to any person or property.
1335	1335	(14) No Owner, Purchaser, Leaseholder, or occupant of
1336	1336	any portion of the Leased Tract shall use or permit the use,
1337	1337	handling, generation, storage, release, disposal, or
1338	1338	transportation of Hazardous Materials on, about, or under the
1339	1339	Leased Tract except for such quantities that are routinely utilized
1340	1340	in connection with residential use (for all portions of the Leased
1341	1341	Tract except the Commercial Leased Land) or for commercial uses
1342	1342	that are in compliance with the Restrictions (for the Commercial
1343	1343	Leased Land), and that are stored, used, and disposed of in
1344	1344	compliance with all Environmental Laws. Each Owner, Purchaser, and
1345	1345	Leaseholder shall indemnify, defend, protect, and save the
1346	1346	Authority, its successors and assigns, trustees, directors,
1347	1347	employees, and officers and each other Owner, Purchaser, and
1348	1348	Leaseholder, harmless from and against, and shall reimburse such
1349	1349	indemnified parties for, all liabilities, obligations, losses,
1350	1350	claims, damages, fines, penalties, costs, charges, judgments, and
1351	1351	expenses, including, without limitation, reasonable attorneys'
1352	1352	fees and expenses that may be imposed upon or incurred or paid by or
1353	1353	asserted against such indemnified parties by reason of or in
1354	1354	connection with such Owner's, Purchaser's, or Leaseholder's failure
1355	1355	to comply with this subdivision.
1356	1356	(15) No Owner or Purchaser shall conduct, or permit to
1357	1357	be conducted, any activity on the Leased Tract that is improper,
1358	1358	immoral, noxious, annoying, creates a nuisance, or is otherwise
1359	1359	objectionable to other Owners or Purchasers or incompatible with
1360	1360	the recreational use of the Lake and the Authority Land [FERC
1361	1361	Project Area].
1362	1362	(16) The Residential Leased Land (and any Undeveloped
1363	1363	Strips that are conveyed to an Owner or Purchaser as part of the
1364	1364	Residential Leased Land pursuant to Subsection (b) or (c)) shall be
1365	1365	improved and used solely for single-family residential use,
1366	1366	inclusive of a garage, fencing, and other such related improvements
1367	1367	as are necessary or customarily incident to normal residential use
1368	1368	and enjoyment and for no other use. No portion of the Residential
1369	1369	Leased Land (and any Undeveloped Strips that are conveyed to an
1370	1370	Owner or Purchaser as part of the Residential Leased Land pursuant
1371	1371	to Subsection (b) or (c)) shall be used for manufacturing,
1372	1372	industrial, business, commercial, institutional, or other
1373	1373	nonresidential purpose, save and except as set forth in Subdivision
1374	1374	(17). Notwithstanding the foregoing, Owners, Purchasers, and/or
1375	1375	Leaseholders shall be permitted to conduct a "garage sale" on their
1376	1376	respective portion of the Residential Leased Land (and any
1377	1377	Undeveloped Strips that are conveyed to an Owner or Purchaser as
1378	1378	part of the Residential Leased Land pursuant to either Subsection
1379	1379	(b) or (c)) not more than one time per calendar year.
1380	1380	(17) No professional, business, or commercial
1381	1381	activity to which the general public is invited shall be conducted
1382	1382	on the Residential Leased Land (and any Undeveloped Strips that are
1383	1383	conveyed to an Owner or Purchaser as part of the Residential Leased
1384	1384	Land pursuant to Subsection (b) or (c)); except an Owner,
1385	1385	Purchaser, Leaseholder, or occupant of a residence may conduct
1386	1386	business activities within a residence so long as: (a) the
1387	1387	existence or operation of the business activity is not apparent or
1388	1388	detectable by sight, sound, or smell from outside the residence;
1389	1389	(b) the business activity conforms to all zoning requirements; (c)
1390	1390	the business activity does not involve door-to-door solicitation of
1391	1391	residents, lessees, Leaseholders, Owners, or Purchasers within the
1392	1392	Property; (d) the business does not generate a level of vehicular or
1393	1393	pedestrian traffic or a number of vehicles parked within the
1394	1394	Property that is noticeably greater than that which is typical of
1395	1395	residences in which no business activity is being conducted; and
1396	1396	(e) the business activity is consistent with the residential
1397	1397	character of the Residential Leased Land and does not constitute a
1398	1398	nuisance, or a hazardous or offensive use, or threaten the security
1399	1399	or safety of other residents, lessees, Owners, Purchasers, or
1400	1400	Leaseholders of the Property. The terms "business" and "trade", as
1401	1401	used in this provision, shall be construed to have their ordinary,
1402	1402	generally accepted meanings and shall include, without limitation,
1403	1403	any occupation, work, or activity undertaken on an ongoing basis
1404	1404	that involves the provision of goods or services to persons other
1405	1405	than the provider's family and for which the provider receives a
1406	1406	fee, compensation, or other form of consideration, regardless of
1407	1407	whether: (x) such activity is engaged in full or part-time; (y) such
1408	1408	activity is intended to or does generate a profit; or (z) a license
1409	1409	is required. Leasing of a residence shall not be considered a
1410	1410	business or trade within the meaning of this subsection. This
1411	1411	subdivision shall not apply to any activity conducted by the
1412	1412	Authority.
1413	1413	(18) Except as may be otherwise provided in the
1414	1414	Restrictions and any Amendments to the Restrictions, Commercial
1415	1415	Leased Land (and any Undeveloped Strips that are conveyed to an
1416	1416	Owner or Purchaser as part of the Commercial Leased Land pursuant to
1417	1417	Subsection (b) or (c)) may be improved and used for any lawful
1418	1418	commercial purpose, including without limitation, nonprofit
1419	1419	organizations or governmental or quasi-governmental agencies.
