83(R) SB 918 - Enrolled version

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	S.B. No. 918




	AN ACT
	relating to the sale by the Brazos River Authority and regulation of
	certain real property in the immediate vicinity of Possum Kingdom
	Lake.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subsection (a), Section 8502.0132, Special
	District Local Laws Code, is amended by amending Subdivisions (2)
	and (5) and adding Subdivision (2-a) to read as follows:
	(2) "Captive Property To Be Sold" means those portions
	of the following tracts of real property owned by the Authority at
	the Lake that as of May 27, 2009, were surrounded by the Lake and
	property owned by a single freeholder and [~~are~~] located above the
	1000' contour line, but does not include any portion of the
	following tracts that was [is] part of Project Land or property that
	was [is] leased for single-family residential purposes as of May
	27, 2009 [~~the effective date of the Act enacting this section~~]:
	(A) two tracts of land totaling 2019.86 acres,
	more or less, in Palo Pinto County, Texas, described in Brazos River
	Authority Records as Tracts 8-1-93 and 9-3-9, as such Tracts are
	more particularly described in an Award of Commissioners entered
	June 28, 1940, in the County Court of Palo Pinto County, Texas, in
	Cause No. 2539, styled Brazos River Conservation and Reclamation
	District versus Orland R. Seaman, Et Al., as the same appears on
	file and of record in Volume 5, Pages 414 and 419, et seq., Civil
	Minutes of the County Court of Palo Pinto County, Texas; and
	(B) a 2278.3 acre tract of land, more or less, in
	Palo Pinto County, Texas, described in Brazos River Authority
	records as Tract 11-2-46, as such tract is more particularly
	described in deeds recorded at Book 181, Page 325, Book 182, Page
	339, Book 183, Page 12, and Book 183, Page 16, in Palo Pinto County
	Records, Palo Pinto County, Texas.
	(2-a) "Close" or "Closing" means the transfer of the
	Authority's interest in properties described in the Subsection
	(d)(1) or (m)(6) survey.
	(5) "Offeree" means any person to whom an offer to sell
	Captive Property To Be Sold is to be made under this section. To
	qualify as an Offeree, a person must own in fee simple as of May 27,
	2009, the real property adjacent to the Captive Property To Be Sold,
	and be able to provide an attorney's opinion or other satisfactory
	legal documentation that such Offeree meets the qualifications of
	an Offeree under this subdivision.
	SECTION 2. Section 8502.0132, Special District Local Laws
	Code, is amended by amending Subsection (b) and adding Subsections
	(d-1), (m), and (n) to read as follows:
	(b) Notwithstanding any other provision of this chapter,
	the Authority is directed to sell all Captive Property To Be Sold in
	accordance with the directives of this section, including the
	following:
	(1) Within 90 days of the effective date of the Act
	enacting this section, the Authority shall publish a list of the
	parcels at the Lake that qualify as Captive Property To Be Sold and
	an "Application Of Intent To Purchase" form for use by the Offerees
	as provided by this section.
	(2) Each listed parcel of Captive Property To Be Sold
	shall be offered for sale at its fair market value to the Offeree
	who owns any Adjacent Land that is adjacent to that specific parcel
	of Captive Property To Be Sold, and each Adjacent Land owner has the
	right (but not the obligation) to purchase the parcel in equal
	proportion among those wishing to acquire same.
	(3) Any Offeree who desires to purchase Captive
	Property To Be Sold must, within 180 days of the inclusion of that
	property on the published list of Captive Property To Be Sold under
	Subdivision (1), submit a completed Application Of Intent To
	Purchase form to the Authority.
	(4) If the Authority does not receive an Application
	Of Intent To Purchase from an Offeree within the required time, the
	Offeree shall be deemed to have waived any right to purchase the
	subject property under this section and the Authority shall have
	the right to retain or sell such property as directed by the board.
	(5) The Authority shall accept and process all
	Application Of Intent To Purchase forms in the order in which they
	are received.
	(6) Any sale of property under this section must be
	handled as if it were a private sale for fair market value under
	Section 49.226(a), Water Code.
	(7) The fair market value of the Captive Property To Be
	Sold must be determined as follows:
	(A) Within forty-five (45) days of the
	Authority's receipt of the Offeree's completed Application Of
	Intent To Purchase and an acceptable survey as provided by
	Subsection (d)(1), the Authority shall provide the Offeree with an
	appraisal of the fair market value of the Captive Property To Be
	Sold dated within one year of the date of the Authority's receipt of
	the Application Of Intent To Purchase (the "First Appraisal"). The
	Authority's appraiser must be an appraiser certified under Chapter
	1103, Occupations Code. Within fifteen (15) days of receipt of the
	First Appraisal, the Offeree shall notify the Authority in writing
	as to whether the Offeree agrees with or disputes the fair market
	value set forth in the First Appraisal. If the Offeree does not
	dispute the fair market value as determined by the First Appraisal
	within such 15-day time period, then the First Appraisal shall be
	final and binding on all parties to establish the fair market value
	for the Captive Property To Be Sold.
	(B) If the Offeree disputes the fair market value
	determined by the First Appraisal, the Offeree may withdraw its
	application to purchase the Captive Property To Be Sold or employ a
	disinterested appraiser certified under Chapter 1103, Occupations
	Code, to conduct a second appraisal of the fair market value of the
	Captive Property To Be Sold (the "Second Appraisal"). The Second
	Appraisal must be completed and sent to the Authority not later than
	the 45th day after the date the Offeree notifies the Authority that
	the Offeree disputes the First Appraisal. If the Authority does not
	receive the Second Appraisal within such 45-day time period, then
	the Offeree's Application Of Intent To Purchase will be deemed
	withdrawn.
	(C) Within fifteen (15) days of receipt of the
	Second Appraisal, the Authority shall notify the Prospective
	Purchaser in writing as to whether the Authority agrees with or
	disputes the fair market value determined by the Second Appraisal.
	If the Authority does not dispute the fair market value as
	determined by the Second Appraisal within this 15-day time period,
	then the Second Appraisal shall be final and binding on all parties
	to establish the purchase price for the Captive Property To Be Sold.
	If the Authority timely disputes the fair market value determined
	by the Second Appraisal, the two appraisers (or their designated
	agents) shall meet and attempt to reach an agreement on the fair
	market value of the Captive Property To Be Sold, such meeting to
	occur not later than the 30th day after the date the Authority
	notifies the Offeree that the Authority disputes the Second
	Appraisal.
	(D) If the two appraisers reach agreement on the
	fair market value, within 20 days after their meeting they shall
	issue a report of the agreed fair market value to the Authority and
	to the Offeree, and this agreed fair market value shall be final and
	binding on all parties to establish the purchase price. If the two
	appraisers fail to reach agreement on or before the 20th day after
	the date of the meeting, then not later than the 30th day after the
	date of the meeting the two appraisers shall appoint a
	disinterested third appraiser certified under Chapter 1103,
	Occupations Code, to reconcile the two previous appraisals (the
	"Third Appraisal"). The Third Appraisal must be completed on or
	before the 30th day after the date of the third appraiser's
	appointment, and the fair market value determined by the Third
	Appraisal is final and binding on all parties to establish the
	purchase price; provided, however, the final purchase price may not
	be more than the fair market value determined by the First Appraisal
	or less than the fair market value determined by the Second
	Appraisal.
	(E) The appraisal costs must be paid by the
	person who requests the appraisal, except that the Offeree and the
	Authority shall each pay one-half of the cost of the Third Appraisal
	if a Third Appraisal is necessary. If the Offeree fails to pay its
	share of the Third Appraisal, then the Offeree's Application Of
	Intent To Purchase will be deemed withdrawn.
	(F) The timelines established in the appraisal
	process set forth in this subdivision may be extended on joint
	agreement of Authority and Offeree.
	(8) Closing must occur not later than the first
	anniversary of the effective date of the Act of the 83rd
	Legislature, Regular Session, 2013, amending this subsection.
	(d-1) Not later than 15 business days after the delivery of
	an Offeree's survey to the Authority required under Subsection
	(d)(1) or (m)(6), the Authority shall notify the Offeree that the
	survey is acceptable or submit in writing to the Offeree a list
	detailing any error in the survey that the Authority believes
	requires correction. If required, the survey must be corrected at
	the earliest convenience of the surveyor and a corrected survey
	delivered to the Authority. The correction process repeats until
	both surveys are acceptable, at which time the timetable for the
	appraisal process in Subsection (b)(7)(A) begins for the properties
	described in the Subsection (d)(1) and (m)(6) surveys. So long as
	the Subsection (m)(6) survey is timely delivered to the Authority,
	if the surveys are not both accepted by the Authority within 180
	days after the effective date of the Act enacting this subsection,
	then the closing deadline established by Subsection (b)(8) is
	extended on a day-for-day basis for each day after the 180th day
	until both surveys are accepted by the Authority.
	(m) Notwithstanding any provision of this section to the
	contrary, a sale under this section is subject to the following
	requirements:
	(1) If on the date Closing occurs the Project Land or
	any portion of the Project Land has been removed from the FERC
	License, the Captive Property To Be Sold must include all Project
	Land that would have otherwise qualified as Captive Property To Be
	Sold except for its status as Project Land.
	(2) If on the date Closing occurs the Project Land or
	any portion of the Project Land has not been removed from the FERC
	License, the Authority shall convey to the Offeree a residual
	interest in that portion of the Project Land that would have
	otherwise qualified as Captive Property To Be Sold except for its
	status as Project Land. The residual interest automatically vests
	on the date that:
	(A) the Federal Energy Regulatory Commission
	approves an amendment to the FERC License removing the Project Land
	from the boundaries under the FERC License so that the Project Land
	is no longer subject to regulation by the Federal Energy Regulatory
	Commission; or
	(B) the FERC License expires and is not renewed
	or extended, or is otherwise terminated, and thus the Project Land
	is no longer subject to regulation by the Federal Energy Regulatory
	Commission.
	(3) Notwithstanding Subdivision (2), if the residual
	interest described by Subdivision (2) has not vested on or before
	August 31, 2040, then the residual interest is terminated and of no
	further force and effect, and the Authority shall repay to the
	Offeree any amount originally paid for that residual interest on or
	before December 1, 2040. On satisfaction of a condition described
	by Subdivision (2)(A) or (B) before August 31, 2040, the residual
	interest conveyed under Subdivision (2) is automatically effective
	without necessity of further documentation. As of the date the
	conveyance is effective, the applicable portion of the Project Land
	is considered to be a part of the Captive Property To Be Sold
	conveyed under this section and the Offeree or then-current Owner
	of the applicable portion of the Captive Property To Be Sold is the
	beneficiary of the residual interest applicable to the portion of
	the Project Land adjacent to such Owner's land and considered to be
	a part of the Captive Property To Be Sold conveyed under this
	section. The residual interest immediately vests in the Offeree or
	then-current Owner of the adjacent Captive Property To Be Sold
	conveyed under this section without the necessity of any additional
	written conveyance.
	(4) In the event that a sale under this subsection does
	not include any portion of the Project Land, or only includes a
	residual interest in a portion or all of the Project Land, then the
	Authority shall at Closing, subject to the approval of the Federal
	Energy Regulatory Commission, grant the Offeree an easement,
	subject to the FERC License, for the use of that portion of the
	Project Land for which the Offeree has purchased a residual
	interest. The Authority shall retain ownership of that portion of
	the Project Land and exercise control over that portion of the
	Project Land consistent with the FERC License and this subsection.
	The easement granted to the Offeree is limited to uses permitted
	under the terms of the FERC License, the Authority's Shoreline
	Management Plan, and any other Authority rules and regulations that
	may be adopted from time to time.
	(5) An appraisal of the fair market value of the
	Project Land, whether the Project Land has been removed from the
	FERC License or not, must be determined as if the applicable Project
	Land is not subject to the FERC License, is not part of the Federal
	Energy Regulatory Commission project area, is not subject to any
	lease agreement, is available for immediate possession and use, and
	may be used for any lawful purpose.
	(6) For each parcel of Project Land that an eligible
	Offeree elects to purchase under Subdivision (1), or for each
	parcel of Project Land in which the Offeree purchases a residual
	interest under Subdivision (2), the Offeree shall, not later than
	the 90th day after the effective date of the Act enacting this
	subsection, provide to the Authority a survey and calculation of
	the area of the parcel prepared by a licensed state land surveyor or
	a registered professional land surveyor in accordance with this
	subsection. The survey is separate from any survey prepared under
	Subsection (d) of Captive Property To Be Sold.
	(n) On or before Closing, the Authority shall deliver
	completed and executed documentation necessary to transfer the
	property conveyed from the Authority to the Offeree, and the
	Offeree shall deliver the purchase price and closing costs and the
	countersignatures on all necessary documentation. Promptly after
	Closing, the Offeree shall record the documents required for
	transferring the property in the county records where the property
	is located. The closing documents and funds may be held in escrow
	at the election of the Authority or the Offeree until all documents
	have been fully executed and all required funds have been
	delivered.
