Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 1 of 11 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS BROWNSVILLE DIVISION UNITED STATES OF AMERICA, Plaintiff, v. 1.16 ACRES OF LAND, more or less, situate in CAMERON COUNTY, STATE OF TEXAS; and BORZYNSKI BROTHERS PROPERTIES, et al., Defendants. UNITED STATES OF AMERICA, Plaintiff, v. 1.73 ACRES OF LAND, more or less, situate in CAMERON COUNTY, STATE OF TEXAS; and LEONARD R. LOOP, et al., Defendants. UNITED STATES OF AMERICA, Plaintiff, v. 0.73 ACRES OF LAND, more or less, situate in CAMERON COUNTY, STATE OF TEXAS; and WHITEWING RANCH, LTD., et al., Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Civil Action No. 1:08-CV-169 Civil Action No. 1:08-CV-276 Civil Action No. 1:08-CV-330 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 2 of 11 UNITED STATES OF AMERICA, Plaintiff, v. 3.76 ACRES OF LAND, more or less, situate in CAMERON COUNTY, STATE OF TEXAS; and WHITEWING RANCH, LTD., et al., Defendants. UNITED STATES OF AMERICA, Plaintiff, v. 12.32 ACRES OF LAND, more or less, situate in CAMERON COUNTY, STATE OF TEXAS; and DOROTHY IRWIN, et al., Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Civil Action No. 1:08-CV-348 Civil Action No. 1:08-CV-377 UNITED STATES’ RESPONSE TO DEFENDANTS’ MOTION FOR SANCTIONS Pursuant to Local Rule of Civil Procedure 6.C., plaintiff United States of America (the “United States”) respectfully submits this Reply to Defendant’s Motion for Sanctions and requests that the Court deny Defendants’ Motion for Sanctions. FACTS On May 14, 2008 in Case No. 1:08-cv-69, on June 17, 2008 in Case No. 1:08-cv-276, on June 27, 2008 in Case No. 1:08-cv-330, on July 1, 2008 in Case No. 1:08-cv-348, and on July 18, 2008 in Case No. 1:08-cv-377, the United States filed Complaints in Condemnation and Declarations of Taking pursuant to the Declaration of Taking Act (“DTA”). See Docket Nos. 1 2 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 3 of 11 and 2. Under the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA), the United States was under a Congressional mandate to construct fencing in an area along the United States’ border with Mexico that encompasses the subject properties. See 8 U.S.C. § 1103 note. On February 3, 2009 in Case No. 1:08-cv-169, February 13, 2009 in Case Nos. 1:08-cv276, 1:08-cv-330, and 1:08-cv-348, and March 25, 2009 in Case No. 1:08-cv-377, the United States filed amended Complaints in Condemnation and Declarations of Taking in order to add new parties. Docket Nos. 44, 45; 36, 37; 33, 34; 35, 36; and 35, 36, respectively. On February 3, 2009, the United States moved the Court to continue the trial date in Case No. 1:08-cv-169. See Docket No. 47. The Court granted the motion by continuing the trial date from March 5, 2009 to April 30, 2009 and also set trial dates in Case Nos. 1:08-cv-276, 1:08-cv-330, and 1:08-cv-348. See Docket Nos. 48, 34, 31, 33, respectively. On March 18, 2009, the parties in Case Nos. 1:08cv-169, 1:08-cv-276, 1:08-cv-330, and 1:08-cv-348 filed joint motions to continue the trial and the Court granted this motion and set trial for August 6, 2009. See Docket Nos. 63, 64; 49, 50; 48, 49; and 50, 51. On April 8, 2009, the parties filed joint motions to continue the trials and the Court granted these motion and set trials for January 8, 2010. Case No. 1:08-cv-169, Docket Nos. 69, 70; Case No. 1:08-cv-276, Docket Nos. 56, 57; Case No. 1:08-cv-330, Docket Nos. 56, 57; Case No. 1:08-cv-348, Docket Nos. 58, 59; Case No. 1:08-cv-377, Docket Nos. 41, 42. Following a hearing on May 22, 2009, and in response to a Court order as well as concerns expressed by both the Court and Defendants, the United States informed the Court and Defendants of its intention to file another amended Complaint and Declaration of Taking in order to address their concerns. Case No. 1:08-cv-169, Docket No. 96; Case No. 1:08-cv-276, Docket 3 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 4 of 11 No. 80; Case No. 1:08-cv-330, Docket No. 79; Case No. 1:08-cv-348, Docket No. 81; Case No. 1:08-cv-377, Docket No. 67. On July 10, 2009, Defendants filed the present Motion for Sanctions alleging that due to delays in litigation the United States should be sanctioned for “vexatious” (but not “bad faith”) conduct by shifting Defendants’ litigation costs to the United States. Case No.1:08-cv-169, Docket No. 98; Case No. 1:08-cv-276, Docket No. 83; Case No. 1:08-cv-330, Docket No. 82; Case No. 1:08-cv-348, Docket No. 84; Case No. 1:08-cv-377, Docket No. 71. ARGUMENT I. There is No Distinction Between Vexatiousness and Bad Faith, and Cost-Shifting as a Sanction Requires a Finding of Bad Faith Which Defendants Do Not Even Allege, Let Alone Demonstrate. In order to impose sanctions under its inherent powers, “the court must find that the ‘very temple of justice has been defiled’ by the sanctioned party’s conduct.” Goldin v. Bartholow, 166 F.3d 710, 722-23 (5th Cir. 1999) (quoting Boland v. Mfg. v. Rihner, 41 F.3d 997, 1005 (5th Cir. 1995)). Such sanctions cannot be awarded without “a specific finding that the party acted in bad faith.” Smith v. American Founders Financial, Corp., 365 B.R. 647, 681 (S.D. Tex. 2007) (citing Toon v. Wackenhunt Corr. Corp., 250 F.3d 950, 952 (5th Cir. 2001)). Further, “the standard for the imposition of sanctions using the court’s inherent powers is extremely high.” Goldin, 166 F.3d at 723. The granting of these sanctions constitutes an abuse of discretion when the record does not support a finding of bad faith. Id at 723. In support of its Motion for Sanctions, Defendants cite to Chambers v. NASCO, Inc., which holds that a court may assess attorney’s fees when a party has “acted in bad faith, vexatiously, wantonly, or for oppressive reasons.” See Sanctions Motion, p. 3; Chambers v. 4 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 5 of 11 NASCO, Inc., 501 U.S. 32, 46 (1991). Defendants appear to believe that bad faith, vexatiousness, wantonness, and oppressive reasons are four distinct bases upon which the court may assess attorney’s fees, as they assert that the United States has acted “vexatiously” rather than in bad faith. Defendants cite to Merriam Webster’s Dictionary of Law, available online, which defines “vexatious” as “lacking a sufficient ground and serving only to annoy or harass when viewed objectively.” See Sanctions Motion, p. 4. That dictionary also defines “bad faith” as “intentional deception, dishonesty, or failure to meet an obligation or duty.” See http://dictionary.lp.findlaw.com. The United States, like any plaintiff, is under a duty to commence litigation only when it has sufficient grounds for doing so and not for the purpose of annoying or harassing a defendant. Therefore, there really is no distinction between bad faith litigation and vexatious litigation. Further, the fact that the Supreme Court proceeded to subsume bad faith, vexatiousness, wantonness, and oppressive reasons all under the term “bad faith” in its opinion in Chambers leads to the conclusion that it sees the four terms as synonyms rather than four distinct bases for cost-shifting as a sanction. See Chambers, 501 U.S. at 46-51. The only support Defendants give for the proposition that cost-shifting as a sanction under a court’s inherent power does not require bad faith is Justice Scalia’s dissent in Chambers. See Sanctions Motion, p. 5. Defendants’ reliance on Justice Scalia’s dissent is inappropriate. First, it is a dissent. The majority opinion held that sanctions require a showing of bad faith. See Chambers, 501 U.S. at 46-51. Second, Justice Scalia specifically stated in his dissent that “fee shifting as a sanction can only be imposed for litigation conduct characterized by bad faith.” Id. at 59. Justice Scalia disagreed with the majority only in his belief that other sanctions under a court’s inherent power, such as dismissal, do not require a showing of bad faith. See id. (citing 5 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 6 of 11 Redfield v. Ystalyfera Iron Co., 110 U.S. 174, 176 (1884)). Thus, both the majority and Justice Scalia believe that cost-shifting requires a showing of bad faith. Since Defendants have failed to show that the United States acted in bad faith, and in fact specifically state that the United States has not acted in bad faith, their Motion for Sanctions should be denied. Even assuming, arguendo, that there is a distinction between bad faith and vexatiousness, Defendants have still failed to show how they are distinguishable. One can only conjecture that perhaps Defendants believe the phrase “when viewed objectively,” which is included in the dictionary definition they quote for “vexatious,” refers to the harassment and annoyance they feel as defendants in this litigation. However, that simply cannot be the standard for vexatiousness as nearly all defendants in a civil action feel annoyed and harassed whether viewed from an objective or subjective standard. Black’s Law Dictionary defines “vex” as ‘to harass, disquiet, annoy” and defines “vexatious proceeding,” in the civil context, as “when the party bringing proceeding is not acting bona fide, and merely wishes to annoy or embarrass his opponent, or when it is not calculated to lead to any practical result.” Black’s Law Dictionary, 6th ed. A finding of vexatiousness would thus require that the alleged “vexor” intend to harass or annoy the “vexee” not simply that the vexee feel that he or she is being harassed. In other words, the purpose of the litigation determines whether or not it is vexatious. Since Defendants have not even attempted to show that the purposes behind the United States’ actions were improper or undertaken to harass or annoy Defendants, Defendants’ Motion for Sanctions must be denied. 6 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 7 of 11 II. Federal Rule of Civil Procedure 71.1(f) Permits the United States to Amend its Pleadings “as Often as it Wants” and the Fact That Such Amendments Have Resulted in Legal Costs to Defendants is a Result of Their Own Tactical Decision to Proceed Quickly to Trial on Just Compensation. Defendants assert that amended filings by the United States “have nearly exhausted their available resources” as they have been required to expend “thousands of dollars on legal fees, experts fees, and related expenses and costs.”1 Motion for Sanctions, pp. 1-2. Defendants contend that the high costs to which they have been subject are due to insufficient planning by the United States in order to meet a Congressional deadline for construction of the border barrier as well as inadequate property descriptions by the United States.2 See id. at 2,6-8. Defendants believe that it would be “unfair” to require them to continue to expend resources to defend these actions. See id. at 2-3. Under Federal Rule of Civil Procedure (“Rule”) 71.1(f), the United States “may - as often as it wants - amend the complaint at any time before the trial on just compensation.” Fed. R. Civ. P. 71.1(f) (emphasis added). Rule 71.1 allows the United States to amend its filings as 1 At least in the case of United States v. 1.16 Acres of Land, this assertion is disingenuous. At his deposition, Joseph Borzynski, partner of Borzynski Brothers Properties, testified that Borzynski Brothers Properties agreement with its attorneys only requires it to pay for appraisals. Attorney’s fees and other costs of litigation are covered by a contingency agreement in which Defendant’s attorneys receive 40% of whatever Defendant may be awarded above what the United States offered Defendant for the subject property. See Exhibit A, Deposition of Joseph Borzynski, pp. 102-03. 2 Other than meetings with CBP officials, attended by both counsel for Mrs. Irwin and Mrs. Irwin, there has been little activity in the Irwin case. There have been four pre trial hearings on this case. The government did serve written discovery to which responses were made. Only one deposition, lasting about 2 hours, was taken on July 16, 2009. The landowner has not sent written discovery to the government. The government has expended funds in retaining an appraiser who has examined the property but we are unaware of any similar expenses incurred by Mrs. Irwin. 7 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 8 of 11 often as it wants because it was anticipated that the unique nature of condemnation actions may require the United States to amend its filings on numerous occasions. The Rule does not, however, provide that costs incurred by landowners due to such amendments must be borne by the United States. See Fed. R. Civ. P. 71.1(l) (costs not subject to Rule 54(d)). Knowing that Rule 71.1 does not provide for cost-shifting, that the United States may amend its complaint as often as it wants (and indeed must amend to include as defendants anyone it learns has an interest in the property under Rule 71.1(c)(3)), and that many issues surrounding the erection and operation of the border barrier were not settled at the time of the original filing, Defendants chose to proceed quickly with litigation anyway. This approach is in contrast to other landowners who chose to wait for the erection of the border barrier in order to determine what impact, if any, the border barrier would have before expending resources on appraisals and attorney’s fees. See, e.g., United States v. 5.89 Acres of Land, Case No. 1:08-cv-219, Docket No. 24. Defendants made an initial tactical decision to proceed to trial forthwith. Absent a showing of bad faith on the part of the United States, the fact that this tactical decision has cost Defendants significant litigation expense is not a legally sufficient reason for shifting costs to the United States. III. The United States Has Complied with the Provisions of the Declaration of Taking Act in the Subject Cases, Which Act Anticipates that the United States May Need to Acquire Property Quickly and Provides an Expedited Manner by Which the United States May Take Title and Possession. The DTA provides an expedited procedure for the United States to acquire title and possession of lands in order to commence construction work before final judgment. See United States v. 1.04 Acres of Land, 538 F. Supp. 995, 1002 (S.D. Tex. 2008). The purpose of the DTA 8 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 9 of 11 “is to permit the Government to proceed with necessary public works without being hampered by delays which might occasion great and irreparable injury.” See City of Oakland v. United States, 124 F.2d 959, 964 (9th Cir. 1942). As both Defendants and this Court have noted, the United States was under a mandate to complete fencing in the Rio Grande Valley by December 31, 2008. See Motion for Sanctions, p. 2; 1.04 Acres of Land, 538 F. Supp. at 1003-04. This required the United States to move quickly and proceed under the DTA. Defendants do not assert that the United States has failed to comply with the DTA. Rather, Defendants assert that the costs they have incurred due to delays in litigation and subsequent amended filings “all could have been avoided had the government not rushed into these cases without adequate pre-suit investigation and without so much as a survey of the land and a complete title policy identifying the proper parties to the action.” Motion for Sanctions, p. 8. Defendants are correct in stating the government had to rush. Many of the delays in the subject litigation would have been avoided if the United States had more time for planning before filing its declarations of taking and complaints in condemnation. Unfortunately, the United States did not have more time for planning and had to proceed pursuant to Congressional mandate, yet it did so in a manner that met the dictates of the DTA. Congress determined that the United States must move quickly to secure its borders. Thus, the United States, working within the parameters set by the realities of the world we live in rather than as we wish them to be, took the subject properties with the information then available that met the requirements of the DTA. The fact that Defendants have expended greater resources 9 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 10 of 11 than they anticipated due to the nature of the proceedings is unfortunate but not compensable.3 As noted above, Defendant made the tactical choice to rush into litigation rather than wait and see how events developed and, absent a finding of bad faith, which Defendants do not even allege, cost-shifting is an abuse of the Court’s discretion. CONCLUSION For the foregoing reasons, the United States respectfully requests that this Court deny the relief sought by Defendant. Respectfully submitted, TIM JOHNSON United States Attorney By: E. Paxton Warner E. PAXTON WARNER Assistant United States Attorney Southern District of Texas No. 555957 Texas Bar No. 24003139 600 E. Harrison, Suite 201 Brownsville, TX 78520 Telephone: (956) 548-2554 Facsimile: (956) 548-2711 E-mail: Paxton.Warner@usdoj.gov Attorney-in-Charge for Plaintiff (1:08-cv-169; 1:08-cv-276; 1:08-cv-330; 1:08-cv-348) 3 Even though Defendants are not entitled to recover fees and expenses as sanctions, the United States respectfully points out that there is the potential for such recovery at the conclusion of the litigation pursuant to the Equal Access to Justice Act, 28 U.S.C. § 2412. 10 Case 1:08-cv-00169 Document 100 Filed in TXSD on 07/28/09 Page 11 of 11 JOHN A. SMITH, III. Assistant United States Attorney Texas Bar No.: 18627450 Federal ID No.: 8638 800 North Shoreline Blvd., Suite 500 Corpus Christi, Texas 78401 Tel:(361) 888-3111 / Fax:(361) 888-3234 E-mail: JASmith@usa.doj.gov JUSTIN A. OKUN Trial Attorney, U.S. Department of Justice Southern District of Texas No. 994307 California Bar No. 230954 Environment & Natural Resources Division Land Acquisition Section Post Office Box 561 Washington, D.C. 20044-0561 Telephone: (202) 305-0467 Facsimile: (202) 305-0398 E-mail: Justin.Okun@usdoj.gov Daniel David Hu DANIEL DAVID HU Assistant United States Attorney Texas Bar No. 10131415 919 Milam, Suite 1500 P.O. Box 61129 Houston, Texas 77208 Tel: (713) 567-9518 Fax: (713) 718-3303 E-mail: Daniel.hu@usdoj.gov Attorney-in-Charge for Plaintiff (1:08-cv-377) Certificate of Service I hereby certify that on July 28, 2009, I electronically filed the foregoing with the Clerk of the Court using the CM/ECF system which will send notification to all counsel of record. E. Paxton Warner E. PAXTON WARNER Assistant United States Attorney 11 Case Document 100-1 Filed in TXSD on 07/28/09 Page 1 of 157 1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS BROWNSVILLE DIVISION UNITED STATES OF AMERICA, Plaintiff, -vs~ CASE NO. Tract No. 1.16 ACRES OF LAND, More or less, situated in CAMERON COUNTY, and BROTHERS PROPERTIES, et a1., Defendants. The deposition of JOSEPH taken pursuant to notice and subpoena at the Racine County Courthouse, 730 Wisconsin.Avenue, Racine, Wisconsin, pursuant to the Federal Rules of Civil Procedure, on the 13th day of February, 2009, commencing at 8:00 o'clock in the morning before SUSAN K. TAYLOR, a Court Reporter and Notary Public in and for the State of Wisconsin. APPEARANCES: U.S. DEPARTMENT OF JUSTICE, United States Attorney's Office, by Assistant United States Attorney Jehn A. Smith, One Shoreline Plaza, 800 N. Shoreline Blvd., Suite 500, Corpus Christi, TX 78401 appeared on behalf of the plaintiff. SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262?883-4019 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 2 of 157 1 U.S. DEPARTMENT OF JUSTICE, Environment Natural Resources Division, Land Acquisition Section, by 2 JUstin.A. Okun, PO Box 561, Ben Franklin Station, . Washington, D.C., 20044-0561 appeared as co?counsel 3 on behalf of the plaintiff. LAW OFFICES OF BARRON ADLER, LLP, Roy R. Brandys, 5 808 Nueces Street, Austin, TX 78701 appeared on behalf of the defendants. Attorney Stefanie B. Meiri, 8609 Industrial Drive, 7 Franksville, WI 53216 appeared on behalf of the deponent. A.M I 10 11 EXAMINATION PAGE 12 Mr. Smith 3 Mr. Brandys 123 13 Mr. Smith 128 Mr. Brandys 133 . 14 Mr. Smith 135 Mr. Brandys 137 15 16 I I I 17 EXHIBIT NO. DESCRIPTION NO. 18 19 1 aerial map DOCUMENT REQUESTS: 22 Page 33, Line 23 23 Page 48, Lines 13, 20 24 25 SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 3 of 157 1 JOSEPH having been first duly 2 sworn on oath to tell the truth, the whole truth, and . 3 nothing but the truth testified as follows: 4 EXAMINATION BY MR. SMITH: 5 Sir, would you please state your full name for the 6 record? 7 A Jbseph Edward 8 MR. SMITH: Mr. my 9 name is John Smith. We met outside. You know I 10 represent the United States in this lawsuit. Correct? 11 THE WITNESS: Right. 12 MR. SMITH: I am going to 13 Have you ever had a deposition taken before? . 14 THE WITNESS: No. 15 MR4 SMITH: A couple things I am 16 going to ask you to do. You are soft spoken. If you 17 can speak up a little bit, Susan will be able to hear 18 a little bit better. That way, nobody has to say did we 19 get that correct. i 20 Another thing about depositions, if you 21 go through that and at some point in the deposition I 22 ask you a question and you say ugh-ugh, uh?huh, shake 23 your head, I am going to ask you is that a yes or no? 24 I don't mean to be rude, but since it is being typed up, . 25 I need to make sure that the record reflects the correct SUSAN K. TAYLOR 262?553-1058 COURT REPORTER 1 FAX No. 262?883?4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 4 of 157 1 answer. Okay? 2 THE WITNESS: Okay. . 3 MR. SMITH: At any time during 4 this, you need to take a break, let me know. People 5 accuse me of talking too fast and mumbling. If I do 6 that and you didn?t understand my question, let me know 7 and I will happy to rephrase it, repeat it, whatever it 8 takes. Okay? 9 THE WITNESS: Okay. 10 MR. SMITH: Not that it matters 11 much to me, but it matters to Susan. If you will wait 12 until I finish my question until you start your answer, 13 likewise, I will try to wait until you finish your . 14 answer to start my next question. It is hard for her to 15 take down two of us talking at the same time. So if we 16 don't talk on top of one another, it makes her life 17 easier. 18 If you have a pause and I cut you off and 19 there is something more you want to say, let me know, 20 say I wasn't done yet or whatever the situation is. 21 THE WITNESS: Okay. 22 Have you ever been a party to a lawsuit before? 23 A Yes. 24 What type of lawsuit? . 