1420	1420	(19) No portion of the Leased Tract may be used for the
1421	1421	commercial testing or development of wind power, or to produce,
1422	1422	lease, store, and/or transmit electrical power generated thereby
1423	1423	for commercial or resale purposes.
1424	1424	(20) Each Owner or Purchaser shall keep, or cause to be
1425	1425	kept, all improvements located on its respective portion of the
1426	1426	Leased Tract maintained in good condition and repair, clean and
1427	1427	free of rubbish and other hazards, and otherwise in full accordance
1428	1428	with the Restrictions and all governmental rules, regulations,
1429	1429	codes, and zoning requirements. Such maintenance shall include,
1430	1430	but not be limited to, the following: regular and timely removal of
1431	1431	all litter, garbage, trash, and waste; regular lawn mowing; tree,
1432	1432	shrub, and plant pruning and trimming; watering of landscaped
1433	1433	areas; weed control; pest control; maintaining exterior lighting
1434	1434	and mechanical facilities in good working order; keeping walks and
1435	1435	driveways clean and in good repair; and the repairing and
1436	1436	repainting of the exterior improvements visible to neighboring
1437	1437	properties and/or public view.
1438	1438	(21) In the event of any damage to or destruction of
1439	1439	any building or improvement on any portion of the Leased Tract from
1440	1440	any cause whatsoever, the Owner, Purchaser, or Leaseholder upon
1441	1441	whose portion of the Leased Tract the casualty occurred shall, at
1442	1442	such Owner's, Purchaser's, or Leaseholder's sole option, either (i)
1443	1443	repair, restore, or rebuild and complete the same with reasonable
1444	1444	diligence, (ii) clear the affected area of all hazardous or
1445	1445	dangerous debris and structures and lawfully dispose of same within
1446	1446	one year from the date of casualty, or (iii) effectuate any
1447	1447	combination of clauses (i) and (ii) of this subdivision as such
1448	1448	Owner, Purchaser, or Leaseholder may deem reasonably
1449	1449	appropriate. Notwithstanding the foregoing, in the event the
1450	1450	Owner, Purchaser, or Leaseholder elects to rebuild buildings or
1451	1451	improvements that were located within [the FERC Project Area or
1452	1452	within] twenty-five feet (25') landward measured horizontally from
1453	1453	the 1000' contour line that were approved in accordance with
1454	1454	Subdivision (9), such buildings or improvements shall be rebuilt in
1455	1455	accordance with Subdivision (24).
1456	1456	(22) The Texas Commission on Environmental Quality has
1457	1457	adopted rules governing on-site sewage facilities (also called
1458	1458	septic systems). The Authority is the commission's authorized
1459	1459	agent for the septic system licensing program, including the
1460	1460	enforcement of the commission's septic system rules and regulations
1461	1461	for the Property. The Authority, as the agent for the commission,
1462	1462	shall have the authority to access the Property for the purpose of
1463	1463	issuing such licenses, inspecting such septic systems, and
1464	1464	enforcing any and all rules and regulations related thereto. Each
1465	1465	Owner, Purchaser, and Leaseholder agrees to comply with all
1466	1466	sanitary regulations and the licensing process adopted by the
1467	1467	commission and enforced by the Authority, as its agent, from time to
1468	1468	time.
1469	1469	(23) The Owner or Purchaser shall be responsible, at
1470	1470	such Owner's or Purchaser's expense, for providing for the
1471	1471	collection, removal, and disposal of all solid waste on the Leased
1472	1472	Tract; or the Owner or Purchaser of any portion of the Leased Tract
1473	1473	shall be responsible for ensuring that the Leaseholders provide for
1474	1474	such collection, removal, and disposal of all solid waste on the
1475	1475	applicable portion of the Leased Tract. In the event the Ranch
1476	1476	fails to provide for the collection, removal, and disposal of all
1477	1477	solid waste related to the Ranch, the Owner or Purchaser shall be
1478	1478	responsible for providing for the same.
1479	1479	(24) [(i) An Owner, Purchaser, or Leaseholder, subject
1480	1480	to approval by the Federal Energy Regulatory Commission, may
1481	1481	repair, alter, or rebuild improvements located within the FERC
1482	1482	Project Area, which improvements were previously approved in
1483	1483	accordance with Subdivision (9); provided, however, such repairs,
1484	1484	alterations, and/or rebuilding shall not extend beyond the
1485	1485	footprint of the existing or previously existing improvement.
1486	1486	[(ii)] An Owner, Purchaser, or Leaseholder
1487	1487	may repair, alter, or rebuild improvements located above the 1000'
1488	1488	contour line [outside the FERC Project Area] but within 25'
1489	1489	landward measured horizontally from the 1000' contour line, and/or
1490	1490	improvements located within the 5' boundary setback, which
1491	1491	improvements were previously approved in accordance with
1492	1492	Subdivision (9). Such repairs, alterations, or rebuilding may
1493	1493	extend such improvements outside the previously existing footprint
1494	1494	towards the side boundaries and back boundary of the applicable
1495	1495	Leased Tract, but such improvements may not be extended towards the
1496	1496	shoreline or encroach closer to the 1000' contour line of the Lake
1497	1497	than the existing or previously existing improvements.
1498	1498	(25) The Authority shall reserve its rights, title,
1499	1499	and interest in all oil, gas, and other minerals in and under any
1500	1500	and all Property, including the Leased Tract.