	SECTION 3. Chapter 8502, Special District Local Laws Code,
	is amended by adding Section 8502.0133 to read as follows:
	Sec. 8502.0133. SALE OF AUTHORITY PROPERTY ON AND
	ASSOCIATED WITH COSTELLO ISLAND. (a) In this section:
	(1) "Boat landing" means a 0.841 acre tract of land,
	more or less, located above the 1000' contour line as defined in
	Subdivision (8), described in authority records as Tract Costello
	Island, situated in the A. J. Smith Survey, Abstract 393, Palo Pinto
	County, Texas, and being a part of a tract of land purchased by the
	Brazos River Conservation and Reclamation District from Mrs. Hugh
	C. Thomas, as recorded in Volume 182, Page 142, Deed Records of Palo
	Pinto County. The boat landing is located wholly within the FERC
	Project Area.
	(2) "Date of decommissioning" means the effective date
	of the surrender of the FERC License for the Morris Sheppard Dam
	Project No. 1490-052 under the Order Accepting the Surrender of the
	License (issued December 23, 2011), 137 FERC 62,252.
	(3) "Costello Island" means a 260 acre tract of land,
	more or less, located above the 1000' contour line as defined in
	Subdivision (8), described in authority records as Tract Costello
	Island, situated in the J.W. Bunton Survey, Abstract 52, Palo Pinto
	County, Texas, and being a part of that parcel that is located
	wholly within the boundary of the lake, and being a part of a tract
	of land acquired by the Brazos River Conservation and Reclamation
	District from E.P. Costello by Court Judgment dated July 21, 1943.
	The portions of Costello Island owned by the authority are located
	wholly within the FERC Project Area.
	(4) "Costello Island Property" means Costello Island
	and the boat landing, but does not include any portion of Costello
	Island owned in fee simple by a person other than the authority.
	(5) "Fair market value" means the price that the
	Costello Island Property would bring in an arms-length transaction
	when offered for sale by one who wishes, but is not obliged, to sell
	and when bought by one who is under no necessity of buying it. This
	value shall be determined as if the Costello Island Property were
	not subject to the FERC License, were not located within the FERC
	Project Area, were not subject to any lease agreement, were
	available for immediate possession and use, and could be used for
	any reasonable purpose, subject only to the restrictions in
	Subsection (e).
	(6) "FERC License" means the order of the Federal
	Energy Regulatory Commission issuing a license to the authority for
	project number 1490-003-Texas on September 8, 1989, as such license
	has been renewed, extended, or amended and may be further renewed,
	extended, or amended at any time and from time to time, and also
	including the amendment to the original FERC License, which
	amendment was issued on May 15, 1980, to the extent incorporated or
	referenced in the FERC License.
	(7) "FERC Project Area" means that portion of
	authority land that is subject to the FERC License before the date
	of decommissioning, as the land is identified and defined in the
	FERC License, as may be amended at any time and from time to time,
	and which FERC Project Area may move or change over time due to
	natural forces.
	(8) "Lake" means Possum Kingdom Lake located in Young,
	Palo Pinto, Stephens, and Jack Counties. The boundary of the lake
	is defined by the 1000' contour line, as that contour may meander
	and change over time with natural forces, including erosion and
	accretion. The "1000' contour line" means the line running along
	the periphery of the lake if the surface of the lake is at an
	elevation of 1000 feet above mean sea level, as measured from the
	top of the spillway crest gates of the Morris Sheppard Dam, as such
	line may move and shift from time to time due to natural forces.
	(9) "Offeree" means the individuals or corporation,
	other than the authority, owning a portion of Costello Island in fee
	simple.
	(b) After the date of decommissioning, the authority shall
	offer for sale to the offeree the Costello Island Property. The
	sale shall be:
	(1) for not less than the fair market value as
	determined under Subsection (c); and
	(2) contingent upon the termination of any leases
	encumbering all or any portion of the Costello Island Property at
	the time of sale.
	(c)(1) The fair market value of the Costello Island Property
	shall be determined as described in this subsection.
	(2) Not later than 45 days after the date the authority
	receives the offeree's completed application of intent to purchase
	and an acceptable survey as provided by Subsection (d)(1), the
	authority shall provide the offeree with an appraisal of the fair
	market value of the Costello Island Property. The authority may use
	an existing appraisal if it is dated not more than one year before
	the date the authority receives the application of intent to
	purchase. The authority's appraiser must be certified under
	Chapter 1103, Occupations Code. Not later than the 15th day after
	the date the offeree receives the first appraisal, the offeree
	shall notify the authority in writing as to whether the offeree
	agrees with or disputes the fair market value provided in the first
	appraisal. If the offeree does not dispute the fair market value as
	determined by the first appraisal before the expiration of the
	15-day period, the first appraisal is final and binding on all
	parties and establishes the fair market value for the Costello
	Island Property.
	(3) If the offeree disputes the fair market value
	determined by the first appraisal, the offeree may withdraw its
	application to purchase the Costello Island Property or may employ
	a disinterested appraiser certified under Chapter 1103,
	Occupations Code, to conduct a second appraisal of the fair market
	value of the Costello Island Property. The second appraisal must be
	completed and sent to the authority not later than the 45th day
	after the date the offeree notifies the authority that the offeree
	disputes the first appraisal. If the authority does not receive the
	second appraisal before the expiration of the 45-day period, the
	offeree's application of intent to purchase will be deemed
	withdrawn.
	(4) Not later than the 15th day after the date of
	receiving the second appraisal, the authority shall notify the
	offeree in writing as to whether the authority agrees with or
	disputes the fair market value determined by the second appraisal.
	If the authority does not dispute the fair market value as
	determined by the second appraisal before the expiration of the
	15-day period, the second appraisal is final and binding on all
	parties and establishes the purchase price for the Costello Island
	Property. If the authority timely disputes the fair market value
	determined by the second appraisal, the two appraisers, or their
	designated agents, shall meet and attempt to reach an agreement on
	the fair market value of the Costello Island Property. The meeting
	shall occur not later than the 30th day after the date the authority
	notifies the offeree that the authority disputes the second
	appraisal.
	(5) If the two appraisers reach an agreement on the
	fair market value, they shall issue a report, not later than the
	20th day after the date of their meeting, relating the agreed fair
	market value to the authority and to the offeree, and this agreed
	fair market value shall be final and binding on all parties and
	establishes the purchase price. If the two appraisers fail to reach
	an agreement on or before the 20th day after the date of the
	meeting, then, not later than the 30th day after the date of the
	meeting, the two appraisers shall appoint a disinterested third
	appraiser certified under Chapter 1103, Occupations Code, to
	reconcile the two previous appraisals in a third appraisal. The
	third appraisal must be completed on or before the 30th day after
	the date of the third appraiser's appointment, and the fair market
	value determined by the third appraisal is final and binding on all
	parties and establishes the purchase price; provided, however, that
	the final purchase price may not be more than the fair market value
	determined by the first appraisal or less than the fair market value
	determined by the second appraisal.
	(6) The appraisal costs shall be paid by the person who
	requests the appraisal, except that the offeree and the authority
	shall each pay one-half of the cost of the third appraisal if a
	third appraisal is necessary. If the offeree fails to pay its share
	of the third appraisal, the offeree's application of intent to
	purchase will be deemed withdrawn.
	(7) The timelines for the appraisal process under this
	subsection may be extended upon joint agreement of the authority
	and the offeree.
	(d) To purchase the Costello Island Property, the offeree
	must:
	(1) provide to the authority a survey of the Costello
	Island Property that is:
	(A) prepared by a licensed state land surveyor or
	a registered professional land surveyor;
	(B) dated not earlier than one year before the
	effective date of the Act enacting this section; and
	(C) acceptable to the authority and any title
	company providing title insurance for the offeree; and
	(2) pay all closing costs associated with the sale of
	the property.
	(e) For any property sold under this section:
	(1) the authority shall provide a special warranty
	deed that encompasses and includes all interests in the Costello
	Island Property held by the authority, subject only to:
	(A) the restrictions, covenants, and
	prohibitions contained in the deed of conveyance under which the
	authority originally acquired title to the property, including
	without limitation any releases of the authority for the
	inundation, overflowing, or flooding of the lake;
	(B) the restrictions, covenants, and
	prohibitions described in Section 8502.020(d);
	(C) all encumbrances and other matters filed of
	record in the public records of the county in which the property is
	located;
	(D) any other matters or conditions that are
	apparent on the ground or that would be reasonably disclosed or
	discovered by an inspection of the property; and
	(E) any other rules, regulations, or policies of
	the authority in effect as of January 1, 2013, prohibiting or
	limiting commercial, private, or other on-water facilities for new
	development, and as such rules, regulations, or policies may be
	amended, modified, or discontinued from time to time; and
	(2) the offeree shall release and agree to hold the
	authority harmless from, and the authority may not be held liable
	for, damages, claims, costs, injuries, or any other harm to any
	offeree or any other person or the Costello Island Property, or to
	any improvements on the property, caused by or arising from any
	temporary flooding of any portion of the Costello Island Property.
	(f) Any sale of the Costello Island Property under this
	section must allow the authority the right to enter onto the
	Costello Island Property and the lake and other bodies of water, if
	any, located within the Costello Island Property with essential
	equipment for all purposes reasonably necessary for the authority
	to fulfill its obligations as a river authority and any obligations
	set forth in the FERC License, state water rights, or other
	governmental regulations, or for any purpose that the authority
	considers necessary for public safety, health, and welfare. Any
	exercise by the authority of rights described by this subsection
	may be conducted only after written notice is given to the offeree
	at least 48 hours in advance of entry onto the property, except in
	the event of an emergency, in which case advance notice is not
	required, but the authority shall provide written notice as soon as
	practicable. The authority shall use reasonable efforts to avoid
	interfering with the offeree's use of the Costello Island Property
	and shall promptly repair any damage to the property caused by the
	authority's entrance. Any claim to governmental immunity on behalf
	of the authority is waived with respect to the recovery of any
	damage caused by the authority's breach of this subsection.
	(g) Chapters 232 and 272, Local Government Code, Section
	49.226, Water Code, and Section 8502.013 of this code do not apply
	to a sale of property under this section.
	(h) The authority may use proceeds from the sale of property
	under this section for any authority purpose.
	(i) The authority shall reserve its interest in all oil,
	gas, and other minerals in and under the property to be sold, or any
	portion thereof, to the extent the authority owns an interest in
	those minerals.
	(j) If the conveyance described by this section is not
	completed before the second anniversary of the effective date of
	this Act, this section shall no longer be effective and expires on
	the date of the second anniversary.
	(k) To the extent of any conflict with other laws of this
	state, this section prevails.
	SECTION 4. Section 8502.020, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 8502.020. SALE OF AUTHORITY PROPERTY.
	(a) Definitions. In this section:
	(1) "Authority Land" means the FERC Project Area and
	all other real property owned by the Authority at the Lake as of the
	date before Closing, save and except for the Leased Tract.
	(2) "Buffer Zone" means that twenty-five or fifty foot
	strip of land measured landward horizontally from the 1000' contour
	line that is included in the FERC Project Area as defined in the
	FERC License.
	(3) "Close" or "Closing" means the date on which the
	Authority transfers its interest in the Leased Tract, in whole or in
	part, to a Purchaser. There may be multiple closing dates if the
	Leased Tract is sold in portions.
	(4) "Commercial Leased Land" means all or any [~~that~~]
	portion of the Initial Commercial Leased Land and the Remaining
	Commercial Leased Land [~~Tract that is located wholly outside the~~
	~~FERC Project Area and that is leased for commercial purposes as of~~
	~~the date the Restrictions are placed of record~~].
	(5) "Consumer Price Index" means the consumer price
	index for Housing, Dallas-Fort Worth, TX area, Series Id:
	CUURA316SAH, CUUSA316SAH, Base Period: 1982-84 = 100, as published
	by the Bureau of Labor Statistics of the United States Department of
	Labor, or its equivalent substitute should this series be
	discontinued.
	(6) "Contract" means the Authority entering into a
	purchase and sale agreement with a Purchaser for the transfer of the
	Authority's interest in the Initial Leased Tract or the Remaining
	Leased Tract, in whole or in part.
	(7) "Driveways" means those certain private gravel
	and/or paved driveways that connect a Road or other street or
	thoroughfare to an individual Leased Tract or any improvements
	thereon; Driveways also includes those shared or common Driveways
	that serve more than one Leaseholder or individual Leased Tract.
	(8) "Environmental Laws" means the Comprehensive
	Environmental Response, Compensation and Liability Act of 1980, the
	Toxic Substances Control Act, the Clean Water Act, the Resource
	Conservation and Recovery Act and any other similar federal, state
	or local law, rule or regulation respecting the environment or
	Hazardous Materials, together with all rules and regulations
	promulgated thereunder and all present or future amendments
	thereto.
	(9) "FERC License" means the order of the Federal
	Energy Regulatory Commission issuing a license to the Authority for
	project number 1490-003-Texas on September 8, 1989, as such license
	has been renewed, extended, or amended and may be further renewed,
	extended, or amended at any time and from time to time, and also
	including the Amendment to the original FERC License, which
	amendment was issued on May 15, 1980, to the extent incorporated or
	referenced in the FERC License.
	(10) "FERC Project Area" means that portion of
	Authority Land [~~property~~] that is subject to the FERC License
	before the Date of Decommissioning, as identified and defined in
	the FERC License, as may be amended at any time and from time to
	time, and which FERC Project Area may move or change over time due
	to natural forces.
