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HomeMy WebLinkAboutPR 12953:CANAL EASEMENTinteroffice MEMORANDUM TO: Mayor, City Council & City Manager From: Mark T. Sokolow, City Attorney ~ ~ subject: p. R. No. 12953 Council Meeting December 14, 2004 Date: December 10, 2004 Attached is P. R. No. 12953 authorizing the City Manager to execute a water supply contract, canal easement, and bill of sale of the primary flow signal (PPS) Venturi Meter, Serial No. 3485-1. MTS/ts Attactunent cc: VIA FACS?~?~E~ (&09) 833-8819 Hubert Oxford, III BENCKENSTEIN & OXFORD, LLP 3535 Calder Beaumont, TX 77706 z .pr12953 .memo P. R. No. 12953 12/10/0& ts RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A WATER SUPPLY CONTRACT, CANAL EASEMENT, AND BILL OF SALE OF THE PRIMARY FLOW SIGNAL (PPS) VETURI METER, SBRI~tL NO. 3485-1 WHEREAS, the LNVA and the City had a dispute over a water bill in the amount of $66,572.95; and WHEREAS, the LNVA and the City had a dispute as to LNVA usage of a venturi meter at the City's plant; and WHEREAS, the LNVA and the City had a dispute over the title to the canal right-of-way adjacent to the City's water treatment plant on Highway 73; and WHEREAS, the LNVA and the City had a concern as to the City receiving raw water without a written contract; and WHEREAS, the LNVA and the City deem it in the public interests to amicably resolve their dispute. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That upon the receipt of a letter or confirmation from the General Manager of the LNVA that the bill of $66,572.95 will be waived by the signing of the attached water supply contract, bill Of sale, and canal easement, the z.pr12953 City Manager will execute the water supply contract, canal easement, and bill of sale, attached hereto as Exhibits ~A", Section 3. That a copy of this caption be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this _ day of , A.D., 2004, at a Regular Meeting of the city Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Council Members NOES: MAYOR ATTEST: CITY SECRETARY APPROVED A~ TO FORM: CITY ATTORNEY APPROVED FOR AD~IINISTI~ATION: CITY MANAGER z .pr12953 EXHIBIT ~A" LOWER NECHES VALLEY AUTHORITY MUNICIPAL WATER SUPPLY CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § T~[S CONTRACT AND AGREEMENT made and entered into this the 1.5 dg~y. of 2005 December. , ,20,04 , and effective as ofthe lStdayof January , __, _ (hereinafter -refe-rred t~ a--s the "effective date") by ~nd between LOWER NEC}~S VAI~LEY AUTHORITY, a political subdivision of the State of Texas, having an office in Beaumont, Jefferson County, Texas hereinafter referred to for convenience as "SELLER", and CITY OF PORT ARTHUR, TEXAS a municipal corporation of the State of Texas, acting herein by and through its City Manager who is hereunto duly authorized by a Resolution of the City Council of said City, hereinafter called "BUYER". WITNESSETH: In consideration of the mutual agreements herein contained, SELLER, agrees to sell and BUYER agrees to buy water upon the terms and conditions and for the consideration hereinafter set forth: 1. Quantity: Subject to the remaining terms and provisions hereinafter set forth in this Contract, SELLER agrees to sell and deliver to BUYER at the delivery point hereinafter specified and BUYER agrees to pay, at the rate required by said Subparagraph 4 of said Section 6, below, and BUYER, at its option, may take the amount of water as BUYER may require for use in the operation of its plant located at or near 1101 HO Mills Blvd, Port Arthur, TX. 2. Quality: The water to be delivered by SELLER and received by BUYER hereunder shall be raw water, and SELLER shall not be obligated to treat such water in any manner, provided, however, that BUYER shall not be obligated to receive water and pay for same for any period during which it shall contain per gallon, at the delivery point, hereinafter specified, in excess of: Ten (10) grains of sodium chloride; and Fifteen (15) grains of encrnsting solids in carbonates of magnesium and calcium. And there shall be no liability, whatsoever, on the part of SELLER for failure to furnish and deliver the quality of water specified in this Section 2. It is expressly understood and agreed that there is and shall be no warranty or covenant expressed or implied upon the part of SELLER that said water shall be suitable for use by BUYER, and it is understood that BUYER is to filter and/or otherwise treat said water in order to render it suitable for its use. Unless prohibited by State or Federal law, Seller will notify Buyer of any security or terrorist threats against Seller's water supply. Municipal Water Supply Contract-Port Anhur5.doc 1 3. Delivery Point: The delivery poim for water sold and purchased hereunder for BUYER'S operations shall be at a point on SELLER'S canal heretofore selected and designated by BUYER, adjacent to or ~n the wmmty of BUYER plant. BUYER has constructed and agrees to operate, maintain and reconstruct, at BUYER's own cost and expense, all facilities necessary to take the water purchased hereunder from the canal of SELLER. The equipment and facilities so constructed, operated, maintained and reconstructed by BUYER shall be and remain the property of BUYER. 