1501	1501	(26) No land located at or below the 1000' contour line
1502	1502	[within the FERC Project Area] shall be improved, used, or
1503	1503	occupied, except in such manner as shall have been approved by the
1504	1504	Authority [and, to the extent required, by the Federal Energy
1505	1505	Regulatory Commission]. No docks, piers, on-water facilities,
1506	1506	retaining walls, or any other structures or facilities shall be
1507	1507	built, installed, or maintained in, on, or over the waters of the
1508	1508	Lake [or within the FERC Project Area] except as authorized by the
1509	1509	Authority. All such structures or facilities shall be subject to
1510	1510	all rules and regulations applicable to the Lake [and the FERC
1511	1511	Project Area], as the same may be adopted or amended from time to
1512	1512	time. Owner, Purchaser, and/or the Leaseholder shall be
1513	1513	responsible for any fees or annual charges assessed by the
1514	1514	Authority [and/or the Federal Energy Regulatory Commission] for
1515	1515	such permit or improvements and shall be responsible for ensuring
1516	1516	that any such improvements are consistent with the [FERC License,]
1517	1517	Shoreline Management Plan[,] and all other rules and regulations
1518	1518	applicable to the Property [FERC Project Area]. Owner or Purchaser
1519	1519	shall not, at any time, permit any liens to encumber the Authority
1520	1520	Land [FERC Project Area].
1521	1521	(27) No use of the Lake or other bodies of water within
1522	1522	the Property, if any, shall be made except in accordance with the
1523	1523	[FERC License, the] Shoreline Management Plan, the Authority's
1524	1524	regulations, and any other rules and regulations that may be
1525	1525	promulgated by the [Federal Energy Regulatory Commission and/or
1526	1526	the] Authority at any time and as amended from time to time. Any
1527	1527	such use shall be subject to the Authority's [and the Federal Energy
1528	1528	Regulatory Commission's] superior use rights. The Authority shall
1529	1529	not be responsible for any loss, damage, or injury to any person or
1530	1530	property arising out of the authorized or unauthorized use of the
1531	1531	Lake or other bodies of water within or adjacent to the Property.
1532	1532	(28) The Authority may use and regulate the Lake or
1533	1533	other bodies of water within the Property for the irrigation of the
1534	1534	Authority Land, or for any other purpose deemed appropriate by the
1535	1535	Authority, subject to the rights and authority of any [the Federal
1536	1536	Energy Regulatory Commission or] other governmental entity having
1537	1537	jurisdiction of such areas, and subject to the water rights granted
1538	1538	(or which may be granted) to the Authority by the State of
1539	1539	Texas. The Authority's rights under this subdivision shall be
1540	1540	superior to any rights of any Owner, Purchaser, or
1541	1541	Leaseholder. This subdivision shall not be construed to limit or
1542	1542	restrict the rights and authority of any [the Federal Energy
1543	1543	Regulatory Commission or] other governmental entity having
1544	1544	jurisdiction of the Property.
1545	1545	(29) Owners or Purchasers must obtain written
1546	1546	permission from the Authority in accordance with the Authority's
1547	1547	regulations to use or divert water from the Lake on any portion of
1548	1548	the Leased Tract for domestic or commercial purposes.
1549	1549	(30) No Owner, Purchaser, or Leaseholder shall be
1550	1550	permitted to divert or alter the natural drainage of the terrain or
1551	1551	clear vegetation on any portion of the Property in such a manner
1552	1552	that would cause unnatural erosion or silting of the Lake.
1553	1553	(31) Owners, Purchasers, and Leaseholders shall take
1554	1554	all reasonable precautions to ensure that all use of and activities
1555	1555	on the Leased Tract [and the FERC Project Area], including without
1556	1556	limitation, the construction, operation, and maintenance of any
1557	1557	improvements on the Leased Tract[, and/or FERC Project Area] occur
1558	1558	in a manner that [is in compliance with the FERC License and that]
1559	1559	will protect the scenic, recreational, and environmental values of
1560	1560	the Lake. The Authority[, as a licensee of the Federal Energy
1561	1561	Regulatory Commission,] has specific approval authority on any
1562	1562	proposed construction that impacts the [FERC Project Area or]
1563	1563	lakebed, and Owner, Purchaser, and Leaseholder shall comply with
1564	1564	the approval process as may be established by the Authority [and/or
1565	1565	the Federal Energy Regulatory Commission] from time to time.
1566	1566	[(32) Structures in place within the FERC Project Area
1567	1567	shall be subject to the FERC License, as the same may be amended
1568	1568	and/or renewed from time to time. Any structures erected in the
1569	1569	FERC Project Area after May 15, 1980 (the date of the amendment to
1570	1570	the previous FERC License) may be required to be removed at the
1571	1571	expense of the owner of the improvement, unless such improvements
1572	1572	are approved in writing by the Authority in accordance with the FERC
1573	1573	License. In no event shall this subdivision grant any
1574	1574	authorization for a violation of any rules or regulations of the
1575	1575	Authority, the FERC License, or any state, federal, or local law.]
1576	1576	(33) The Owner, Purchaser, and Leaseholder of any
1577	1577	portion of the Property [Leased Tract] shall comply with all of the
1578	1578	following rules and regulations, as applicable:
1579	1579	(A) [the Shoreline Management Plan and any
1580	1580	amendments or revisions to that document to the extent such
1581	1581	Shoreline Management Plan applies to the Owner's, Purchaser's,
1582	1582	and/or Leaseholder's portion of the Leased Tract;
1583	1583	[(B) the applicable rules, regulations, and
1584	1584	order of the Federal Energy Regulatory Commission including,
1585	1585	without limitation the FERC License;
1586	1586	[(C)] the Authority's "Regulations for
1587	1587	Governance for Brazos River Authority Lakes and Associated Lands,"
1588	1588	as published on the Authority's Internet website and as those
1589	1589	regulations may be amended from time to time; and
1590	1590	(B) [(D)] other rules and regulations adopted by
1591	1591	the Authority regarding conduct on and use of the Lake [or the
1592	1592	Property].