	(11) "Ground Lease" means each of those certain
	residential and/or commercial ground leases between the Authority
	and a Leaseholder, and the respective heirs, successors, and
	assigns.
	(12) "Hazardous Materials" means underground storage
	tanks, petroleum and petroleum products, asbestos, PCB's,
	urea-formaldehyde and any hazardous or toxic substances,
	pollutants, contaminants, wastes, or materials as defined under any
	Environmental Laws.
	(13) "Lake" means Possum Kingdom Lake located in
	Young, Palo Pinto, Stephens, and Jack Counties. The boundary of
	the Lake is defined by the 1000' contour line, as that contour may
	meander and change over time with natural forces, including erosion
	and accretion. The "1000' contour line" means the line running
	along the periphery of the Lake if the surface of the Lake is at an
	elevation of 1000 feet above mean sea level, as measured from the
	top of the spillway crest gates of the Morris Sheppard Dam, as such
	line may move and shift from time to time due to natural forces.
	(14) "Leased Tract" or "Tract" means all or any
	portion of the Initial Leased Tract or the Remaining Leased Tract
	[~~Commercial Leased Land, the Residential Leased Land, and~~
	~~Undeveloped Strips~~], whether owned by the Authority, Purchaser, or
	Owner and whether or not subject to a lease or Ground Lease or owned
	in fee simple.
	(15) "Leaseholder" means a person or entity that has a
	residential lease or a commercial lease with the Authority,
	including the Leaseholder's heirs, successors, and assigns.
	(16) "Lienholder" means any mortgagee under a
	mortgage, or a trustee or beneficiary under a deed of trust,
	constituting a lien on any portion of the Leased Tract.
	(17) "Owner" means the record holder of fee simple
	title to any portion of the Leased Tract sold pursuant to this
	section, including its heirs, personal representatives,
	successors, and assigns. This term does not include a Purchaser
	who acquires the Leased Tract from the Authority in accordance with
	Subsection (b).
	(18) "Property" means the Leased Tract and the
	Authority Land.
	(19) "Purchaser" means any person or entity, including
	its successors in interest, heirs, or assigns, that acquires the
	Leased Tract (or any portion thereof) from the Authority in
	accordance with Subsection (b). This term does not include those
	Leaseholders that acquire individual Leased Tracts from the
	Purchaser in accordance with Subsection (b).
	(20) "Ranch" means that certain subdivision of record
	in Palo Pinto County, Texas, according to the map or plat of record
	in Volume 7, Page 71, Plat Records of Palo Pinto County, Texas, as
	it may be amended or modified from time to time, which subdivision
	includes a portion of the Leased Tract and a portion of the
	Authority Land.
	(21) "Ranch Agreement" means that certain agreement by
	and among the Authority, The Ranch on Possum Kingdom, L.P., and Hill
	Country Harbor Village, L.P., effective as of August 1, 1997, and
	dated December 12, 1997.
	(22) "Ranch Declarations" means that certain
	Declaration of Covenants, Conditions and Restrictions for The Ranch
	on Possum Kingdom Palo Pinto County, Texas, dated December 8, 1997,
	as recorded in Volume 944, Page 403, Official Public Records of Palo
	Pinto County, Texas.
	(23) "Residential Leased Land" means all or any [~~that~~]
	portion of the Initial Residential Leased Land and the Remaining
	Residential Leased Land [~~Leased Tract located outside the FERC~~
	~~Project Area that is leased for single-family residential purposes~~
	~~only as of the date the Restrictions are placed of record.~~ ~~This~~
	~~term does not include land that is subject to a commercial lease,~~
	~~where such lessee is authorized to sublease for residential~~
	~~purposes~~].
	(24) "Restrictions" means the easements, covenants,
	restrictions, liens, encumbrances, and requirements contained in
	the Declaration of Restrictive Covenants, Easements, and
	Conditions to be recorded by the Authority as set forth in
	Subsection (d), as amended from time to time.
	(25) "Roads" means those paved or gravel streets,
	roads, and thoroughfares owned and maintained by the Authority that
	are located in Stephens, Jack, Young, or Palo Pinto County and that
	provide access, ingress, and egress to and from the Leased Tract,
	the Lake, and/or Authority Land; provided, however, that the
	definition of Roads, as used herein, does not include:
	(A) Driveways;
	(B) paved or gravel roads located wholly within
	Authority public use areas;
	(C) paved or gravel roads located within gated
	Authority operations areas; and
	(D) paved or gravel roads located wholly within
	an individual tract that is part of the Commercial Leased Land,
	which roads only serve that individual commercial Tract.
	(26) "Shoreline Management Plan" means that certain
	Possum Kingdom Shoreline Management Plan and Customer Guide,
	adopted May 22, 2006, and amended July 31, 2006, and as may be
	revised and/or further amended by the Authority at any time and from
	time to time.
	(27) "Undeveloped Strips" means all or any portion of
	the Initial Undeveloped Strips and the Remaining Undeveloped Strips
	[~~small strips of unleased land located between individual lots~~
	~~within the Leased Tract and small parcels of land between the Leased~~
	~~Tract and Roads that the Authority determines in its sole~~
	~~discretion to include in any sale of all or any portion of the~~
	~~Leased Tract~~].
	(28) "Amendments to the Restrictions" means the
	amendments to the Restrictions under Subsection (d).
	(29) "Date of Decommissioning" means the effective
	date of the surrender of the FERC License for the Morris Sheppard
	Dam Project No. 1490-052 under the Order Accepting the Surrender of
	the License (issued December 23, 2011), 137 FERC 62,252.
	(30) "Initial Commercial Leased Land" means the
	portion of the Initial Leased Tract located wholly outside the FERC
	Project Area that is leased for commercial purposes as of the date
	the Restrictions are recorded in the applicable county records.
	(31) "Initial Leased Tract" means all or any portion
	of the Initial Commercial Leased Land, the Initial Residential
	Leased Land, and the Initial Undeveloped Strips, whether owned by
	the Authority, Purchaser, or Owner and whether or not subject to a
	lease or Ground Lease or owned in fee simple.
	(32) "Initial Residential Leased Land" means the
	portion of the Initial Leased Tract located outside the FERC
	Project Area that is leased only for single-family residential
	purposes as of the date the Restrictions are recorded in the
	applicable county records. The term does not include land that is
	subject to a commercial lease that may be subleased for residential
	purposes.
	(33) "Initial Undeveloped Strips" means small strips
	of unleased land located between individual lots in the Initial
	Leased Tract and small parcels of land between the Initial Leased
	Tract and Roads that the Authority determines in its sole
	discretion to include in a sale of all or any portion of the Initial
	Leased Tract.
	(34) "Remaining Commercial Leased Land" means the
	portion of the Remaining Leased Tract that is located wholly or
	partly within the FERC Project Area as of the date preceding the
	Date of Decommissioning and that is leased for commercial purposes
	as of the date the Amendments to the Restrictions are recorded in
	the applicable county records. The term does not include a special
	use lease, hangar lease, grass lease, hunting lease, or mineral
	lease, any other lease for noncommercial purposes, or any portion
	of the Initial Commercial Leased Land.
	(35) "Remaining Leased Tract" means all or any portion
	of the Remaining Commercial Leased Land, the Remaining Residential
	Leased Land, and the Remaining Undeveloped Strips, whether owned by
	the Authority, Purchaser, or Owner and whether or not subject to a
	lease or Ground Lease or owned in fee simple.
	(36) "Remaining Residential Leased Land" means the
	portion of the Remaining Leased Tract that is located wholly within
	the FERC Project Area as of the date preceding the Date of
	Decommissioning and that is leased only for single-family
	residential purposes as of the date the Amendments to the
	Restrictions are recorded in the applicable county records. The
	term does not include land that is subject to a commercial lease
	that may be subleased for residential purposes. The term does not
	include a special use lease, hangar lease, grass lease, hunting
	lease, or mineral lease, any other lease for nonresidential
	purposes, or any portion of the Initial Residential Leased Land.
	The term does not include a lease of land in the Buffer Zone that is
	subject to a residual interest that will automatically vest on the
	Date of Decommissioning or other expiration or termination of the
	FERC License.
	(37) "Remaining Undeveloped Strips" means small
	strips of unleased land located between individual lots in the
	Remaining Leased Tract and small parcels of land between the
	Remaining Leased Tract and Roads that the Authority determines in
	its sole discretion to include in a sale of all or any portion of the
	Remaining Leased Tract.
	(b) Sale to Purchaser. Prior to January 1, 2011, the
	Authority may sell the Initial Leased Tract in whole or in part, to
	a Purchaser in accordance with applicable law, this subsection, and
	Subsections (d), (e), (f), (g), (h), and (i). For a period of two
	years after the Date of Decommissioning, the Authority may sell the
	Remaining Leased Tract in whole or in part, to a Purchaser in
	accordance with applicable law, this subsection, and Subsections
	(d), (e), (f), (g), (h), and (i). Any sale of the Initial Leased
	Tract or the Remaining Leased Tract to a Purchaser under this
	subsection shall be subject to the following:
	(1) Each Leaseholder shall have the opportunity to buy
	such Leaseholder's individual portion of the Leased Tract from the
	Purchaser or to continue leasing the applicable portion of the
	Leased Tract from the Purchaser in accordance with the following
	purchase or lease options. The Purchaser shall:
	(A) Permit the Leaseholder to purchase such
	Leaseholder's individual Leased Tract in cash or through lender
	financing for 90% of land only assessed value without any
	exemptions (as determined by the appraisal district) for the year
	2008 if the tract is part of the Initial Leased Tract, or for the
	year 2012 if the tract is part of the Remaining Leased Tract, such
	options [~~option~~] to be available at Closing as set forth in
	Subdivision (2) and for a period of at least one year from Closing.
	(B) Permit the Leaseholder to purchase for the
	percent of assessed value only as set forth in Paragraph (A) such
	Leaseholder's individual portion of the Leased Tract via seller
	financing, with a down payment of ten percent (10%) and an interest
	rate of six percent (6%), with a 30-year amortization, such seller
	financing option to be available at Closing as set forth in
	Subdivision (2) and for a period of at least one year from Closing
	to the Leaseholder of any portion of the Commercial Leased Tract and
	to the Leaseholder of any portion of the Residential Leased Tract to
	the extent the Leaseholder of any portion of the Residential Leased
	Tract qualifies for financing under the Dodd-Frank Wall Street
	Reform and Consumer Protection Act (Pub. L. No. 111-203) and any
	related regulations. The Leaseholder [~~leaseholder~~] shall not be
	charged any origination fees or points by the Purchaser [~~purchaser~~]
	as a part of the closing costs involved in the seller financing
	option.
	(C) Offer a new 99-year lease at a rental rate of
	6% of the land only assessed value without any exemptions (as
	determined by the appraisal district) for the year 2008 if the tract
	is part of the Initial Leased Tract, or the 2012 land only assessed
	value without any exemptions if the tract is part of the Remaining
	Leased Tract, with annual Consumer Price Index increases or
	decreases, such options [~~option~~] to be available for a period of at
	least one year from Closing. The 99-year lease will include an
	option for the Leaseholder to purchase the applicable portion of
	the Leased Tract at the land only assessed value without any
	exemptions (as determined by the appraisal district) at the time of
	purchase (but not less than the 2008 land only assessed value
	without any exemptions if the tract is part of the Initial Leased
	Tract, or the 2012 land only assessed value without any exemptions
	if the tract is part of the Remaining Leased Tract).
	(D) Offer a new 20-year lease with a rental rate
	as determined by the current Authority lease rate methodology or
	other lease rate structure as set forth in the Ground Lease as
	applicable (and including increases and adjustments to such rates)
	with annual Consumer Price Index increases or decreases, to
	Leaseholders who are over the age of 65 and who receive an ad
	valorem tax exemption under Section 11.13, Tax Code, for a
	structure on the Leaseholder's individual Leased Tract, such option
	to be available for a period of at least one year from the date of
	Closing. The Leaseholder must have received the ad valorem tax
	exemption for a structure on the Leaseholder's individual Leased
	Tract by January 1, 2009, if the tract is part of the Initial Leased
	Tract or January 1, 2013, if the tract is part of the Remaining
	Leased Tract. The 20-year lease will include an option for the
	Leaseholder to purchase the applicable portion of the Leased Tract
	at the land only assessed value without any exemptions (as
	determined by the appraisal district) at the time of purchase (but
	not less than the 2008 land only assessed value without any
	exemptions if the tract is part of the Initial Leased Tract or the
	2012 land only assessed value without any exemptions if the tract is
	part of the Remaining Leased Tract).
	(E) Ratify the existing Ground Lease of any
	Leaseholder who does not timely exercise one of the foregoing
	options, such ratification to include:
	(i) adoption of the current Authority lease
	rate methodology or other lease rate structure as set forth in the
	Ground Lease, as applicable (and including increases and
	adjustments to such rates) for a period of 8 years from Closing;
	(ii) an option permitting the Leaseholder
	to purchase such Leaseholder's individual portion of the Leased
	Tract for the land only assessed value without any exemptions (as
	determined by the appraisal district) at the time of purchase, or
	for the year 2008 if the tract is part of the Initial Leased Tract,
	or for the year 2012 if the tract is part of the Remaining Leased
	Tract, whichever is greater, for a period of 8 years from Closing;
	and
	(iii) an agreement to extend Ground Leases
	as necessary to allow for this full 8-year purchase option period.