25 A Last year, we had well I don't know. We had SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 5 of 157 maybe nothing that I have been in court -- or been in court. Last year, we were in court for THE WITNESS: Stefie, what was it for? MR. SMITH: If you don't remember, don't ask. This is based on your own knowledge. It was for a development company that I was a part of and I Is that development company I think I saw something Klink -- No. It was Legacy Development. Legacy. Other than that, any other lawsuits that you have been involved in? I don't think I was the one being sued. I was the witness. I was called to be a witness. I never got to the stand. I had never been on a witness stand. Let's put it that way. MR. BRANDYS: He is asking you when he says "you," he means you Jbe or you, Brothers Properties. Make sure you understand the question. MR. SMITH: For the most part when I say "you" in this question most of my questions here, I am talking about Brothers SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883-4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 6 of 157 Properties or any of your partnerships with your brother that are involved in the property down in South Texas or you personally. So you weren't actually sued in that; you were just a witness in a lawsuit. Correct? Correct. Any other time where your parties where you or your companies have been parties to lawsuits, even if they didn't go to the courtroom? Not that I remember. Let's put that it way. Ever been involved in an eminent domain proceeding other than this one? Yes. How many was that? Last year, road parcels or something like that. Nothing that ever got to court or anything like that. It was all settled, you know, easements or whatever. Let's go back. Was it always a road easement? From what I can remember, yes. Were those always here in Wisconsin or were they at some of your other properties? I would say in Wisconsin. And none of them actually involved going to court over a complaint about the amount. You were able to agree with the amount. Correct? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 SUSAN K. cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 7 of 157 Correct. Was that always with the state or was that county? Do you recall? State I suppose. I don't know. Stephanie is here. How is she related to you? That is my daughter. And does she work for Brothers Properties? She works for Tradewell Realty. THE WITNESS: Is that right? Who owns Tradewell Realty? She is part owner, my brother is part owner, I am part owner and Steve is part owner, Steve And who is Steve? Steve is my brother's son. What does Tradewell do? They took over well, they sell real estate or lots. A realty company. I take it that is a Wisconsin corporation? Yes. Only doing real estate in Wisconsin? Yes. Is it a realty company in the sense that it is a broker for other people selling real estate or does Tradewell actually invest in real estate for sale? It does not invest in for sale. Selling the lots is TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 8 of 157 selling lots. Selling lots or whatever. Let me ask you this. If you came to list your house, they would take it and list it and sell it. I understand. That was going to be my question because sometimes we get realty companies formed one of two ways. That is, somebody owns a lot of property and they want to develop their own property and they start a real estate company to develop their own property. Yes. Then you have real estate companies that are basically acting as brokers for other people that own property and they are helping those people. I would say it is more the first part. Is there any property from Brothers that Tradewell has divided into lots to sell or has attempted to sell for Brothers Properties? Right now. MR. BRANDYS: Make sure you understand the question before you answer it. When you ask a question, you know, you are asking we could sit here all morning and talk about what the question is I suppose, you know, but Here is what I am.trying to find out. Has Brothers Properties placed any property with Tradewell SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262?883?4019 Case Document 100-1 Filed in TXSD on 07/28/09 Page 9 of 157 for sale? Yes. What kind of property was that? we have one that comes to mind right now. There is one on the interstate that is listed with Tradewell Realty and there is 26 acres. What kind of property is that? I think the front is zoned for The first 500 feet is zoned business and the last is zoned and Back to back_is What is Heavy manufacturing. What is Certain business like office buildings or something like that. Like you have a 8?3. I don't know exactly what you call them. Was that property ever part of agricultural property owned by Brothers? Yes. We farm it at this point. It is between Highway 11 and 20 if you wanted to look at it. You will see the sign on the road. How many acres does Brothers property have in Wisconsin? I'd be taking a guess. MR. BRANDYS: Don't guess. SUSAN K. TAYLOR 262*553?1058 COURT REPORTER FAX NO. 262?883-4019 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page don't know. Let me ask it this way. Give me an estimate of how many acres. A I would say 2,200, 2,300. All in the Racine area here or is it spread out? A Well, Racine, Kenosha County. Nothing in Milwaukee County. Do you or your brother own property in Wisconsin under any name other than Brothers Properties? A One that comes to mind, Farms owns a small -- just 30 acres or something like that. What is on that 30 acres? JUst agriculture? A Agriculture. Is Farms an incorporated business? A Yes. Is that owned solely by you and your brother? A Yes. The other approximately 2,300 acres, was that -- would that all be owned by Brothers Properties? A Yes. That would be just you and yOur brother? A Correct. No other family members have an ownership interest? A No. SUSAN K. TAYLOR 262~553?1058 COURT REPORTER FAX NO. 262*883?4019 10 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page The market on Washington Avenue, is that owned by Brothers Properties? A Yes. And that would be I have been by the property on Kraut. Would that be the headquarters for your farming operation? A Yes. And there is one on each side of the street? A Yes. So that is basically the headquarters where you keep all your farm equipment as well? A No. That is where we keep some of the farm.equipment. Is other farm equipment just kept on location at different tracts? A Different tracts, yes. Other than the market I think asked this. Other than Farms then and Brothers Property, do you and your brother own property in Wisconsin under another name, another business? MR. BRANDYS: Objection. Asked and answered. Go ahead. A My house. You mentioned Klinkert. That would be me, but not with.my brother. Klinkert was a restoration on a historical SUSAN K. TAYLOR 262-553~1058 COURT REPORTER FAX NO. 262?883?4019 11 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. Was it a residence? A It was a rooming house at one time. A.rooming house/ bar in the old days. How is it used now? A It is under renovation right now. Did that have a family history old historical building? A Yes. Do you have a plan for how you are going to use it after renovation? A Bar/restaurant. And that is here in Racine. Correct? A Sturtevant. Did you grow up born and raised in the Sturtevant area? A Yes. You and your brother? A Yes. Was your father in farming? A He had a small farm, a 40?acre farm, but his main income was truck driving or semi. He worked for YUle Truck Lines. MR. SMITH: I notice from your web site SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262-883?4019 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page (Discussion off the record) I saw from your web site Brothers Distribution. Is that incorporated or is that I don't know. I am looking at it's got our operation, it's got Farms and it's got Distribution, Brothers Trucking and then Farm Floral. I know Fanm Floral is the market. Correct? Yes. Brothers Trucking, is that trucking solely for Farms or -- They hire the trucks out, too, but mainly it is our product. But back haul or something like that, they may look for a load. But the main purpose of it is to haul your product and if they can haul a load coming back from wherever the market is, they will haul a load. Correct? Yes. Distribution, is that distribution of your products? Yes. Do you do distribution of other products? Buy and sell produce. Is it all agricultural produce? SUSAN K. TAYLOR 262~553?1058 COURT REPORTER FAX NO. 262?883?4019 13 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. of Illinois, Inc., does that own land in Illinois? A No. Do you own any land in Illinois? A Not that company, but Brothers Properties owns the land. How many acres do they own in Illinois, ballpark? A About 750. Is that all agricultural? A Yes. Is there any other use other than agricultural for that property? A No. Was any of property bought for any use other than agricultural? A No. Then of Georgia, Inc., I am taking it Brothers Properties owns the land in Illinois and in Georgia? A Yes. So that would be a general partnership with you and your brother? A Yes. What does of Illinois, Inc., do? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 14 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page couldn't answer that. It is just another business set up to handle the farming operation in Illinois. Same for of Georgia, Inc.? A Yes. Now the of Illinois or the property you have in Illinois, do Brothers actually farm that land or do they lease it out? A We will farm it, but also we trade with other farmers at times, trade fields, because we can't plant vegetable creps on the same fields every year. We have to rotate. But for the most part, we farnlit. We actually have equipment there and we are it. And is the equipment that is there and being farmed owned by Brothers? A It is owned by Fanns. Farms. Is that basically A Now some of it may be owned by Properties. I am not sure about that. Is that the main business of Farms, Inc., other than the 30 acres? Do they own all the equipment? A All the equipment. of Georgia, the Georgia property, does Brothers actually farm that or do they lease that for farming? SUSAN K. TAYLOR 262?553~1058 COURT REPORTER FAX NO. 262-883-4019 15 Case Document 100-1 Filed in TXSD on 07/28/09 Page Farm in a smaller way. We also work with farmers who do some of the work and we do some of the work. We do the planting, maybe somebody would do the tilling or something like that. So we work with a couple other farms, too. Then we have of Texas, Inc., and we have the property that is the subject of this lawsuit and for lack of a better term, I am going to say the approximately 450 acres. You will know what I am talking about, the Oklahoma property on Oklahoma Avenue which is owned by Brothers Properties. I Correct? The general partnership? A Yes. Do you have any equipment in Texas? A Just planters, cultivators, tractors, Harvester, pickup trucks or semi tractor maybe. Not maybe; a semi tractor. I know that Brothers also own in San Benito a property. Correct? A Yes. Is that a gin (phonetic)? A Is it a what? Is it a gin? A No, it is a packing shed. Other than the packing shed in San Benito, is there also SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883?4019 16 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 17 of 157 1 agricultural property there? 2 A JUst the property that it sits on. That, and this farm; 3 two pieces. 4 The packing shed, does it So the property that it 5 sits on is not large enough for you to farun 6 A You could farm it, but it is 25 acres of tillable land. 7 Other than the packing shed, is there anything else on 8 that property? Any other buildings? 9 A A house. 10 Do you utilize the house? 11 A Yes. 12 The family utilizes the house or do you lease it? 13 A In season, we have people in Texas who run the shed and . 14 they stay in the house. 15 But it is not one that you or your brother use. 16 A No. I have never 17 Let me ask this. When is the last time you were at 18 either one of the properties? 19 A Which -- In Texas? 20 In Texas. 21 A In October. October I think it was. 22 MR. SMITH: You have to bear with 23 me because I have been involved in this for all of two 24 weeks. 25 A When I went to Texas to meet with Roy, it was October SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883?4019 17 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page let's say. You purchased the 450 acres. I know it was two separate purchases, but when was the first purchase? What year was that? I think 2003. It seems like I remember someplace it may have been from the web page talking about there was a cabbage problem up here around that time frame? Was it because of drought conditions or something? MR. BRANDYS: Objection. You mean the purchase or why he I am not sure what the question is. Right now, my question is just during 2000 that time frame I thought I saw something about Brothers -- it was either in a Business JOurnal article or the web page talking about drought problems for cabbage up here. Was there something of that nature? I don't know how They are two different seasons, so I don't know how we would have a drought in the winter- time in Wisconsin. How did you come upon the Corpus Christi -- The Brownsville property? The Brownsville property. Through Ray Loops. How did you know Ray Loops? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 18 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Ray grew cabbage for us. So you were already purchasing winter cabbage from Bay? A It was our cabbage. He was growing it for us. On his property? A On his property, and we had other people before that and the point was that at that time I am not sure if it was 2003, it could have been before that -- that there was a problem with water. There was not enough water in the valley. We had other growers at the time, but they didn't have any water to plant. So is that the reason for buying the property from the Loops is you could alleviate that problem? A Part of the reason, because that area has water. (Discussion off the record) Did you already Did the Brothers already have the packing shed before the 450 acres on the river? A Yes. Do you recall when you bought the packing shed? Ballpark. A I built the packing shed, I didn't buy it. Do you recall when you bought the property for the packing shed? A No, I don't. Ballpark? '90's? 2000's? A It was in the '90's. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262m883-4019 19 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN And so that would have been the only Texas property you had at that time. Correct. And the purpose for the packing shed, was that for produce that you were getting from valley farmers that you were bringing up here? We were growing it with the farmers. We were partners with the farmers in growing it. Did you have leases with the farmers? No. JUst an agreement that whatever farm they were growing on -- How did that work? We didn't actually rent the land. The farmer provided the land and we provided all the inputs for the crop. We paid for the fertilizer, the seed, whatever the irrigation, water, whatever it took to grow the crop and then we harvested the crop. Our people harvested the crop and we sold the crop. Brothers Distributing sells the crop. Now when you say "our people,? did you have people specifically in Texas or did you have employees coming down from Wisconsin to do the work? Employees from Wisconsin coming to do the work. Is that still the situation today, that employees from Wisconsin come down to do the work? K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262-883?4019 20 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 21 of 157 1 A Yes. 2 And so prior to building the shed, were you already in 3 those types of agreements with farmers down there? Did 4 you have farmers doing the work? 5 A In a very small way. We had very small acreage and we 6 just loaded it right out of the field. We'd harvest 7 cabbage and load it out of the field onto trucks and 8 then we built the shed. But it was a small operation. 9 Now is cabbage strictly a winter crop in Texas? 10 A Yes. 11 In Texas, did you have any other crop that you were 12 harvesting other than cabbagethe rest of the year, the farmer was just doing 15 whatever he wanted to do with the field. 16 A He could plant another crop after the cabbage. 17 That you had no interest intake it then that the farmers got a percentage on 20 the cabbage -- On the winter cabbage. the farmers got a 21 percentage of the sale of the cabbage. 22 A Correct. 23 And there were no written agreements for any of those? 24 A No. 25 So just a handshake deal and this is how much of a SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NC). 262-883-4019 21 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page percentage you will get? A Yes. Has Brothers at any time had an interest in any crop other than cabbage in Texas? A No. So the sole -- A Other than cabbage? Other than cabbage. A We had onions there at one time. we had watermelons and cantaloupe at one time. On what property were those? A (No response) Let me ask this. Was this on the property that you owned or was this on some other farmer's property? A Other farmer's property. Let me go back to my question. Prior to October of last year, when would have been the last time you had been on the property in Texas? A I am not exactly sure. At least within the last 12 months. About how often do you make it down to Texas? Let's go back from Let's start with once you built the packing shed and it is up and running. I assume you went down during the construction of the packing shed to make sure it was going how you wanted it. SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883w4019 22 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page was there. We built most of it. Brothers Properties and their employees built most of it? A Pretty much. Then once the packing shed was up and running, how often would you come down to Texas? A At least once a year, maybe twice. In the beginning, I was there a lot more, but now, I haven't been going there, like I say, probably once a year. What is the purpose for the once?a?year trips? A JUst to touch base and see how it is going. Dave does he do -- does he make any trips? A Yes. How often does he make a trip? A Probably about the same. Do you guys usually go together or separate? A Never been together. Your employees then I take it -- Let me ask it this way. Does the packing shed do any business other than for products involving Brothers? A They handle produce depending on what the office buys or sells or whatever, the office being Brothers Distributing. They might buy greens or something from another farmer and they will bring it to the shed and mix the loads out; cabbage and greens or something. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883?4019 23 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page And that was my question. products that Distribution is handling. A Correct. It is not a packing shed that other distribution companies utilize in any way. A No. I take it the shed is not staffed 12 months out of the year. Correct? A Correct. Correct? The packing shed only handles It would be staffed basically either at the harvest time of whatever product you were buying from a farmer or at the end of your cabbage season. A It would be during the harvest season. For whichever product it is. A Right. Are you ever involved in non?winter products? A No. I Only winter?planting products? A Yes. I take it that is because you need your employees up here in the summertime. A Right. And in the wintertime up here, you don't have to you don't have any use for your employees, so they can work southern parts. SUSAN K. TAYLOR Correct? 262?553-1058 FAX NO. 262w883?4019 COURT REPORTER 24 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Year?round employment. Let me ask you about Georgia. Is Georgia the same way? Is Georgia just a winter crop? A It is a spring and fall. Spring and fall crop. So it gets cold enough there, you can't do the winter. A Right. I'm going to show you my ignorance about Wisconsin. Is Wisconsin only a summer crop? A Yes. You can?t have spring or fall crops. Correct? A Well, spring, yes. Q. You start in the spring? A Spring is a short season, spring in Wisconsin. The spring in Georgia is in February, March or whatever April. That is what I am.trying to do. I am.trying to get an idea of where the properties are and how they are being utilized. And so the properties in Georgia are being utilized spring and fall. The property in Texas is being utilized in winter. Correct? A Winter in Wisconsin. Winter in Wisconsin. Okay. Texas winter. Okay. The Illinois property I take it is a summer property. A No. It is late spring. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883-4019 25 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Late spring. So that property is not being utilized in let's say in August. I mean, there is no harvesting done in August on that property. And the reason for that is so your employees can harvest you don't get too spread too thin on harvesting. Is that basically what we?re looking at? It sounds to me, you have a -- The reason we go from state to state is we have a consistent supply of product and cabbage is a cold weather crop, so you can't grow it in a hot season. Is cabbage your main product? Yes. Do you grow anything in Georgia other than cabbage? Sweet corn. Do you grow anything in Illinois other than cabbage? Green beans, peppers, watermelons, cantaloupe. That is about it. Do Brothers own any property outside of Wisconsin that would be considered, say, like retail like the market? Do you have a market type of product or any kind of retail product anyplace outside of Wisconsin? No. Do you have any other retail product other than the SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262-883?4019 26 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN K. market on Washington Avenue? No. Have I gone throug With of Georgia, Inc., of Texas, Inc., of Illinois, Inc., Farms, Inc., and Brothers Properties and Tradewell, have I gone through all the entities and when I say entities, I don't mean just a corporation. It could be a partnership as well *w that has an interest in? MR. BRENDYS: Objection. Form. Go ahead and answer as best you can. MR. SMITH: What is your objection? MR. BRANDYS: It is sort of com? pound. Ybu asked every single one. I am not sure you touched on them all. You mentioned Klinkert. That is what I am trying to figure out. Do you understand? My question is -- I am trying to figure out all the different entities or partnerships that Joe may have an interest in. I am sure there is more there, too, but some of these like Tradewell Builders. Let me ask you about that. Is that a home building company? TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 27 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 28.0f 157 1 A Yes. 2 Who is running that? . 3 A Stephanie . 4 Only home building or does it do commercial building as 5 well? 6 A Whatever. 7 MR. BRANDYS: Only if you know. 8 A Home building I guess. 9 Have you ever heard of a commercial strip center or 10 anything of that nature that Tradewell Builders has been 11 involved in? 12 A No. 13 Do you have any dayeto?day'management responsibilities . 