1593	1593	(34) By Texas statute, the Authority is empowered to
1594	1594	adopt and has adopted certain regulations governing conduct on and
1595	1595	use of the Property [within the FERC Project Area] and Lake.
1596	1596	Owners, Purchasers, Leaseholders, and persons using the Leased
1597	1597	Tract with such Owners' or Purchasers' consent shall abide by all
1598	1598	such rules and regulations adopted from time to time by the
1599	1599	Authority and any future revisions and amendments thereto.
1600	1600	(35) Owners, Purchasers, and Leaseholders of that
1601	1601	portion of the Leased Tract that is part of the Ranch shall comply
1602	1602	with the terms and conditions of the Ranch Agreement and the
1603	1603	covenants and restrictions set forth in the Ranch Declarations, to
1604	1604	the extent applicable to such portion of the Leased Tract. As to
1605	1605	that portion of the Property that is part of the Ranch, the Ranch
1606	1606	Declarations shall control in the event of any conflict between the
1607	1607	covenants, restrictions, and conditions set forth in the Ranch
1608	1608	Declarations and the Restrictions. Owners, Purchasers, and
1609	1609	Leaseholders of a portion of the Leased Tract that is part of any
1610	1610	other subdivision shall comply with the terms and conditions of the
1611	1611	covenants and restrictions governing the subdivision that apply to
1612	1612	the portion of the Leased Tract. Any portion of the Property that
1613	1613	is part of the subdivision is governed by the restrictions and
1614	1614	covenants governing the subdivision which shall control in the
1615	1615	event of a conflict between the covenants, restrictions, and
1616	1616	conditions governing the subdivision and the Restrictions and
1617	1617	Amendments to the Restrictions.
1618	1618	(36) In order to maintain the quality of the Lake's
1619	1619	water, the stability of the shoreline, and of the environment in the
1620	1620	Lake's vicinity, each Owner, Purchaser, and Leaseholder of all or
1621	1621	any portion of the Leased Tract agrees to:
1622	1622	(A) comply with any local, state, or federal laws
1623	1623	related to water quality or the environment, including laws
1624	1624	governing toxic wastes and hazardous substances;
1625	1625	(B) if the Owner's or Purchaser's private on-site
1626	1626	sewerage facility is not licensed by the Texas Commission on
1627	1627	Environmental Quality (or any successor to such Commission) then
1628	1628	the Owner, Purchaser, or Leaseholder shall connect to and use, at
1629	1629	the Owner's, Purchaser's, or Leaseholder's expense, as applicable,
1630	1630	any wastewater treatment system or service that becomes available
1631	1631	to the Owner's or Purchaser's portion of the Leased Tract, not later
1632	1632	than twelve (12) months after the system or service becomes
1633	1633	available to such portion of the Leased Tract and thereafter
1634	1634	discontinue use of any private on-site sewerage facility; and if,
1635	1635	at any time after a wastewater treatment system or service becomes
1636	1636	available to the Owner's or Purchaser's portion of the Leased Tract,
1637	1637	the Owner's or Purchaser's private on-site sewerage facility
1638	1638	(whether licensed or not) requires either replacement or an
1639	1639	alteration or change in the on-site sewerage facility resulting in
1640	1640	(i) an increase in the volume of permitted flow, (ii) a change in
1641	1641	the nature of permitted influent, (iii) a change from the planning
1642	1642	materials approved by the permitting authority, (iv) a change in
1643	1643	construction, and/or (v) an increase, lengthening, or expansion of
1644	1644	the treatment or disposal system, then such Owner or Purchaser
1645	1645	shall promptly connect to and use, at the Owner's, Purchaser's, or
1646	1646	Leaseholder's expense, as applicable, such wastewater treatment
1647	1647	system or service and thereafter discontinue use of any private
1648	1648	on-site sewerage facility. Notwithstanding the foregoing, in the
1649	1649	event a property owners association or municipality requires the
1650	1650	Owners or Purchasers of the portion of the Leased Tract that is
1651	1651	included in such association or municipality to connect to a
1652	1652	wastewater system or service, then such association or municipality
1653	1653	rules shall control;
1654	1654	(C) obtain written consent of the Authority prior
1655	1655	to diverting or pumping water from the Lake or any body of water
1656	1656	within or adjacent to the Property, constructing or erecting any
1657	1657	embankment or retaining wall, or commencing any dredging activity;
1658	1658	and
1659	1659	(D) pay to the Authority any reasonable fee
1660	1660	related thereto (e.g., water usage, recreational user, dredging, or
1661	1661	retaining wall fees) as may be adopted from time to time by the
1662	1662	Authority.
1663	1663	(37) Each Owner or Purchaser of all or any portion of
1664	1664	the Leased Tract agrees and acknowledges that the water level in the
1665	1665	Lake varies and that the Authority is not responsible for
1666	1666	maintaining the Lake at any certain level or above or below any
1667	1667	certain level.
1668	1668	(38) The Authority is not responsible or liable for
1669	1669	any personal injury or damage to any Owner, Purchaser, Leaseholder,
1670	1670	the Leased Tract, the Property, or any improvements caused by any
1671	1671	increase or decrease in the water level (even if such increase or
1672	1672	decrease is due to modifications of the Morris Sheppard (Possum
1673	1673	Kingdom) Dam or other actions or omissions of the Authority) or
1674	1674	caused by natural flooding.