	Nothing in this subsection shall preclude the Purchaser from
	offering additional purchase or lease options to the Leaseholders,
	provided any additional options are made available to all similarly
	situated Leaseholders on an equal basis.
	(2) A Leaseholder who desires to buy such
	Leaseholder's individual Leased Tract from the Purchaser pursuant
	to the option set forth in either Subdivision (1)(A) or (B)
	concurrently with the Purchaser's Closing must exercise the desired
	option as follows:
	(A) notify the Authority and Purchaser in writing
	within 90 days after the effective date of the Contract between the
	Authority and Purchaser of Leaseholder's intent to purchase the
	applicable Leased Tract;
	(B) Leaseholder and Purchaser will enter into a
	purchase and sale agreement in substantially the form as agreed to
	between the Authority and Purchaser, which form will be attached to
	the Contract, and which individual purchase and sale agreements
	will be ratified by Purchaser at the Closing; the purchase and sale
	agreement shall contain, at a minimum, the following terms and
	conditions:
	(i) the purchase price for the individual
	Leased Tract in accordance with the applicable purchase option;
	(ii) earnest money in the amount of $1,000
	to be delivered to the title company agreed to by Leaseholder and
	Purchaser and approved by the Authority along with the executed
	purchase and sale agreement;
	(iii) the Leaseholder's obligation to
	provide a survey as set forth in this subsection and a title
	commitment from the agreed upon title company;
	(iv) a 60-day period commencing on the date
	of the purchase and sale agreement for the Leaseholder to obtain
	financing (if exercising its option pursuant to Subdivision (1)(A)
	above);
	(v) the Leaseholder must notify Purchaser
	of any objections to any items on the title commitment and/or survey
	within fifteen (15) days after receipt of same, but in no event less
	than 45 days prior to the anticipated date of Closing, provided
	however that neither the Purchaser nor the Authority shall have any
	obligation to cure any such items or to incur any expenses in curing
	any items, except that Purchaser and/or the Authority, as
	applicable, shall use good faith efforts to address and/or remove
	those requirements or exceptions shown on Schedule C of the title
	commitment that are applicable to or created by the Purchaser
	and/or Authority, as applicable, and, notwithstanding the
	foregoing, neither the Purchaser nor the Authority shall have any
	obligation to cure any exceptions on the attached Schedule C
	regarding legal right of access to or from the applicable Leased
	Tract;
	(vi) Leaseholder is purchasing the
	applicable individual Leased Tract in its "as-is" condition and
	Purchaser shall have no obligation to make any improvements or
	modifications thereto, nor will Purchaser make any representations
	or warranties as to the condition or use of the applicable Leased
	Tract;
	(vii) Purchaser shall not be responsible
	for any broker fees or commissions due to any broker or agent
	engaged or claiming to have been engaged by Leaseholder for the
	purchase and sale of the applicable Leased Tract;
	(viii) Purchaser shall be responsible for
	costs related to the release of any existing liens placed on the
	applicable portion of the Leased Tract by Purchaser, including
	prepayment penalties and recording fees, release of Purchaser's
	loan liability to the extent applicable to the individual Leased
	Tract, tax statements or certificates, preparation of the deed, and
	one-half of any escrow fee;
	(ix) Leaseholder shall be responsible for
	any costs associated with a loan or financing for the applicable
	portion of the Leased Tract, including, without limitation, loan
	origination, discount, buy-down, and commitment fees, appraisal
	fees, loan application fees, credit reports, preparation of loan
	documents, loan-related inspection fees, and interest on the notes
	from the date of disbursement to date of first monthly payment; the
	cost of the survey; recording fees; copies of easements and
	restrictions; mortgagee title policy with endorsements required by
	lender, if any; one-half of any escrow fee; any prepaid items,
	including without limitation, insurance premiums and reserves and
	taxes; underwriting fee; and any title policy (including
	endorsements) obtained by Leaseholder;
	(x) Taxes will be prorated as of the date of
	Closing; if taxes are not paid as of the date of Closing, then
	Leaseholder shall be responsible for the payment of taxes; and
	(xi) the agreement between Leaseholder and
	Purchaser shall be contingent on Closing occurring within the
	timeframes set forth in this subsection.
	(C) Leaseholder shall deliver to Authority and
	Purchaser no less than forty-five days prior to Closing, at the
	Leaseholder's expense, an accurate survey of the individual Leased
	Tract (including any Undeveloped Strips being included in such
	Leased Tract), which survey is acceptable to the Authority and
	Purchaser. To be acceptable to the Authority and Purchaser, the
	survey must:
	(i) be acceptable to the title company
	selected by the Purchaser and Leaseholder and approved by the
	Authority for purposes of issuing any policy of title insurance on
	the applicable portion of the Leased Tract;
	(ii) be prepared by a licensed state land
	surveyor or a registered professional land surveyor acceptable to
	the Authority;
	(iii) include the boundary of the
	Leaseholder's Leased Tract and any Undeveloped Strips being
	conveyed, which boundaries must be consistent with the master
	survey prepared on behalf of the Authority in conjunction with the
	sale of the Leased Tract to the Purchaser;
	(iv) include all improvements on the Leased
	Tract and indicate any encroachments across the applicable boundary
	lines [~~or into the FERC Project Area or Buffer Zone~~]; Leaseholder
	must provide evidence that any such encroachments across boundary
	lines, including encroachments onto Authority Land, [~~or into the~~
	~~FERC Project Area or Buffer Zone~~] have been cured by the Leaseholder
	(either by removal of such encroachment or by written agreement
	between the affected parties permitting such encroachment to
	continue) prior to the survey being deemed acceptable; and
	(v) be reviewed and approved by the
	Authority and Purchaser; the Authority, Purchaser, and their
	representatives or agents may perform an inspection of the
	applicable Leased Tract to verify the accuracy of the survey
	[~~Survey~~] and any encroachments thereon;
	(D) On or before Closing, the purchase and sale
	agreement between the Leaseholder and Purchaser and any earnest
	money that may be required pursuant to such agreement shall be
	timely delivered to a title company or escrow agent acceptable to
	the Authority and agreed to by Leaseholder and Purchaser in such
	agreement;
	(E) On or before Closing, Purchaser and
	Leaseholder shall complete all documentation necessary to
	effectuate transfer of the applicable Leased Tract from the
	Purchaser to the Leaseholder and deliver such completed and
	executed documents to the applicable escrow agent; and
	(F) Promptly after Closing, the deed and any
	other applicable documents effectuating transfer of such Leased
	Tract to the Leaseholder shall be recorded in the county records
	where the Leased Tract is located promptly after such escrow agent
	receives written notice from the Authority or title company or
	escrow agent facilitating the Closing of the Leased Tract from the
	Authority to Purchaser that such Closing has been completed and the
	necessary documents have been recorded pursuant to such Closing.
	In no event shall the deed or any other documents transferring the
	applicable portion of the Leased Tract to the Leaseholder be
	recorded prior to Closing.
	(3) Closing shall occur no later than December 31,
	2010, for the Initial Leased Tract and not later than two years
	after the Date of Decommissioning for the Remaining Leased Tract.
	The Authority shall post on its website no later than thirty days
	after entering into a Contract for sale with Purchaser the
	effective date of such Contract and the anticipated date of
	Closing, which date shall be at least six (6) months from the
	effective date of the Contract. Any changes to the anticipated date
	of Closing shall also be posted on the Authority's website. These
	dates shall be used to establish the time periods provided in
	Subdivision (2).
	(c) Sale to Leaseholders. This subsection shall only apply
	to, and be effective for, those portions of the Remaining Leased
	Tract (if any) for which Closing has not occurred on or before the
	second anniversary of the Date of Decommissioning [~~December 31,~~
	~~2010~~], pursuant to Subsection (b), in which case the effective date
	of this subsection shall be the second anniversary of the Date of
	Decommissioning [~~January 1, 2011~~]. Upon the effective date of this
	subsection, the Authority shall suspend any applicable sale efforts
	under Subsection (b) for a period of two years beginning on the
	effective date of this subsection and initiate a tract by tract sale
	of the Remaining Leased Tract to the then-current Leaseholders as
	follows:
	(1) For a period of two years beginning on the
	effective date of this subsection and in accordance with the
	procedures set forth in this subsection, and subject to Subsections
	(d), (e), (f), (g), (h), and (i), the Authority shall provide
	Leaseholders the opportunity to purchase their individual portion
	of the Remaining Leased Tract [~~Tracts~~] directly from the Authority.
	Leaseholders shall have until the expiration of such two-year
	period to submit a completed application of intent to purchase
	their individual Remaining Leased Tracts as provided by Subdivision
	(4).
	(2) The Authority shall determine if, and how, any
	Remaining Undeveloped Strips will be divided between adjacent
	Leaseholders and incorporated into any individual Remaining Leased
	Tract; provided, however, Leaseholders shall not be required to
	accept any such Remaining Undeveloped Strips.
	(3) On or before the effective date of this
	subsection, the Authority shall make available to the Leaseholders
	a form for an application of intent to purchase the Leaseholder's
	individual Remaining Leased Tract. Such application shall be
	deemed a contract subject to the provisions set out herein. The
	application of intent shall provide the Leaseholder a 30-day
	feasibility period beginning on the date such application is
	submitted in which the Leaseholder can determine the feasibility of
	purchasing the applicable individual Remaining Leased Tract,
	including the ability of such Leaseholder to obtain financing for
	such purchase.
	(4) A Leaseholder who desires to purchase such
	Leaseholder's individual Remaining Leased Tract must submit a
	completed application to the Authority on or before the second
	anniversary of the effective date of this subsection [~~December 31,~~
	~~2012~~]. An application will be deemed "complete" upon the
	following:
	(A) Leaseholder delivers to the Authority an
	executed application of intent to purchase with all required
	information included in the application;
	(B) Leaseholder delivers an earnest money
	deposit, in good funds acceptable to the title company or escrow
	agent selected by the Authority, in the amount of $1,000 to such
	title company or escrow agent, which earnest money shall be
	nonrefundable after the expiration of the feasibility period except
	in the event closing does not occur due to the fault of the
	Authority;
	(C) any and all rent and other fees or amounts due
	to the Authority pursuant to such Leaseholder's Ground Lease have
	been paid and there are no amounts then outstanding which are past
	due;
	(D) Leaseholder has delivered to the Authority a
	survey that is acceptable to the Authority of the applicable
	Remaining Leased Tract (and any Remaining Undeveloped Strips being
	included in such Remaining Leased Tract). To be acceptable to the
	Authority, the survey must:
	(i) be acceptable to the title company
	selected by the Authority for purposes of issuing any policy of
	title insurance on the applicable portion of the Remaining Leased
	Tract;
	(ii) be prepared by a licensed state land
	surveyor or a registered professional land surveyor acceptable to
	the Authority;
	(iii) include the boundary of the
	Leaseholder's Remaining Leased Tract and any Remaining Undeveloped
	Strips being conveyed, which boundaries must be consistent with the
	master survey of the Remaining Leased Tract prepared on behalf of
	the Authority;
	(iv) include all improvements on the
	Remaining Leased Tract and indicate any encroachments across the
	applicable boundary lines, including encroachments onto Authority
	Land [~~or into the FERC Project Area or Buffer Zone~~]; Leaseholder
	must provide evidence that any such encroachments across boundary
	lines [~~or into the FERC Project Area or Buffer Zone~~] have been cured
	by the Leaseholder (either by removal of such encroachment or by
	written agreement between the affected parties permitting such
	encroachment to continue) prior to the survey being deemed
	acceptable; and
	(v) be reviewed and approved by the
	Authority; the Authority or its representatives or agents may
	perform an inspection of the individual Remaining Leased Tract to
	verify the accuracy of the survey [~~Survey~~] and any encroachments
	thereon.
	(E) Leaseholder has delivered to the Authority a
	title commitment and, if requested by the Authority, any exception
	documents referenced therein, prepared by the applicable title
	company or escrow agent selected by the Authority; and
	(F) Leaseholder has delivered to the Authority
	written evidence from Leaseholder's lender or financial
	institution that Leaseholder has the financing or funds available,
	as applicable, to complete the purchase of Leaseholder's Remaining
	Leased Tract.
	(5) Completed applications that are timely delivered
	will be accepted and processed by the Authority in the order in
	which they are received; except that the Authority shall give
	preference in processing applications to Leaseholders who receive
	an ad valorem tax exemption under Section 11.13, Tax Code, for a
	structure on the Leaseholder's Remaining Leased Tract.
	(6) An individual Remaining [A] Leased Tract sold
	under this subsection shall be sold for 90% of the land only
	assessed value without any exemptions, as determined by the
	appraisal district, for the year in which the Leaseholder's
	application of intent to purchase is submitted to the Authority, or
	for the year 2012 [~~2008~~], whichever is greater.