4. Measuring Equipment: SELLER has purchased and in the future will operate and maintain at its expense, at the delivery point of water for BUYER'S operations, the nec~s§ary meter of standard type to measure properly the water delivered under this agreement. The meter or meters and other equipment so installed shall be and remain the property of SELLER, and the same shall be used in determining the quantity of water delivered to BUYER under this contract and the following provisions in reference thereto shall apply: BUYER shall have access to said metering equipment at all reasonable times, but the reading and calibrating and adjustment thereof shall be done only by the employees or agents of SELLER. For the purpose of this contract the original record of readings of the meter or meters shall be the journal or other record book of SELLER in its office into which the records of the employees or agents of SELLER who takes meter readings is or may be transcribed and SELLER will, upon request, give BUYER a copy of such journal or record book or permit BUYER to have access to same at the office of SELLER during business hours. Not more than once each calendar quarter, on a date as near the last day of the month as practicable, SELLER must calibrate its meters if requested by BUYER to do so, in the presence of representatives of BUYER, and the parties shall jointly observe any adjustments which are made to the meters, should such adjustments be necessary, and if the check meters hereinafter provided for have been installed, the same shall also be calibrated by BUYER in the presence of representatives of SELLER and the parties shall jointly observe any adjustments, should such adjustments be necessary. If BUYER shall request SELLER to calibrate its meters and SELLER shall have given BUYER notice of the time when any such calibration is to be made a sufficient length of time in advance to enable BUYER to have its representatives present, and if representatives are not present at the time set, SELLER may proceed with said calibration and adjustments in the absence of BUYER'S representatives. If either party at any time observes a variation between the delivery meter or meters and the check meter or meters, if any such check meter or meter is or are installed, it will promptly notify the other party and the parties will then cooperate to secure an immediate calibration test and joint observation of any adjustment and the meter or meters shall then be adjusted to accuracy. Each party shall give to the other party seventy two (72) hours notice of the time of all tests of meters so that the other party may conveniently have its representatives present. Municipal Water Supply Contract-Port Arthur5.doe 2 If, upon any test, the percentage of inaccuracy of any metering equipment is found to be in excess of two percent (2%), registrations thereof shall be corrected for a period extending back to the time such inaccuracy occurred, if such time is ascertainable, and if not ascertainable, then back one- half(½) of the time elapsed since the last date of calibration. If, for any reason, any meters are out of service and/or out of repair so that the amount of water delivered cannot be ascertained or computed from the readings thereof, the water delivered through the period such meters are out of service and/or out of repair shall be estimated and agreed upon by the parties hereto upon the basis of the best data available, using the first of the following methods which is feasible: A. By using the registration of any check meter or meters if installed and accurately registering; B. By correcting the error if the percentage of error is ascertainable by calibration test of mathematical calculation; or C. By estimating the quantity of delivery by deliveries during preceding periods under similar conditions when the meter or meters was or were registering accurately. BUYER may, at its option and expense, install and operate check meters to check each meter installed by SELLER but measurement of water for the purpose of this agreement shall be by SELLER'S meters only, except in case hereinabove specifically provided to the contrary. Check meters shall be of the orifice or venturi type and of standard make, and shall be subject at all reasonable times to inspection and examination of SELLER, but the reading, calibration and adjustment shall be done only by BUYER, except during any period where a check meter may be used under the provisions hereof for measuring the water delivered when the reading, calibration and adjustment hereof shall be made by SELLER with like effect, as if such check meter or meters has or have been furnished and installed by it. 5. Unit of Measure: The unit of measure for water delivered hereunder shall be One Thousand (1,000) Gallons of water U.S. Standard Liquid Measure. 