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    <TD class=3DTextSmall><A class=3DTextSmall=20
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      <DIV class=3DSection1>
      <P class=3DMsoNormal><A name=3Da3><B><SPAN style=3D"FONT-SIZE: =
13pt">Reversed=20
      and Remanded</SPAN></B></A><B><SPAN style=3D"FONT-SIZE: 13pt"> and =
Opinion=20
      filed July 24, 2007.</SPAN></B></P>
      <P class=3DMsoNormal><B><SPAN style=3D"FONT-SIZE: =
13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal><SPAN style=3D"FONT-SIZE: =
13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt">In The</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: 'Old English Text =
MT'">Fourteenth=20
      Court of Appeals</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">NO. <A=20
      name=3Da4>14-05-01272-CV</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da5><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">MAGUIRE OIL=20
      COMPANY, MAGUIRE ENERGY COMPANY, CARY M. MAGUIRE, CARY M. MAGUIRE =
AS=20
      MANAGER FOR THE OIL FUND U/I/D 9/1/76, CARY M. MAGUIRE AS TRUSTEE =
FOR UTD=20
      1/1/83 FBO CARY M. MAGUIRE, JR., CARY M. MAGUIRE AS TRUSTEE UTD =
1/1/83 FBO=20
      MELINDA AMBLER MAGUIRE, CARY M. MAGUIRE AS TRUSTEE UTD 5/1/84 FBO =
ANN=20
      BLAINE MAGUIRE, DON R. HOLLOWAY AS CUSTODIAN OF THE MATTHEW =
HOLLOWAY=20
      TUGTMA, DON R. HOLLOWAY AS CUSTODIAN OF THE SARAH L. HOLLOWAY =
TUGTMA, DON=20
      R. HOLLOWAY AS CUSTODIAN OF THE BARBARA ANN HOLLOWAY TUGTMA, DON =
R.=20
      HOLLOWAY AS CUSTODIAN OF THE TILLMAN R. HOLLOWAY TUGTMA, WILLIAM =
N.=20
      COLLINS, JR. AS CUSTODIAN OF THE L. PAIGE COLLINS TUGTMA, WILLIAM =
N.=20
      COLLINS, JR. AS CUSTODIAN OF THE HATTIE S. COLLINS TUGTMA, WILLIAM =
N.=20
      COLLINS AS CUSTODIAN OF THE CHANDLER COLLINS =
TUGTMA</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">, =
Appellants</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">V.</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da6><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">THE CITY OF=20
      HOUSTON</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">, =
Appellee</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -2; LEFT: 0px; MARGIN-LEFT: =
96px; WIDTH: 624px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D624></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">On Appeal from the =
<A=20
      name=3Da7>County Civil Court at Law No. Four</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da8><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">Harris</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"> County, =
Texas</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Trial Court Cause =
No. <A=20
      name=3Da9>817,512</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -1; LEFT: 0px; MARGIN-LEFT: =
96px; WIDTH: 624px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D624></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P></DIV><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN></B>
      <DIV class=3DSection2>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">O P I N I=20
      O N</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In this=20
      appeal from the grant of a plea to the jurisdiction, Maguire Oil =
Company,=20
      et al (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">) seeks=20
      reversal of a judgment in favor of The City of Houston =
(</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">) on the=20
      following grounds: (1) the trial court erred in determining the =
case was=20
      not ripe for adjudication; alternatively (2) the trial court erred =
by=20
      dismissing Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s claims=20
      because the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      jurisdictional plea did not implicate Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s two=20
      alternate theories of recovery</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">inverse=20
      condemnation and physical taking. Because the trial court erred by =

      granting the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s plea to=20
      the jurisdiction, we reverse and remand.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">I.=20
      Factual and Procedural Background</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">We outline=20
      the facts in the light most favorable to Maguire, as the =
non-movant=20
      below.&nbsp; Maguire owns substantial mineral interests around and =

      underneath Lake Houston.&nbsp; In the 1940</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s, the=20
      City acquired surface rights to the land which eventually was =
inundated=20
      with water to form Lake Houston. During 1965, the City adopted an=20
      ordinance that generally proscribed pollution. During 1967, the =
City=20
      amended the ordinance to eliminate drilling in or around Lake=20
      Houston.&nbsp; In 1977, the City Council amended the definition of =