	(7) The Leaseholder purchasing such Leaseholder's
	Remaining Leased Tract is responsible for:
	(A) timely paying all rent and other fees or
	amounts due to the Authority pursuant to such Leaseholder's Ground
	Lease through the date of closing on the Leaseholder's portion of
	the Remaining Leased Tract;
	(B) obtaining and delivering to the Authority a
	survey of the applicable Remaining Leased Tract in accordance with
	Subdivision (4)(D) and curing any encroachments shown thereon, all
	at Leaseholder's expense;
	(C) obtaining and delivering to the Authority, at
	such Leaseholder's expense, a title commitment in accordance with
	Subdivision (4)(E); the Authority may, but shall have no obligation
	to, cure any objections that Leaseholder may have to the
	exceptions, covenants, easements, reservations or any other items
	reflected on the title commitment; provided, however, that the
	Authority shall use good faith efforts to address and/or remove
	those requirements or exceptions shown on Schedule C of the title
	commitment that are applicable to or created by the Authority, and,
	notwithstanding the foregoing, the Authority shall have no
	obligation to cure any exceptions on the attached Schedule C
	regarding legal right of access to or from the applicable Remaining
	Leased Tract;
	(D) delivering to the applicable title company or
	escrow agent on or before closing on the Leaseholder's Remaining
	Leased Tract, in good funds, the purchase price and all reasonable,
	normal, customary, and documented costs associated with the
	transfer of the individual Remaining Leased Tract to the
	Leaseholder including, without limitation, all escrow fees,
	recording fees, taxes on the land after the date of such closing,
	document preparation fees, the cost of any Title Policy (including
	any endorsements thereon) obtained by Leaseholder, and any costs
	associated with removing any liens on the applicable Remaining
	Leased Tract; and
	(E) timely delivering to the escrow agent any
	notices, statements, affidavits, or other documents required by the
	application, escrow agent, or at law to effectuate the transfer of
	the applicable Remaining Leased Tract to the Leaseholder.
	(8) For those completed applications of intent to
	purchase timely delivered to the Authority under this subsection,
	the purchase must be completed no later than the expiration of 30
	months after the effective date of this subsection [~~June 30, 2013~~].
	For any individual Remaining Leased Tract [~~Tracts~~] for which
	closing has not occurred by such date, the application shall be
	deemed terminated. The Authority shall not accept any applications
	of intent to purchase after the second anniversary of the effective
	date of this subsection [~~December 31, 2012~~]; and any applications
	of intent to purchase that are delivered to the Authority prior to
	such date but that are not "complete" as of such date in accordance
	with Subdivision (4) shall be rejected by the Authority.
	Leaseholders submitting an application of intent to purchase their
	individual Remaining Leased Tracts are responsible for ensuring
	that such application is deemed "complete" on or before the second
	anniversary of the effective date of this subsection [~~December 31,~~
	~~2012~~].
	(9) Any Ground Lease that would otherwise expire shall
	be automatically extended as necessary for one year terms to permit
	such Leaseholder the full two-year period to deliver such
	application of intent to purchase such Leaseholder's individual
	Remaining Leased Tract and to complete such transaction no later
	than the expiration of 30 months after the effective date of this
	subsection [~~June 30, 2013~~].
	(10) The Owner of a Remaining Leased Tract sold under
	this subsection shall pay the Authority any reasonable fees set by
	the Authority for any services the Owner accepts from the
	Authority. However, the Owner of a Remaining Leased Tract is under
	no obligation to accept services from the Authority.
	(11) Any Remaining Leased Tract subject to the Ranch
	Agreement shall only be subject to sale under this subsection if the
	Authority is released from its obligations under the Ranch
	Agreement relating to such Remaining Leased Tract.
	(12) The following laws do not apply to sale of an
	individual Remaining Leased Tract under this subsection:
	(A) Chapter 272, Local Government Code;
	(B) Section 49.226, Water Code; and
	(C) Section 8502.013 of this code.
	(13) A provision that applies to the Leaseholder of an
	individual Remaining [a] Leased Tract under this section applies to
	any subsequent Owner of the individual Remaining Leased Tract.
	(14) At closing on the individual Remaining Leased
	Tract, the Leaseholder shall pay any indebtedness secured by a lien
	on the Leaseholder's leasehold estate (including the applicable
	portion of the Buffer Zone that is[~~, whether or not included as~~]
	part of the leasehold estate [~~Leased Tract pursuant to Subsection~~
	~~(e)~~]) or deliver the express written consent of the Lienholder on
	the leasehold estate in the Remaining Leased Tract permitting the
	Leaseholder to grant a purchase money lien on the fee simple estate
	in the Remaining Leased Tract.
	(15) At the closing of the applicable Remaining Leased
	Tract, the Authority will deliver a special warranty deed.
	(16) For any portion of the Remaining Leased Tract
	that has not been sold pursuant to this subsection on or before the
	expiration of 30 months after the effective date of this subsection
	[~~June 30, 2013~~], the Board shall sell any such remaining portion of
	the Remaining Leased Tract pursuant to terms and conditions
	determined by such Board.
	(d) Restrictions on Property [~~Leased Tract~~]. The Property
	is [~~Leased Tract (or any portion thereof) sold in accordance with~~
	~~Subsection (b) or (c) shall be~~] subject to the [~~following~~]
	Restrictions recorded in Palo Pinto, Stephens, Young, and Jack
	Counties, as amended from time to time. After the Date of
	Decommissioning and before the date the Remaining Leased Tract is
	conveyed under Subsection (b) or (c), the Authority, without
	requiring the consent of any Owner, shall further amend the
	Restrictions and record the Amendments to the Restrictions in the
	records of each applicable county, which amendments must (i) add
	the Remaining Commercial Leased Land as part of the Commercial
	Leased Land in the Restrictions; (ii) add the Remaining Residential
	Leased Land as part of the Residential Leased Land in the
	Restrictions; (iii) add the Remaining Undeveloped Strips as part of
	the Undeveloped Strips in the Restrictions; (iv) add the Remaining
	Leased Tract as part of the Leased Tract; and (v) otherwise amend
	the Restrictions to be substantively in accordance with the
	following[~~, which shall be included, in substance, in a Declaration~~
	~~of Restrictive Covenants, Easements, and Conditions to be prepared~~
	~~by the Authority substantively in accordance with the following and~~
	~~recorded by the Authority, as declarant, in the applicable county~~
	~~records prior to any sale pursuant to Subsection (b) or (c)~~]:
	[~~(1)~~ ~~Subject to Subdivision (10), no Owner, Purchaser,~~
	~~or Leaseholder may forbid, restrict, or take any action which~~
	~~effectively forbids or restricts the public from using the FERC~~
	~~Project Area and the adjacent areas of the Lake in accordance with~~
	~~the terms of the FERC License.~~]
	(2) Each Owner, Purchaser, and Leaseholder shall agree
	to not block, restrict, or otherwise prohibit access over, through,
	or across any Road and further agrees that such Roads or portion
	thereof shall remain open for use by the Authority, other Owners or
	Purchasers, lessees of any portion of the Property (including
	Leaseholders) and the general public. Except for (i) those
	portions of the Property that are accessible by water only as of the
	effective date of the Restrictions, and/or (ii) restrictions of
	access existing as of the effective date of the Restrictions (e.g.,
	access to and from public roads that requires traversing real
	property not owned by the Authority, Owners, or Purchasers
	hereunder), and/or (iii) the covenants and restrictions of the
	Ranch Declarations (to the extent applicable to the Roads) or other
	restrictive covenants existing prior to the date the Restrictions
	are recorded of record, no Owner, Purchaser, or Leaseholder shall
	be permitted to block, restrict, or otherwise prohibit access on,
	over, or across the Roads.
	(3) The Driveways are not part of the Roads and shall
	be maintained by the Owner, Purchaser, or Leaseholder of the
	applicable Driveways. No Owner, Purchaser, or Leaseholder shall
	obstruct, prevent, or otherwise restrict access on, over or across
	any portion of a common Driveway by any such other Owner, Purchaser,
	or Leaseholder, or their guests or invitees, whose portion of the
	Property is served by such common Driveway. Owners, Purchasers,
	and/or Leaseholders whose portion of the Property is served by a
	common Driveway shall at all times have a nonexclusive right of
	ingress and egress over and across such common Driveway to access
	their portion of the Property.
	(4) All grants and dedications of easements,
	rights-of-way, restrictions, and related rights affecting the
	Leased Tract, made prior to the Leased Tract becoming subject to the
	Restrictions and any Amendments to the Restrictions that are of
	record, or visible or apparent, shall be incorporated into such
	Restrictions by reference and made a part of the Restrictions for
	all purposes as if fully set forth therein and shall be construed as
	being adopted in each and every contract, deed, or conveyance
	executed or to be executed by or on behalf of the Authority
	conveying any part of the Leased Tract. The foregoing adoption of
	such easements includes, without limitation, any and all written
	easements or agreements, whether or not recorded, between the
	Authority and any other party for the installation, maintenance,
	repair, or replacement of utility lines located on, above, over,
	under, or beneath the Property.
	(5) The Authority shall reserve for itself and its
	successors, assigns, and designees the nonexclusive right and
	easement, but not the obligation, to enter upon the Property, the
	Lake and other bodies of water, if any, located within the Property
	(a) to install, keep, maintain, and replace pumps in order to obtain
	water for the irrigation of any portion of the Authority Land, (b)
	to construct, maintain, replace, and repair any wall, dam, or other
	structure retaining water therein, (c) to access, construct,
	maintain, replace, and repair any measurement stations, monuments,
	or other similar improvements, (d) to remove trash and other
	debris, and (e) to fulfill the Authority's obligations as a river
	authority and any obligations set forth in [~~the FERC License,~~]
	state water rights[,] or other governmental regulations. The
	Authority and its designees shall have an access easement through,
	over, and across any portion of the Leased Tract to the extent
	reasonably necessary to exercise the rights and responsibilities
	under this subdivision; provided, however, that (i) the Authority
	shall provide written notice at least 48 hours in advance of such
	entry to the Purchaser or Owner of such portion of the Leased Tract
	(except in the event of an emergency, in which case advance notice
	shall not be required, but the Authority shall provide such written
	notice as soon as practicable thereafter); (ii) the Authority shall
	promptly repair any damage to the portion of the Leased Tract caused
	by the Authority's entrance onto such Owner's or Purchaser's portion
	of the Leased Tract; and (iii) the Authority shall use reasonable
	efforts to avoid interfering with the Owner's or Purchaser's use of
	the portion of the Leased Tract.
	(6) The Authority shall reserve for itself and its
	successors, assigns, and designees a perpetual right, power,
	privilege, and easement to occasionally overflow, flood, and
	submerge that portion of the Property located at or below the
	elevation contour of 1015' above mean sea level in connection with
	the Authority's operation and maintenance of the Lake. The
	Authority shall have no liability to any Owner, Purchaser,
	Leaseholder, or any other person for any damages, claims, costs,
	injuries, or liabilities to any person or the Property or any
	improvements thereon that are caused by or arise from any act or
	omission by the Authority in connection with the foregoing right
	and easement.
	(7) Additional land may be included in the Property or
	Leased Tract at any time by the Authority, as long as the Authority
	owns any portion of the Property, by recording an amendment to these
	Restrictions in each of the counties in which the Property is
	located. Upon such additions, the Restrictions shall apply to the
	added land and the rights, privileges, duties, and liabilities of
	the Owners or Purchasers subject to the Restrictions shall be the
	same with respect to the added land as with respect to the Property
	originally covered by the Restrictions. As additional lands are
	added hereto, the Authority shall, with respect to said land,
	record amendments that may incorporate the Restrictions therein by
	reference and that may supplement or modify the Restrictions with
	such additional covenants, restrictions, and conditions that may be
	appropriate for those added lands.
	(8) The Restrictions may not be modified in any
	respect whatsoever or terminated, in whole or in part, except with
	the consent of (i) the Owners or Purchasers of at least sixty
	percent (60%) of the individual lots that comprise the Residential
	Leased Land and Commercial Leased Land, and (ii) the Owners or
	Purchasers of at least sixty percent (60%) of the land area of the
	Authority Land, and (iii) the Authority, for so long as the
	Authority has any interest in the Property, whether as an Owner or
	[~~holder of the FERC License or~~] otherwise. Notwithstanding the
	foregoing, the Authority, without the joinder of any other party,
	shall have the absolute right to make minor changes or amendments to
	the Restrictions to correct or clarify errors, omissions, mistakes,
	or ambiguities contained therein. No amendment shall be effective
	until such amendment has been recorded in the Official Public
	Records of each of the counties in which the Property is located.
	(9) No improvements (except as specifically set forth
	in Subdivision (11)) shall be constructed or located on the Leased
	Tract within twenty-five feet (25') landward measured horizontally
	from the 1000' contour line of the Lake, a meander line that changes
	over time due to natural forces, such as erosion and accretion;
	provided, however, this restriction shall not include improvements
	inside this setback that are existing at the time the Restrictions
	are filed that [~~(i)~~] have been approved in writing by the
	Authority[~~, and (ii) if such improvements are located within the~~
	~~FERC Project Area, have been approved by the Federal Energy~~
	~~Regulatory Commission (and to the extent not already approved by~~
	~~the Federal Energy Regulatory Commission, the Authority intends to~~
	~~file an application to obtain permission for the existing~~
	~~encroachments into the FERC Project Area to remain in place)~~]. In
	addition, no improvements on the Leased Tract (or any portion
	thereof) shall be constructed or located within five feet (5') of
	any other boundary line (i.e., the side and back boundary lines),
	other than fences; provided, however, this restriction shall not
	include improvements located within this 5' setback that are
	existing at the time the Restrictions are filed and that have been
	approved in writing by the Authority.