1675	1675	(39) The Authority shall reserve the right of ingress
1676	1676	and egress for the Authority and any person authorized by the
1677	1677	Authority, including an agent of the Authority or employees, over
1678	1678	and across the Leased Tract and any and all on-water facilities
1679	1679	whether located within the Leased Tract or Authority Land [FERC
1680	1680	Project Area] for all reasonable purposes of the Authority,
1681	1681	including, without limitation, the construction, maintenance,
1682	1682	repair, and/or replacements of any roads, drainage facilities, and
1683	1683	power, water, wastewater, and other utility mains and lines that
1684	1684	the Authority considers necessary or beneficial and for public
1685	1685	safety, health, and welfare purposes; provided however, that:
1686	1686	(A) the Authority shall provide written notice at
1687	1687	least 48 hours in advance of such entry to the Purchaser or Owner of
1688	1688	such portion of the Leased Tract (except in the event of an
1689	1689	emergency, in which case advance notice shall not be required, but
1690	1690	the Authority shall provide such written notice as soon as
1691	1691	practicable thereafter), which notice shall state with reasonable
1692	1692	specificity the purpose for such entry;
1693	1693	(B) the Authority shall promptly repair any
1694	1694	damage to the portion of the Leased Tract caused by the Authority's
1695	1695	entrance onto such Owner's or Purchaser's portion of the Leased
1696	1696	Tract; and
1697	1697	(C) the Authority shall use reasonable efforts to
1698	1698	avoid interfering with the Owner's or Purchaser's use of the portion
1699	1699	of the Leased Tract.
1700	1700	(40) Each Owner, Purchaser, and Leaseholder shall
1701	1701	comply strictly with the Restrictions, as the same may be amended
1702	1702	from time to time. Failure to comply with the Restrictions shall
1703	1703	constitute a violation of the Restrictions, and shall give rise to a
1704	1704	cause of action to recover sums due for damages or injunctive relief
1705	1705	or both, maintainable by the Authority or other Owners or
1706	1706	Purchaser; provided however, no Owner, Purchaser, Leaseholder, or
1707	1707	other person shall have any right of action against the Authority
1708	1708	arising under the Restrictions.
1709	1709	(41) The Authority shall make no warranty or
1710	1710	representation as to the present or future validity or
1711	1711	enforceability of any such restrictive covenants, terms, or
1712	1712	provisions. Any Owner, Purchaser, or Leaseholder acquiring or
1713	1713	leasing, as applicable, any portion of the Property in reliance on
1714	1714	one or more of the Restrictions shall assume all risks of the
1715	1715	validity and enforceability thereof and, by acquiring such portion
1716	1716	of the Property, agrees to hold the Authority harmless therefrom.
1717	1717	(42) If the Owner, Purchaser, or Leaseholder of any
1718	1718	portion of the Leased Tracts or on-water facilities related thereto
1719	1719	(including retaining walls) shall fail to comply with the
1720	1720	requirements of the Restrictions, then the Authority shall have the
1721	1721	right, but not the obligation, following thirty (30) days prior
1722	1722	written notice to such defaulting person [owner] to enter such
1723	1723	defaulting person's [owner's] portion of the Leased Tract (but only
1724	1724	if such failure to comply results in a public health, safety, or
1725	1725	welfare concern) and/or such defaulting person's [owner's] on-water
1726	1726	facility and cure such breach, the cost of which shall be reimbursed
1727	1727	by such defaulting person [owner] to the Authority upon demand. Any
1728	1728	such unpaid amounts, together with interest thereon (at the rate of
1729	1729	six percent (6%) per annum) and the costs of collection (if any),
1730	1730	shall be charged as a continuing lien against such defaulting
1731	1731	person's [owner's] portion of the Leased Tract, which lien shall be
1732	1732	subordinate to the lien of any third-party deed of trust previously
1733	1733	recorded against such defaulting person's [owner's] portion of the
1734	1734	Leased Tract.
1735	1735	(43) A person shall be deemed to be in default of the
1736	1736	Restrictions only upon the expiration of thirty (30) days (ten (10)
1737	1737	days in the event of failure to pay money) from receipt of written
1738	1738	notice from the Authority or other Owner or Purchaser specifying
1739	1739	the particulars in which such person has failed to perform the
1740	1740	obligations of the Restrictions unless such person, prior to the
1741	1741	expiration of said thirty (30) days (ten (10) days in the event of
1742	1742	failure to pay money), has rectified the particulars specified in
1743	1743	said notice of default. However, such person shall not be deemed to
1744	1744	be in default if such failure (except a failure to pay money) cannot
1745	1745	be rectified within said thirty (30) day period and such person
1746	1746	commences the cure of such default within such thirty (30) day
1747	1747	period and thereafter is continuously using good faith and its best
1748	1748	efforts to rectify the particulars specified in the notice of
1749	1749	default.
1750	1750	(44) The Authority shall have the right, but not the
1751	1751	obligation, to enforce all of the provisions of the Restrictions.
1752	1752	Any Owner or Purchaser shall have the right to enforce all of the
1753	1753	provisions of the Restrictions against any other Owner, Purchaser,
1754	1754	or Leaseholder, but not against the Authority. Such right of
1755	1755	enforcement shall include the right to sue for both damages for, and
1756	1756	injunctive relief against, the breach of any such provision.
1757	1757	Furthermore, the Authority shall have the right, when appropriate
1758	1758	in its sole judgment and discretion, to claim or impose a lien upon
1759	1759	any portion of the Leased Tract, or improvement constructed
1760	1760	thereon, in order to enforce any right or effect compliance with the
1761	1761	Restrictions.