      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">control=20
      area</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
to cover=20
      land in its extraterritorial jurisdiction.&nbsp; The ordinance and =

      accompanying definitions that were effective during 1977 are at =
issue in=20
      this case even though the City redefined </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">control=20
      area</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
in=20
      1997.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection3>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In the=20
      late 1980</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s, Maguire=20
      began to investigate prospects for a gas well in an area near =
Houston=20
      known as the </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Scanlan=20
      Deep Prospect,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
a=20
      substantial portion of which lies beneath Lake Houston.&nbsp; =
Initially,=20
      Maguire began to drill outside the city limits.&nbsp; After a =
vertical=20
      well failed, Maguire attempted to drill directionally.&nbsp; This =
effort=20
      also failed.&nbsp; After spending more than three million dollars, =
Maguire=20
      determined that the only feasible location to drill for natural =
gas in the=20
      Scanlan Deep Prospect would be within 1000 feet from Lake =
Houston.&nbsp;=20
      During 1991, Maguire decided to drill a vertical well inside the =
city=20
      limits, approximately 300 feet west of Lake Houston.&nbsp; =
Accordingly,=20
      Maguire filed appropriate documents and requested that the City =
issue a=20
      drilling permit.&nbsp; On May 7, 1991, the City approved a permit =
to drill=20
      at the chosen location. Later, the City ratified and extended that =

      permit.&nbsp; Maguire spent approximately $200,000 building roads, =

      clearing the location, and moving in the rig and equipment.&nbsp; =
On=20
      October 31, 1991, the City issued a stop work order, and revoked =
the=20
      permit pursuant to Houston Code of Ordinances Chapter 23, Article =
IV=20
      section 23-102.&nbsp; As it existed in 1991, Section 23-102=20
      provided:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">No well=20
      shall be drilled within the control area of Lake Houston which is =
nearer=20
      than 1,000 feet from the normal water</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s edge of=20
      Lake Houston or any of its drains, streams or tributaries.&nbsp; =
In=20
      addition, no well shall be drilled within such control area at an=20
      elevation of less than 48 feet above sea level.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s multiple=20
      proposals to the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s legal,=20
      health, planning and development departments, as well as the =
water-quality=20
      director were rejected.&nbsp; The City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      water-quality director steadfastly maintained the position that =
the a=20
      drilling permit would not be issued. All of the City =
representatives=20
      maintained the position that the ordinance provided blanket =
prohibition=20
      drilling in the </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">control=20
      area.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
All City=20
      personnel responsible for enforcement of the ordinance rejected=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s attempts=20
      to proceed with drilling the previously permitted well.&nbsp; =
Maguire=20
      attempted to communicate with the Mayor, but these efforts were to =
no=20
      avail.&nbsp; Subsequently, Maguire filed suit for inverse =
condemnation,=20
      negligent misrepresentation, and promissory estoppel in the 55th =
District=20
      Court of Harris County.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection4>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">This civil=20
      action has been on a fourteen-year journey bouncing between =
federal and=20
      state courts only to remain unresolved.&nbsp; The City removed the =
case to=20
      the United States District Court for the Southern District of =
Texas.&nbsp;=20
      Subsequently, the federal district court determined it did not =
have=20
      subject matter jurisdiction and it was remanded.&nbsp; Following =
remand to=20
      the 55th District Court of Harris County, the court granted the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s motion=20
      for summary judgment. Maguire appealed to the Houston courts of=20
      appeals.&nbsp; Pursuant to a docket-equalization order, appellate =
review=20
      was assigned to the Texarkana Court of Appeals.&nbsp; That court =
upheld=20
      the trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s summary=20
      judgment in favor of the City relative to Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      negligent misrepresentation claim, but reversed and remanded the =
remaining=20
      claims for further proceedings in the 55th District Court.&nbsp;=20
      <I>Maguire Oil Co. v. City of Houston</I>, 69 S.W.3d 350, 372 =
(Tex.=20
      App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Texarkana=20
      2002, pet. denied).&nbsp; Notably, the Texarkana Court of Appeals=20
      concluded that section 23-102 did not apply to Maguire</SPAN><SPAN =