14 with Tradewell Builders? 15 A NO. 16 Do you have any dayeto-day management responsibility 1? with Tradewell Realty? 18 A No. 19 80 Steve and Stephanie are basically running Tradewell 2O Realty? 21 A Overseeing it a little bit. How is it going or that 22 kind of thing, you know. 23 Tradewell Builders, is Steve involved in that as well? 24 A Yes. 25 Is it Stephanie and Steve basically running that? SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262-883-4019 28 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 29 of 157 1 A Yes. 2 And then I take it Dave has another daughter that runs . I 3 the market. Correct? 4 A Yes. 5 What is her name? 6 A Kristin. 7 . Let me ask this. Do you have any other children? 8 A Mike. 9 What does Mike do? 10 A Helps me on the farm. Works for Fauna. 11 Does Dave have any other children that we have not 12 talked about other than Kristin and Steve? 13 A Lisa. . 14 What does Lisa do? 15 A She is a veterinarian. 16 When did the property, the Tradewell listing, 17 what did that go on the market? Do you recall? 18 A Within the last 12 months, six, eight months. I don't 19 know. 20 And has Tradewell sold any other property owned by 21 Brothers other than this one that you know of? 22 A I can't answer that. 23 The Georgia operation, then, I take it you have 24 equipment in Georgia owned by of Georgia, 25 Inc.? SUSAN K. TAYLOR 262*553-1058 COURT REPORTER FAX NO. 262?883-4019 29 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Farms. The actual farming equipment. Does that farm equipment stay there year?round? A Some of it may be. Is there equipment that you have to transport from Wisconsin to the various locations for harvest purposes? A Yes. i What type of equipment do you have to do that with? A Tractors and a loader or something like that, fork trucks maybe. I take it that Brothers Trucking, you utilize your own trucks to do that. Correct? A Yes. We were talking about the 450 acres down in South Texas. We were talking about the reason for purchasing this and you were talking about water problems and you said and other reasons, but we never got to them. What were the other reasons for purchasing the property? A In my mind, it would be insurance that we have a place to fann. So if for whatever reason, say Georgia had a drought or something going on where you couldn't farm.Georgia for winter cabbage, you would have a chance of farming it in Texas. A Yes. How long had you been dealing with the Loops prior to SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883*4019 30 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page purchasing the property? How long had you Two, three years. When did Distribution first start buying product out of Texas? I don't know. '90's or sometime in the '90's. I have no idea. I guess buying products is not technically correct. It was the agreements you had with the farmers where you started actually farming land down there. Correct? That would have been in the early '90'5? I don?t know. I don't remember that. Does Brothers property own the houses for you and Dave? Where I live? Your personal residence. No. So that is separate from the properties. Correct? That is just like everybody else would have for their own residence. Yes. Does Brothers Property own any residence for any of your children or Dave's children? No. So they likewise just like everybody else have gone out and bought their own property someplace. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883?4019 31 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. MR. SMITH: We talked with Roy here before the beginning of this regarding the deposition and the subpoena that we asked on documents being provided. Appraisal reports and opinions have already been produced. Correct? MRJ BRANDYS: Yes, to the extent there are any. Photographs, Videotapes, maps, plats of the property. You don't have any additional other than what may have been done by Rudy Robinson or the original deed work. Correct? A No. The agreement Let's go to the 450 acres right now. Brothers farms it in the wintertime. Did you farm it last winter? A NO. Did you farm.it this winter? A Ray Loops is farming it this winter. Last winter, the other Loops cousin farmed it, Tim. Ray farmed half and Tim.farmed the other half. Let's go back starting this winter. Ray Loops is the 450 acres that is the subject of this lawsuit. Is he farming cabbage or is he something else? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 32 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page not sure what he has on half of it. Soybeans on some of it. I know that. Is that soybeans that Distribution will eventually get? A No. Is that then strictly he is leasing it? A Correct. What are the terms of that lease? A We don't have a we don't have a written lease. We have more of you should get $90 to $100 an acre is what it amounts to. But no written documentation regarding the lease? A No. Your prior, which would have been the '07 '08 winter, the other Loops farmed the land. Correct? A Farmed half of it. What did they farm? A I think they had soybeans, too. Did you have an agreement with them regarding A We have a written lease with them. Do you know where that written lease is? A I don't have it with me, but I could probably find it. MR. SMITH: Can you provide that to your attorney? MR. BRANDYS: We have been trying to SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 33 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page find it and as soon as I find it, we will provide it to you. Do you remember the terms of the written lease? A It was $65 an acre. Well, he paid us twice because he had two crops on it and the first time, he only paid us maybe like next to nothing like a thousand dollars because that is all the crop yielded or something. He had a bad crop or whatever. The second one, we had a written lease on and he paid us the $65 an acre, but he did pay us four months late. On that the soybeans, did he harvest the soybeans? A He did. So you didn't even have to do any harvesting. A No. You said half of it. Was the other half of it being utilized by Brothers? A By Ray Loops. What was Ray Loops doing on the other A This is '07 '08? Not this winter, but '07 ?08. A We had cabbage on it. I am not sure, but I think we had cabbage the year before. But Ray actually did the work, not Brothers? A No. Did you have a written agreement with him? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 34 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page No. What was your yield from Ray Loops? Do you recall? A NO. Did all the cabbage go through your packing shed to Distribution? A Yes. WOuld this have been a situation where you provided all the fertilizers, seed, everything to get it up, they just did the manual work? A Yes. Which would be a situation kind of what you had with the farners before you owned any property down there? A Yes. Let's go back. '06 '07, was that property leased out to either one of the Loops for the winter or was it strictly Brothers? A I don't know. I can't remember back that far. The first winter that you got the property, did Brothers utilize the property in the winter or did you have some A I think we had cabbage on it the first year. And cabbage that your employees worked or that you had another farmer down there working? A Ray planted it and we harvested it. In other words, Ray Loops has always been involved SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 35 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 36 of 157 1 somehow on your property in South Texas. 2 A On that property. On half of it, not the whole thing. 3 And when we say "half of it" -- 4 A I mean the first half. 5 BRANDYS: I was going to say when 6 you say "first," because there was one in 2003 and a 7 tract several years later. 8 (Discussion off the record) 9 MR. SMITH: Mr. let me 10 go back through Number three on the list is all 11 financial documents. 12 And Roy, I think you gave me an objection 13 to that one. Correct? 14 MR. BRANDYS: Yes, sir. 15 MR. SMITH: Copies of government 16 ordinances, regulations or policies including, but not 17 limited, to planning and zoning. I assume those have 18 already been produced? 19 MR. BRANDYS: Yes. To the extent we 20 have them, they are produced. 21 Were there any documents that you reviewed today or in 22 preparation for this deposition, Mr. 23 A No. Just the appraisals. 24 And when you say the appraisals, would that be both 25 Robinson and Minors (phonetic) or just Robinson? SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883'4019 3 6 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Both. MR. SMITH: Any correspondence between the United States and its agencies. I take it we have already got those. Correct? MR. BRANDYS: Yes. Have you been involved in any meetings on border fence down in Texas? A Yes. How many meetings have you gone to? A One. When was that? A well, two. One in the courthouse and one in the spring time. Where was the meeting at in the spring time? A It was in Ray shed. MR. BRANDYS: Are you talking about a meeting with the lawyers? THE WITNESS: No, meeting with the border patrol. I want to make sure. I am not trying -- because there is privileged information that you have concerning conversations with your lawyers about your lawsuit and I am.not asking about those types of meetings. What I am asking about is either meetings with any of the border patrol or government agencies or meetings with SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 37 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page the other land owners down there who had formed a meeting for any particular reason. No. The only one was with the border patrol. So the spring time meeting at Ray Loops' shed, there were border patrol representatives there? Yes. And what was the purpose of that meeting? To describe It might have been last fall. Maybe it wasn't in the spring, maybe it was in the fall that they did that. I don't remember, but within the last maybe it was last November. I don't know. Whenever I was down there and Ray knew I was going to be there, so he called the border patrol and wanted the people to meet with me. So that would be after the lawsuit was filed in this particular case. Correct? No, before that. Before the lawsuit was even filed. Yes. Other than you and Ray Loops How many border patrol people showed up? Six people. Anybody other than you and Ray Loops? There was some attorney from Tennessee. I don't know what his name was. And I think maybe one other SUSAN K. TAYLOR COURT REPORTER FAX NO. 262-883?4019 38 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page person a couple of people from the government agencies. Any other land owners? JUst the Loops family. Was Dave with you? No. And you said the other time was at the courthouse. You went down for a hearing at the courthouse? That was in October. So those are the two times that you have had any meetings regarding border fence with either governmental agencies or other property owners. Correct? Yes. Number seven is copies of any permits/license applications made to IBWC. When I say IBWC, do you know who I am referring to? No. MR. SMITH: International Boundary Water Commission. I am going to say IBWC for short if that is okay with you. Initially, I will probably say IWCB and I I get them mixed up all the time, but you know who I am talking about. THE WITNESS: Yes. Do you have any permits, license applications, anything in that regard? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX ND. 262-883?4019 39 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 40 of 157 1 A Not that I know of. 2 Has Brothers ever You understand that . 3 most of the property that we are involved in was within 4 property that is governed by IBWC. 5 MR. BRANDYS: Objection. Forml 6 Correct? 7 A Yes. 8 In fact, about the only property that is not is the 9 property from the levee to the road. 10 A Correct. 11 Have you ever had any and when I say you, it is you 12 or your brother or Brothers Properties or 13 anybody on their behalf ever had any discussions with . 14 IBWC about building anything on that property? 15 A No. 16 Have you ever had any 17 A I am speaking for myself. I don?t know if anyone else 18 has, but has not. 19 As far as you know, Dave has not? 20 A I don't think so. 21 Has anybody for Properties spoken to IBWC 22 about any kind of ramps being built across the levee, 23 anything that of nature? 24 A I haven't. I can't Speak for anybody else. I don't 25 know. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 40 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page And when I say ramps being built across the levee, you understand that if you wanted an access point to go across their levee MR. BRANDYS: Objection; form. MR. SMITH: Let me finish. If you want any kind of access point across their levee, you are going to have to build a ramp to get something across that other than a pickup truck. Correct? Correct. You understand that you have to get approval from them and.sukmit engineering and design plans for the ramp. Correct? MR. BRANDYS: Objection. Form. Correct. Number eight was any documents showing properties owned by Brothers Properties for use as industrial or light industrial purposes. Do you have any such documents? No. MR. BRANDYS: Object to that, too, in terms of being vague and non?specific, confidential, things like that. But go ahead and answer as best you can. Let me ask this question. The reason I styled the question that way is you understand that one of the' SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262?883?4019 41 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page things Mr. Robinson has said is that the property best use of the property would be light industrial. Correct? Mr. Robinson being who? The appraiser that is representing you. Say it again. He did what? He said the best use of the property would be light industrial. That is what I read, yes. My question to you then in asking this, does Brothers Property own any property anywhere else that is zoned for light industrial? MR. BRANDYS: I have The one that came to mind was the one I told you about, but we might have something else with zoning I don't know -- in Wisconsin here. We do now that I am thinking about it. So other than the Tradewell preperty that is up for sale, you have another property? In Franksville where that plant is. That is zoned whatever. There might be other ones, too. I would have to go through the list of properties and see what it is zoned. I have no idea what each property is zoned. When you say the plant in Franksville, you are talking about the headquarters there where the trucks and the SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 42 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page packing shed and everything is. Correct? Yes. And the only business that that property on Kraut does is agricultural distribution. Correct? Correct. There is no other type of trucking business. You guys don't haul pipe, you don't haul gravel or cement or anything like that. Correct? Correct. Do you think you know off the top of your head other than that Franksville property and the property on Iw94 that we talked about with Tradewell, can you think of any others that are zoned for either industrial or light industrial that they use? I would have to go through the list. I don't know. Has Brothers Properties ever bought a property specifically for investment in industrial use or light industrial use? Do you mean just so that we could build something on it? Or so that it could be turned around and flipped just for that purpose. Yes. Every piece of property we ever bought in Wisconsin has been bought that way. we look at the potential for development. Have you actually flipped any of those properties for SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262-883?4019 43 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page development purposes? Small parcels, possibly. I don't know. I would have to go back and go through the years, but for the most part, we bought them as agricultural land with the intention that someday, the value would increase and then eventually, possibly be sold. I am speaking of Wisconsin. We are talking about Wisconsin. Right? Yes. How about Georgia? Have you ever done that in Georgia? Depending on each parcel, I mean what parcel you are buying or whatever. Are there any of the parcels in Georgia that you bought specifically thinking we are not going to use this, this is not the primary purpose isn?t just agriculture. We think we are going to flip this as industrial? I think where the packing shed is, that could have been zoned where the packing shed is in Georgia, it could have been zoned different zoning. How about in Illinois? No. It is strictly all land. And then in Texas, when you bought the property that is the subject of this lawsuit, did you buy that property with the intent of using it as industrial property? No. We bought it with the potential we bought the land whatever potential would come along. we bought SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 44 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page farm, but at some point, possibly, whatever. That is pretty much true of any farm.land. Correct? A Yes. I mean, anybody that has farm land, if they bought it to farm.and sometime in the future, for whatever reason, some development comes along and it becomes able to use it as that preperty, then you will consider using it as another property other than agricultural. Correct? A Yes. The main purpose for buying the Texas land is because you needed back?up insurance for cabbage farming. Correct? A Correct. Do you have insurance on the property down in Texas? Not the San Benito property, but the property along the river. A Probably just liability. I don't know what kind of insurance you would need for land. I don't know. There are no buildings on that property. Correct? A No. Do you have a packing shed in Illinois as well? A Yes. Does the Georgia properties owned by Brothers have anything other than a packing shed on it? A No. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 45 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page The reason I ask this is having grown up in farming and ranching families, I know sometimes when you buy it, there may be houses on it and you end up owning a house off the property that either you have a tenant farmer or somebody that may be working A Are you saying are there any houses on the property? Yes. On the Georgia property, are there houses? A Yes. Are those houses utilized strictly by your employees when they go down to harvest? A You are talking about Georgia? Georgia. A Yes. How about in Illinois? Does Illinois have houses on the property? A Yes. Are they strictly used by your employees? A Yes. You are not leasing them out or A No. You don't have a tenant farmer of any nature? A No. we have already talked about the San Benito property. Correct? The San Benito property has a house that your employees use. SUSAN K. TAYLOR 262?553?1058 FAX NO. 262?883-4019 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Correct. Do you live on one of the farms? Your personal residence, is it on one of the farms or is it strictly in a residential area? A It is agriculture, but we don't farm it. It was in a conservation program for years. It is all trees and things now. The whole land is owned by Joe not Properties. A Correct. That is the reason I was asking that question. I didn't know if maybe you had carved out off of Property agricultural land, a section that you own just for your house. A NO. This is separate and apart, it is not part of the agricultural process. A No. How about for Dave? Is it the same situation? A Yes. So he lives away from farming land owned by PrOperties. He doesn't live on farming land. Correct? A Correct. MR. BRANDYS: You were on number eight or nine I believe. We had previously produced the SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 47 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page insurance policy to you in response to your request for production, so we produced those documents. I The last one is copies of contracts that you have entered with tenant farmers and other than the one that you had with Tim Loops, you have no other contracts. Correct? With tenant farmers? Tenant farmers or any farmers that are leasing property down there. Are you talking about Wisconsin, Georgia, everything? No. In the Rio Grande valley, only in Texas. No. That is the only one we have. MR. SMITH: And as I understand, you guys are looking for that one, so whenever you find that one, we will get that one. THE WITNESS: Right. Back over the years, have you ever had a written agreement with Ray Loops or his family? I don't know. MR. SMITH: Then I would ask while they are looking for the one with Tim Loops, if you find any contracts that you do have with Ray Loops over the years, that you provide those as well. THE WITNESS: Okay. (Discussion off the record) SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262*883?4019 48 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page show you an aerial that has some lines on it and see if I understand this correctly when we were talking about who was leasing or who was farming what parts between the Loop brothers. MR. BRANDYS: Do you want to mark this? You don't have to attach it. JUst so we know what it is. MR. SMITH: I'll mark it as Exhibit 1. (A.document was marked as Deposition Exhibit No. 1) MR. SMITH: Let me show you what I have marked as Exhibit No. 1. Roy and I just discussed this. I'm going to keep this. we are not going to tender it mainly because I need to use it with Mr. Loops' deposition next week as well, so that way, I will have the same document and we are referring to the same thing when we do that, if that is okay with you. MR. BRANDYS: Yes. We have it. There is part of your property that is black and white bashed outline and there is the part that is red hashed outline. Correct? Yes. Did you buy the part in the black and white first? Yes. Correct me if I am wrong. Ray Loops and his family SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262?883?4019 49 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page would be down to the top of the page here, that direction. Correct? A Correct. Tim Loop and his family would be toward the bottom of the page. Correct? A Their headquarters MR. BRANDYS: I know it is hard, but that way is north, this way is south. Jost so we can all be on the same page. That way is east and this way is west. Here is the Rio. So I take it then that when you were talking about Tim Loop was doing half and Ray was doing half, was Tim farming the half closest to his property? A Yes. And Ray farming the half closest to his property? A Correct. Which one of these properties When you did cabbage, where would you do the cabbage at? A Everything on this part. When you say "this part," for the record, that is the black and white bashed A Everything in the black and white. Has the part under the red ever been utilized for cabbage? A No. SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883?4019 50 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page that? A Because we only had it for a couple years and we never we had other parcels that Ray grew the cabbage on in different areas, Los Fresnos or whatever it was. So Ray was growing cabbage for you on his property located elsewhere? A Correct. And this property as well. A Not every year. You can't grow it on the same fields every year. Let me go back. Is it like corn in that you need to grow something different on the land every other year? A It is not like corn at all. Corn is the Opposite. Corn you could grow every year if you want. MR. SMITH: I know my grandfather never liked to grow the same crop THE WITNESS: I know. MR. SMITH: He would plant corn, soybean, corn, soybean. That is the way he went. Is cabbage of that nature that you don't want to grow it two years in a row? A No, at least three. Every third year maybe. But if you are on new land, you can grow it you could maybe a couple, three years in a row, you could plant successive years. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 51 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN K. When you are saying new land, you mean new to cabbage growing. Hasn't had cabbage on it. SO that is the reason right now that you are not growing cabbage on it; you are at that period where you have to grow something other than cabbage on it? Correct. Is that the only reason you are not growing cabbage on it this winter? I suppose. It is one of the reasons. When you were growing cabbage on it in the winter When do you plant the cabbage? Start in the first of September and end December 1 would be the last planting. About September let to December is the planting season. So you would actually have two plantings on the property? Several plantings. Let me ask it this way. When you say several plantings, are you talking about replanting the same acreage or you sparsed it out at different locations? You plant 40 acres at a time so you can harvest it, so you plant let's say 40 acres throughout the season, spread the crop out. That is for ease of harvesting so that you are not TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883h4019 52 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page trying to harvest everything all at once. Correct. But what you are not saying is that you would plant the whole acreage September and then the whole acreage December 1. You would sparse it out over the acres. Yes. What was Tim growing on the part that I think he's farmed it for two years. The first year, he had corn and last year, he had soybeans. Is he farming it this year? No. Ray is farming this black and white hashed property. Is Ray farming the red property as well? This year. So he has the whole thing this year. Yes. Now looking at Ray's operation, does he use your property for his White Wing hunts? This part, the part that he was farming originally farming. Has he always done that? I have no idea. I am not there at that time of the year. I don't know what he is doing. So what he is doing with it from September to December, you don't really have any knowledge because that is the SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883?4019 53 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page dove season. September to December? Right. I am.not sure when dove season is. I don't think he would be using it for growing cabbage on it. MR. BRANDYS: Don't guess. If you don't kno I don't know. Do you have an agreement with Ray Loops and the White Wing Ranch about hunters on your property? No. Do you allow them to bring hunters on your property? Sure. I Do you get any income, because I am.noticing that they have income between $100,000 and $200,000 for their hunting. Do you get income from that? No. Is that in any way compensated to you with regard to the crops that are grown on there? Do you get a higher percentage because of the hunting than you would normally? I don?t think so. I have also noticed that the Loops sell sand anywhere from $360,000 to $843,000 per year. Do they sell any sand Off your property? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX ND. 262?883?4019 54 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page you know what property they are selling sand from? A Their property which is north I guess. That way. The adjacent northern property that they own? A Here. You can't see it, but it is between the levee and the river. Correct? A I don't know. Has Brothers Property ever sold sand off your property? A No. Have you ever entertained the idea of selling any sand off your property? A No. Why is that? A No one approached us for it. If somebody wanted it, maybe, but possibly, but we just didn't Nobody has approached us to sell whatever. What is it going to be the next year for cabbage on this property in South Texas? A I don't know. Who makes that decision? A Ray and myself I guess. You haven?t had any discussions with him.about when we are going to do cabbage next? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NC. 262?883-4019 55 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page No. (A.document was marked as Deposition Exhibit No. 2) Let me show you what I have marked as Exhibit No. 2. This is Oklahoma Avenue. Correct? A Yes. MR. BRANDYS: Is this from one of the deeds? MR. SMITH: This is from the easement deed. Whichever one is easier to use, whether you want to use that one or this one. Brothers, what is your access point for your property right now? MR. BRANDYS: Which property? The whole thing? MR. SMITH: For any of the property. How does Brothers access the property? A If I was driving there to see the property, where would I enter? Let's go that way first. A Probably enter over there or throng -- When you say "over there,? on Exhibit 1, are you talking about the green mark on Oklahoma Avenue? A Correct. And do you know who owns that property between the road SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262~883?4019 56 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN K. and Perez, but I am not sure of that. Have you ever met Mr. Perez? No. Have you ever had any discussions with Mr. Perez? NO. Have you ever had any problems with access across Mr. Perez' property? NO. Is that the common property that access point that Ray Loop uses as well? I think so. Is that how you figured that out as well? Yes. Let me ask you, when you bring your farm equipment out to harvest or to plant or whatever, what is the access point for Brothers? Probably that I guess. The same place? Probably. I am not there when they access it, so I am not I'm not speaking for them. but I'm not sure where they go in. That was going to be my next question. Have you ever actually been there when any of your equipment had to access the property? When I say your equipment, I'm TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883~4019 57 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page talking farming equipment, not your truck. I personally have never driven a piece of equipment there. I may have seen them enter. I don't know if I was there when they were crossing that point, but I would say that is where they enter. Have you ever actually been involved in the actual -- either planting, harvesting, working the equipment on any of this property in South Texas? I would say no. How about Dave? Mine is supervision or just walk the fields to see what it looks like. I take that back. We had a cabbage seed bed in there. I might have planted that seed bed. That is a possibility. Is there somebody for Brothers farming that is in charge of planting South Texas? Planting? Yes. No. Let me ask this, for instance, the cabbage that Ray Loops is using, does Ray plant the cabbage? Yes. So your employees don't come down to plant? We have. We have planting equipment down there. We have planting equipment. We could plant it and we have SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 58 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page planted it in the past, but right at this moment or this year or the last few years, we have not planted. We have not used that equipment in two or three years. Where does the equipment stay? In the packing shed. At the San Benito packing shed? Yes. Have you ever used any other access point other than across the Perez property? Yes. Which other ones have you used? There was a place if you were just going to look to see the field, we would drive there are several driveways, a little place you can get up on top of the levee and then drive in here or else through Charles Loops' land. The other places that you are talking about, do they have ramps up the levee? I think so. .There is several little ramps. A lot of them are homemade ramps. Assume for me if this is correct that this is another ?w As far as equipment, that is the only farm equipment. That is the only one you know that Brothers has utilized for access. Correct? Is the green one across the Perez property. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 59 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page would say yes. Have you ever had any discussions with Mr. Perez about continuing to -- Let me back up. Do you understand that there is going to be a gate at that location? Is that your understanding? MR. BRANDYS: Same objection. Form. Do you understand it is going to be a 50?foot wide farm gate is what is proposed? MR. BRANDYS: Objection. Form. I don't really know that. Nobody has told me that, but I am.assuming that. Do you have any reason Right now, it is proposed that there is going to be a 50?foot farm.gate at this green location across the Perez property. Have you ever been told that? MR. BRANDYS: Objection. Form. Foundation. No, I haven't been. No one -- When I talked to the border patrol, they had not even designed the gate, much less tell me it was 50 feet. Have you been told about anything else about gate locations along Oklahoma Avenue? MR. BRANDYS: Objection. Form, foundation. Have I been told about SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 60 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Anything else about where there is going to be gate locations? Maybe the last day or something. Now, I know. MR. BRANDYS: He is not asking you what I may have discussed with you. He is talking about anything other than what discussions you had with your attorney. I didn't know where the gates were going to be. MR. SMITH: Let me just caution you that when I ask these questions, I have to ask them broad because I don't know everybody that you have talked to, but I don't ever want to know and I don't want to blurt out any conversations you have had with any of your attorneys because that is privileged. I know that is privilege and I am not seeking that. I am more interested in whether you have had discussions with the Loop brothers, the border patrol, any other landowners, anybody from any governmental agency discussing where the possible gates are. I would say no. Have you ever made any contact with any of the governmental agencies asking them where the gates are going to be? Well, at one point early on, they were talking about in initial negotiations, but we never got as far as the SUSAN K. TAYLOR 262*553'1058 COURT REPORTER FAX NO. 262?883?4019 61 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page gate locations. Since that time, have you tried to make contact with any governmental agencies, any employees of the government to say hey, where are there going to be gate locations? No. It is my understanding correct me if I am wrong that when you were purchasing the property, the bank had some requirement of a legal easement before they would do financing. Correct? MR. BRANDYS: Objection. Form, foundation. I don't know. Do you know whether there is a legal easement across -- accessing your property? MR. BRANDYS: Objection. Form. Foundation. I didn't know until yesterday until I read the appraisal. So before the appraisal, you didn't have any idea of- where yOur easement ran. Is that correct? No. What is your understanding now of where the easement runs? After yesterday? Yes. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 62 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Apparently there is an easement going through Charles Loops' yard. I am not sure where that goes, but I think it That was given on the first parcel? Correct. A And I think I don't know where it goes. I have no idea. I think it goes along the levee or something. I am not sure Where it is. So looking at Exhibit 2, you can't tell us where the access off of either Oklahoma Avenue or 19, or any of the roads. You don't know where that access point is? MR. BRANDYS: The access point for the easement? MR. SMITH: For the easement. A I am not sure. Have you ever used the access -1 have you ever used as access for your property the drive that goes to Tim Loops' headquarters? A Say it again. Have you ever used as access for your property the drive and the ramp that goes across the levee to Tim Loops' headquarters? A The main driveway? Yes. A Yes. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883-4019 63 I Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Have you used that for farm equipment as well? A No. JUst strictly for personal? A Personal. Would you drive up that and get on the levee road and drive on the levee road? A Mostly drive through their headquarters yard. And then access your property that way? A Yes. What is your understanding about use of the road on top of the levee? MR. BRANDYS: Objection. Fermi A As far as what? As far as Brothers using the road on top of the levee. A I have no idea. I have driven on it, but it is not something that You could drive across the levee wherever you want. The border patrol is driving up there, everybody else is driving up there. I have driven across it, but that is not an access point for certain. Do you know whether your employees have ever utilized the levee road for farm equipment? A I don't know. I have never seen it. I don't know if they have Or not. SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883-4019 64 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page you have any understanding as to whether IBWC is going to allow landowners to drive on the levee roads? I don't know. I don't think you are supposed to drive on a levee. If IBWC is going to allow land owners to drive on the levee roads after the fence is built, does that have any effect on any of your opinions about access to your property? MR. BRANDYS: Objection. Forms Foundation. Yes. I would say yes because part of our operation is hauling the product out of the field with a semi tractor and when I was talking to the woman in the spring time or whenever it was about, you know; access to the property, she said told me to drive the semi across the levee and I told her I can't drive a semi on the levee and that was kind of the end of it. She was like I can see you don't want to negotiate and that is the end of it. What is the reason for not being able to drive the semi down the levee? making the turn. I don't think it is -- It is like saying can you walk on a tightrope I guess. There is only a small point. Are you saying? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 65 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page When you drive over the levee, spots are real high and spots are lower. If you took a semi for the most part over the top of the levee, the truck would get hung up on top of the levee the dolly wheels on the trailer. Well, right now, your trucks are going across the levee. Correct? MR. BRANDYS: Objection. Form. A In certain spots. You know, not every spot you can access, unless you built a bigger ramp or something. Is it your understanding that you are actually not even supposed to be crossing the levee unless you've gotten approval to build a ramp by Correct? A Yes. So right now, your trucks are utilizing a ramp and they are going across the levee. Correct? A Right. Do you know whether your trucks have ever gone up and down the levee? A I could say no, but I'm not sure. I doubt it. I haven't been there for 24 hours, so I don't know. I don't think so. Have you, yourself, ever been down to hunt on the property? A NO. Looking at Brothers USDA subsidies from SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 66 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page looks like '95 to 2006, it appears that most of the subsidies paid are paid for Racine County, Wisconsin. Correct? I guess. I am showing 806,700 It is for Racine County? For Racine County. That is probably correct. Then I am showing for Georgia, about $25,355 and for Illinois, about $12,780. Does that sound correct to you? Probably. It looks like the largest of that is a corn subsidy. Correct? I am not involved in that part of the operation, so I really don't know. Who is involved in that part of the operation? Would that be Dave? Dave at one point and my son is doing it now. ?Mike is doing it. What is the subsidy program? Is that a non?plant program? It is I can't really completely answer that, but if you plant a grain crop like corn or soybeans or maze or something, they have a counter?cyclical payment where SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 67 .- . Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN K. they pay you $20 an acre or something for planting or whatever. So that is actually a grain crop subsidy to plant. Correct? versus because I know at times, the USDA has a non?plant subsidy as well. Correct? That is in the past. You don't get any subsidy for planting vegetables. So if you don't plant vegetables, you don't get a payment. So you've got corn, soybean, wheat and barley and oats looks like for subsidies the Brothers have obtained from at least 1995 to 2006. Correct? We don't plant barley or oats, but whatever. My question is, for the South Texas property, have you ever had a subsidy payment for South Texas? For the big property? Yes. Not that I know of. I am not sure, but I would say no. The smaller one, the smaller where the shed is, they get like $400 or something for whatever. SO the shed property, you get a $400 per year? About $400 per year, but I think it changes every year. What is that subsidy for? I don't know. So that would be something I need to ask Dave? He probably doesn't know. Probably Jerry would be the TAYLOR 262-55341058 COURT REPORTER FAX NO. 262-883?4019 68 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page one who would know. Who is Jerry? Our office manager. What is his last name? Goad. How long has he been with you? 15, 20 years maybe. Looking at the Loop brothers property, last year, they got a USDA income subsidy of $199,000. In 2006, $163,000. Do you know if any of that subsidy was regarding property your property? I am not certain of that, but it could be. Have you received any of that income when I say you, has Brothers or Distribution received any of the income for that USDA subsidy? Not that I am aware of. would you expect to receive income if it was based on crops being planted on your land? No. Why is that? It is just all part of the operator is the who gets the not the landowner, the operator is the one who gets the payment. I take it neither you nor your brother ever winter in South Texas. Correct? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 69 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page the area of your property along the river in South 3 Texas, do you know of any light industrial or industrial 4 businesses between the levee and the river? 5 A Do I know of them? 6 Yes. 7 A No. I mean, I have seen junk yards and things like 8 that. 9 Where have you seen the junk yard? 10 A Along Highway 4 or 521 or whatever that road is you to 11 take out to Harlingen. 12 Is that junk yard actually between the levee and the 13 river? 14 A No, I don't think No. 15 My question is specifically do you know of any in 16 that area, do you know of any light industrial or 17 industrial businesses between the levee and the river? 18 Not along the road, but actually between the levee and 19 the river? 20 A No. 21 You understand that With IBWC, you have never done 22 a letter of application with them for permits and when I 23 say you, Brothers Property has never done a 24 letter of application regarding permits or license with 25 them to either build or alter that property. Correct? SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883-4019 70 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Correct. Never provided them with any maps or drawings. Correct? A Correct. Never had any plans involving engineering plans, that kind of thing, that you have provided to them to get a permit or license. Correct? A Correct. Have you ever actually met with any engineers about using the property as either industrial or light industrial? A No. Have you ever met with anybody about purchasing the property to be used as industrial or light industrial? A No. Have you ever had an offer from anybody of that nature? A No. Have you ever attempted to sell the property since you bought it? A To anybody? Yes. A- No. When did you personally first learn that there was going to be a border fence? A Wherever? Yes. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262*883?4019 71 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN Probably a couple years ago. was it after you had already bought the property? When I say the property, I am.talking about the river property. I would say yes. Once you learned that there was going to be a border fence, did you assume then that it was going to affect that property? Once I learned that No. So once you first heard about there being a border fence, you didn't think it would necessarily go across your property? The border fence in general? Are you talking about, you know, starting in California or wherever they started? Correct. No. I had no idea. When is the first time that you learned that there was going to be a border fence in South Texas? Probably two years ago. How did you learn that? I don't know. Word of mouth or something. I don't know. Have you ever had any contact with US Department of Interior Fish Wildlife regarding endangered species, K. TAYLOR 262?553-1058 COURT REPORTER FAX NC. 262?883?4019 72 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page plant life, effect on the river regarding any kind of building on your property? Not that I remember, no. How about the US Army Corps of Engineers? Have you had discussions with them regarding building on that property? No. Have you ever talked with Texas Parks Wildlife regarding any projects along the Rio Grande? No. What utilities does that property have? JUst irrigation district water as far as I know. There might be an electric pole out there. I don?t know. Is there a drinkable water supply? No. Is there a sewage system? No. I think there might be water on Oklahoma Avenue. I am.not sure about that. So you don't even know whether -- providing to this property, whether there is drinkable water or sewage. I haven't looked at it. I haven't explored the possibilities. WCuld you agree that if it was going to be utilized for industrial or light industrial, that you would need sewage and water supplies to that area? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262*883?4019 73 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. Do you know whether you have had problems with illegal aliens on your property in South Texas? A Not that I am.aware of. Do you know whether your property has been utilized as an access point for illegal aliens? A Not that I know of. Have you ever had discussions with Ray Loop about that? A Through the years I suppose. He had trouble with somebody stealing his watermelons or something last year. Other than problems with people stealing the water- melons, do you know of any other problems? A I don't think there have been any problems. Do you know where the city limits are with respect to your property? A No. Do you know that your property is not within the city limits? A No. I didn't know that. Do you know what the zoning is with regard to the South Texas property? A No. Have you ever met with any of the Brownsville city planners or employees regarding possible uses of your SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883?4019 74 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page property? NO. Have you ever made any requests for a specific zoning for your property in Brownsville? No. After the fence is built, how do you plan on using the property? As agricultural land. The way it is being used now? Yes. Basically, do you foresee using it for the same types of products as well? I would assume. I think so. My question is, do you have any plans for a different type of Before the fence you found out about the fence, had you made any plans that, you know, we are going to go a different way in agriculture. We are not going to grow cabbage, we are going to start growing something else? No. It was always meant to be agricultural land for us to farm. Do you know anything about something called this is going to be confusing the east loop project for the City of Brownsville? No. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 75 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 76 of 157 1 Which is a roadway. 2 A No. Have you ever examined any documents of where the east 4 loop project is going to be? 5 A No. 6 Have you ever made any plans with respect to your 7 property based on the east loop projectnot talking about any access on your property, I 10 am talking about the roads that service your property, 11 Oklahoma Avenue, Have those been suitable for 12 your purpose for the property -- the agricultural 13 purpose? . 14 A Yes. 15 Had you seen any need or desire for your property to 16 improve on the roadways somehowtake it you never had any discussions or requests 19 with the City of Brownsville, the County of Cameron -- 20 Cameron County about either widening roadways, improving 21 roadways, anything of that nature, for use for your 22 property. 23 A No. 24 Attached to Mr. Robinson's report are some comparable 25 properties that he went out and looked at. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NC. 262-883?4019 76 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Mr. Robinson being who? Your appraiser. A I thought they were both Robinsons. Both appraisers? A I think so. MR. BRANDYS: I think Mr. Minor is with a firnn MR. SMITH: One of them is John Minor who is from the government side and Mr. Robinson is your appraiser. THE WITNESS: All right. Have you ever actually met with Mr. Robinson? A No. Had any telephone conferences with him? A No. Do you know whether Dave has? A I don't know. Have you ever discussed with Mr. Robinson future use of the property, anything of that nature? A No. Or your planned uses of the property? A No. .Attached to his report are some comparable sales. Ebr instance, comparable sale No. 1 is actually I think your property, isn't it? No. It is property sold by the SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262~883-40l9 77 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page White Wing Ranch. Do you know anything about that property or that sale? No. Has Brothers attempted to buy any property in South Texas other than this property and the San Benito property? We have a house there, too. There is another house there. Where is the other house? I have never seen it. I couldn't tell you. Strictly used by employees? Correct. I take it then that house is off away from agricultural land. It is in San Benito. Was the purpose for buying that house so that your employees would have someplace to stay when they are harvesting? Yes, I guess. I didn't buy it, so I don't know. Dave, my brother, bought it. I take it then Have you seen the comparables on the back of the report? I did. Do you have any personal knowledge regarding any of those properties or the sales? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 78 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Are you looking at our appraisal or your appraisal? Your appraisal. Your appraiser, Mr. Robinson. A No, I don't have any knowledge. Do you have any knowledge about their locations? Do you have any idea how far from your property they may be? A No, I don't. If I remember right, for the entire property the entire property was bought from Tim Loop and his brother. Correct? Both parcels? A Loop Farms or whatever. Charles Loop. I am not trying to be tricky about what the technical I am just trying to differentiate the Loops. A Tim and his brother. Tim and his brother sold the property that you have. Correct? A Yes. Did you find out about that property through Ray? A Yes. I think you paid $2,000 per acre for the property. Correct? MR. BRANDYS: Objection. Form. Which property? There are two tracts. Was there a different price for each tract? A I don't know. I was under the impression that the whole thing SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262w883-4019 79 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page they all sold for $2,000 an acre. Do you know if that is true or not? A That is what I read. I don?t know what we paid. I don?t remember. Whatever it was. $2,000 if that is what it was. Who negotiated that sale? A me. You dealt with the Loops? A Yes. Not Dave? A No. In the appraiser's report, it says the property was bought under duress. Did you see that? A Yes. Do you know how he got that information? A The appraiser? Yes. A Could have been from me. I don't know. I thought earlier, you told me you actually never talked to the appraiser. Correct? A I might have talked to him. I don?t know. But you've never personally spoken to the appraiser? A NO. Is it your position that the property was bought under duress? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 80 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. Why is that? A Because they needed to -- They had bad farm years and they had to raise cash to pay the bank loans or whatever they did with it. Where did you get that information? A I guess I'm assuming that because we needed to close within so many days and it had to be done on the second parcel when they called me Tim personally called me and asked if I wanted to buy the next parcel, the adjoining land, and I said how much do you want for it and he said the same as last time or whatever and he said can you close on it in 30 days? I said yes, I can do that. I went down two weeks later and saw it and that was that. With regard to the duress part, are you assuming that it was under duress strictly because he wanted to close in 30 days? A Yes. Did you have any other informatio Did Tim Loop say anything to you about I have to sell this land? A I would say no. Did Ray Loop say anything to you or any of the northern Loops say anything to you about they have to sell this land? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 81 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 82 of 157 1 A On the second parcel. The first parcel the second 2 parcel, Ray didn't know anything about that parcel. . 3 80 Ray didn't even realize that they were selling it. 1 4 A NO. 5 The first parcel, did Tim and his brother, did they have 6 that through a realtor? 7 A No, not that I am aware of. I don't think so. 8 So it wasn't something where it was on the market. 9 Correct? 10 A Correct. 11 But Ray is the one that told you they are willing to 12 sell a piece of their land? 13 A Right. . 14 Do you remember how Ray described that to you? 1 15 A well, Ray told_me that they were negotiating with the 16 Department of Interior to sell it and I don't think Ray 17 wanted the Department of Interior land or whatever. He 18 wanted to farm.it or whatever. 19 Would that have been a problem then because at that 20 time, you were already buying from Ray. Correct? 21 A No. Buying? 22 Buying cabbage from Ray. 23 A Right. 24 From that property. 25 A Not from that property. From different properties. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883?4019 82 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 83 of 157 1 Ray's farm, not that farm. 2 Ray wasn't farming 3 A No. 4 that property for cabbage? 5 A No. That was As long as Charles Loop and his sons 6 owned it, they farmed it. 7 So once you found out that he was willing to sell it to 8 the Department of Interior, that fit in with you and 9 your brother's plan of hey, we can have a back-up area 10 for cabbage. 11 A Correct. 12 Did you or your brother ever go anyplace else and 13 attempt to buy any other property in South Texas? 14 A No. 15 Did you ever negotiate with any other ranchers or 16 farmers about property in South Texas? 17 A Through the years, we looked at property, but we never 18 made a written offer that I am aware of to anybody. 19 What properties had you looked at? Do you recall? 20 A No. Through the years, more toward the land being 21 more toward the upper valley being 22 MCAllen? 23 A Not that far. Like Mercedes or a little further past 24 there. What is important is the soil type. 25 What do you know about the soil type of your property in SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883-4019 83 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN South Texas? This property? Yes. That it is probably the best soil in the valley. For agricultural purposes. Correct? Yes. It has about a foot and a half of what we call our gumbo clay and then you have a sand base underneath that. Correct? I don't know. And it drains really well for purposes of agriculture? Yes. was there a negotiation as to the acreage price or did you just pay the asking price? I probably negotiated, but I don?t remember what the asking price or whatever was. So you don't recall what the initial asking price was? I am sure I didn't give them the asking price or I am sure I didn't, you know I am sure I asked if he would take less. Do you know whether he actually took less than the asking price? I don't know. Do you know how much the Department of Interior was willing to pay for the land? K. TAYLOR 262?553~1058 COURT REPORTER FAX NO. 262-883?4019 84 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page No. You say you never had that information going in on what they were going to pay per acre? A No. I assumed it had to be something close to that, though. MR. BRANDYS: We are talking about Tract 1. Right? Tract is the only one the Department of Interior was interested in. Right? A Yes. At the time that you were negotiating with Tim Loop, did you have did you make a determination of what the per acre value of the property was? A Per acre? Right. A No. So you had not come up with a conclusion that the property was worth $3,000 an acre and I am getting it at $2,000 an acre, nothing of that nature? A Run that by me again. At the time that you were negotiating with Tim Loop, had you come up with a determination on your own of what that prOperty in that area would be worth per acre? A No. You mean looking at other appraisals or something or -- SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 85 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page just kind of getting an idea from other farmers selling property, anything of that nature. A No. For us, $2,000 an acre seemed or whatever it was, $2,000 seemed cheap to us because we are used to paying more in other areas. When you say paying more in other areas, you are talking outside of Texas. Correct? A Yes. Here in Wisconsin, what would you have to pay per acre? Let's go back to 2003 when you purchased the property. What would you have to pay per acre here? A Probably $6,000 to $10,000. How about Georgia, the area that you were buying? A Probably $2,500 to $4,000. And then in Illinois? A In 2003? Probably We weren't there at that time. Yes, we were there. Let's say $3,000 to $4,000 an acre. So your determination that $2,000 was cheap was based on what yOu have to pay in Georgia, Illinois and Wisconsin. A What we are used to paying. That wasn't based on anything as to what other farmers or property owners in South Texas were selling property for. A We didn't have an appraisal or anything done on it before we bought it. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883?4019 86 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page you don't have any knowledge regarding the property being sold at less than market value. Correct? MR. BRANDYS: Objection. Form. For South Texas. MR. BRANDYS: Feundation. A No. Because you didn't really have an idea of what per acre property was worth in 2003 in South Texas. Correct? MR. BRANDYS: Objection. Foray foundation. A I didn't have an appraisal. I don't know. Mr. going back to the property that Tradewell has for sale, that is part of a larger tract that you own. Is that correct? A No. It is zoned 30 acres? That's it? A 26. 26 acres. There wasn't anything more to it? A There was at one time. How much acreage was there at one time? A 52. What happened to the other 26 acres? A I sold it to Rip Steel Builders (phonetic) to develOp. It is right there along the interstate? A Right. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 87 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 88 of 157 1 How long had Brothers Property owned the 2 52 acres? . 3 A About 1980 . 4 So bought it in 1980 and farmed it? 5 A Still farming it. 6 And still farming it except well, 26 of the acres. 7 Not farming the other 26 I take it? 8 A Correct. 9 Somebody built along the interstate and built a 10 building, but the other part is for sale if somebody 11 wants to buy it, but in the meantime, you are still 12 using it for agricultural? 13 A Built buildings, subdivided it or whatever. . 14 Looking at the property then in South Texas, the 15 property in this lawsuit, 450 acres or thereabouts, 16 whatever that acreage is, the total, you paid about a 17 million dollars for the property ballpark? 18 A About that. 19 Do you have an opinion as to the value of the property 20 after the fence is built? 21 MR. BRANDYS: Object to form, 22 foundation. 23 A Do I have an opinion? 24 Yes. 25 A You mean a number figure? SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262-883-?4019 88 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN Right. No, but less. I can say that. I don't have a number. How much less? A lot less. MR. BRANDYS: Same objection. What is the reason for that opinion? JUst because the fence is something that the resale value of the property would be less. I personally You know, if I were to sell it I would have to probably have a wider area of buyers for it maybe. You are still going to be able to use it for agricultural purposes. Correct? MR. BRANDYS: Objection. Form. Foundation. After the fence? _After the fence. And you plan on using it for agricultural purposes after the fence. Correct? Correct. Do you know who that Perez property entrance, do you know who all utilizes that entrance? The only one I'm aware of is Ray I guess. Ray and Tim does, too, I think. So Tim Loop also uses that? Because they put that new driveway in. K. TAYLOR 262w553-1058 COURT REPORTER FAX NO. 262*883?4019 89 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Let's go back to your opinions. What is the basis for your opinion that the property value is going to decrease from the $1 million that you paid for it after the fence is built? MR. BRANDYS: Objection. Form, foundationwas going back to buy that property today and it had a fence on it, I wouldn't even look at it. I wouldn't even consider it. Why is that? Because I don't want to look at a fence. I don't want to farm next to a fence and everything that goes with it. There is confusion about what could happen and what going to happen. You have uncertainty about what the government would do with the gates. They can change their mind. They have control over my property is what it amounts to. Assuming there is access to your property through a gate 24/7 Let me back.up. You understand that right now, if there was a problem on your property, say illegals coming across with guns or something of that nature, that border patrol could block off all the driveways and keep out everybody from going on the property to deal with the problem. You understand that. Correct? YES . SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 90 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page And you understand that even before the fence, that say maybe you or your workers need to get in there, but there was some kind of problem going on because of illegal aliens coming across, that they could stop you until they took care of the problem. You understood that? A Yes. So assuming assume for me I know there is unanswered questions in your mind, but assume for me that you have access through farm gates 50 wide farm gates 24/7. Does that alleviate any of the problems that you have with regard to the fence and the value of your property? MR. BRANDYS: Objection. Form. Foundation. A No, it doesn't. I just think that the value of the property is a drop deal. Still going to be able to use it for agricultural purposes. Correct? A Yes. It's always forever been used for agricultural purposes. Correct? A Yes. That is your understanding of the history of the property? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 91 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Yes. The fence itself When you say you don't want to look at a fence, does it really matter what you are looking at when you are farming? MR. BRANDYS: Objection. Form. As far as the crop Personal or as far as the value of the crop? The value of the crop. The cro It doesn't make a difference to the crop. So it is not going to affect your crops where the fence is proposed. Correct? As far as growing crops on the property. MR. BRANDYS: Objection. Fornn foundation. Well, unless I wasn't allowed access to it or if let's say they had the gate locked for three days. I would probably lose, you know and I was harvesting at that time, you know, who knows how much you would lose or whatever. I am asking you to assume that you've got 24/7 access. I am trying to figure out why you are not going to be able to utilize the property the way you intended to utilize the property which is agricultural purposes. Other than access And I understand your access questions, but I am asking these questions to assume SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262?883?4019 92 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page that you have 24/7 access, access is not a problem. I am trying to figure out why you think the fence would devalue your property. MR. BRANDYS: That is a different question than you asked. Are you talking about value or being able to utilize the property? MR. SMITH: I am talking about value. You want to know why the value of the property would be less? Right. Than the million dollars you paid for it. MR. BRANDYS: Objection. Form. Foundation. I For resale value if I were the sell the property, if I wanted to retire. If I wanted to retire in the next two years and had to sell the property, I think it would be hard to sell on the other side of the fence and I think it would probably be hard to sell even next to the fence if you are on the other side of the fence. Is that just your own personal speculation? My personal opinion. Have you based that on any marketing of other properties where the fence has already been built? No. Have you seen anything regarding sales of property SUSAN K. TAYLOR 262*553-1058 COURT REPORTER FAX NO. 262?883-4019 93 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page SUSAN K. Texas to utilize? Yes. When do you plan on taking it down? When this is all resolved with the fence. How were you going to get that onto the property? Before the fence came along, how were you going to get it on the property? How was I going to get the building on the property? Yes. First I would build a driveway across the levee if I had the permits across the part that I owned. But you haven't made any attempts to even see if you can get that permit. Correct? No. Let me ask.you this. If border patrol decided that they would like a ramp and a gate going directly onto your property, would that alleviate the problems you have regarding valuing your property? MR. BRANDYS: Objection. Form. I would still say it would devalue it, but it would mean a lot to me if there was a fence. That is what I would like to see; a gate. Why is it to this point you haven't ever made that request? To? TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 95 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page either side of the fence where the fence has already been built? A NO. If as we showed on the map that there is going to be a gate with 24/7 access at the Perez property there where you access it now, is that where you will continue to access your property? A Well, if that would be the only gate, I guess that is where I would be going through it, but all along, I had intended to have I intended to build a loading pad for our semis on the second part that we bought from Tim. When did you come up with that intention? A When I bought it. When I bought the second part. Have you made any plans regarding building that loading pad? A I haven't I don?t have any permits. I have a plan in my mind. I have a shed sitting on a truck right now waiting to be a used pole barn, a wooden structure to be used as a temporary storage for loading trucks. Where is that pole barn at? A It is in Somers on Highway E. Somers, Wisconsin? A Somers, Wisconsin. So you are going to take it all the way down to South SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 94 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 96 of 157 1 To border patrol or to anybody about access. - 2 A At the time that I met with the border patrol, it was . 