6. Price and Payment for Water: For the purpose of billing and accounting, the day shall begin at 10:00 a.m. on a day and extend to 10:00 a.m. the next day, and the billing month as used under this contract shall begin at 10:00 a.m. on or near the first day of each calendar month and end at 10:00 a.m. on the first day of the succeeding calendar month, or such billing cycles as agreed to by the parties. The bill for any month shall be paid by BUYER at SELLER'S office in Jefferson County, Texas on or before the 15th day of the calendar month during which the bill is received by BUYER. Should BUYER fail to pay any amount due SELLER hereunder, when same is due, a 1% per month late payment penalty may be applied to the outstanding balance, and should such failure to pay continue for sixty (60) days, SELLER may suspend deliveries of water. Municipal Water Supply Con~'act-Port ArthurS.doc 3 SELLER has established and charges all municipal customers the standard rates for water which are set out in Exhibit "A" which is attached hereto and made a part hereof as fully and to the same extent as if copied herein in full. BUYER agrees to take and pay for water under the rates set out in said Exhibit "A" or such amended rate as may hereafter be adopted by the Board of Directors of SELLER. It is expressly understood and agreed that SELLER shall have the right at any time during the period of this contract to change the above set forth standard scheduled rates charged its customers for water, and in the event, such rates are lowered, BUYER shall have the advantage of same immediately when they become effective, and if said rates are made higher or different, the BUYER hereby agrees to take and pay for water under such higher or different rates. Seller will give buyer notice of any meeting of Seller wherein the rates may be amended or modified. Any increase in rates will not be effective for thirty days after the adoption by the Board of Directors of the Seller. 7. Limitation on Quantity: Anything in this contract to the contrary notwithstanding, it is understood and agreed by the parties hereto that in no event shall SELLER be obligated to deliver to BUYER more water than SELLER shall have available through its present plant facilities and equipment, and SELLER shall not be obligated to extend nor enlarge its plant facilities or equipment for the purpose of supplying demands to BUYER under this contract. Should SELLER at any time, by reason of a shortage resulting from any of the causes mentioned in Section 11.039 of the Texas Water Code or by reason of any of the happenings or conditions mentioned in Paragraph 8, below, not have available sufficient water to furnish to all parties having contracts with SELLER the water to which they are otherwise entitled under the terms of such contracts, then and in that event the water available will be distributed and divided as required by said Section 11.039 of the Texas Water Code. 8. Force Majeure: In the event of either party being rendered unable, wholly or in part, by force majeure to carry out its obligations under this contract, other than the obligations to make payments of amounts accrued and due hereunder at the time thereof, it is agreed that on such party giving notice and full particulars of such force majeure in writing or by telefacsimile to the other party within a reasonable time after the occurrence of the cause relied on, then the obligations of the party giving such notice, so far as they are affected by such force majeure shall be suspended during the continuance of any liability so caused but for no longer period, and such cause shall so far as possible be remedied with all reasonable dispatch. The term "force majeure" as employed herein shall mean and include, without limitation, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, and restraint of Government and people, civil disturbances, explosions, breakage or accident to machinery and/or canals, partial drought or entire failure of the supply of water, and inability on the part of SELLER to deliver water hereunder or all of the water contracted for hereunder on account of contractual rights of others or on account of the prior rights to other users to the supply of water at the source of the supply arising by operation of law, and any other causes, whether of the kind herein enumerated or otherwise not reasonably within the control of the party claiming suspension. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party having the difficulty, and that the above requirement that any force majeure shall be remedied with Municipal Water Supply Contract-Port ArthurS.doc 4 all reasonable dispatch shall not require the settlement of strikes or lockouts be acceding to the demands of opposing party when such course is inadvisable in the discretion of the party having the difficulty. 9. Other Purchases: It is expressly understood and agreed that, BUYER shall have the fight, to obtain water from other sources. 10. Non-Waiver: The failure of either party hereto to insist, in any one or more instances, upon performance of any of the terms, covenants, or conditions of this contract shall not be construed as a waiver or a relinquishment of the future performance of any such term, covenant, or condition of the other party hereto, but the obligation of such party with respect to such furore performance shall continue in full fome and effect. 11. Term: This contract shall be for a term of ten (10) years commencing at 12:01 a.m. on the effective date of this contract and ending ten (10) years from such time and date. This contract may be renewed and extended for an additional period of time, upon the same terms and conditions as herein set out, by a letter of agreement executed prior to the expiration of this contract by the persons then authorized to enter into contracts on behalf of SELLER and BUYER. 12. Assignment: This agreement shall enure to the benefit of, and be binding upon the parties hereto and their respective successors and assigns. 13. Notice: Any notice required or authorized to be given under the terms and provisions of this contract will be in writing and will be delivered in person at the office address or in the alternative will be delivered by certified mail addressed to the post office address which is set out below following the name of the party to whom notice is being given. Said offices and mailing addresses will be considered as remaining in effect until such time as notice of a change of address is given by one party to the other in writing as herein provided in this paragraph. 14. Regulatory Bodies: This contract shall be subject to all valid rules and regulations and laws applicable hereto, passed or promulgated by the United States, the State of Texas and any municipal Or other government body or agency or by an authorized representatives or agent of any of them, having lawful jurisdiction. 15. Drought Contingency Plan: This contract is subject to the LNVA Drought Contingency Plan, on file in the Seller's Office, in Beaumont, Texas, and which provides that in case of a shortage of water, resulting from drought, the water to be distributed shall be divided in accordance with Texas Water Code §11.039 and also provides for procedures for granting variances to the plan and procedures, and for the enforcement of any mandatory water use restrictions including specification of penalties (e.g., liquidated damages, water rate surcharges, discontinuation of service) for violations of such restrictions. If BUYER intends to resell the water, this contract between BUYER and SELLER requires that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of water will be required to implement water conservation measures in accordance with the regulations of the Texas Natural Resource Conservation Commission. Municipal Water Supply Contract-Port ArthurS.doc 5 16. This contract is made and entered into in Beaumont, Jefferson County, Texas, is performable in all particulars in said Jefferson County, Texas, shall be construed and enforced in accordance with the laws of the State of Texas and any cause of action hereunder shall be filed and maintained in a court of competent jurisdiction in Jefferson County, Texas. 17. BUYER represents and warrants to SELLER that is a political subdivision of the State of Texas or an instrumentality of a political subdivision of the State of Texas. 18. BUYER represents and warrants to SELLER that it will not enter into a contract to sell raw, untreated water provided hereunder with a non-governmental person who requires such water purchaser to make minimum payments to the BUYER which payments relate, directly or indirectly, in whole or in part, to the payments made to SELLER by the BUYER. This restriction shall not apply to contracts with a term of 90 days or less or certain contracts for the resale of small quantities of water approved by the SELLER or for other sales of raw, untreated water from the LNVA, if written consent of the LNVA is obtained. IN WITNESS WHEREOF, the SELLER and BUYER have caused this Contract and Agreement to be executed by their respective