      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s drill=20
      site.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83632#_ftn1"=20
      name=3D_ftnref1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[1]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>=20
      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In the=20
      interim, this court issued <I>Taub v. Aquila Southwest Pipeline =
Corp.</I>,=20
      wherein we held that the county civil courts at law have exclusive =

      jurisdiction over condemnation and eminent domain cases.&nbsp; 93 =
S.W.3d=20
      451, 456 (Tex. App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Houston=20
      [14th Dist.] 2002, no pet.).&nbsp; Following <I>Taub</I>,=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s inverse=20
      condemnation claim was dismissed from district court and re-filed =
in=20
      County Civil Court at Law Number Four (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">trial=20
      court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">).&nbsp;=20
      Both parties filed motions for summary judgment. Among its grounds =
for=20
      summary judgment, the City urged that Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s takings=20
      claim was not ripe.&nbsp; The trial court requested that the =
City&nbsp;=20
      restyle its ripeness challenge as a plea to the jurisdiction, and=20
      requested briefs.&nbsp; On November 29, 2005, the trial court =
granted the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s plea to=20
      the jurisdiction and dismissed Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s entire=20
      case.&nbsp; On appeal, this court will answer the limited question =
whether=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s claims=20
      are ripe for adjudication. </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">II. <SPAN=20
      style=3D"TEXT-TRANSFORM: =
uppercase">Ripeness</SPAN></SPAN></B></P></DIV><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN></B>
      <DIV class=3DSection5>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In its=20
      first issue, Maguire contends the trial court erred by determining =
its=20
      suit was not ripe for adjudication.&nbsp; It is well settled that =
a=20
      dispute must be ripe for adjudication before a court may exercise =
subject=20
      matter jurisdiction.&nbsp; <I>See Mayhew v. Town of Sunnyvale</I>, =
964=20
      S.W.2d 922, 928 (Tex. 1998).&nbsp; We review a ripeness =
determination de=20
      novo.&nbsp; <I>Id</I>.&nbsp; In context of an inverse condemnation =
case,=20
      the matter is not ripe unless the governmental entity charged with =

      implementing the regulation that allegedly caused the taking has =
reached a=20
      final decision.<I>&nbsp; See Williamson County =
Reg</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">l Planning=20
      Comm</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">n</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
<I>v.=20
      Hamilton Bank of Johnson City</I>, 473 U.S. 172, 186 (1985); =
<I>see=20
      also</I> <I>Mayhew</I>, 964 S.W.2d at 928</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">29=20
      (stating that we look to federal jurisprudence to guide our review =
of=20
      these disputes).&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">A final=20
      decision is prerequisite to ripeness in the context of regulatory =
takings=20
      and related constitutional claims.&nbsp; <I>Mayhew</I>, 964 S.W.2d =
at=20
      929.&nbsp; That final and authoritative decision must be =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">of the=20
      type and intensity of development legally permitted on the subject =