1762	1762	(45) The failure of a person (including the Authority
1763	1763	or any Owner or Purchaser) to insist upon strict performance of any
1764	1764	of the Restrictions shall not be deemed a waiver of any rights or
1765	1765	remedies that said person may have, and shall not be deemed a waiver
1766	1766	of any subsequent breach or default in the performance of any of the
1767	1767	Restrictions by the same or any other person.
1768	1768	(46) The Authority shall not be liable to any Owner,
1769	1769	Purchaser, or Leaseholder, or to any other person for any loss,
1770	1770	damage, or injury arising out of or in any way connected with the
1771	1771	performance or nonperformance of the Authority's rights,
1772	1772	obligations, or privileges under the Restrictions. Without
1773	1773	limiting the foregoing, the Authority shall not be liable to any
1774	1774	Owner, Purchaser, or Leaseholder due to the construction of any
1775	1775	improvements within the Property.
1776	1776	(47) Each of the Restrictions on the Leased Tract
1777	1777	shall be a burden on each portion of the Leased Tract, shall be
1778	1778	appurtenant to and for the benefit of the other portions of the
1779	1779	Property, other portions of the Leased Tract, and each part
1780	1780	thereof, and shall run with the land.
1781	1781	(48) The Restrictions shall inure to the benefit of
1782	1782	and be binding upon the Owners or Purchasers, their heirs,
1783	1783	successors, assigns, and personal representatives, and upon any
1784	1784	person acquiring all or any portion of the Leased Tract, or any
1785	1785	interest therein, whether by operation of law or otherwise.
1786	1786	Notwithstanding the foregoing, if any Owner or Purchaser sells or
1787	1787	transfers all or any portion of such Owner's or Purchaser's interest
1788	1788	in all or any portion of the Leased Tract, such Owner or Purchaser
1789	1789	shall, upon the sale and conveyance of title, be released and
1790	1790	discharged from all of its obligations as Owner or Purchaser in
1791	1791	connection with the property sold by it arising under the
1792	1792	Restrictions after the sale and conveyance of title but shall
1793	1793	remain liable for all obligations arising under the Restrictions
1794	1794	prior to the sale and conveyance of title. The new Owner or
1795	1795	Purchaser of all or any such portion of the Leased Tract,
1796	1796	(including, without limitation, any Owner (or Lienholder) who
1797	1797	acquires its interest by foreclosure, trustee's sale or otherwise)
1798	1798	shall be liable for all obligations arising under the Restrictions
1799	1799	with respect to such portion of the Leased Tract on and/or after the
1800	1800	date of sale and conveyance of title. The Authority may assign, in
1801	1801	whole or in part, any of its privileges, exemptions, rights, and
1802	1802	obligations (if any) under the Restrictions to any other person and
1803	1803	may permit the participation, in whole or in part, by any other
1804	1804	person in any of its privileges, exemptions, rights, and
1805	1805	obligations (if any) hereunder.
1806	1806	(49) Except as provided in this subsection, the term
1807	1807	of the Restrictions shall be for a period of fifty (50) years from
1808	1808	the date such Restrictions are executed by the
1809	1809	Authority. Notwithstanding the foregoing, upon the expiration of
1810	1810	such period, the term of the Restrictions shall automatically renew
1811	1811	for successive periods of five (5) years each unless, at least
1812	1812	ninety (90) days prior to the date of expiration of any period then
1813	1813	in effect, (i) the Owners or Purchasers of at least sixty percent
1814	1814	(60%) of the individual lots that comprise the Residential Leased
1815	1815	Land and the Commercial Leased Land, (ii) the Owners or Purchasers
1816	1816	of at least sixty percent (60%) of the land area of the Authority
1817	1817	Land, and (iii) the Authority, for so long as the Authority has any
1818	1818	interest in the Property, whether as an Owner or [holder of the FERC
1819	1819	License or] otherwise, duly execute, acknowledge and record in the
1820	1820	office of the recorder of the counties in which the Property is
1821	1821	located a written termination notice, in which event, the
1822	1822	Restrictions shall automatically expire at the end of the period
1823	1823	then in effect.
1824	1824	(50) Any subdivision by an Owner of the Owner's portion
1825	1825	of the Leased Tract is subject to all applicable laws, rules,
1826	1826	regulations, codes, and ordinances, including any applicable
1827	1827	platting requirements, and any rules and restrictions relating to
1828	1828	on-site sewage facilities.
1829	1829	(e) Buffer Zone. Notwithstanding any provision in this
1830	1830	subsection to the contrary, a sale under Subsection (b) or (c) shall
1831	1831	be subject to the following:
1832	1832	(1) The Remaining [If at the time Closing occurs under
1833	1833	Subsection (b) or if at the time a Leaseholder completes the
1834	1834	purchase of the applicable Leased Tract from the Authority pursuant
1835	1835	to Subsection (c), as applicable, the Buffer Zone, or any portion
1836	1836	thereof, has been removed from the FERC Project Area, the] Leased
1837	1837	Tract being conveyed under Subsection (b) or (c) shall include the
1838	1838	applicable [that] portion of the Buffer Zone [so removed];
1839	1839	provided, however, the Purchaser and/or Owner, as applicable, shall
1840	1840	grant the Authority access to the Buffer Zone [FERC Project Area]
1841	1841	and Lake to allow the Authority to fulfill its obligations as a
1842	1842	River Authority and any obligations set forth in [the FERC
1843	1843	License,] state water rights[,] or other governmental regulations.