duly authorized officers and have caused their respective seals to be hereunto affixed as of the effective date above stated. Seller LOWER NECHES VALLEY AUTHORITY Office Address: Mailing Address: 7850 Eastex Frwy. P.O. Box 5117 Beaumont, TX 77708 Beaumont, TX 77726-5117 ATTEST: President Primed Name: Buyer CITY OF PORT ARTHUR Mailing Address P. O. Box 1089 Port Arthur, TX 77641-1089 ATTEST: Printed Name:. Printed Name: z.lnva_water supply.contract 6 EXHIBIT "A" RAW WATER RATES EFFECTIVE JANUARY 1, 2005 Municipal rate per 1,000 gallons $0.1592 z.lnva~water supply.contract EXHIBIT ~B" BILL OF SALE THE STATE OF TEXAS S COUnTY OF JEFFERSON S The undersigned, the City of Port Arthur, Jefferson County, Texas (hereinafter called ~Seller"), for and in consideration of the payment of the sum of SIXTEEN THOUSAND and No/100 DOLLARS, ($16,000), and other good and valuable consideration to in hand paid by the Lower Neches Valley Authority, a political subdivision of the State of Texas, organized under the laws of the State of Texas, (hereinafter called ~Buyer"), its successors and assigns, have bargained, transferred, sold and delivered, and by these presents does bargain, transfer, sell, and deliver unto the Buyer, its successors and assigns, all the following personal property located in Port Arthur, Jefferson County, Texas, more fully described as follows: Primary Flow Signal (PFS) Venturi Meter Serial No. 3485-1, Tag # FE-101, Model 30" C_HVT-CI originally sized for 26.0 M>G.D. water flow at a differential pressure of 40.47" W.C. (Inches Water Column) installed in and including a vault outside the Port Arthur Water Treatment Plant Seller warrants that it is the lawful owner in every respect of all the above-described property and that it is f4ree and clear of all liens, security agreements, encumbrances, claims, demands, and charges of every kind whatsoever. Seller binds itself, its successors, and assigns, to warrant and forever defend the title to the above described property to the Buyer, its successors and assigns, against every person lawfully claiming, or to claim the described property or any part of it. z.lnva_bill of sale This Bill of Sale shall be effective to transfer the property described in it as of January 1, 2005. iN WITNESS WHEREOF, this Bill of Sale is executed this __ day of , 2004. CITY OF PORT ARTHUI~ BY~ ITS~ ACKNOWLEDGMENT TH~ STATE OF TEXAS S COUB~TY OF JEFFERSON S BEF0~E ME, the undersigned authority, on this day appeared , of the City of Port Arthur, Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the instrument for the purposes and consideration expressed in the instrument and in the capacity as therein stated. GIVEN UNDER MY P2~ND AND SEAL OF OFFICE, this the __ day of , 2004. Notary Public, State of Texas After recording, please return to: Hubert Oxford, III B~qCKENSTEIN & OXFOKD, L.L.P. P. 0. Drawer 150 Beaumont, TX 77704 z.lnva_bill of sale EXHIBIT ~C" CANAL EASEMENT THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § THAT FOR AND 1N CONSIDERATION of the sum of Ten Dollars ($10.00) and other valuable consideration paid to CITY OF PORT ARTHUR ("Grantor"), the receipt of which is hereby acknowledged, Grantor hereby grants to THE LOWER NECHES VALLEY AUTHORITY, a political subdivision of the State of Texas (hereinafter called "Grantee"), its successors and assigns, a perpetual easement to construct, maintain, operate, protect and repair a canal for the transportation of fresh water with all the incidental equipment, if any, on, over and through lands owned by Grantor situated in Jefferson County, Texas for all purposes and the rights of ingress and egress over and across the following-described land and Grantor's adjacent lands (for maintenance and repair) for the purposes herein granted in this right-of-way easement and being more particularly described by metes and bounds in three tracts as follows: TRACT I (Canal Easement) Being 8.558 acres of land and water out of and a part of Lots 4 and 5, Block 8, Range L, Port Arthur Land Company Subdivision, City of Port Arthur, as recorded in Vol. 1, Page 22, Map Records, Jefferson County, Texas; being part of a tract of land conveyed to the City of Port Arthur, as recorded in Vol. 260, Page 615, Deed Records, Jefferson County, Texas; said 8.558 acre tract being more fully described by metes and bounds as follows to wit; COMMENCING at a point being the common comer of said Lot 4, Block 8, Range L, Lot 1, Block 8, Range M, Lot 5, Block 7, Range L and Lot 8, Block 7, Range M; said point being in the right of way of a dedicated road named State Highway No. 73; THENCE (Called North 53 deg., 21 min., 15 sec., West), on the common line of said Ranges L and M, Port Arthur Land Company Subdivision, a distance of (Called 129.00') to a point being on the North right