      property [because a] court cannot determine whether a regulation =
has gone=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">&gt;</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">too=20
      far</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
unless it=20
      knows how far the regulation goes.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      <I>Id</I>. (citation and quotation omitted).&nbsp; Stated =
differently, we=20
      must have sufficient evidence in the record to compare prohibited =
uses=20
      with any permissible uses that may be made with the affected=20
      property.&nbsp; <I>Id</I>.&nbsp; The final decision requirement =
ordinarily=20
      includes both a rejected proposed use and denial of a variance =
from=20
      controlling regulations.&nbsp; <I>See id</I>.&nbsp; However, =
futile=20
      variance requests or re-applications are not necessary.<I>&nbsp;=20
      Id</I>.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">It is also=20
      important to note the difference between the </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">final=20
      decision</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      requirement and exhaustion of administrative remedies.&nbsp; The =
finality=20
      requirement concerns whether the initial decision maker has =
arrived at a=20
      definitive position on the issue that inflicts an actual, concrete =
injury=20
      whereas the exhaustion requirement generally refers to =
administrative=20
      procedures available for review of an adverse decision.&nbsp; =
<I>Hamilton=20
      Bank</I>, 473 U.S. at 193. Thus, it is important not to confuse=20
      availability of administrative remedies with the necessity of a =
final=20
      decision.&nbsp; Further, as the <I>Hamilton Bank</I> opinion =
highlights,=20
      our focus for purposes of determining whether the governmental =
entity has=20
      reached a final decision is on the procedure and regulations =
implemented=20
      by the entity .&nbsp; <I>See id</I>. at 186.&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The City=20
      contends Maguire did not receive a final decision because it did =
not=20
      pursue an appeal to the City Council.&nbsp; Maguire counters that =
it=20
      received a final decision, and if further administrative appeals =
were=20
      possible, they would have been futile.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection6>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 6.8pt 0.5in; TEXT-INDENT: -0.5in; =
LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      Section 23-102</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">We first=20
      address section 23-102 and whether Maguire received a final =
decision from=20
      the proper governmental entity prior to initiating suit. =
</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">1.&nbsp;=20
      The City Council is not the Relevant Decision Maker</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">It is=20
      undisputed that the City contended in all other forums, and =
contends on=20
      appeal, that Chapter 23, Article IV, section 23-102 of the Code of =

      Ordinances prohibits Maguire from drilling its well.&nbsp; =
Although the=20
      City contends Maguire should have proceeded with an appeal to City =

      Council, its argument is unavailing for three reasons: (1) the =
regulations=20
      governing Lake Houston denominate the Director of Public Works and =

      Engineering as the relevant administrative decision maker; (2) the =

      relevant regulations do not contemplate an appeal from permit =
denial; and=20
      (3) even if an appeal were available, not proceeding with any =
appeal would=20
      merely provide the City with an exhaustion of administrative =
remedies=20
      defense. The articles of the Code of Ordinances under Chapter 23 =
prescribe=20
      rules and procedures for appeal that vary from other articles =
under that=20
      chapter.&nbsp; For example, in Article IV, under definitions, =
the&nbsp;=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">director</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
means the=20
      director of public works and engineering and his designees.&nbsp; =
Any=20
      person seeking to perform a permitable action under Article IV =
must obtain=20
      a permit from the director.&nbsp; In contrast, Article V, Division =
2,=20
      section 23-146 expresses that for purposes of Article V, the =
building=20
      official must authorize any permit.&nbsp; Section 23-150 further =
explains=20
      that, under Article V, a permit will issue only after the building =