	[~~(10)~~ ~~No Owner, Purchaser, or Leaseholder shall have~~
	~~any rights to construct any improvements or fencing that block or~~
	~~restrict access to the FERC Project Area, except with the written~~
	~~consent of the Authority, to be granted or withheld in its sole~~
	~~discretion, and except in compliance with the FERC License.~~ ~~This~~
	~~limitation does not apply to fences located within the Leased Tract~~
	~~and outside the FERC Project Area.~~]
	(11) Erosion control improvements (such as retaining
	walls, rip rap, etc.) and landscape planting may not be constructed
	or located [~~within the FERC Project Area or~~] at or below the 1000'
	contour line without the prior written approval of the Authority.
	Such improvements shall be subject to the terms and conditions set
	forth in the Restrictions[~~, in the FERC License, in any other~~
	~~Federal Energy Regulatory Commission rules and regulations,~~] and in
	the Authority's regulations, including without limitation, the
	Shoreline Management Plan.
	(12) No Owner, Purchaser, or Leaseholder shall have
	the right to place, or permit to be placed, any advertisements,
	private notices, signs, or billboards on the Residential Leased
	Land [~~Tract~~] except that temporary signage customarily found on
	residential property may be placed on the Residential Leased Land
	at the reasonable discretion of the Owner, Purchaser, and/or
	Leaseholder of that portion of the Residential Leased Land.
	(13) No activities shall be conducted on the Leased
	Tract and no improvements constructed on the Leased Tract that are
	or might be unsafe or hazardous to any person or property.
	(14) No Owner, Purchaser, Leaseholder, or occupant of
	any portion of the Leased Tract shall use or permit the use,
	handling, generation, storage, release, disposal, or
	transportation of Hazardous Materials on, about, or under the
	Leased Tract except for such quantities that are routinely utilized
	in connection with residential use (for all portions of the Leased
	Tract except the Commercial Leased Land) or for commercial uses
	that are in compliance with the Restrictions (for the Commercial
	Leased Land), and that are stored, used, and disposed of in
	compliance with all Environmental Laws. Each Owner, Purchaser, and
	Leaseholder shall indemnify, defend, protect, and save the
	Authority, its successors and assigns, trustees, directors,
	employees, and officers and each other Owner, Purchaser, and
	Leaseholder, harmless from and against, and shall reimburse such
	indemnified parties for, all liabilities, obligations, losses,
	claims, damages, fines, penalties, costs, charges, judgments, and
	expenses, including, without limitation, reasonable attorneys'
	fees and expenses that may be imposed upon or incurred or paid by or
	asserted against such indemnified parties by reason of or in
	connection with such Owner's, Purchaser's, or Leaseholder's failure
	to comply with this subdivision.
	(15) No Owner or Purchaser shall conduct, or permit to
	be conducted, any activity on the Leased Tract that is improper,
	immoral, noxious, annoying, creates a nuisance, or is otherwise
	objectionable to other Owners or Purchasers or incompatible with
	the recreational use of the Lake and the Authority Land [~~FERC~~
	~~Project Area~~].
	(16) The Residential Leased Land (and any Undeveloped
	Strips that are conveyed to an Owner or Purchaser as part of the
	Residential Leased Land pursuant to Subsection (b) or (c)) shall be
	improved and used solely for single-family residential use,
	inclusive of a garage, fencing, and other such related improvements
	as are necessary or customarily incident to normal residential use
	and enjoyment and for no other use. No portion of the Residential
	Leased Land (and any Undeveloped Strips that are conveyed to an
	Owner or Purchaser as part of the Residential Leased Land pursuant
	to Subsection (b) or (c)) shall be used for manufacturing,
	industrial, business, commercial, institutional, or other
	nonresidential purpose, save and except as set forth in Subdivision
	(17). Notwithstanding the foregoing, Owners, Purchasers, and/or
	Leaseholders shall be permitted to conduct a "garage sale" on their
	respective portion of the Residential Leased Land (and any
	Undeveloped Strips that are conveyed to an Owner or Purchaser as
	part of the Residential Leased Land pursuant to either Subsection
	(b) or (c)) not more than one time per calendar year.
	(17) No professional, business, or commercial
	activity to which the general public is invited shall be conducted
	on the Residential Leased Land (and any Undeveloped Strips that are
	conveyed to an Owner or Purchaser as part of the Residential Leased
	Land pursuant to Subsection (b) or (c)); except an Owner,
	Purchaser, Leaseholder, or occupant of a residence may conduct
	business activities within a residence so long as: (a) the
	existence or operation of the business activity is not apparent or
	detectable by sight, sound, or smell from outside the residence;
	(b) the business activity conforms to all zoning requirements; (c)
	the business activity does not involve door-to-door solicitation of
	residents, lessees, Leaseholders, Owners, or Purchasers within the
	Property; (d) the business does not generate a level of vehicular or
	pedestrian traffic or a number of vehicles parked within the
	Property that is noticeably greater than that which is typical of
	residences in which no business activity is being conducted; and
	(e) the business activity is consistent with the residential
	character of the Residential Leased Land and does not constitute a
	nuisance, or a hazardous or offensive use, or threaten the security
	or safety of other residents, lessees, Owners, Purchasers, or
	Leaseholders of the Property. The terms "business" and "trade", as
	used in this provision, shall be construed to have their ordinary,
	generally accepted meanings and shall include, without limitation,
	any occupation, work, or activity undertaken on an ongoing basis
	that involves the provision of goods or services to persons other
	than the provider's family and for which the provider receives a
	fee, compensation, or other form of consideration, regardless of
	whether: (x) such activity is engaged in full or part-time; (y) such
	activity is intended to or does generate a profit; or (z) a license
	is required. Leasing of a residence shall not be considered a
	business or trade within the meaning of this subsection. This
	subdivision shall not apply to any activity conducted by the
	Authority.
	(18) Except as may be otherwise provided in the
	Restrictions and any Amendments to the Restrictions, Commercial
	Leased Land (and any Undeveloped Strips that are conveyed to an
	Owner or Purchaser as part of the Commercial Leased Land pursuant to
	Subsection (b) or (c)) may be improved and used for any lawful
	commercial purpose, including without limitation, nonprofit
	organizations or governmental or quasi-governmental agencies.
	(19) No portion of the Leased Tract may be used for the
	commercial testing or development of wind power, or to produce,
	lease, store, and/or transmit electrical power generated thereby
	for commercial or resale purposes.
	(20) Each Owner or Purchaser shall keep, or cause to be
	kept, all improvements located on its respective portion of the
	Leased Tract maintained in good condition and repair, clean and
	free of rubbish and other hazards, and otherwise in full accordance
	with the Restrictions and all governmental rules, regulations,
	codes, and zoning requirements. Such maintenance shall include,
	but not be limited to, the following: regular and timely removal of
	all litter, garbage, trash, and waste; regular lawn mowing; tree,
	shrub, and plant pruning and trimming; watering of landscaped
	areas; weed control; pest control; maintaining exterior lighting
	and mechanical facilities in good working order; keeping walks and
	driveways clean and in good repair; and the repairing and
	repainting of the exterior improvements visible to neighboring
	properties and/or public view.
	(21) In the event of any damage to or destruction of
	any building or improvement on any portion of the Leased Tract from
	any cause whatsoever, the Owner, Purchaser, or Leaseholder upon
	whose portion of the Leased Tract the casualty occurred shall, at
	such Owner's, Purchaser's, or Leaseholder's sole option, either (i)
	repair, restore, or rebuild and complete the same with reasonable
	diligence, (ii) clear the affected area of all hazardous or
	dangerous debris and structures and lawfully dispose of same within
	one year from the date of casualty, or (iii) effectuate any
	combination of clauses (i) and (ii) of this subdivision as such
	Owner, Purchaser, or Leaseholder may deem reasonably
	appropriate. Notwithstanding the foregoing, in the event the
	Owner, Purchaser, or Leaseholder elects to rebuild buildings or
	improvements that were located within [~~the FERC Project Area or~~
	~~within~~] twenty-five feet (25') landward measured horizontally from
	the 1000' contour line that were approved in accordance with
	Subdivision (9), such buildings or improvements shall be rebuilt in
	accordance with Subdivision (24).
	(22) The Texas Commission on Environmental Quality has
	adopted rules governing on-site sewage facilities (also called
	septic systems). The Authority is the commission's authorized
	agent for the septic system licensing program, including the
	enforcement of the commission's septic system rules and regulations
	for the Property. The Authority, as the agent for the commission,
	shall have the authority to access the Property for the purpose of
	issuing such licenses, inspecting such septic systems, and
	enforcing any and all rules and regulations related thereto. Each
	Owner, Purchaser, and Leaseholder agrees to comply with all
	sanitary regulations and the licensing process adopted by the
	commission and enforced by the Authority, as its agent, from time to
	time.
	(23) The Owner or Purchaser shall be responsible, at
	such Owner's or Purchaser's expense, for providing for the
	collection, removal, and disposal of all solid waste on the Leased
	Tract; or the Owner or Purchaser of any portion of the Leased Tract
	shall be responsible for ensuring that the Leaseholders provide for
	such collection, removal, and disposal of all solid waste on the
	applicable portion of the Leased Tract. In the event the Ranch
	fails to provide for the collection, removal, and disposal of all
	solid waste related to the Ranch, the Owner or Purchaser shall be
	responsible for providing for the same.
	(24) [~~(i) An Owner, Purchaser, or Leaseholder, subject~~
	~~to approval by the Federal Energy Regulatory Commission, may~~
	~~repair, alter, or rebuild improvements located within the FERC~~
	~~Project Area, which improvements were previously approved in~~
	~~accordance with Subdivision (9); provided, however, such repairs,~~
	~~alterations, and/or rebuilding shall not extend beyond the~~
	~~footprint of the existing or previously existing improvement.~~
	[~~(ii)~~] An Owner, Purchaser, or Leaseholder
	may repair, alter, or rebuild improvements located above the 1000'
	contour line [~~outside the FERC Project Area~~] but within 25'
	landward measured horizontally from the 1000' contour line, and/or
	improvements located within the 5' boundary setback, which
	improvements were previously approved in accordance with
	Subdivision (9). Such repairs, alterations, or rebuilding may
	extend such improvements outside the previously existing footprint
	towards the side boundaries and back boundary of the applicable
	Leased Tract, but such improvements may not be extended towards the
	shoreline or encroach closer to the 1000' contour line of the Lake
	than the existing or previously existing improvements.
	(25) The Authority shall reserve its rights, title,
	and interest in all oil, gas, and other minerals in and under any
	and all Property, including the Leased Tract.
	(26) No land located at or below the 1000' contour line
	[~~within the FERC Project Area~~] shall be improved, used, or
	occupied, except in such manner as shall have been approved by the
	Authority [~~and, to the extent required, by the Federal Energy~~
	~~Regulatory Commission~~]. No docks, piers, on-water facilities,
	retaining walls, or any other structures or facilities shall be
	built, installed, or maintained in, on, or over the waters of the
	Lake [~~or within the FERC Project Area~~] except as authorized by the
	Authority. All such structures or facilities shall be subject to
	all rules and regulations applicable to the Lake [~~and the FERC~~
	~~Project Area~~], as the same may be adopted or amended from time to
	time. Owner, Purchaser, and/or the Leaseholder shall be
	responsible for any fees or annual charges assessed by the
	Authority [~~and/or the Federal Energy Regulatory Commission~~] for
	such permit or improvements and shall be responsible for ensuring
	that any such improvements are consistent with the [~~FERC License,~~]
	Shoreline Management Plan[,] and all other rules and regulations
	applicable to the Property [~~FERC Project Area~~]. Owner or Purchaser
	shall not, at any time, permit any liens to encumber the Authority
	Land [~~FERC Project Area~~].
	(27) No use of the Lake or other bodies of water within
	the Property, if any, shall be made except in accordance with the
	[~~FERC License, the~~] Shoreline Management Plan, the Authority's
	regulations, and any other rules and regulations that may be
	promulgated by the [~~Federal Energy Regulatory Commission and/or~~
	~~the~~] Authority at any time and as amended from time to time. Any
	such use shall be subject to the Authority's [~~and the Federal Energy~~
	~~Regulatory Commission's~~] superior use rights. The Authority shall
	not be responsible for any loss, damage, or injury to any person or
	property arising out of the authorized or unauthorized use of the
	Lake or other bodies of water within or adjacent to the Property.