1844	1844	(2) At [If at] the time of Closing on the Initial
1845	1845	Leased Tract [occurs] under Subsection (b), [or if at the time a
1846	1846	Leaseholder closes on the purchase of the applicable Leased Tract
1847	1847	from the Authority pursuant to Subsection (c), as applicable, the
1848	1848	Buffer Zone, or any portion thereof, has not been removed from the
1849	1849	FERC Project Area and] a portion of the Initial Leased Tract is
1850	1850	located within the Buffer Zone and is a part of the FERC Project
1851	1851	Area, and therefore the Authority shall provide such Purchaser
1852	1852	and/or Owner, as applicable, a residual interest in that portion of
1853	1853	the Buffer Zone adjacent to the Initial Leased Tract and covered by
1854	1854	the applicable residential Ground Lease, such residual interest to
1855	1855	automatically vest upon satisfaction of one [either] of the
1856	1856	following conditions:
1857	1857	(A) the Federal Energy Regulatory Commission
1858	1858	approves an amendment to the FERC License removing the Buffer Zone
1859	1859	from the boundaries prescribed by the FERC License such that the
1860	1860	Buffer Zone is no longer subject to regulation by the Federal Energy
1861	1861	Regulatory Commission; [or]
1862	1862	(B) the FERC License expires (and is not renewed
1863	1863	or extended) or is otherwise terminated and thus the Buffer Zone is
1864	1864	no longer subject to regulation by the Federal Energy Regulatory
1865	1865	Commission; or
1866	1866	(C) the Date of Decommissioning occurs.
1867	1867	(3) Notwithstanding the foregoing, if such residual
1868	1868	interest has not vested on or before August 31, 2040, then such
1869	1869	residual interest shall be terminated and of no further force and
1870	1870	effect. Upon satisfaction of one [either] of the foregoing
1871	1871	conditions prior to August 31, 2040, this conveyance shall be
1872	1872	automatically effective without necessity of further
1873	1873	documentation. From and after the date such conveyance becomes
1874	1874	effective, the Buffer Zone shall be considered to be a part of the
1875	1875	Initial Leased Tract conveyed under Subsection (b) [or (c)] and the
1876	1876	Purchaser or then current Owner of the applicable Initial Leased
1877	1877	Tract shall be the beneficiary of the residual interest created
1878	1878	herein, but only as to the portion of the Buffer Zone located
1879	1879	adjacent to the Purchaser's or Owner's property and all right,
1880	1880	title, and interest in such adjacent portion of the Buffer Zone as
1881	1881	measured by extending the boundary lines on both sides of the
1882	1882	applicable portion of the Initial Leased Tract in a straight line
1883	1883	across the Buffer Zone to the then current 1000' contour line of the
1884	1884	Lake, or, if such portion cannot reasonably be measured as set forth
1885	1885	above, then as otherwise determined by the Purchaser and approved
1886	1886	by the Authority. Such residual interest shall immediately vest in
1887	1887	the Purchaser or then-current Owner of such adjacent portion of the
1888	1888	Initial Leased Tract without the necessity of any additional
1889	1889	written conveyance.
1890	1890	(4) Until the residual interest in the Buffer Zone
1891	1891	vests in the Purchaser or then-current Owner of the adjacent
1892	1892	portion of the Initial Leased Tract as set forth in Subdivision (3),
1893	1893	[In the event a sale under Subsection (b) or (c) does not include
1894	1894	the Buffer Zone or any portion thereof, or only includes a residual
1895	1895	interest in the Buffer Zone or any portion thereof, then] such
1896	1896	Buffer Zone shall remain subject to the terms and conditions of the
1897	1897	residential Ground Lease in effect between the Leaseholder and the
1898	1898	Authority at the time Closing occurs under Subsection (b) [or at the
1899	1899	time the Leaseholder purchases the applicable Leased Tract under
1900	1900	Subsection (c)]; provided, however, no rent shall be due the
1901	1901	Authority under such Ground Lease for the Buffer Zone. At such time
1902	1902	as the applicable Ground Lease expires or is otherwise terminated,
1903	1903	the Authority may, subject to approval of the Federal Energy
1904	1904	Regulatory Commission, grant the Purchaser or the then-current
1905	1905	Owner of the adjacent tract (as determined pursuant to the method
1906	1906	set forth in Subdivision (2)(B)), an easement for use of such
1907	1907	portion of the Buffer Zone, which easement shall be subject to the
1908	1908	FERC License. The Authority shall retain ownership of such portion
1909	1909	of the Buffer Zone and exercise control over such portion of the
1910	1910	Buffer Zone consistent with the FERC License and this subsection.
1911	1911	The easement granted to such Owner shall be limited to uses
1912	1912	permitted under the terms of the FERC License and the Authority's
1913	1913	Shoreline Management Plan, and any other Authority rules and
1914	1914	regulations as may be adopted from time to time.
1915	1915	(f) Purchase Price. For purposes of determining the
1916	1916	purchase price and/or lease rate pursuant to the options set forth
1917	1917	in Subsection (b)(1) or the purchase price in Subsection (c), in the
1918	1918	event the appraisal district does not provide an assessed value for
1919	1919	the applicable portion of the Leased Tract for the applicable year,
1920	1920	then the land only assessed value without any exemptions for the
1921	1921	applicable portion of the Leased Tract shall be calculated based on
1922	1922	the assessed value per square foot of comparable lots with similar
1923	1923	physical characteristics in the applicable county or adjoining
1924	1924	counties, as determined by the Authority.
1925	1925	(g) Roads. Authority or Purchaser, whichever is
1926	1926	applicable, shall transfer its interest in the Roads to the
1927	1927	applicable county in which the Roads, or any portion thereof, are
1928	1928	situated as follows:
1929	1929	(1) All Roads located in Stephens County
1930	1930	(approximately three miles of Roads) shall be transferred to
1931	1931	Stephens County on or before December 31, 2011.