      official and utility official have given their approval.&nbsp; The =

      differences in procedures for exhausting administrative remedies =
are even=20
      more pronounced between the respective Chapters.&nbsp;=20
      </SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection7>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">We turn=20
      now to the applicable ordinances to identify the relevant decision =
maker=20
      when a party seeks a drilling permit for a site near Lake =
Houston.&nbsp;=20
      Under Section 23-100(2) of Article IV entitled </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Water=20
      Supply Protection,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
a=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">director</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
is=20
      defined as </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">[t]he=20
      director of public works and engineering and his =
designees.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      Section 23-104 is the only portion of Article IV that pertains to =
issuance=20
      of a permit.&nbsp; Under that section, the director is the only =
person=20
      with authority to grant a drilling permit.&nbsp; Therefore, the =
director=20
      of public works and engineering is the relevant decision =
maker.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The record=20
      clearly shows that the director rendered a final decision =
concerning the=20
      application of section 23-102.&nbsp; The original permit was =
revoked and a=20
      stop work order was issued.&nbsp; It is further clear that the =
director=20
      was adamantly opposed to issuing any variance or concession that =
would=20
      permit drilling at the proposed site.&nbsp; Consequently, Maguire =
received=20
      a final decision from the relevant decision maker.&nbsp; However, =
the City=20
      argues that an appeal to the City Council is prerequisite to a =
final=20
      decision.&nbsp; Although this argument confuses exhaustion of=20
      administrative remedies with obtaining a final administrative =
decision, we=20
      will nevertheless address the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      concerns.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;<B>2.&nbsp;=20
      No Appeal Possible to the City Council </B></SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The City=20
      argues that Maguire should have appealed under Chapter 31 of the =
Code of=20
      Ordinances.&nbsp; We disagree. Chapter 31-30 contemplates issuance =
of=20
      permits for drilling and operation of a well </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">not=20
      prohibited by the terms of this chapter.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s drilling=20
      permit was revoked pursuant to Chapter 23.&nbsp;&nbsp; Therefore, =
we must=20
      refer to that portion of the Code of Ordinances for guidance =
regarding=20
      appeal procedures.&nbsp; Chapter 23, Article IV, section 23-106, =
provides=20
      as follows: </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Permits=20
      issued under any provision of this article shall not be=20
      transferable.&nbsp; Any refusal by the director to grant any =
consent or=20
      permit <I>provided for in this article</I> may be appealed to the =
city=20
      council.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection8>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">(Emphasis=20
      added).&nbsp; That section clearly provides for appeals only if a =
permit=20
      is <I>provided for </I>in Article IV.&nbsp; Pursuant to section =
23-102,=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">No well=20
      shall be drilled within the control area of Lake Houston . . . . =
In=20
      addition, no well shall be drilled within such control area . . .=20
      .</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      Roger Hulbert, the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      representative, testified that this provision had consistently =
been=20
      enforced, and there is no procedure for a variance.&nbsp; =
Therefore, under=20
      the City Code, no discretion could be exercised.&nbsp; <I>See =
Palazzolo v.=20
      Rhode Island</I>, 533 U.S. 606, 620 (2001) (stating that once it =
is clear=20
      the relevant authority lacks discretion to permit any development, =
a=20
      takings claim is likely to have ripened).</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;<B>3.&nbsp;=20
      Maguire not Required to Exhaust Administrative =
Remedies</B></SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Even if an=20
      appeal were possible, the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s defense=20
      would be predicated on exhaustion of administrative =
remedies.&nbsp; As we=20
      have explained already, resolution of this issue is not based on =
failure=20
      to exhaust administrative remedies.&nbsp; <I>See Hamilton =
Bank</I>, 473=20
      U.S. at 193 (explaining the difference between a final =
administrative=20
      decision and the exhaustion of administrative remedies).&nbsp;=20
      Consequently, an appeal under the provisions of Chapter 31 would =
not be=20
      determinative of ripeness.&nbsp; Interestingly, the City seems to =
suggest=20
      that Maguire should lobby for a new ordinance.&nbsp; Certainly, a =
lobbying=20
      effort was not required to render this dispute ripe for =
adjudication in=20
      our courts.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Nonetheless,=20
      Maguire requested and participated in meetings with city=20
      administrators.&nbsp; Maguire then unsuccessfully sought meetings =
with the=20
      Mayor, who is a member of City Council. The City promulgated and =
enforced=20
      regulations that foreclosed Maguire from pursuit of any additional =