3 a year ago or whenever it was the six border 4 people -- they didn't even have the gate designed at 5 that time. Nobody told me where they were going to put 6 the gates. They didn't know where they were going to be 7 at that time. 8 I understand that, but as we go along and you found out 9 hey, there is not going to be a direct access gate on 10 mine, I am going to be using the historical access 11 points and when I say I am going to be using the 12 historical access points, you understand that I'm saying 13 I am going to be using the points that everybody . 14 including my workers have been using all along. 15 Correct? 16 A Yes. 17 My question is, once you figured that out, why wasn't it 18 that you made any requests to border patrol or any of 19 the agencies building the fence as to hey, can I get a 20 fence directly onto my property? 21 A I think everything was up in the air. It is even up in 22 the air at this point. I think build a fence as far as from what I'm_reading in 24 the paper whether the fence will ever be built. . 25 If you have your own gate, direct access into your SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 96 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page property Let me ask this first. Mr. Robinson has come up with a valuation of the property is only going to be worth $275,000 after the fence is built. Do you have an opinion as to whether that is correct or not? MR. BRANDYS: . Objection. Ebrm. FOundation. I don't know, but I read that and I just read it two days ago. That is the first time I read that. Did that seem to you to be surprisingly low? It could possibly be low. If somebody offered me that property for $275,000, I would be happy to buy it for that. If somebody offered me that after the fence is up, I guess I would be happy to buy it. That is my point. Even after the fence, you would be willing to pay more than $275,000. d?ed?mL Eb?m I would be willing to pay $275,000 for it. When you said that about retirement, do you have any plans for retiring and selling your properties off? At some point, we will be selling properties, but as far as retirement, I have no plans for retirement. How old are you? 60. How old is Your brother? 61. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 97 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page Has there been made any attempt to sell the Georgia properties? A No. We just bought one. So you are still adding to Georgia? A Yes. How about the Illinois property? Has there been any attempt to sell the Illinois property? A No, Here in Wisconsin in the last, say six years, what has your property done? Has it increased or decreased? A Definitely increased. In the last six years, how much has your acreage increased by? A Acreage? Yes. Ballpark. A How many years? Six? Yes. A 500 maybe. I don't know. So right now and in the near past. there has not been any plans of selling out property or downsizing. Correct? A No. We would sell property if a good any property here in Wisconsin if an offer came along for a good sale, it would be sold. Nothing is sacred here. Well, that is kind of my rule with my ranch; don't fall SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 98 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page love with your property. You can always buy other property. Correct? Correct. My point is, in the last six years and your future plan for Brothers Properties right now, it is not a let's downsize plan. It is actually we are increasing our acreage plan. Correct? If the opportunities came along what we would perceive as opportunities we would probably add to it and the same way; if opportunities came along to decrease, we would do the same thing. But there has not been a situation and I guess maybe my question you are not in a financial situation where you have to decrease properties or sell off properties. No. There is no future plans for -- Let me ask you, are there any future plans for Brothers or Farms to get out of the farming business? Not out of the farming business, no. Is it the plan, then, that the children of you and Dave will continue on with the farming business? I would hope so. That was kind of my point. On the retirement purposes, even if you retire, the family is still going to SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883?4019 99 Case Document 100-1 Filed in TXSD on 07/28/09 Page 100 hopefully carry on with farming. A If there is enough personnel to do it. How many employees does Farms have? A It varies at all times, but 50 or so. 50 plus let's say. Out of that group, how many are year?round employees that you keep on the books the whole time? A Probably 50 or so. Has that been true for the last decade? A It might have been less. I don't know. So as far as you personally, you haven't come up with a determination of what the after?fence value is going to be, a dollar amount. A No. Has Properties attempted to make a determination of what the after?fence value of the properties is going to be? A No. Is your plan for and has it been your plan for the South Texas property to continue working with Ray Loop on the property? A Every year is a year?by?year basis. Pretty much every year, Ray Loop had some kind of involvement on the property. Is that correct? A Yes. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 100 Case Document 100-1 Filed in TXSD on 07/28/09 Page 101 the Loop brothers has planted something, cabbage or something else that they are utilizing on the property or you planted cabbage in conjunction with them. Correct? A Correct. Has Ray Loop ever mentioned to you or made any representations to you that he is going to get out of the farming business? A NO. As far as you know, he continues on farming his property in that area even after the fence is built. A Yes. Do you know if you own the mineral interest with the property? A I don't think so, but I am not sure. I don't know about here in Wisconsin, but you realize in South Texas well, in all of Texas, that it is possible to buy only the surface estate and the mineral interest will stay with past owners. Correct? A Yes. It is your understand you don't think you own the mineral interest? A I don't think I do. And mineral interest isn't some reason you bought the property. SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262-883?4019 101 Case Document 100-1 Filed in TXSD on 07/28/09 Page 102 gas exploration was never part of your purpose . 3 for buying the property? 4 A No. 5 Who keeps the books for income generated from.the South 6 Texas property? 7 A Jerry Goad. 8 Do you ever use an outside CPA or does he do everything 9 in?house? 10 A We have an outside CPA, too. 11 Who is your outside 12 A Harmann Crossett. 13 Where are they located? . 14 A Racine. i 15 What is your agreement on this litigation regarding 16 attorneys' fees? 17 A With regard to Roy? 18 Yes. 19 A The agreement is that anything above what the 20 government had offered us for the land, they would take 21 a 40 percent commission for they get 40 percent of 22 whatever settlement above what the government had 23 offered us for the land. 24 Have you had to pay any expenses or fees of any -- of . 25 the work being done by either appraisers, experts, - SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 102 Case Document 100-1 Filed in TXSD on 07/28/09 Page 103 anybody of that nature? A An appraiser. How much did you have to pay for the appraiser? A $25,000. That was paid by Brothers Properties? A I don't know about that. Any other expenses other than $25,000 for the appraiser? A That we paid for? Right. Or that you are responsible for paying. A Not that I know of. Do you know anything about the proposed riverwalk project in Brownsville? A No. When you bought the South Texas property, did you have in mind any proposed riverwalk in downtown Brownsville? A No. That didn't affect your valuation of the property or your use of the property in any way. Correct? A NO. That east loop plan, that wasn't ever a consideration in your valuation of the property when you purchased it? A No. .As to whether there was going to be an east loop plan or not, even whether they completed it. Correct? MR. BRANDYS: Objection. Ebrm. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 103 Case Document 100-1 Filed in TXSD on 07/28/09 Page 104 Foundation. No. Actually, when you said no because I asked my question -- I said correct, so that wasn't part of your plan or your valuation of the property as to whether there was going to be an east loop plan or not. Correct? Correct. And that wasn?t part of your intended use of the property, whether there was going to be an east loop plan or not. Correct? Correct. Have you had any contact with the media about the border fence? No. I have had calls, but I haven't returned calls. So you have never had any conversations with reporters or anybody about the No. Do you know whether Dave has? I would say no, but I am.not sure. I don't think so. The property your South Texas property, the part of the property that is actually between the levee and the road, has Brothers ever actually utilized that property for anything? As far as farming or something like that? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 104 Case Document 100-1 Filed in TXSD on 07/28/09 Page 105 of 157 1 Or any purpose. 2 A No. 3 Because it is too small of a piece. 4 A Right. 5 Basically like a right?of?way along the roadway. 6 Correct? 7 A Correct. 8 Has Brothers ever been involved in any kind of 9 business that was a storage facility like a pipe yard? 10 A NO. 11 I don't mean agricultural storage. I understand you 12 have sheds, but I am talking about pipe yards. 13 warehousing, anything of that nature. . 14 A No. 15 When you bought the property from the brothers, did 16 you know about 17 A The agency? 18 Right. 19 A I didn't know specifically, but I assumed there was some 20 agency that was in charge of it. I guess you onld have 21 to know that. 22 When you bought the property, did you know that it was 23 considered to be in the flood plain because of 24 A I knew it was on the other side of the levee which I 25 guess would be a flood plain. SUSAN K. TAYLOR 262*553-1058 COURT REPORTER FAX NO. 262~883~40l9 Case Document 100-1 Filed in TXSD on 07/28/09 Page 106 you knew at the time that you bought the property that there would be problems regarding building on the property. MR. BRANDYS: Objection. Fonn. Foundation. A I didn't actually go out and pursue that. Is that because that wasn't your intention for buying the property anyway? You weren't planning on building on it? A Building buildings or something on it? Correct. A No. We bought it for agricultural land. Give me an idea of your educational background. A High school graduate, one semester at Oshkosh State, a semester or two on and off with Parkside University of Wisconsin Parkside and one semester at Gateway Technical College. WOrk history? A WOrk? Yes. A Since I was 12 years old. I guess my question is a little too much of a shortcut assuming you knew what I meant. I am sorry. Once you got out of classes, where did you start working college classes? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 106 Case Document 100-1 Filed in TXSD on 07/28/09 Page 107 of 157 . 1 A I was farming already when I was 16. I started 2 farming I rented the first farm when I was 16 years 3 old. 4 Where were you renting that farm.at? 5 A On Highway in Sturtevant. 6 Was that from your father or was it from somebody else? 7 A No. Joe Kratochvil. 8 Using your father's farm.equipment to farm.it? 9 A Am first. 10 So since you were 16, has your only occupation been 11 farming? 12 A Yes. 13 When did Brothers get together and form their . 14 first operation? 15 A 1973 is when Farms was incorporated. 16 How old were you at that time? 17 A 25. 18 How old was Dave? 19 A 26. 20 Dave went to college someplace. I forget where. 21 A University of Wisconsin. 22 Once he got out of college, was that the first thing he 23 started in was farming? 24 A He was working on his master's degree to be a history 25 teacher, but all along, he was always helping me on the SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883?4019 107 Case Document 100-1 Filed in TXSD on 07/28/09 Page 108 farm in his spare time and the farm was growing at that time and he decided he wanted to farm and I was doing pretty good at the time and he came along and fanmed, so we incorporated. So from the time that he was 26, you were 25, you guys went into farming together as Brothers either Farming or Brothers Properties. Right? Yes. No other employment outside employment once you started farming? No. Does Dave have any outside businesses other than the ones that When I say outside, I mean other than all the businesses that we discussed for Brothers, does Dave have any other outside business on his own? I don't know. He might have. I don't know. When you bought the property from Tim Loop and his brother, did you have an appraisal done of the property? I don't think so. Was it financed? MR. BRANDYS: Which part? MR. SMITH: The first part. Not originally I don't think so. I am not sure. I think it was not, but I think_we might have had financing or used it as collateral for a bank.note at SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262-883?4019 108 Case Document 100-1 Filed in TXSD on 07/28/09 Page 109 the banks down in Texas. If I understand you correctly, the first purchase was a cash purchase, but then you used it as collateral for a bank note for your farming operations. Correct? A I think that is right. I am not sure. Do you remember which bank that was with? A No, I don't. Who would know that? Would that be Jerry? A Dave and Jerry. In Mr. Robinson's report, I think.there is some mention of you using the property as a pipe storage facility. You never had any discussions with Mr. Robinson about that. Correct? A No. You never had any plans of using the property as a pipe storage facility. Correct? A No. You never had any attempts to market the property as a pipe storage facility or anything of that nature. Correct? A No. Excluding the fence issue, have you ever had any problems with border patrol regarding your property in South Texas? A Not that I know of. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 109 Case Document 100-1 Filed in TXSD on 07/28/09 Page 110 When I say problems, I mean any reports of them damaging your crops or doing anything of that nature? A Not that I know of. Did you have any problems with the fact that border patrol was patrolling your properties watching for illegal aliens? A No. In looking at answers to interrogatories, etc., it is talking about title to the property and uses of the property. There was an answer that Brothers Property leases the property to of Texas, Inc. Is there actually a written lease for that? A I don't know. Who would know that? A Jerry would know that. The business of of Texas, Inc., then I take it is just the harvesting and planting of the crops down there? A I would say yes. Do you know, does Properties of Texas, Inc., hire local workers? A I don't know that, either. In one of the questions Interrogatory No. 12, we were asking with regard to the South Texas property, the income and the expenses associated with that and SUSAN K. TAYLOR 262?553w1058 COURT REPORTER FAX NO. 262?883?4019 110' Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 111 documentation regarding that. Who would have that information? Jerry Goad. In answering Interrogatory No. 14, when you are talking about crop worked by of Texas, Inc., on the South Texas property, it says that generates approximately 800 packages of cabbage crop per acre which sells for $5 per package. Would that again be Jerry having that information? Yes. Do you have a feel for what the average yield of cabbage on your South Texas property has been over the six years that you have had the property? No. Every year, it varies. Do you know what the best year you have had is? No. That would be Jerry I could take a guess. WOuld that be something Jerry would be able to tell us the best and worst years of South Texas? Impossible to say. What is a guess as to what your best year has been? 1,100, 1,200 boxes per acre. What is your worst year? Zero. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 111 Case Document 100-1 Filed in TXSD on 07/28/09 Page 112 of 157 1 Now when you say zero, are you talking about because we 2 were allowing the land to recover or because you had a -. 3 crop go bad? 4 A Crop failure. 5 What was the reason for the crop failure? 6 I am sure through the years, one reason or another; 7 insect damage, disease damage. Could be a variety of 8 things. 9 I take it you have crop insurance. Correct? 10 A No. 11 None? 12 A No. 13 Do you not cover crop insurance anywhere? 14 A We don't, no. We have no crop insurance. None. 15 Have you ever considered or had any discussions about 16 leasing the property for hunting purposes? 17 A No. 18 In answer to Interrogatory No. 5, talking about the 19 crops, when it says a summer crop such as cotton or milo 20 is usually planted between February and August. Again, 21 that would be something Ray Loop was planting. Correct? 22 A Yes. 23 And then you just get a per acreage dollar amount 24 depending on how well he does? 25 A Correct. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 112 Case Document 100-1 Filed in TXSD on 07/28/09 Page 113 What is your understanding When you transferred your water rights to the Brownsville Irrigation District, what was the purpose for that? A Well, at the time, Ray suggested doing that and it was to make the watering of the land a lot easier to water the land, distribute the water. Why would that be easier? A Because at that time, there was no underground pipes or aqueducts or whatever. They came in and installed them in turn for the rights of the -- the 70~acre water rights or whatever it was. So at the time that you purchased it, there was no water servicing the area other than the fact that the Rio Grande ran along the south border. Correct? A That was water you could pump out of the river. Did Brothers ever pump water out of the river? A No. So you traded basically the water rights for the ability to use the irrigation district water. Correct? A Yes. Is there a charge for using the water? A Yes. Do you know what the charges are? A No. Do you know the actual amount of acreage that is being SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 113 Case Document 100-1 Filed in TXSD on 07/28/09 Page 114 of 157 1 taken on your property? 2 A An acre and two?tenths I think. How familiar are you with the Brownsville area? 4 A Not very familiar at all. 5 Do you have any knowledge regarding where the commercial 6 area and developed areas are versus your property? 7 A I guess. I could find what they think is downtown. 8 I haven't really been in Brownsville much. 9 Do you know anything about the Port Of Brownsville or 10 what is at the port? 11 A driving past it on 511 or whichever highway it is 12 or four maybe. 511 I think. 13 The prOperty you have on I-94 that is for sale, what is . 14 the nearest town? 15 A Racine. 16 So it is just outside of Racine along the highway? 17 How far from the exit for Racine? 18 A It is between Highway 11 and 20 on 19 You would agree that the Oklahoma Avenue area is not 20 a prime commercial area for Brownsville. Correct? 21 MR. BRANDYS: Objection. Fonm. 22 Foundation. 23 A I would say no. I would say there is no commercial 24 except for a little store on the corner. . 25 I mean, for instance, your 1?94 any property that you SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 114 Case Document 100-1 Filed in TXSD on 07/28/09 Page 115 have along an interstate, especially the closer you are to a town is going to be some prime commercial industrial type of property. Correct? Correct. But your location at South Texas along Oklahoma Avenue, what you have seen in the surrounding area, you wouldn't consider yourself to be in a highly desirable industrial or commercial area. Correct? MR. BRANDYS: Objection. Objection. Form, foundation. As of now. Correct? Correct. Do you as Brothers have an idea of what your return per acre is for prOperties? NO. Like for instance, on Georgia, do you have an idea what your return per acre per year is for your Georgia property? No. Every year is different. Is that a figure that Jerry keeps, return per acre? You can't hardly calculate it because every year you know, if you break even or make some amount of money We have no contracts for any of this. Let me go back, go to the South Texas property. How many years have you actually lost money on the property? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 115 Case Document 100-1 Filed in TXSD on 07/28/09 Page 116 have no idea. It is something Jerry would know? A Yes. How about the Georgia property? Same thing? A Same thing. Mr. let me This is something off your web page. It states, thanks to modern farming techniques, we are producing more food on fewer acres leaving more open space for wildlife habitat. Do Brothers Properties have an ongoing plan with regard to on their property a wildlife habitat? A No. Is the reference there that we don't have to buy up more land and use it for farming because we are able to do more on the land that we have? Or do you even know why that reference is on there? A I have never seen the web site. I don't have a computer. Are there any other family members in the farming business other than the four that we have discussed? Dave, Michael A Kristin. Kristin at the farm. Any other family members working in the farming business? A No. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 116 Case Document 100-1 Filed in TXSD on 07/28/09 Page 117 What was Michael's major? A Ag economics. Did he graduate? A Yes. From where? A University of Minnesota. Did you ever own an interest in either Legacy Development or Twelve Oaks Investment? A Both. What was Legacy Development? A It was started by JOhn Helding and.myself originally to develop land and we started with a couple projects and then we brought on another partner, Dan Hintz (phonetic), who was the third partner in Legacy, and Twelve Oaks had five partners in it and since then, we are working on breaking up all of the partnerships that we had. There have been several other ones, too, and we have not we my brother and I, Brothers Properties No. My brother and I own Twelve Oaks at this point and Legacy will be owned by JOhn ?elding when it is all finalized, which will be shortly. What kind of development was Legacy? Was it doing residential development? A Residential development and whatever. we had I would say they might have done some small storage SUSAN R. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 117 Case Document 100-1 Filed in TXSD on 07/28/09 Page 118 SUSAN K. building or something at one time, the small -- nothing big. How many projects did Legacy actually develop? Do you know? How many neighborhoods? Maybe six. I don't know exactly. Did that involve any property? One of them. How many acres was that? 125. Was that a contribution to the corporation in lieu of capital or did Legacy buy the property from Brothers? Legacy bough Wait a minute. It wasn?t Legacy, it was a different No. It wasn't Legacy. The one I am thinking about was called Old Spring Farms. That one, Legacy bought from No. It was a separate partnership. Old Spring Farms was another partnership that was my brother, myself, Dan Hintz and JOhn Helding. Old Spring Farms bought property from Brothers? Correct. And then developed it for residential? Yes. Any other prOperty that Brothers owned that they sold to any of these partnerships? TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262*883?4019 118 Case Document 100-1 Filed in TXSD on 07/28/09 Page 119 for the rest of the developments, would it be that the partnership just went out and bought property from somebody else, a third party, for development as a residential area? A Yes. Or possibly a couple of storage facilities? A Correct. Now Twelve Oaks is just you and Dave or is going to be? A That one is. We own that one. How long have you owned Twelve Oaks? A About a year. Does it have any projects ongoing? A No. Has it ever had a project yet? A No. It was in the process of being developed, permit process, and it is also in a TIF district. What is that? A Tax incremental financing with the Town of Caledonia. It is in the Town of Caledonia. They provided financing to put the roads and things like that in, sewer and utilities. The project was never started -- I mean the actual physical project was never started. Does Twelve Oaks own the land still? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 119 Case Document 100-1 Filed in TXSD on 07/28/09 Page 120 Twelve Oaks owns the land and it is owned by Twelve Oaks Company is owned by my brother and myself. The land that Twelve Oaks owns was never agricultural Brothers property? A No. It is something you and your brother just went out and bought specifically for the purpose of developing as a residential area? A We took it over. we bought out the other partners, the original partners. was that Legacy? A No. The other partner was Twelve Oaks. We just bought out the other partners. The original Twelve Oaks was formed to do this residential property? A Yes. It was property that didn't have anything to do with Brothers Properties? A NO. Other than Twelve Oaks, do you and Dave have any interests in any other partnerships that are in the development business now? A we have the Old Spring Farms. Anything else? A We have other ones, but we are currently breaking up SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 120 Case Document 100-1 Filed in TXSD on 07/28/09 Page 121 these partnerships. What were the names of the other partnerships? There is certain names of subdivisions. A couple of them There were several. There is one in Waterford that we are currently breaking up that Dave didn?t have an interest in, but I had an interest in. There is three or four other partners five other partners in that one. I would have to study it. Just all minority stakes on my part. Your part is a minority stake. In other words, these were developers that had an interest and you made a capital contribution toward the project? Yes. And they purchased the land. Correct? The companies purchased the land. It never involved Brothers Properties that then were somehow incorporated in these partnerships other than the Old Springs one that you told me about? Correct. How long have you been in Georgia? I want to say since the late ?80's. How long in Illinois? JUst recently? Been farming there for about seven years, but we didn't have a shed at that time. Maybe eight, seven years. I am looking at an article from the Milwaukee JOurnal SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883-4019 121 Case Document 100-1 Filed in TXSD on 07/28/09 Page 122 of 157 1 where Jerry Goad is talking to them about '99 being a 2 really bad year for cabbage. Did that have anything to 3 do with what you described as your plan of we need to 4 find some other backup places for our cabbage? 5 A NO. 6 And expanding into Illinois and into Texas? 7 A No. 8 The market has been around for about 16 years? 9 A I don't know. I would say ten, but maybe it is 15. 10 Where the market sits, is that Brothers 11 Property? I understand where it is now is 12 Brothers Property, but was it Brothers 13 Property before you decided to open the market? 14 A There was a market when we purchased the property. 15 It was already an ongoing market? 16 A .A small market. 17 Was it just a vegetable market basically? 18 A Novelties and vegetables. 19 Was that purchased to continue using it as a market for 20 products? 21 A We purchased the whole farm. we purchased the whole 22 there was 375 acres there. 23 So along with the roadside market that was there, it was 24 some other farmer's basically farming operation with a 25 roadside market? SUSAN K. TAYLOR 262?553d1058 COURT REPORTER FAX NC). 262-883?4019 122 Case Document 100-1 Filed in TXSD on 07/28/09 Page 123 Yes. Do you still farm the property behind it? A Yes. Do you own any of the houses next to it? A Yes. How many of those houses? A Two. Are those utilized by employees or are they leased out? A One is leased and one is one is a employee. Is that Kristin? A No. Yes. Christine or whatever. Not the same Kristin. Not the daughter. Not Dave's daughter? A NO. (Discussion off the record) MR. SMITH: That is all I have. Thank you. MR. BRANDYS: I have a couple questions. EXAMINATION BY MR. BRANDYS: In response to questions by Mr. Smith, circumstances surrounding the purchase of the second tract from the Loops, they told you that they wanted a closing in 30 days? SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883?4019 123 Case Document 100-1 Filed in TXSD on 07/28/09 Page 124 of 157 1 A Right. 2 Did you have any other discussions or information about gl? 3 what their situation was about why they wanted to close 4 in 30 days? 5 A Discussions with them? 6 Yes, or information you had about their situation. 7 A No. I more or less thought that their operating line 8 of credit was due at the time of the year and that is 9 why they sold it. 10 You were asked some questions about why you purchased 11 the property down in South Texas and you testified that 12 it was a one of the factors was it was a backup plan 13 that you had. were there other considerations you had . 14 in why you purchased property down in South Texas? 15 A No. You talk about the backup plan. The backup plan 16 part of the backup plan is we contracted with growers 17 and if the growers didn't make money for one or two 18 years, all of a sudden, they are not interested in 19 growing cabbage if we had a bad cabbage crop or 20 whatever. So when we bought the land, we always had a 21 place to farmi If we couldn't find a grower who would 22 grow for us, we had a place to farm. That field, that 23 farm, has more water rights from the there is more 24 water in the Brownsville Irrigation District than there 25 is anywhere else in the valley and so around Harlingen I SUSAN K. TAYLOR 262?553v1058 COURT REPORTER FAX NC). 262?883-4019 124 Case Document 100-1 Filed in TXSD on 07/28/09 Page 125 SUSAN where our shed is, typically that year when we bought it or about that time, we had a half a wateringacres, we could water 20 at once, which is not enough to make a crop. In the Brownsville Irrigation District, we had six water leads coming. So Brownsville had all the water because of all the development that has gone on there. The water for the city comes from wells, the water for the farms comes from the river. So the biggest consideration was the water and for us to have a place in case we couldn't find another grower, didn't have enough land somewhere else to farm. That is why. Did you also have a plan I guess to farm year?round? No. well, the plan is to farm year?round to keep our people busy, keep our trucks busy, keep our saleSpeOple busy and for the most part, the salespeople People who buy our produce want to buy from a farmer. That is their first choice. The second choice is to buy from a shipper and the third choice is to buy from a broker, in that order. They want to buy from a farmer. So when you say I am.selling cabbage from Texas, but I don't have a farm there You can have a shed and have a farm.and have 40 acres and you could sell a million boxes of cabbage. It is a perceived farming operation. We can buy the produce from somebody else and run it K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262*883?4019 125 Case Document 100-1 Filed in TXSD on 07/28/09 Page 126 through the shed and sell it supposedly at a profit. You also testified that when you buy property including the property in South Texas, you buy principally for ag purposes. Correct? Yes. You buy property with the idea that sometime in the future, you might sell it to somebody else and make a profit on it. Correct. And they might develop it into something other than ag land. Correct. And you buy the property and the price that you pay for property, that investment element or factor is included in what you pay for property. Correct? Correct. Now when you bought this particular property down in South Texas, the two tracts, what factors did you consider in why you purchased this particular property? The water and the good soil type. The soil is probably the best in the valley. And like I say, for a backup system for us in case we couldn't find another farmer to famn. Was the location of the property as compared to other farms or other commercial developments in the area, was SUSAN K. TAYLOR 262*553?1058 COURT REPORTER FAX NO. 262?883?4019 126 Case Document 100-1 Filed in TXSD on 07/28/09 Page 127 of 157 1 that something that you considered when you purchased 2 the property? 3 A Not really. The location was In fact, if it was 4 closer to our shed, it would be a whole lot better 5 because we have to truck the cabbage off the field to 6 San Benito. So if that soil type was next to our shed, 7 we would have purchased the land we would rather have 8 it in our back yard. Let's put it that way. 9 When you purchased the second tract, the later tract, 10 you have frontage on Oklahoma Avenue. Correct? 11 A Correct. 12 And that was important to you at that time. Correct? 13 A Correct. 14 YOU made sure that you had that at the time that you 15 purchased the property? 16 A Correct. What we had was at the original time, Charles 17 Loops, Tim and Paul wanted to sell a different 40 acres 18 of that tract and I said I wouldn?t buy it unless I had 19 road frontage, so they arranged what they wanted to sell 20 me to give me the road frontage. There is 40 that is 21 actually like land locked in there somewhere. That 40 22 that is left is the part they that wanted me to take 23 originally and actually, that land is better land than 24 what I purchased, than what the road frontage is. 25 MR. BRANDYS: we reserve the SUSAN K. TAYLOR 262w553?1058 COURT REPORTER FAX NO. 262-883?4019 137 Case Document 100-1 Filed in TXSD on 07/28/09 Page 128 remainder of our questions. EXAMINATION BY MR. SMITH: You were talking about that. Can you show me the 40 acres you just described? This is the original purchase here. This piece over here is what he wanted He didn't want me to take this one, he wanted me to take this one. He wanted it to go like this or wherever the boundary was. And for purposes of this one, there is a field that is divided by a roadway with the letters in it. So you're saying that 40 acres wasn?t a part of the original deal on the second purchase. He wanted this other little area that is not owned by you which is also about 40 acres. Correct? He wanted me to take this one originally. So in other words, the resaca would have been the boundary. The resaca would have been the boundary of both of your properties on the east side. Correct? Correct, or about. I am not exactly sure if that was the line at the time. I think they had a number in mind of how many acres to sell or maybe a dollar figure how much they needed. That is why they came up with the number. But I refused to take this one. I said I will not buy it unless I have road frontage because I needed access to my property through here. That is why this SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX N0. 262?883?4019 128 Case Document 100-1 Filed in TXSD on 07/28/09 Page 129 of 157 1 one sits all by itself. 2 Is this property still owned by the Loops? 3 A Yes. 4 MR. BRANDYS: Objection. Forms 5 When I say "this property," we are talking about the 6 little section here that on this Exhibit 1 that is not 7 within your marked property. Correct? 8 A Tim and Charles Yes. 9 And they are still farming that as far as you know? 10 A Farming it and digging sand out of it. 11 So Tim and Along with Ray doing it, Tim.and Charles 12 are also selling sand as best you know? 13 A I don't know what the organization is doing, whatever, . 14 but they are mining it. 15 You stated that it was really important in your 16 business, the farming business, to actually own farms as 17 far as selling produce. 18 A To actually to be a farmer perceived farmer. 19 So the people that you are selling understood this correctly because I think this is 21 what you were saying about Texas. Even though prior to 22 owning the land down in Texas, you were already working 23 with farmers down there on cabbage. It is a better 24 marketing ploy for Produce if they own a farm . 25 in Texas that -- whether they are getting the cabbage SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NC). 262-883-4019 129 Case Document 100-1 Filed in TXSD on 07/28/09 Page 130 from it or not, it seems as though that is where the cabbage is coming from. Correct? Correct. So from a marketing standpoint, by being able to say we have a farm in Georgia, we get Georgia cabbage, we have a farm in Illinois I don't know that Illinois cabbage helps you at all, but we have a farm.in Texas, we sell you Texas cabbage, that is preferential to your buyers than saying I am just a broker of cabbage. Correct? Yes. And the reason for buying the land that you bought, because you could have bought land someplace else in South Texas other than on the river. We could have, but not all the land is suitable for or as suitable for growing cabbage. That was going to be my point. The reason for buying that land, even though it was a little more inconvenient for you as far as having to truck back up to San Benito to the packing shed is that it is really good agricultural land. Yes. The land Another point I didn't bring up on the land. The closer you get to the water like to Lake Michigan, the cooler -- It is a cool weather crop. So occasionally every six or eight or ten or 12 years, it will freeze in Texas. The crop will freeze off. It SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262*883-4019 130 Case Document 100-1 Filed in TXSD on 07/28/09 Page 131 of 157 1 probably won't freeze there because it is so close to 2 all that water. 3 So being close to not only the river, but the Gulf of 4 Mexico we all know in South Texas what the Gulf of 5 Mexico does for our temperatures. We don't have the 6 large variations of cold temperatures. 7 A Correct. 8 That is what you are talking about as far as your 9 farming. 10 A Correct. 11 So for Brothers Properties, it is important to 12 have a farm not only now, but in the fUture in South 13 Texas for your cabbage industry, your produce? 14 A Yes. 15 And not only the soil, but the water rights are better 16 at your property than they would be anyplace else that 17 you could find in South Texasknow. Every year, it changes as far as how 19 much water they are allowing to each district. I think 20 there is like 40 irrigation districts. But the reason 21 that they have so much water is that they gave each 22 district so much water when it was set up and they 23 didn't take the water away as they built the homes, so 24 all that farm.land is now with houses that takes water 25 off of wells along the river municipal water. SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262-883-4019 131 Case Document 100-1 Filed in TXSD on 07/28/09 Page 132 But you are not taking municipal water. You are taking irrigation district water which makes it preferable for Brothers because that means you get to irrigate your crops? Yes. And that was the best irrigation property that you could find of what you knew in South Texas among the farmers. Correct? Correct. Which is going to remain to be the same. It is still going to be some of the best agricultural land and some of the best irrigation rights even after the fence is built. Correct? Correct. So for the purpose of Brothers, it is still even with the fence being built, it is still going to serve the purposes of good agricultural land with the water rights plus the marketing side of things of we are getting our cabbage from Texas. Correct? Correct. Now the operating line of credit, you are just assuming that the reason that the Loop brothers were selling was because for farmers, an operating line of credit came due normally comes due about that time? I can't say they told.me that, but somehow in my Hand, SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262-883-4019 132 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 133 that is the way it was, that they told me that or whatever. So you were making that assumption as to I am not for sure if I was assuming it, but all along in my mind, that is the reason they were selling it at that time. I don't know if they told me that. I don't have anything in writing. I And you don't have any evidence that they sold it for less than its market value because of that reason, do you? No. The reason they sold it is they called me and asked me if I wanted to buy that tract and they asked me Part of the conversation was can you close in 30 days and I said yes. I went down there two weeks later and bought it and that was the end of it. You don't have any evidence that even though they wanted to sell it, for whatever reason, whether it was an operating line of credit or whatever, that they sold it for less than its market value, do you? No. MR. SMITH: Thank you. That is all. EXAMINATION BY MR. BRANDYS: As I understand it, you purchased this property down in South Texas. Some of the considerations that you SUSAN K. TAYLOR 262?553w1058 COURT REPORTER FAX NO. 262?883?4019 133 Case Document 100-1 Filed in TXSD on 07/28/09 Page 134 of 157 1 already testified to were the water rights that were 2 involved or the ability to get water on this property. 3 Is that right? 4 A Yes. 5 It was on the second tract had frontage on Oklahoma? 6 A Yes. 7 So you would have potentially direct access right off of 8 Oklahoma to your property? 9 A Yes. 10 And since it is on Oklahoma which you have been down 11 there is a regularly traveled thoroughfare in 12 Brownsville or the Brownsville area. Correct? 13 A Yes. 14 SO it had I guess convenient transportation to the shed 15 and to other commercial areas in Brownsville as far as 16 you knew? 17 A Yes. 18 MR. SMITH: I object. Leading 19 question. 20 That was also a consideration? 21 A It had good roads. Obviously, if you had a field out in 22 the middle of a dirt road or something, I don't know how 23 you would bring a semi down there. 24 It is also I guess in the proximity of the Port of 25 Brownsville that is going in now. Are you aware of SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 134 Case Document 100-1 Filed in TXSD on 07/28/09 Page 135 that? MR. SMITH: Objection. Leading. Yes. The soil In response to the questions from Mr. Smith, the soil content of the land as far as you know is the same going to be the same now as after they put up the fence. Correct? Correct. What you don't know as you sit here today and what you have testified to before is your access to the property. Correct? Correct. What that is going to be like and the other uncertainties relative to how the market perceives your property after the fence goes up. Correct? Correct. MR. BRANDYS: Thank you. I'll pass the witness. I reserve the remainder of our questions. EXAMINATION BY MR. SMITH: Mr. regarding the frontage on Oklahoma Avenue, that still does not actually give you access to your property until you do whatever IBWC requires. Correct? Correct. In other words, you know that you can't do anything SUSAN K. TAYLOR 262-553-1058 COURT REPORTER FAX NO. 262~883-4019 135 Case Document 100-1 Filed in TXSD on 07/28/09 Page 136 of 157 1 across the levee as far as building a road or doing 2 anything until you got approval from them. Correct? 3 A Correct. 4 Do you know who Randy Davis is, a general contractor in 5 Brownsville? 6 A No. 7 Ever had any discussions with him? 8 A No. 9 Do you know who R. A. Riggins is, an engineer out of 10 San Benito? 11 A No. 12 Ever had any discussions with him? 13 A No. 14 Ever had any discussions with Charlie Cabler, the city 15 manager of Brownsville? 16 A No. 17 Ever had any conversations with Mark Long (phonetic), 18 Christopher Golden, Noe Pugs, Ben Medina, all employees 19 of the City of Brownsville? 20 A No. 21 Ever talked with Brad Sergeant (phonetic) from 22 A No. 23 Have you ever spoken with Sal Barrera (phonetic) from 24 25 A No. SUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262-883-4019 136 Case Document 100-1 Filed in TXSD on 07/28/09 Page 137 of 157 1 Ever spoken with Erasmo Yarrito from Rio Grande Waste 2 Master Program? 3 A No. 4 Have you ever spoken to Jerry Gordon from Austin 5 valuation Consultants? 6 A No. 7 Have you ever spoken to Mr. Beck -- I think it is Ray 8 Beck or Greg. Ever spoken with Mr. Beck out of Texas 9 that you know of? 10 A Not familiar. 11 MR. SMITH: That is all I have. 12 Thank you. 13 EXAMINATION BY MR. BRANDYS: . 14 You have observed other people build roads and ramps 15 from Oklahoma Avenue up to the levee, have you not? 16 A Yes. 17 .And to your knowledge, do you know whether those 18 all those roads and ramps were approved by the IBWC or 19 do people just put them up without approval? 20 A I don't know what they did. On the fanm, it is always 21 better to ask prior for permission because if they tell 22 you no, you know what I am saying? 23 But you have seen other ramps and roads go up in that 24 same area off of Oklahoma? 