	(28) The Authority may use and regulate the Lake or
	other bodies of water within the Property for the irrigation of the
	Authority Land, or for any other purpose deemed appropriate by the
	Authority, subject to the rights and authority of any [~~the Federal~~
	~~Energy Regulatory Commission or~~] other governmental entity having
	jurisdiction of such areas, and subject to the water rights granted
	(or which may be granted) to the Authority by the State of
	Texas. The Authority's rights under this subdivision shall be
	superior to any rights of any Owner, Purchaser, or
	Leaseholder. This subdivision shall not be construed to limit or
	restrict the rights and authority of any [~~the Federal Energy~~
	~~Regulatory Commission or~~] other governmental entity having
	jurisdiction of the Property.
	(29) Owners or Purchasers must obtain written
	permission from the Authority in accordance with the Authority's
	regulations to use or divert water from the Lake on any portion of
	the Leased Tract for domestic or commercial purposes.
	(30) No Owner, Purchaser, or Leaseholder shall be
	permitted to divert or alter the natural drainage of the terrain or
	clear vegetation on any portion of the Property in such a manner
	that would cause unnatural erosion or silting of the Lake.
	(31) Owners, Purchasers, and Leaseholders shall take
	all reasonable precautions to ensure that all use of and activities
	on the Leased Tract [~~and the FERC Project Area~~], including without
	limitation, the construction, operation, and maintenance of any
	improvements on the Leased Tract[~~, and/or FERC Project Area~~] occur
	in a manner that [~~is in compliance with the FERC License and that~~]
	will protect the scenic, recreational, and environmental values of
	the Lake. The Authority[~~, as a licensee of the Federal Energy~~
	~~Regulatory Commission,~~] has specific approval authority on any
	proposed construction that impacts the [~~FERC Project Area or~~]
	lakebed, and Owner, Purchaser, and Leaseholder shall comply with
	the approval process as may be established by the Authority [~~and/or~~
	~~the Federal Energy Regulatory Commission~~] from time to time.
	[~~(32)~~ ~~Structures in place within the FERC Project Area~~
	~~shall be subject to the FERC License, as the same may be amended~~
	~~and/or renewed from time to time.~~ ~~Any structures erected in the~~
	~~FERC Project Area after May 15, 1980 (the date of the amendment to~~
	~~the previous FERC License) may be required to be removed at the~~
	~~expense of the owner of the improvement, unless such improvements~~
	~~are approved in writing by the Authority in accordance with the FERC~~
	~~License.~~ ~~In no event shall this subdivision grant any~~
	~~authorization for a violation of any rules or regulations of the~~
	~~Authority, the FERC License, or any state, federal, or local law.~~]
	(33) The Owner, Purchaser, and Leaseholder of any
	portion of the Property [~~Leased Tract~~] shall comply with all of the
	following rules and regulations, as applicable:
	(A) [~~the Shoreline Management Plan and any~~
	~~amendments or revisions to that document to the extent such~~
	~~Shoreline Management Plan applies to the Owner's, Purchaser's,~~
	~~and/or Leaseholder's portion of the Leased Tract;~~
	[~~(B)~~ ~~the applicable rules, regulations, and~~
	~~order of the Federal Energy Regulatory Commission including,~~
	~~without limitation the FERC License;~~
	[~~(C)~~] the Authority's "Regulations for
	Governance for Brazos River Authority Lakes and Associated Lands,"
	as published on the Authority's Internet website and as those
	regulations may be amended from time to time; and
	(B) [~~(D)~~] other rules and regulations adopted by
	the Authority regarding conduct on and use of the Lake [~~or the~~
	~~Property~~].
	(34) By Texas statute, the Authority is empowered to
	adopt and has adopted certain regulations governing conduct on and
	use of the Property [~~within the FERC Project Area~~] and Lake.
	Owners, Purchasers, Leaseholders, and persons using the Leased
	Tract with such Owners' or Purchasers' consent shall abide by all
	such rules and regulations adopted from time to time by the
	Authority and any future revisions and amendments thereto.
	(35) Owners, Purchasers, and Leaseholders of that
	portion of the Leased Tract that is part of the Ranch shall comply
	with the terms and conditions of the Ranch Agreement and the
	covenants and restrictions set forth in the Ranch Declarations, to
	the extent applicable to such portion of the Leased Tract. As to
	that portion of the Property that is part of the Ranch, the Ranch
	Declarations shall control in the event of any conflict between the
	covenants, restrictions, and conditions set forth in the Ranch
	Declarations and the Restrictions. Owners, Purchasers, and
	Leaseholders of a portion of the Leased Tract that is part of any
	other subdivision shall comply with the terms and conditions of the
	covenants and restrictions governing the subdivision that apply to
	the portion of the Leased Tract. Any portion of the Property that
	is part of the subdivision is governed by the restrictions and
	covenants governing the subdivision which shall control in the
	event of a conflict between the covenants, restrictions, and
	conditions governing the subdivision and the Restrictions and
	Amendments to the Restrictions.
	(36) In order to maintain the quality of the Lake's
	water, the stability of the shoreline, and of the environment in the
	Lake's vicinity, each Owner, Purchaser, and Leaseholder of all or
	any portion of the Leased Tract agrees to:
	(A) comply with any local, state, or federal laws
	related to water quality or the environment, including laws
	governing toxic wastes and hazardous substances;
	(B) if the Owner's or Purchaser's private on-site
	sewerage facility is not licensed by the Texas Commission on
	Environmental Quality (or any successor to such Commission) then
	the Owner, Purchaser, or Leaseholder shall connect to and use, at
	the Owner's, Purchaser's, or Leaseholder's expense, as applicable,
	any wastewater treatment system or service that becomes available
	to the Owner's or Purchaser's portion of the Leased Tract, not later
	than twelve (12) months after the system or service becomes
	available to such portion of the Leased Tract and thereafter
	discontinue use of any private on-site sewerage facility; and if,
	at any time after a wastewater treatment system or service becomes
	available to the Owner's or Purchaser's portion of the Leased Tract,
	the Owner's or Purchaser's private on-site sewerage facility
	(whether licensed or not) requires either replacement or an
	alteration or change in the on-site sewerage facility resulting in
	(i) an increase in the volume of permitted flow, (ii) a change in
	the nature of permitted influent, (iii) a change from the planning
	materials approved by the permitting authority, (iv) a change in
	construction, and/or (v) an increase, lengthening, or expansion of
	the treatment or disposal system, then such Owner or Purchaser
	shall promptly connect to and use, at the Owner's, Purchaser's, or
	Leaseholder's expense, as applicable, such wastewater treatment
	system or service and thereafter discontinue use of any private
	on-site sewerage facility. Notwithstanding the foregoing, in the
	event a property owners association or municipality requires the
	Owners or Purchasers of the portion of the Leased Tract that is
	included in such association or municipality to connect to a
	wastewater system or service, then such association or municipality
	rules shall control;
	(C) obtain written consent of the Authority prior
	to diverting or pumping water from the Lake or any body of water
	within or adjacent to the Property, constructing or erecting any
	embankment or retaining wall, or commencing any dredging activity;
	and
	(D) pay to the Authority any reasonable fee
	related thereto (e.g., water usage, recreational user, dredging, or
	retaining wall fees) as may be adopted from time to time by the
	Authority.
	(37) Each Owner or Purchaser of all or any portion of
	the Leased Tract agrees and acknowledges that the water level in the
	Lake varies and that the Authority is not responsible for
	maintaining the Lake at any certain level or above or below any
	certain level.
	(38) The Authority is not responsible or liable for
	any personal injury or damage to any Owner, Purchaser, Leaseholder,
	the Leased Tract, the Property, or any improvements caused by any
	increase or decrease in the water level (even if such increase or
	decrease is due to modifications of the Morris Sheppard (Possum
	Kingdom) Dam or other actions or omissions of the Authority) or
	caused by natural flooding.
	(39) The Authority shall reserve the right of ingress
	and egress for the Authority and any person authorized by the
	Authority, including an agent of the Authority or employees, over
	and across the Leased Tract and any and all on-water facilities
	whether located within the Leased Tract or Authority Land [~~FERC~~
	~~Project Area~~] for all reasonable purposes of the Authority,
	including, without limitation, the construction, maintenance,
	repair, and/or replacements of any roads, drainage facilities, and
	power, water, wastewater, and other utility mains and lines that
	the Authority considers necessary or beneficial and for public
	safety, health, and welfare purposes; provided however, that:
	(A) the Authority shall provide written notice at
	least 48 hours in advance of such entry to the Purchaser or Owner of
	such portion of the Leased Tract (except in the event of an
	emergency, in which case advance notice shall not be required, but
	the Authority shall provide such written notice as soon as
	practicable thereafter), which notice shall state with reasonable
	specificity the purpose for such entry;
	(B) the Authority shall promptly repair any
	damage to the portion of the Leased Tract caused by the Authority's
	entrance onto such Owner's or Purchaser's portion of the Leased
	Tract; and
	(C) the Authority shall use reasonable efforts to
	avoid interfering with the Owner's or Purchaser's use of the portion
	of the Leased Tract.
	(40) Each Owner, Purchaser, and Leaseholder shall
	comply strictly with the Restrictions, as the same may be amended
	from time to time. Failure to comply with the Restrictions shall
	constitute a violation of the Restrictions, and shall give rise to a
	cause of action to recover sums due for damages or injunctive relief
	or both, maintainable by the Authority or other Owners or
	Purchaser; provided however, no Owner, Purchaser, Leaseholder, or
	other person shall have any right of action against the Authority
	arising under the Restrictions.
	(41) The Authority shall make no warranty or
	representation as to the present or future validity or
	enforceability of any such restrictive covenants, terms, or
	provisions. Any Owner, Purchaser, or Leaseholder acquiring or
	leasing, as applicable, any portion of the Property in reliance on
	one or more of the Restrictions shall assume all risks of the
	validity and enforceability thereof and, by acquiring such portion
	of the Property, agrees to hold the Authority harmless therefrom.
	(42) If the Owner, Purchaser, or Leaseholder of any
	portion of the Leased Tracts or on-water facilities related thereto
	(including retaining walls) shall fail to comply with the
	requirements of the Restrictions, then the Authority shall have the
	right, but not the obligation, following thirty (30) days prior
	written notice to such defaulting person [~~owner~~] to enter such
	defaulting person's [~~owner's~~] portion of the Leased Tract (but only
	if such failure to comply results in a public health, safety, or
	welfare concern) and/or such defaulting person's [~~owner's~~] on-water
	facility and cure such breach, the cost of which shall be reimbursed
	by such defaulting person [~~owner~~] to the Authority upon demand. Any
	such unpaid amounts, together with interest thereon (at the rate of
	six percent (6%) per annum) and the costs of collection (if any),
	shall be charged as a continuing lien against such defaulting
	person's [~~owner's~~] portion of the Leased Tract, which lien shall be
	subordinate to the lien of any third-party deed of trust previously
	recorded against such defaulting person's [~~owner's~~] portion of the
	Leased Tract.
	(43) A person shall be deemed to be in default of the
	Restrictions only upon the expiration of thirty (30) days (ten (10)
	days in the event of failure to pay money) from receipt of written
	notice from the Authority or other Owner or Purchaser specifying
	the particulars in which such person has failed to perform the
	obligations of the Restrictions unless such person, prior to the
	expiration of said thirty (30) days (ten (10) days in the event of
	failure to pay money), has rectified the particulars specified in
	said notice of default. However, such person shall not be deemed to
	be in default if such failure (except a failure to pay money) cannot
	be rectified within said thirty (30) day period and such person
	commences the cure of such default within such thirty (30) day
	period and thereafter is continuously using good faith and its best
	efforts to rectify the particulars specified in the notice of
	default.
	(44) The Authority shall have the right, but not the
	obligation, to enforce all of the provisions of the Restrictions.
	Any Owner or Purchaser shall have the right to enforce all of the
	provisions of the Restrictions against any other Owner, Purchaser,
	or Leaseholder, but not against the Authority. Such right of
	enforcement shall include the right to sue for both damages for, and
	injunctive relief against, the breach of any such provision.
	Furthermore, the Authority shall have the right, when appropriate
	in its sole judgment and discretion, to claim or impose a lien upon
	any portion of the Leased Tract, or improvement constructed
	thereon, in order to enforce any right or effect compliance with the
	Restrictions.
	(45) The failure of a person (including the Authority
	or any Owner or Purchaser) to insist upon strict performance of any
	of the Restrictions shall not be deemed a waiver of any rights or
	remedies that said person may have, and shall not be deemed a waiver
	of any subsequent breach or default in the performance of any of the
	Restrictions by the same or any other person.
	(46) The Authority shall not be liable to any Owner,
	Purchaser, or Leaseholder, or to any other person for any loss,
	damage, or injury arising out of or in any way connected with the
	performance or nonperformance of the Authority's rights,
	obligations, or privileges under the Restrictions. Without
	limiting the foregoing, the Authority shall not be liable to any
	Owner, Purchaser, or Leaseholder due to the construction of any
	improvements within the Property.
	(47) Each of the Restrictions on the Leased Tract
	shall be a burden on each portion of the Leased Tract, shall be
	appurtenant to and for the benefit of the other portions of the
	Property, other portions of the Leased Tract, and each part
	thereof, and shall run with the land.
	(48) The Restrictions shall inure to the benefit of
	and be binding upon the Owners or Purchasers, their heirs,
	successors, assigns, and personal representatives, and upon any
	person acquiring all or any portion of the Leased Tract, or any
	interest therein, whether by operation of law or otherwise.