      administrative remedies. Accordingly, Maguire received a final=20
      administrative decision</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">B</SPAN></B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">.<B>=20
      Chapter 31 and Futile Action</B></SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The City=20
      contends the appeal provisions in Chapter 31are applicable to the =
proposed=20
      drill site.&nbsp; Thus, the City argues Maguire has not received a =
final=20
      administrative decision.&nbsp; Although we have already disposed =
of that=20
      argument, it is important to note that any further efforts to =
obtain a=20
      permit to drill at the proposed site would be futile.&nbsp; Since =
the=20
      beginning of this litigation, the City has expanded the scope of =
Article=20
      IV to include the proposed drill site.&nbsp; Moreover, there is =
still no=20
      provision for a permit under section 23-102. =
</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection9>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;According=20
      to the City, before a court may determine whether further action =
is=20
      futile, the party seeking a permit must seek variances, submit =
multiple=20
      applications, and pursue numerous attempts to receive a =
permit.&nbsp;=20
      Additionally, the City argues Maguire could identify a different =
drill=20
      site.&nbsp; While those arguments might be valid in other cases, =
they are=20
      not valid in this case.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">First,=20
      issuance of a permit is proscribed by the City; therefore, seeking =
a=20
      variance would be superfluous.&nbsp; <I>See Palazzola</I>, 533 =
U.S. at 621=20
      (noting that an agency</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      interpretation of regulations to bar a landowner from ever =
engaging in the=20
      proposed activity satisfies the final decision requirement).&nbsp; =
Second,=20
      the law does not require citizens to continuously pursue a permit =
simply=20
      for the exercise.&nbsp; <I>Id</I>. at 622.&nbsp; Finally, Maguire =
contends=20
      there are no other feasible locations for drilling.&nbsp; We must =
assume=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      contention is valid given the procedural posture of this =
case.&nbsp;=20
      <I>See Tex. Dep</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">t of Parks=20
      and Wildlife v. Miranda</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, 133=20
      S.W.3d 217, 228 (Tex. 2004) (explaining that in an appeal from a =
plea to=20
      the jurisdiction, we apply a standard similar to Texas Rule of =
Civil=20
      Procedure 166a(c) and therefore take as true all evidence =
favorable to the=20
      non-movant, here, Maguire).&nbsp; Any further action by Maguire =
would have=20
      been futile and not required under the ripeness doctrine. =
</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">C.&nbsp; Whether =
Maguire Sought=20
      the Proper Remedy </SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">We also reject the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s contention that =
Maguire=20
      should have sought a writ of mandamus or injunction to force the =
City to=20
      issue the permit in light of Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s contention that =
section=20
      23-102 did not apply to the proposed drill site.&nbsp; The City =
cites two=20
      cases for this proposition: </SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">City of=20
      Austin v. Teague</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, 570=20
      S.W.2d 389 (Tex. 1978) and<I> Kirschke v. City of Houston</I>, 330 =
S.W.2d=20
      629 (Tex. Civ. App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Houston=20
      1959, writ ref</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">d. n.r.e.)=20
      <I>disapproved by City of Austin</I>, 570 S.W.2d at 394.&nbsp; We =
agree=20
      with the City that <I>Kirschke</I> seems to require pursuit of a =
writ of=20
      either mandamus or an injunction.&nbsp; However, we do not agree =
that=20
      <I>Kirschke</I> is controlling authority.&nbsp; Moreover, we =
disagree with=20
      the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      contention that <I>City of Austin</I> requires such action.=20
      </SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection10>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;In=20
      <I>City of Austin</I>, landowners sued for damages resulting from =
inverse=20
      condemnation.&nbsp; 570 S.W.2d at 390.&nbsp; The landowners also =
sought an=20
      order commanding the City to issue a permit.&nbsp; =
<I>Id</I>.&nbsp; The=20
      trial court ordered the permit issued and awarded damages in the =
amount of=20
      $109,939 for a taking.&nbsp; <I>Id</I>.&nbsp; The Texas Supreme =
Court=20