of way line of said State Highway No. 73, as depicted on a map or plat recorded in Vol. 9, Page 25, Map Records, Jefferson County, Texas; THENCE North 36 deg., 38 min., 45 sec., East, on the North right of way line of said State Highway No. 73, a distance of 20.00' to a point for comer being the POINT OF BEGINNING; having a State Plane Coordinate of North = 13,910,811.95, East = 3562057.90, Texas South Central Zone (1983 Datum); said point for comer being the Southwest comer of the herein described tract; THENCE North 53 deg., 21 min., 15 sec., West, a distance of 1191.00' passing the common line of said Lots 4 and 5, Block 8, Range L and continuing for a total distance of 2491.00' to a point for comer being the Northwest comer of the herein described tract; said point having a State Plane Coordinates of North = 13,912,298.74, East = 3,560,059.27; THENCE North 36 deg., 38 min., 45 sec, East, a distance of 154.00' to a point for corner being the Northeast comer of the herein described tract; THENCE South 53 deg., 08 min., 51 sec., East, a distance of 2497.12' to a point for comer being on the North right of way line of said State Highway No. 73; said point for comer being the Southeast comer of the herein described tract; THENCE South 39 deg., 19 min., 02 sec., West, on the North right of way line of said State Highway No. 73, a distance of 131.00' to an angle point in the North right of way line of said State Highway No. 87; THENCE South 36 deg., 38 min., 45 sec., West, continuing on the North right of way line of said State Highway No. 73, a distance of 14.13' to the POINT OF BEGINNING and containing 8.558 acres of land and water, more or less. TRACT II (Meter Site Easement) Being 0.0957 acre of land out of and a part of Lot 1, Block 8, Range M, Port Arthur Land Company Subdivision, City of Port Arthur, as recorded in Vol. 1, Page 22, Map Records, Jefferson County, Texas; being part of a tract of land conveyed to the City of Port Arthur, as recorded in Vol. 260, Page 615, Deed Records, Jefferson County, Texas; said 0.0957 acre tract being more fully described by metes and bounds as follows to wit; COMMENCING at a point being the common comer of said Lot 4, Block 8, Range L, and said Lot 1, Block 8, Range M, Lot 5, Block 7, Range L and Lot 8, Block 7, Range M; said point being in the right of way of a dedicated road named State Highway No. 73; as shown on a map or plat, as recorded in Vol. 9, Page 25, Map Records, Jefferson County, Texas 2 THENCE (Called North 53 deg., 21 min., 15 sec., West), on the common line of said Ranges L and M, Port Arthur Land Company Subdivision, a distance of (Called 129.00') passing the North right of way line of said State Highway No. 73, continuing for a total distance of 422.05' to a point; THENCE South 36 deg., 38 min., 45 sec., West, a distance of 20.00' to a point for comer being the POINT OF BEGINNING; having a State Plane Coordinate of North = 13,910,954.76, East = 3,561,798.90, Texas South Central Zone (1983 Datum); said point for comer being the Southeast comer of the herein described tract; THENCE South 36 deg., 38 min., 45 sec, West, a distance of 139.00' to a point for comer being the Southwest comer of the herein described tract; said point having a Sate Plane Coordinate of North = 13,910,843.23, East = 3,561,715.94; THENCE North 53 deg., 21 min., 15 sec., West, a distance of 30.00' to a point for comer being on the Northwest comer of the herein described tract; THENCE North 36 deg., 38 min., 45 sec., East, a distance of 139.00' to a point for comer being the Northeast comer of the herein described tract; THENCE South 53 deg., 21 min., 15 sec., East, a distance of 30.00' to the PO1NT OF BEGINNING and containing 0.0957 acre of land more or less. TRACT III (10 Foot Wide Maintenance Access Easement) Being 0.5733 acre of land for canal access easement purposes out of and a part of Lots 4 and 5, Block 8, Range L, Port Arthur Land Company Subdivision, City of Port Arthur, as recorded in Vol. 1, Page 22, Map Records, Jefferson County, Texas; being part of a tract of land conveyed to the City of Port Arthur, as recorded in Vol. 260, Page 615, Deed Records, Jefferson County, Texas; said 0.5733 acre tract being more fully described by metes and bounds as follows to wit; COMMENCING at a point being the common comer of said Lot 4, Block 8, Range L, Lot 1, Block 8, Range M, Lot 5, Block 7, Range L and Lot 8, Block 7, Range M; said point being in the right of way of a dedicated road named State Highway No. 73; THENCE (Called North 53 deg., 21 min., 15 sec., West), on the common line of said Ranges L and M, Port Arthur Land Company Subdivision, a distance of (Called 129.00') to a point being on the North right of way line of said State Highway No. 73, as depicted on a map or plat recorded in Vol. 