1932	1932	(2) All Roads located in Palo Pinto County
1933	1933	(approximately forty-six miles of Roads) shall be transferred to
1934	1934	Palo Pinto County in twenty percent increments of the total mileage
1935	1935	per year for five consecutive years. The first twenty percent
1936	1936	increment shall be transferred on or before December 31, 2011, and
1937	1937	each remaining twenty percent increment shall be transferred on or
1938	1938	before December 31 of each subsequent year, but not before January 1
1939	1939	of such year unless approved by an order or resolution of the Palo
1940	1940	Pinto County Commissioners Court, with the final twenty percent
1941	1941	increment being transferred on or before December 31, 2015, but not
1942	1942	before January 1, 2015, unless approved by an order or resolution of
1943	1943	the Palo Pinto County Commissioners Court.
1944	1944	(3) Authority or Purchaser, whichever is applicable,
1945	1945	in consultation with the Palo Pinto County Commissioner or
1946	1946	Commissioners who have jurisdiction over the Leased Tract, shall
1947	1947	determine which Roads or portions thereof shall be transferred each
1948	1948	year.
1949	1949	(4) The transfer of any portion of the Roads located
1950	1950	within the FERC Project Area shall be in accordance with the FERC
1951	1951	License and may be in the form of a grant of a right-of-way or
1952	1952	easement, unless otherwise authorized by the Federal Energy
1953	1953	Regulatory Commission.
1954	1954	(5) Beginning on the date of transfer, the Authority
1955	1955	or Purchaser, whichever is applicable, shall no longer have any
1956	1956	obligations regarding such Roads. The Roads shall be transferred
1957	1957	in their "as-is" condition and neither the Authority nor the
1958	1958	Purchaser shall have any obligation to ensure that the Roads, or any
1959	1959	portion thereof, comply with the standards in effect at the time of
1960	1960	transfer in the applicable county for like roads currently
1961	1961	maintained by that county.
1962	1962	(6) Concurrently with the transfer in each year of a
1963	1963	portion of the Roads, the Authority or Purchaser, as applicable,
1964	1964	shall transfer to Palo Pinto County the amount, rounded to the
1965	1965	nearest dollar, computed by multiplying $200,000 by a fraction the
1966	1966	numerator of which is the number of miles of Roads located in and
1967	1967	transferred to Palo Pinto County in that year and the denominator of
1968	1968	which is the total number of miles of Roads located in and
1969	1969	transferred or to be transferred to Palo Pinto County. For every
1970	1970	other county in which a portion of the Roads is located, the
1971	1971	Authority or Purchaser, as applicable, shall transfer an amount
1972	1972	equal to (A) the per mile road payment (as defined below) multiplied
1973	1973	by (B) the number of miles of the Roads located in such county. As
1974	1974	used in this subdivision, "per mile road payment" means the amount,
1975	1975	rounded to the nearest dollar, computed by dividing $200,000 by the
1976	1976	total number of miles of Roads located in and transferred or to be
1977	1977	transferred to Palo Pinto County pursuant to this subsection.
1978	1978	(7) Notwithstanding any provision in this subsection
1979	1979	to the contrary, the Authority or Purchaser, as applicable, shall
1980	1980	retain ownership of any portion of a Road that is inaccessible to
1981	1981	the public. For purposes of this subdivision, a portion of the Road
1982	1982	is considered inaccessible to the public if, as of the effective
1983	1983	date of the Act enacting this section, the public can only access
1984	1984	such portion of the Road by crossing property not owned by the
1985	1985	Authority or Purchaser, as applicable, and not subject to an
1986	1986	easement or other ownership interest that allows the public to
1987	1987	cross such property without restriction. If a retained portion of a
1988	1988	Road subsequently becomes accessible to the public, the Authority
1989	1989	or Purchaser, as applicable, shall transfer such retained portion,
1990	1990	including any interest the Authority or Purchaser has in any
1991	1991	additional Road constructed or acquired by the Authority or
1992	1992	Purchaser in order to make the retained portion of the Road
1993	1993	accessible to the public, to the applicable county in accordance
1994	1994	with the process set forth in this subsection, or in the event such
1995	1995	portion of the Road becomes accessible to the public after December
1996	1996	31, 2015, within one (1) year of such retained portion of the Road
1997	1997	becoming accessible.
1998	1998	(h) Platting. A sale of the Leased Tract under this section
1999	1999	shall not be subject to Chapter 232, Local Government Code, or any
2000	2000	other platting requirement.
2001	2001	(i) Mineral Interests. The Authority shall reserve its
2002	2002	interest in all oil, gas, and other minerals in and under the Leased
2003	2003	Tract (or any portion thereof) sold under this section.
2004	2004	(j) Expiration of Requirement to Sell. The requirement that
2005	2005	the Authority conduct a sale of the Remaining Leased Tract under
2006	2006	Subsection (b) or (c) expires on December 31, 2016, if the FERC
2007	2007	License is not terminated by decommissioning or otherwise.
2008	2008	SECTION 5. Section 8502.0132(h), Special District Local
2009	2009	Laws Code, is repealed.
2010	2010	SECTION 6. If the provisions of Section 8502.0132 or
2011	2011	8502.020, Special District Local Laws Code, as amended by this Act,
2012	2012	or Section 8502.0133, Special District Local Laws Code, as added by
2013	2013	this Act, conflict with any other provision of Chapter 8502 of that
2014	2014	code, then the provisions of Section 8502.0132, 8502.0133, or
2015	2015	8502.020, as applicable, prevail.
2016	2016	SECTION 7. This Act takes effect immediately if it receives
2017	2017	a vote of two-thirds of all the members elected to each house, as
2018	2018	provided by Section 39, Article III, Texas Constitution. If this
2019	2019	Act does not receive the vote necessary for immediate effect, this
2020	2020	Act takes effect September 1, 2013.