      addressed only the takings question.&nbsp; <I>Id</I>.&nbsp; =
Although the=20
      court reversed and remanded for a retrial on damages, its decision =
was=20
      based on inadequacy of damages evidence.&nbsp; <I>Id</I>. at =
395.&nbsp;=20
      However, the court never held that a landowner must seek an =
injunction or=20
      a writ of mandamus before proceeding with an action for inverse=20
      condemnation.&nbsp; Indeed, the court noted that following permit =
denial,=20
      the City of Austin had acquired a scenic easement for which it =
must pay=20
      damages.&nbsp; <I>Id</I>. at 394.&nbsp; There was no further =
action the=20
      supreme court required from the landowner prior to filing =
suit.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In <I>City=20
      of Austin</I>, the Texas Supreme Court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      disapproval of <I>Kirschke</I> without noting the continuing =
viability of=20
      the requirement for a writ of mandamus or injunction is =
significant.&nbsp;=20
      We doubt the continuing vitality of that holding in light of =
<I>City of=20
      Austin</I>. Moreover, even if <I>Kirschke</I> is applicable, the =
facts of=20
      this case are sufficiently distinguishable.&nbsp; In =
<I>Kirschke</I>, the=20
      City of Houston denied a permit even though it agreed it had =
authority to=20
      issue but for its desire to keep the property undeveloped.&nbsp; =
330=20
      S.W.2d at 629</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">30.&nbsp;=20
      The permit application was rejected because of the possibility =
that the=20
      City would later condemn&nbsp; the property in order to build =
highway=20
      infrastructure.&nbsp; <I>Id</I>.&nbsp; The <I>Kirschke </I>court =
concluded=20
      that the proper remedy would be an injunction or writ of mandamus =
when a=20
      permit has been wrongfully denied.&nbsp; <I>Id</I>.&nbsp; at =
634.&nbsp;=20
      Here, the City has absolutely proscribed drilling and vehemently =
held to=20
      its position that there would be no exceptions under section=20
      23-102.&nbsp;&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">III. <SPAN=20
      style=3D"TEXT-TRANSFORM: =
uppercase">Conclusion</SPAN></SPAN></B></P></DIV><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN></B>
      <DIV class=3DSection11>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">We hold this case =
is ripe for=20
      adjudication because Maguire received a final administrative =
decision from=20
      the City and further action would be futile.&nbsp; Accordingly, we =
sustain=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">s first issue, =
reverse the=20
      judgment of the trial court and remand for further proceedings =
consistent=20
      with our opinion.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83632#_ftn2"=20
      name=3D_ftnref2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[2]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>&nbsp;&nbsp;=20
      </SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      Charles Seymore</SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Justice</SPAN></P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Judgment=20
      rendered and Opinion filed July 24, 2007. </SPAN></P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Panel=20
      consists of Chief Justice Hedges, and Justices Seymore and=20
      Guzman.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"TEXT-INDENT: 0.5in; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P></DIV>
      <DIV><BR clear=3Dall>
      <HR align=3Dleft width=3D"33%" SIZE=3D1>

      <DIV id=3Dftn1>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83632#_ftnref1"=20
      name=3D_ftn1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[1]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The Texarkana Court of Appeals =
did not=20
      consider</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">and we will not address</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">the effect of the 1997 amendment on this =

      litigation.&nbsp; However, under that amendment, redefining =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">control area,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">s proposed drill site would be within =
the area=20
      where drilling is absolutely prohibited.</SPAN></P></DIV>
      <DIV id=3Dftn2>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83632#_ftnref2"=20
      name=3D_ftn2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[2]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; </SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Shruti">We do not reach=20
      Maguire</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Shruti">s second issue =
because it is=20
      rendered moot by our disposition of the first=20
    =
issue.</SPAN></P></DIV></DIV></TD></TR></TBODY></TABLE></BODY></HTML>

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