	Notwithstanding the foregoing, if any Owner or Purchaser sells or
	transfers all or any portion of such Owner's or Purchaser's interest
	in all or any portion of the Leased Tract, such Owner or Purchaser
	shall, upon the sale and conveyance of title, be released and
	discharged from all of its obligations as Owner or Purchaser in
	connection with the property sold by it arising under the
	Restrictions after the sale and conveyance of title but shall
	remain liable for all obligations arising under the Restrictions
	prior to the sale and conveyance of title. The new Owner or
	Purchaser of all or any such portion of the Leased Tract,
	(including, without limitation, any Owner (or Lienholder) who
	acquires its interest by foreclosure, trustee's sale or otherwise)
	shall be liable for all obligations arising under the Restrictions
	with respect to such portion of the Leased Tract on and/or after the
	date of sale and conveyance of title. The Authority may assign, in
	whole or in part, any of its privileges, exemptions, rights, and
	obligations (if any) under the Restrictions to any other person and
	may permit the participation, in whole or in part, by any other
	person in any of its privileges, exemptions, rights, and
	obligations (if any) hereunder.
	(49) Except as provided in this subsection, the term
	of the Restrictions shall be for a period of fifty (50) years from
	the date such Restrictions are executed by the
	Authority. Notwithstanding the foregoing, upon the expiration of
	such period, the term of the Restrictions shall automatically renew
	for successive periods of five (5) years each unless, at least
	ninety (90) days prior to the date of expiration of any period then
	in effect, (i) the Owners or Purchasers of at least sixty percent
	(60%) of the individual lots that comprise the Residential Leased
	Land and the Commercial Leased Land, (ii) the Owners or Purchasers
	of at least sixty percent (60%) of the land area of the Authority
	Land, and (iii) the Authority, for so long as the Authority has any
	interest in the Property, whether as an Owner or [~~holder of the FERC~~
	~~License or~~] otherwise, duly execute, acknowledge and record in the
	office of the recorder of the counties in which the Property is
	located a written termination notice, in which event, the
	Restrictions shall automatically expire at the end of the period
	then in effect.
	(50) Any subdivision by an Owner of the Owner's portion
	of the Leased Tract is subject to all applicable laws, rules,
	regulations, codes, and ordinances, including any applicable
	platting requirements, and any rules and restrictions relating to
	on-site sewage facilities.
	(e) Buffer Zone. Notwithstanding any provision in this
	subsection to the contrary, a sale under Subsection (b) or (c) shall
	be subject to the following:
	(1) The Remaining [~~If at the time Closing occurs under~~
	~~Subsection (b) or if at the time a Leaseholder completes the~~
	~~purchase of the applicable Leased Tract from the Authority pursuant~~
	~~to Subsection (c), as applicable, the Buffer Zone, or any portion~~
	~~thereof, has been removed from the FERC Project Area, the~~] Leased
	Tract being conveyed under Subsection (b) or (c) shall include the
	applicable [~~that~~] portion of the Buffer Zone [~~so removed~~];
	provided, however, the Purchaser and/or Owner, as applicable, shall
	grant the Authority access to the Buffer Zone [~~FERC Project Area~~]
	and Lake to allow the Authority to fulfill its obligations as a
	River Authority and any obligations set forth in [~~the FERC~~
	~~License,~~] state water rights[,] or other governmental regulations.
	(2) At [~~If at~~] the time of Closing on the Initial
	Leased Tract [~~occurs~~] under Subsection (b), [~~or if at the time a~~
	~~Leaseholder closes on the purchase of the applicable Leased Tract~~
	~~from the Authority pursuant to Subsection (c), as applicable, the~~
	~~Buffer Zone, or any portion thereof, has not been removed from the~~
	~~FERC Project Area and~~] a portion of the Initial Leased Tract is
	located within the Buffer Zone and is a part of the FERC Project
	Area, and therefore the Authority shall provide such Purchaser
	and/or Owner, as applicable, a residual interest in that portion of
	the Buffer Zone adjacent to the Initial Leased Tract and covered by
	the applicable residential Ground Lease, such residual interest to
	automatically vest upon satisfaction of one [~~either~~] of the
	following conditions:
	(A) the Federal Energy Regulatory Commission
	approves an amendment to the FERC License removing the Buffer Zone
	from the boundaries prescribed by the FERC License such that the
	Buffer Zone is no longer subject to regulation by the Federal Energy
	Regulatory Commission; [or]
	(B) the FERC License expires (and is not renewed
	or extended) or is otherwise terminated and thus the Buffer Zone is
	no longer subject to regulation by the Federal Energy Regulatory
	Commission; or
	(C) the Date of Decommissioning occurs.
	(3) Notwithstanding the foregoing, if such residual
	interest has not vested on or before August 31, 2040, then such
	residual interest shall be terminated and of no further force and
	effect. Upon satisfaction of one [~~either~~] of the foregoing
	conditions prior to August 31, 2040, this conveyance shall be
	automatically effective without necessity of further
	documentation. From and after the date such conveyance becomes
	effective, the Buffer Zone shall be considered to be a part of the
	Initial Leased Tract conveyed under Subsection (b) [~~or (c)~~] and the
	Purchaser or then current Owner of the applicable Initial Leased
	Tract shall be the beneficiary of the residual interest created
	herein, but only as to the portion of the Buffer Zone located
	adjacent to the Purchaser's or Owner's property and all right,
	title, and interest in such adjacent portion of the Buffer Zone as
	measured by extending the boundary lines on both sides of the
	applicable portion of the Initial Leased Tract in a straight line
	across the Buffer Zone to the then current 1000' contour line of the
	Lake, or, if such portion cannot reasonably be measured as set forth
	above, then as otherwise determined by the Purchaser and approved
	by the Authority. Such residual interest shall immediately vest in
	the Purchaser or then-current Owner of such adjacent portion of the
	Initial Leased Tract without the necessity of any additional
	written conveyance.
	(4) Until the residual interest in the Buffer Zone
	vests in the Purchaser or then-current Owner of the adjacent
	portion of the Initial Leased Tract as set forth in Subdivision (3),
	[~~In the event a sale under Subsection (b) or (c) does not include~~
	~~the Buffer Zone or any portion thereof, or only includes a residual~~
	~~interest in the Buffer Zone or any portion thereof, then~~] such
	Buffer Zone shall remain subject to the terms and conditions of the
	residential Ground Lease in effect between the Leaseholder and the
	Authority at the time Closing occurs under Subsection (b) [~~or at the~~
	~~time the Leaseholder purchases the applicable Leased Tract under~~
	~~Subsection (c)~~]; provided, however, no rent shall be due the
	Authority under such Ground Lease for the Buffer Zone. At such time
	as the applicable Ground Lease expires or is otherwise terminated,
	the Authority may, subject to approval of the Federal Energy
	Regulatory Commission, grant the Purchaser or the then-current
	Owner of the adjacent tract (as determined pursuant to the method
	set forth in Subdivision (2)(B)), an easement for use of such
	portion of the Buffer Zone, which easement shall be subject to the
	FERC License. The Authority shall retain ownership of such portion
	of the Buffer Zone and exercise control over such portion of the
	Buffer Zone consistent with the FERC License and this subsection.
	The easement granted to such Owner shall be limited to uses
	permitted under the terms of the FERC License and the Authority's
	Shoreline Management Plan, and any other Authority rules and
	regulations as may be adopted from time to time.
	(f) Purchase Price. For purposes of determining the
	purchase price and/or lease rate pursuant to the options set forth
	in Subsection (b)(1) or the purchase price in Subsection (c), in the
	event the appraisal district does not provide an assessed value for
	the applicable portion of the Leased Tract for the applicable year,
	then the land only assessed value without any exemptions for the
	applicable portion of the Leased Tract shall be calculated based on
	the assessed value per square foot of comparable lots with similar
	physical characteristics in the applicable county or adjoining
	counties, as determined by the Authority.
	(g) Roads. Authority or Purchaser, whichever is
	applicable, shall transfer its interest in the Roads to the
	applicable county in which the Roads, or any portion thereof, are
	situated as follows:
	(1) All Roads located in Stephens County
	(approximately three miles of Roads) shall be transferred to
	Stephens County on or before December 31, 2011.
	(2) All Roads located in Palo Pinto County
	(approximately forty-six miles of Roads) shall be transferred to
	Palo Pinto County in twenty percent increments of the total mileage
	per year for five consecutive years. The first twenty percent
	increment shall be transferred on or before December 31, 2011, and
	each remaining twenty percent increment shall be transferred on or
	before December 31 of each subsequent year, but not before January 1
	of such year unless approved by an order or resolution of the Palo
	Pinto County Commissioners Court, with the final twenty percent
	increment being transferred on or before December 31, 2015, but not
	before January 1, 2015, unless approved by an order or resolution of
	the Palo Pinto County Commissioners Court.
	(3) Authority or Purchaser, whichever is applicable,
	in consultation with the Palo Pinto County Commissioner or
	Commissioners who have jurisdiction over the Leased Tract, shall
	determine which Roads or portions thereof shall be transferred each
	year.
	(4) The transfer of any portion of the Roads located
	within the FERC Project Area shall be in accordance with the FERC
	License and may be in the form of a grant of a right-of-way or
	easement, unless otherwise authorized by the Federal Energy
	Regulatory Commission.
	(5) Beginning on the date of transfer, the Authority
	or Purchaser, whichever is applicable, shall no longer have any
	obligations regarding such Roads. The Roads shall be transferred
	in their "as-is" condition and neither the Authority nor the
	Purchaser shall have any obligation to ensure that the Roads, or any
	portion thereof, comply with the standards in effect at the time of
	transfer in the applicable county for like roads currently
	maintained by that county.
	(6) Concurrently with the transfer in each year of a
	portion of the Roads, the Authority or Purchaser, as applicable,
	shall transfer to Palo Pinto County the amount, rounded to the
	nearest dollar, computed by multiplying $200,000 by a fraction the
	numerator of which is the number of miles of Roads located in and
	transferred to Palo Pinto County in that year and the denominator of
	which is the total number of miles of Roads located in and
	transferred or to be transferred to Palo Pinto County. For every
	other county in which a portion of the Roads is located, the
	Authority or Purchaser, as applicable, shall transfer an amount
	equal to (A) the per mile road payment (as defined below) multiplied
	by (B) the number of miles of the Roads located in such county. As
	used in this subdivision, "per mile road payment" means the amount,
	rounded to the nearest dollar, computed by dividing $200,000 by the
	total number of miles of Roads located in and transferred or to be
	transferred to Palo Pinto County pursuant to this subsection.
	(7) Notwithstanding any provision in this subsection
	to the contrary, the Authority or Purchaser, as applicable, shall
	retain ownership of any portion of a Road that is inaccessible to
	the public. For purposes of this subdivision, a portion of the Road
	is considered inaccessible to the public if, as of the effective
	date of the Act enacting this section, the public can only access
	such portion of the Road by crossing property not owned by the
	Authority or Purchaser, as applicable, and not subject to an
	easement or other ownership interest that allows the public to
	cross such property without restriction. If a retained portion of a
	Road subsequently becomes accessible to the public, the Authority
	or Purchaser, as applicable, shall transfer such retained portion,
	including any interest the Authority or Purchaser has in any
	additional Road constructed or acquired by the Authority or
	Purchaser in order to make the retained portion of the Road
	accessible to the public, to the applicable county in accordance
	with the process set forth in this subsection, or in the event such
	portion of the Road becomes accessible to the public after December
	31, 2015, within one (1) year of such retained portion of the Road
	becoming accessible.
	(h) Platting. A sale of the Leased Tract under this section
	shall not be subject to Chapter 232, Local Government Code, or any
	other platting requirement.
	(i) Mineral Interests. The Authority shall reserve its
	interest in all oil, gas, and other minerals in and under the Leased
	Tract (or any portion thereof) sold under this section.
	(j) Expiration of Requirement to Sell. The requirement that
	the Authority conduct a sale of the Remaining Leased Tract under
	Subsection (b) or (c) expires on December 31, 2016, if the FERC
	License is not terminated by decommissioning or otherwise.
	SECTION 5. Subsection (h), Section 8502.0132, Special
	District Local Laws Code, is repealed.
	SECTION 6. If the provisions of Section 8502.0132 or
	8502.020, Special District Local Laws Code, as amended by this Act,
	or Section 8502.0133, Special District Local Laws Code, as added by
	this Act, conflict with any other provision of Chapter 8502 of that
	code, then the provisions of Section 8502.0132, 8502.0133, or
	8502.020, as applicable, prevail.
	SECTION 7. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2013.





	______________________________	______________________________
	President of the Senate	Speaker of the House

	I hereby certify that S.B. No. 918 passed the Senate on
	March 21, 2013, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 23, 2013, by the
	following vote: Yeas 31, Nays 0.


	______________________________
	Secretary of the Senate

	I hereby certify that S.B. No. 918 passed the House, with
	amendment, on May 20, 2013, by the following vote: Yeas 147,
	Nays 0, two present not voting.


	______________________________
	Chief Clerk of the House



	Approved:

	______________________________
	Date


	______________________________
	Governor