9, Page 25, Map Records, Jefferson County, Texas; THENCE North 36 deg., 38 min., 45 sec., East, on the North right of way line of said State Highway No. 73, a distance of 34.13' to an angle point in the North right of way line of said State Highway No. 73; THENCE North 39 deg., 19 min., 02 sec., East, continuing on the North right of way line of said State Highway No. 73, a distance of 131.00' to a point for comer being the POINT OF BEGINNING and the Southwest comer of the herein described tract; THENCE North 53 deg., 08 min., 51 sec., West, a distance of 2497.12' to a point for comer being the Northwest comer of the herein described tract; THENCE North 36 deg., 38 min., 45 sec, East, a distance of 10.00' to a point for comer being the Northeast comer of the herein described tract; THENCE South 53 deg., 08 min., 51 sec., East, a distance of 2497.59' to a point for comer being on the North right of way line of said State Highway No. 73; and being the Southeast comer of the herein described tract; THENCE South 39 deg., 19 min., 02 sec., West, on the North right of way line of said State Highway No. 73, a distance of 10.01' to the PO1NT OF BEGINNING and containing 0.5733 acres of land, more or less. These descriptions are based on the Land Survey and plat made by Anthony M. Leger, Registered Professional Land Surveyor No. 5481, on April 3, 2003. NOTE: Beatings shown are Grid Bearings (Texas State Plane Coordinate System NAD 83 Datum Texas South Central Zone). Distances and Acreage are Surface distances and acreage. Attached hereto as "Exhibit A," which is made a part hereof for all intent and purposes, is the Easement Plat & Descriptions consisting of a certified metes and bounds description of the Canal Right of Way Easement and abstract. TO HAVE AND TO HOLD said right of way and easement unto Grantee, its successors and assigns, until said easement is abandoned or released by Grantee, its successors and assigns in a recordable instrument. This instrument was prepared from information furnished by the parties and no examination has been made and no opinion has been given by the firm preparing this instrument as to the title to or the description of the property involved. 4 It is distinctly understood and agreed that this does not constitute a conveyance of any part of the land above described nor of the minerals therein and thereunder, but grants only the right of way and easement as above provided. Grantor retains for itself, its successors and assigns, the right to use and enjoy said premises except to the extent that such retained use may interfere with Grantee's use of said right of way and easement for the purposes herein granted or to the extent that such retained use by Grantor, its successors and assigns may not be consistent with the safety of Grantee's canal or the safety of persons or property on said right of way. Without limitation of the foregoing, Grantor, its successors and assigns, shall not construct or permit to be constructed or placed on or over said right of way any structure, obstruction or improvement, which may interfere with access to, maintenance of, or safety of Grantee's canal. Grantor, its successors and assigns, shall not construct fences, pipelines or utility lines within said right of way without prior written authorization from Grantee which shall not be unreasonably withheld. Grantors retain the right to maintain, improve and upgrade the water line and pumps between the city's plant and reservoir. All work by the Grantor within the limits of this easement shall be coordinated with Grantee. Grantee shall comply with all applicable requirements of local, state and federal agencies related to the construction, operation and maintenance of Grantee's facilities and shall in all respects conduct its operations hereunder in accordance with all local, state and federal laws and good business practices. It is understood and agreed that Grantee shall be entitled to exercise any of the rights granted in this right-of-way easement at any time and from time to time for so long as the right 5 of way easement remains in force and effect and that Grantee may assign the easements and right granted herein to a successor corporation or entity. EXECUTED AND AGREED TO on this the . day of ,2004. CITY OF PORT ARTHUR Stephen Fitzgibbons City Manager THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of , 2004, by Stephen Fitzgibbons, City Manager of the City of Port Arthur. Notary Public, State of Texas 6 APPROVED AS TO FORM: Mark T. Sokolow Port Arthur City Attorney Hubert Oxford, III Attorney for Lower Neches Valley Authority After recording return to: Lower Neches Valley Authority P. O. Box 5117 Beaumont, Texas 77726-5117 EXHIBIT ~A" TO THE CANAL EASEMENT Easement Plat is located in the City Secretary's Office