25 A I don't know if they have or not. I have no SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883?4019 137 Case Document 100-1 Filed in TXSD on 07/28/09 Page 138 idea. To your knowledge, do you know whether the IBWC has ever denied someone who asked for penmission for a permit or license to build a ramp or road up over the levee? No. I don't know. When you purchased property, ag land is what Brothers Properties over the years has principally purchased. Yes. When you purchase that property, do you do so with the idea or with the understanding that in the future, if someone else comes along and wants to develop it or purchase it from you, that you will sell it to them at some sort of profit from what you purchased it for? MR. SMITH: Objection. Leading. Yes. Any of it is for sale for a price. When you purchase a piece of property and you purchase just ag land, do you sometimes purchase not sometimes, but is it your practice to purchase that property with the fact that the price will increase in the future and you will be able to flip it at a profit? For the most part, all parcels are purchased that way. You look at how much road frontage, how near it is to a city. But here in Wisconsin, it is all like that. Did you approach it the same way when you purchased the SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 262?883-4019 138 Case Document 100-1 Filed in TXSD on 07/28/09 Page 139 property down in South Texas? No. I looked at the preperty and I was not thinking of flipping it or anything like that. I bought it for fann land. I am.saying but did you approach it the same way? If someone came along Yes. we approach all the property You look at the soil type. If that property was the same piece of property, it was bad soil or bad water, whatever, you wouldn't purchase it, but it is always in the back of your head that someplace along the line, you know, there is very few parcels in the United States that are still original parcels from the war days, revolution days when the country was started. It all changes hands at some point. Someplace along the line would you finish your thought you would sell it to someone if they came along and wanted to develop it for a different purpose, you would sell it to them at a profit? Absolutely. And that might be a different type of development than what you originally purchased it for? Correct. MR. BRANDYS: Thank you. I will pass the witness. SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262-883-4019 139 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 140 of 157 1 MR. SMITH: We are done. 2 (Mr. Smith retained the original Exhibits 1 and 2) 3 (WHEREUPON, THE DEPOSITION WAS CONCLUDED AT 11:51 4 (Witness excusedSUSAN K. TAYLOR 262-553?1058 COURT REPORTER FAX NO. 262?883-4019 140 Case Document 100-1 Filed in TXSD on 07/28/09 Page 141 SUSAN K. I I C.A I, SUSAN K. TAYLOR, a Certified Shorthand Reporter and NOtary Public in and for the State of Wisconsin, do hereby certify that there came before me the foregoing named deponent at_the date, time, and place set forth, who was duly sworn and testified; that I took down in shorthand, correctly, the proceedings and have caused the same to be transcribed into typewriting; that the foregoing pages constitute a true and correct transcript of all of the proceedings had on the taking of said deposition. I further certify that I am.not related in any way to a party, their attorneys, or an employee of any of them, and that I am not financially interested in the action. IN WITNESS WHEREQF, I have hereunto set my u? I hand and sealed this C;3:i day of I?eire 2009 ?2?74 TAYLOR A I w, My commission expires: EEbruary 3, 2010 SUSAN K. TAYLOR Court Reporter SUSAN K. TAYLOR 262?553?1058 COURT REPORTER FAX NO. 262?883-4019 141 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 142 of 157 11:51 - 140:3 11[2]- 9:20,114:18 15:21, 81:13. 81:18, 87:16, 123:25, 124:4. $10,00011] - 86:12 $100[1] - 33:10 $100,000[1] - 54:15 $12,780 - 67:10 $163,000 - 69:10 $199,000[11- 69:9 $2,000 - 79:19, 80:1, 30:4. 85:19, 86:3. 86:4. 86:18 $2,500[11- 86:14 $20111- 68:1 $200,000111- 54:15 $25,000 - 103:4, 103:7 $25,355 - 67:9 $275,001,114] - 97:3, 97:11, 97:15, 97:17 $3,000 - 85:18, 86:17 $360,000 - 54:24 $4,000 - 86:14, 86:17 $400131- 68:19. 68:20, 68:21 $6,000[1] - 86:12 $6512] - 34:4, 34:9 $843,000 - 54:24 $9011] - 33:10 9? '06111- 35:14 . '07 - 33:14, 34:19, i 34:20, 35:14 i '08{3] - 33:14, 34:19, 34:20 '90's - 19:25, 31:5 '95[1] - 67:1 '99[1] - 122:1 08-CV-169 - 1:6 . 1 11131-219, 49:9, 49:10, 49:12, 52:13, 53:5. 56:22, 77:24. 85:7, 85:8, 90:3, 129:6, 140:2 . SUSAN K. TAYLOR 29:18, 106:21, 133:13 33111- 2:22 1.2[01- 22:20, 24:7, 110:23. 130:24 123 - 2:12 .. 4 13111?223 4 70-10 133111-243 4:31;] 5222 135 -2:1 111 _4 52:23,102:21,125:3. 13?? 11? 125:23,127:17, 127:20.127:21, 1284 123-11 128:14.131:20 40-acre [11- 12:21 450171-169 18:2. 19:16. 30:13, 32:14. 107:2, 107:10, 122:8,122:9 Tam-63:9 1973[1] - 107115 32:23, 88:15 198012] - 88:3. 88:4 4811] 2.23 1995111-68z11 1st - 52:14, 53:4 5 91:10. 216] -2:19, 56:2, 56:3. 63:8, 140:2 2 2 . 100:4, 100:8 - 00111-104 50-foot [21-007. 2,300121- 1014. 50-13 10:18 9:8, 20[5] -2:23, 9:20, 98.13 59:7,114:18, 125:3 511l2l-114'11 200001-1313 114:12 2000'511] - 19:24 200305] - 18:5, 19:7, 36:6, 86:10, 86:16, 52 - 87:21, 88:2 521[1]- 70:10 21 1 - :7 87:3 :2 [116: [21192 2:2 561[1 2,2 . 2006131- 67:1, 68:11, 69:9 2009 - 1:17, 141:18 60111- 97:23 23111- 2:22 01111- 97:25 24[1]- 66:20 2477 - 90:19, 7 91:11, 92:20, 93:1, 94:5 .. 25131?175, 107:17. 70'393111'113110 108:5 750 14:9 26[8]? 9:6, 87:17, 87:18, 87:22, 88:6, 88:7, 107:19, 108:5 78401 - 1:24 78701 {11- 2:5 3 .. 3 111:7 262?553?1058 FAX NO. 806,70011] - 67:5 808 - 2:5 8609 - 2:6 8:00[1] 1:17 9 90'5131- 19:24, 31:5, 31:10 A - 44:20 140:3 ability - 113:18, 134:2 able [12] - 3:17, 6:24, 45:5. 65:20, 89:11, 91:18, 92:22, 93:6. 111:19,116:14, 130:4, 138:21 Absolutely - 139:20 access [44] - 41 41:6, 56:11, 56:17. 57:7, 57:10. 57:16, 57:20, 57:25, 59:8, 59:24, 63:9, 63:10. 63:12. 63:16, 63:17, 63:20, 64:8, 64:20, 65:7, 65:14, 66:9. 74:6, 76:9, 90:18, 91:10, 92:15, 92:20, 92:24, 93:1, 94:5. 94:6, 94:7, 96:1, 96:9, 96:10, 96:12, 96:25, 128:25. 134:7, 135:10,135:21 accessing 52:14 accuse - 4:5 Acquisition - 2:1 acre [23] - 33:10, 34:4, 34:9, 68:1, 79:19, 80:1, 85:3. 85:13. 85:14, 85:18, 85:19, 85:23, 86:3, 86:9, 86:11, 86:17, 114:2.115:14, 115:17,115:20 Acreage - 98:14 acreage [11] - 21:5, 52:20, 53:4, 84:13. 87:20, 88:16, 98:12, 99:7, 112:23, 113:25 ACRES - 1:7 acres [34] - 9:6. 9:22. 10:3,10:11,10:12. 10:18,14:8,15:21, 16:9. 17:6, 18:2, 19:16, 30:13. 32:14, 32:23, 52:22, 52:23. 53:5. 87:16. 87:18, 87:22, 88:2, 88:6, -- 88:15, 115:8, 118:3, 122:22. 125:3, 125:23, 127:17, 128:4,128:11. 128:14,128:21 acting - 8:12 action - 141:16 actual - 30:1, 58:6, 113:25, 119:24 add - 99:9 adding - 98:4 additional - 32:10 adjacentm - 55:4 adjoining - 81:11 - 2:4 aerial - 2:19. 49:1 affect - 72:7, 92:10,103:17 after-fence - 100:12,100:16 ag - 126:3. 126:10, 138:6,138:18 Ag 117:2 agencies - 37:3, 37:25, 39:2, 39:12, 61:22, 62:3, 96:19 agency 61:18, 105:17,105:20 agc[4] - 72:1. 72:20, 96:3, 97:8 agree 131- 6:24, 73:23,114:19 agreement - 20:11, 32:14, 33:19. 34:25. 48:18, 54:9, 102:15,102:19 agreements - 21:3, 21:23, 31:8 agricultural [20] 9217.13.25, 14:10. 43:4, 44:4, 45:8, 47:13, 47:17, 75:8. 75:20, 76:12, 78:13, 64:5, 88:12, 89:12, 89:17, 91:18, 91:21, 92:23, 105:11, 106:12, 120:3. 130:20. 132:11, 132:17 agriculture - 10:12, 44:14, 47:5, 75:17, 84:11 Agriculture - COURT REPORTER 553?1058 Case 1208-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 10:13 ahead 11222, 27:11, 41:23 air[3] - 96221, 96:22 al - 1:8 aliens - 7423, 74:6, 91:4, 110:6 alleviate - 19:12, 91:11, 95:17 allow - 54:12, 65:2, 65:5 allowed - 92215 allowing 11222, 131219 alter[1] - 70:25 AMERICA - 1:4 amount 6224, 6225, 100213, 112:23. 113:25, 115222 amounts - 33:11. 90:17 answer[11]- 421. 4:12,4214,8220,1521, 27211, 29:22, 41223, 67223,110210,112:18 answeredm - 11:21 answering - 111:4 answers 110:8 anyplace - 26:22. 83212131216 anyway - 106:8 apart - 47:16 APPEARANCES - 1:22 appeared - 1:24, 2:2, 2:5. 2:7 application - 70222, 70224 applications - 39:15, 39224 Appraisal - 32:5 appraisal - 62:18, 62:19, 79:1, 79:2, 86224,87:11, 108218 appraisals - 36223, 36224, 85224 appraiser[1o]- 42:5, 77:2, 77:10, 79:2, 80:16, 80:20, 80:22, 103:2, 10323, 10327 appraiser's 80:12 appraisers 77:4. 102225 approach - 138225, 13925, 139:7 approached - 55:16, 55218 approval - 41:10, SUSAN K. 66:12,136:2,137:19 approved - 137218 April - 25216 aquaducts - 113:9 area [25] - 10:5, 12:16. 19:13, 47:4, 70:2. 70:16, 73:25, 83:9, 85:23, 86:13. 113:13,114:3,114:6, 114219, 114220, 120:8, 126:25. 128:13, 134212, 137224 areas - 51 86:5, 8626, 114:6, 134:15 Army - 73:4 arranged - 127219 article 18:15, 121:25 Assistant - 1223 associated - 110:25 assume - 22:23, 36:17, 72:7, 75:13, 91:8, 91:9, 92:20, 92225 Assume - 59:21 assumed - 85:4, 105219 Assuming - 90218 assuming - 60:11, 81:7, 81:16, 91:8. 106:23. 132221, 133:4 assumption - 133:3 - 140:3 attach - 4926 Attached - 76:24, 77:23 attempt - 83:13, 98:1. 98:7 attempted - 8:16, 71:17,7824,100215 attempts - 95212, 109:18 Attorney - 1:23, 2:6 attorney - 33224. 38:24, 61:7 Attorney's - 1223 attorneys - 61214, 141214 TAYLOR attorneys' - 102216 August - 26:3, 2624, 112:20 Austin - 225. 13724 Avenue [15] - 1:15, 11:1,16210,2721, 56:4, 56:23, 60:22, 63:9, 73:17, 76211, 114:19,11525, 127:10, 135221, 137:15 average - 111:11 aware 69216. 7424, 82:7, 83:18. 89:22, 134225 - 9:15 - 9:15 9:9. 9:13 83:9 background - 106213 backup - 122:4, 124212124215, 124216126221 badm - 34:8, 81:3, 11223, 122:2,124219, 139:9 ballpark - 14:8, 88:17 Ballpark - 19:19, 19:24, 98:15 bank[5] - 6227,8124, 108:25, 10924, 10926 banks - 109:1 bar[1]? 12:4 Barlrestaurant - 12:13 barley - 68:9. 68:12 ham - 94:19. 94:21 Barrera - 136223 BARRON - 2:4 base - 23:11, 8428 based - 5:6, 69:17, 76:7, 86:18, 86:21, 93:22 basis - 9021, 100:22 beansm 26:17 beam] - 17222 Beck - 137:7, 137:8 262?553?1058 553-1058 FAX NO. becomes - 45:6 bed - 58213 beginning - 23:7, 3223 behalf - 1224, 2:3, 2:5, 2:7, 40:13 behind - 123:2 Ben - 222, 136218 Benito [11] - 16218, 16:25, 45:15, 46:23, 46:24, 59:6, 7825, 78215, 1272613018. 136:10 best [13] - 27:11, 41:23. 42:2, 42:7, 84:4,111:15,111220, 111:22. 126221, 129:12,13226, 132111. 132112 better - 3:18, 16:8, 127:4, 127223, 129223,131:15. 137221 between [13] - 9:19. 37:3, 4924, 54:15, 55:6, 56:25, 7024, 70:12, 70:17, 70:18, 104222, 112120, 114:18 big - 68:15,118:2 bigger - 66:9 biggest - 125:9 bit-[3] - 3217,3218, 28:21 black - 49:19, 49223, 50221, 50:22, 53212 block - 90:22 blurt[1] - 61:13 [11- 1:24 books[2] - 100:7, 102:5 border[2s] 37:6, 37:19, 37:25, 38:3, 38:5. 38:13, 38:20, 39:11, 60:19, 61:17, 64:18, 71:23. 72:6, 72:10, 72:13, 72:19, 90222, 95:15, 96:1. 96:2, 96:3, 96:16. 104213, 109223, 110:4,113214 - 128, 1213, 3:1 [146] 3:7, 3:8, 5:20. 5:21, 5:25, 727, 7:12, 8:15, 8:17, 8:24, 9:18, 9:22, 1029, 10210,10:14,10:19, Page 143 of 157 11:2,11:17,13:2, 13:6, 13:7, 13:12, 13:20, 1422, 1426, 14:18,14:19,14:25, 15:4, 15:6, 15:7, 15215,15216,15217, 15:20, 15:23, 15:24. 18:14, 19:15, 20:18, 22:3, 23:2, 23:12, 23:20, 23:22, 24:2. 26:19, 2723, 27:4. 27:5. 27:9, 27:21, 29:10, 29:21, 29:24, 30:1, 30:10, 31:3, 31:12, 31221. 32:15, 3323, 34:16, 34:23, 35:5, 35:16, 35:19. 36:9, 36:22, 40:2, 40:12, 40:18, 40221, 41:16, 42:10, 43:16, 45:23, 4728, 47212, 47:21, 4921, 55:9, 56:11. 56:17, 57:17, 58:15, 59:23, 64:14, 66:25, 68:10, 69:14. 70:23. 7824, 87:12, 88:1, 9925, 99218, 99:19. 99:22, 10021, 10023,100:11. 1002151035, 104223, 105:8. 107:13,107:15, 108:6, 108:7, 108214, 110210,110:20. 113:16,115:13. 116:6,11629,117:18. 118:6,118211, 118:19,118224, 120:4, 120218, 121:16, 122210, 122:11,122:12, 122220, 12328, 123:10, 129224, 131211.13223, 132215, 135:20, 138:6 - 13:7, 13:8,13211 - 110:11,110:16,111:5 bottom - 50:4 boughtw] - 14:15, 19218, 19221, 31:25, 43216, 43222, 43:23. 44:4, 44:12, 44:21, 44:24, 44:25, 45:4, 71:18, 72:2, 78:20. 79:8, 80:13, 80:24, 86225, 8824, 94211, 94214, 9823, 101:24. 103:14,105:15, COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 105:22, 106:1. 106:12,108:17, 118:13,118:16, 118:19,119:3,120:7, 120:9, 120:12. 124:20, 125:1, 126:17,130:11, 130:12,133:15, 139:3 boundary - 128:8, 128:17 Boundary - 39:19 Box - 2:2 boxes - 111:23, 125:24 Brad - 136:21 BRANDYS [59] - 5:19, 8:19, 9:25, 11:20, 18:10, 27:10. 27:14, 28:7, 32:7, 33:25, 36:5, 36:14, 36:19, 37:5, 37:16. 40:5, 41 41 :13, 41:20, 42:13, 47:24, 49:5, 49:18, 50:7. 54:6, 56:6, 56:13, 60:6. 60:9, 60:16, 60:23, 61:4, 62:10. 62:15, 63:12, 64:12, 65:9, 66:7, 77:6, 79:21, 85:6, 87:3, 87:5, 87:9, 88:21, 89:5, 89:13, 90:5, 91:14, 92:5, 92:13, 93:4, 93:12, 95:19. 97:5, 97:16, 103:25, 106:4, 108:21, 114:21, 115:9, 123:19,123:21, 127:25, 129:4, 133:23, 135217, 137:13, 139:24 Brandys - 2:4, 2:12, 2:13, 2:14 break - 4:4, 115:22 breaking - 117:16,120:25, 121:5 bring [51 - 23:24, 54:12, 57:15, 130:21, 134:23 bringing 20:6 broad - 61:11 broker - 7:22, 125:19, 130:9 brokers 8:12 brother[25] 6:1, 7:11,10:8,10:16, 10:22,11:18,11:24, 12:18,14:23,17:15, 40:12, 69:24, 78:20, 79:9, 79:13, 79:14, 82:5, 83:12, 97:24, 108:18,117:18, 117:19,118:18, 120:2, 120:6 brother?s - 7:14, 83:9 1:8 brothers - 49:4, 61:17, 69:8, 101:1, 105:15, 132:22 Brothers [86] - 5:21, 5:25, 7:7. 8:15, 8:17, 8:25, 9:18, 9:22, 10:9, 10:19,11:2,11:17, 13:2,13:7,13:11, 14:6, 14:19, 15:7, 15:15,15:24, 16:11, 16:18,18:15, 19:15, 20:18, 22:3, 23:2, 23:20, 23:22, 26:19, 27:5, 29:21, 30:10, 31:12, 31:21, 32:15, 34:16, 34:23, 35:16, 35:19, 40:2, 40:12. 41:16, 42:11, 43:16, 45:23, 55:9, 56:11, 56:17, 57:17, 58:15, 59:23, 64:14, 66:25, 68:10, 69:14, 70:23, 78:4, 88:1, 99:5, 99:18, 103:5. 104:23. 105:8, 107:13, 108:6, 108:7,108:14, 110:10,113:16, 115:13, 116:9, 117:18,118:12, 118:20, 118:24, 120:4, 120:18, 121:16,122:10, 122:12,131:11, 132:3, 132:15, 138:7 brought 117:13 Brownsville [23] - 18:22, 18:23, 74:24, 75:4. 75:24, 76:19. 103:12,103:15, 113:2,114:3, 114:8, 114:9,114:20, 124:24, 125:4, 125:6, 134112, 134215, 134:25. 136:5, 136:15,136:19 BROWNSVILLE - 1:2 build - 41:7, 43:19, 66:12, 70:25, 94:10, 95:10, 96:23. 137:14, 138:4 Builders - 27:23, SUSAN K. TAYLOR 28:10, 28:14, 28:23, 87:23 Building - 106:10 building [17] 12:9, 21:2. 27:24, 28:4. 28:8, 40:14, 73:2, 73:5, 88:10, 94:15, 95:8, 96:19, 106:2. 106:8,118:1,136:1 buildings - 9:14, 17:8, 45:19, 88:13, 106:10 Built - 88:13 built [22] - 19:20, 21:8, 22:22, 23:1, 23:2, 40:22, 41:1, 65:6, 66:9, 75:6, 88:9. 88:20, 90:4, 93:23, 94:2, 96:24, 97:3, 101:11,131:23, 132:13,132:16 business [21] - 9:9, 9:14,10:14,11:19, 15:2, 15:20, 23:19, 43:3, 43:6, 99:19. 99:20, 99:22, 101:8, 105:9, 108:15, 110:16,116:20, 116:24, 120:22, 129:16 Business - 18:15 businesses - 70:4, 70:17, 108212, 108:14 busy - 125:15, 125:16 Buy - 13:24 buy [31] - 19:20, 23:23, 44:22, 46:2, 49:23, 55:18, 78:4. 78:19, 81:10, 83:13, 88:11, 90:7, 97:11, 97:13, 99:1, 101:18, 116:13,118:11, 125:17,125:18, 125:19, 125:20, 125:25, 126:2, 126:3, 126:6, 126:13, 127:18, 128:24, 133:12 buyers - 89:10, 130:8 buying [13] - 19:11, 24:11, 31:3, 31:7, 44:11, 45:10, 78:16, 82:20, 86:13, 102:3, 106:7,130:11,130:16 Buying 82:21, 82:22 buys - 23:21 262?553?1058 FAX NO. BY - 3:4, 123:21, 128:2, 133:23, 135:19.137:13 cabbage [73] - 18:7, 18:17,19:1,19:2. 19:3, 21:7. 21:9. 21:12, 21:16, 21:20, 21:21, 22:4, 22:7, 22:8, 23:25, 24:12, 26:10, 26:12, 26:14, 26:16, 30:22, 32:24. 34:21, 34:22, 35:4, 35:21, 35:22, 45:11, 50:17, 50:18, 50:24, 51:3, 51:5, 51:20, 52:1, 52:3, 52:5, 52:6, 52:8, 52:11, 52:12, 54:5, 55:19, 55:25, 58:12, 58:20, 58:21, 75:18, 82:22, 83:4, 83:10,101:2,101:3. 111:7, 111:11, 122:2, 122:4, 124:19, 125:21, 125:24. 127:5. 129:23, 129:25, 130:2, 130:5, 130:6, 130:8, 130:9. 130:15,131:13, 132:19 calculate - 115:21 Caledonia - 119:20,119:21 California 72:14 Cameron - 76:19, 76:20 CAMERON - 1:7 cantaloupe - 22:10, 26:17 capital - 118:11, 121212 care 91:5 can-y 100:1 carved - 47:12 - 1:6 case - 38:16, 125110, 126:22 cash[2] - 81:4, 109:3 caused - 141:9 cautionm - 61:9 cement - 43:7 centerm - 28:9 certain[4] - 64:21, 66:8, 69:12, 121:3 Certain 9:14 553-1058 Page 144 of 157 Certified - 141 :3 certify - 141 141:13 chance - 30:22 change - 90:15 changes - 68:21, 131:18,139:14 charge - 58:18, 105120, 113:21 charges - 113123 Charles - 59:15, 63:1, 79:10, 83:5, 127:16,129:8,129:11 Charlie - 136:14 cheap - 86:4, 86:18 children - 29:7. 29:11, 31:22, 99:21 choice - 125:18, 125:19 Christi - 1:24, 18:21 Christine - 123:12 Christopher - 136:18 circumstances - 123:22 city - 74:15, 74:18, 74:24, 125:8, 136:14, 138:24 City 75:24, 76:19,136:19 Civiln] - 1:16 classes - 108:24, 106:25 clay - 84:8 close - 81:7, 81:13, 81:17, 85:4, 124:3,131:1,131:3, 133213 closena] - 115:1, 127:4, 130:22 closest [21 - 50:13, 50:15 closing - 123:24 co - 2:2 co-counsel - 2:2 cold[3] - 25:5, 26:10. 131:6 collateral [21 - 108:25, 109:3 College - 106217 college - 106:25, 107:20, 107:22 comm - 27:14 coming 13:17. 20:21, 20:23, 90:21. 91:4, 125:5, 130:2 commencing - COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 1:17 commercial - 28:4, 28:9, 114:5, 114:20. 114:23, 115:2,115:8, 126:25, 134:15 Commission [1 39:19 commission - 102:21, 141123 common - 57:10 companies - 6:8. 8:6. 8:11. 24:5. 121 :1 5 Company 120:2 company - 5:8, 5:10, 7:17, 7:22, 8:9, 14:6, 27:25 comparable - 76:24, 77:23, 77:24 corn parables - 78:21 compared - 126:24 compensated - 54:18 complaint - 6:24 completed - 103:24 completely - 67:23 computerm - 116:18 concerning - 37:21 CONCLUDED - 140:3 conclusion - 85:17 conditions - 18:9 conferences - 77:14 confidential - 41 :21 confusing - 75:23 confusion - 90:13 conjunction - 101 :3 conservation - 47:6 consider - 45:7, 90:9, 115:7, 126:19 consideration - 103:20, 125:9, 134:20 considerations - 124:13, 133:25 considered - 26:20. 10523. 112:15, 127:1 consistent - 26:10 constitute [11 - 141:10 construction - 22:24 Consultants - 137:5 contact[4] - 61 :21, 62:2. 72:24, 104:13 content - 135:5 continue - 94:6, 99:22, 100:20, 122:19 continues - 101:10 continuing - 60:3 contracted - 124116 contractor - 136:4 contracts - 48:3, 48:5, 48:22, 115:23 contribution - 118:10.121:12 control - 90:16 convenient - 134:14 conversation - 133:13 conversations - 37:22, 61:13, 104:16, 136:17 coolm - 130:23 cooler [11 - 130:23 Copies - 36:15 copies - 39:14, 48:3 corn - 26:15, 51:11, 51:13, 51:18. 51:19, 53:9, 67:13. 67:24, 68:9 Corn - 51:13 corner - 114:24 corporation - 7:18, 27:8, 118:10 Corps - 73:4 Corpus - 1:24, 18:21 Correct [132] - 3:10, 6:5. 6:6. 6:25, 7:1, 10:23, 12:14, 13:9. 13:18,16:12,16:19. 20:3, 21:22, 24:3, 24:5, 24:8, 24:9. 24:25, 25:11, 25:21, 29:3, 30:11, 31:9, 31:17, 32:6, 32:12, 33:7, 33:15, 36:13, 37:4. 38:16, 39:12, 40:6, 40:10, 41:8, 41:9. 41:12, 41:14, SUSAN K. TAYLOR FAX NO . 42:3, 43:1. 43:4, 43:5. 43:8, 43:9, 45:2, 45:8, 45:12, 45:13, 45:19. 46:24, 47:1. 47:10, 47:22, 47:23, 48:6, 49:21, 49:25, 50:2. 50:3, 50:5, 50:16, 51:7, 52:7, 53:2. 55:7, 56:4, 56:24, 59:24, 62:9, 63:4, 66:6, 66:12, 66:15, 67:3. 67:14. 68:4, 68:5, 68:11, 69:25, 70:25, 71:1, 71:2, 71:3. 71:6, 71:7, 72:16, 78:12. 79:9. 79:15, 79:20, 80:20, 82:9, 82:10, 82:20, 83:11, 84:5, 84:9, 86:7, 87:2, 87:8. 88:8. 89:12. 89:18, 89:19, 90:24, 91:19, 91:22, 92:11. 95:13. 96:15, 98:21. 99:2, 99:3, 99:7, 101:4, 101:5,101:19. 103:18, 103:24, 104:7, 104:8, 104:11, 104:12, 105:6, 105:7. 106:11, 109:4, 109:13,109:16, 109:20,112:9, 112:21.112:25, 113:14.113:19, 114:20, 115:3,115:4, 115:8,115:11, 115:12,118:21. 119:8.121:14, 121:19, 126:4,126:9. 126:12, 126115. 126:16,127:10. 127:11,127:12. 127:13,127:16, 128:14,128:18. 128:19. 129:7, 130:2. 130:3, 130:9. 131:7, 131:10,132:8,132:9. 132:13,132:14. 1:52:19. 1:52:20, 134:12, 135:7, 135:8. 135:11.135:12, 135:15,135:16, 135:23, 135:24, 136:2, 136:3, 139:23 correct [13] - 3:19, 3:25, 31:7, 59:21, 62:6, 62:20. 67:8, 67:10, 87:14, 97:4, 100:24, 104:4, 141210 correctly - 49:2, 109:2, 129:20, 141:8 correspondence 262?553-1058 553?1058 37:2 cotton - 112:19 counsel - 2:2 countem] - 67:25 counter-cyclical 67:25 country - 139: 14 county - 7:2 1:7 County - 1:14, 10:6, 10:7, 67:2, 67:6, 67:7, 76:19, 76:20 couple [1o] - 3:15. 16:4, 39:1, 51:2, 51:24, 72:1. 117:12, court[51- 5:1, 5:2, 6:16, 6:23 COURT - 1:1 Courtlz] 1:18, 141:22 courthouse - 37:12. 39:7, 39:8 Courthouse - 1:15 courtroom - 6:9 cousin 32:20 cover[1]- 112213 CPA - 102:8, 102:10,102:11 132:21, 132:23, 133:18 Crop[1] - 112:4 crop [37] - 20:14. 20:16, 20:17, 20:18. 20:19, 21:9, 21:11, 21:16, 22:4, 25:3. 25:5, 25:9, 26:11. 34:7, 34:8, 51:16, 52:24, 67:24, 68:3, 92:6, 92:7, 92:8, 92:9. 111:5,111:7, 112:3. 112:14,112:19, 124:19,125:4, 130:23, 130:25 crops [11] - 15:11, 25:11, 34:5, 54:19, 69:18, 92:10. 92:11. 110:2,110:17, 112:19, 132:4 crossing - 58:4, 66:11 cultivators - 16:15 cut - 4:18 cyclical - 67:25 Page 145 of 157 - 2:2 damage - 112:7 damaging - 110:1 Dan[2]? 117:13, 118:18 date - 141:6 daughter 7:6, 29:2, 123113, 123:14 Dave [25] - 23:12, 29:2, 29:11, 31:13. 39:5, 40:19, 47:19, 58:10, 67:18, 67:19, 68:24, 77:16, 78:19, 80:10, 99:21, 104:19, 107:18, 107:20, 108:12,108:15. 109:9, 116121, 119:9, 120:20, 121:5 Dave's - 31 :22, 123:14 Davis - 136:4 day-to-day - 28:13, 28:16 days [11] - 12:4, 81:8, 81:13. 81:18, 92:16, 97:8, 123:25, 124:4,133:13,139:13 deal[4] - 21:25. 90:23, 91:17, 128:12 dealing - 30:25 deait - 80:8 decade - 100:9 December - 52:13, 52:15, 53:5, 53:24, 54:2 decided - 95:15, 108:2,122:13 decision - 55:22 decrease - 90:3, 99:11, 99:14 decreased - 98:10 deed - 32:11, 56:9 deeds - 56:7 Defendantsu] - 1:9 defendants - 2:5 De?nitely - 98:11 degree - 107:24 denied - 138:3 Department - 72:24. 82:16, 82:17. 83:8, 84:24, 85:8 DEPARTMENT - 1:23, 2:1 deponent - 2:7, 141:6 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 DEPOSITION - 140:3 deposition - 1:13, 3:13, 3:21, 32:4. 36:22, 49:15, 141:12 Deposition - 49:10, 56:2 depositions 3:20 describe - 38:8 described - 82:14, 122:3, 128:4 DESCRIPTION - 2:17 design - 41:11 designed - 60:19, 96:4 desirable - 115:7 desire 76:15 determination - 85:12, 85:22, 86:18, 100:12,100:16 devalue - 93:3, 95:20 develop - 8:8, 8:9, 87:23, 117:12, 118:3,126:10. 138:12,139:18 developed - 114:6,118:22,119:17 developers 121:11 developing - 120:7 development [12] - 5:8, 5:10, 43:24, 44:1, 45:6, 117:22,117:23. 117:24, 119:4, 120:22, 125:7, 139:21 Development - 5:12,117:8,117:10 developments - 119:2, 126125 differencen] - 92:9 different[17] - 11:14, 18:18, 27:20, 44:18, 51:4, 51:12, 52:21. 75:14, 75:17, 79:23, 82:25. 93:4, 115:19, 118:14,127:17, 139:18, 139:21 Different - 11:15 differentiate - 79:12 digging - 129:10 direct - 96:9, 96:25, 134:7 direction - 50:2 directly - 95:16, 96:20 discussed - 49:13, 61:5, 77:18, 108:14,116:20 discussing - 61:19 Discussion - 13:1, 19:14, 36:8, 48:25, 123:16 Discussions - 124:5 discussions [15] - 40:13, 55:24, 57:5, 60:2, 61:6, 61:16, 73:5. 74:8, 76:16. 109:12,112:15, 124:2, 136:7,136:12, 136:14 disease - 112:7 distribute - 113:6 Distributing 20:19, 23:23 Distribution - 13:3, 13:6, 13:20, 24:2, 31:3, 33:3, 35:5. 69:14 distribution - 13:20, 13:23, 24:4, 43:4 district - 73:12, 113:19,119:18, 131:19, 131:22, 132:2 District - 113:2. 124:24, 125:5 DISTRICT - 1 1:1 districts - 131 :20 divided 8:16. 128:10 Division - 2:1 DIVISION - 1:2 - 2:21 document 49:10, 49:16, 56:2 documentation - 33:12, 111:1 documents - 32:4, 36:11, 36:21, 41:15, 41:18, 48:2, 76:3 112:23, 128:21 dollars 34:6, 88:17, 93:11 dolly 66:4 domain - 6:11 done [14] - 4:20, 26:3, 32:11, 44:8, 53:21, 70:21, 70:23, SUSAN K. TAYLOR FAX NO. 81 86:24, 98:10, 102:25, 108:18, 117:25, 140:1 doubt ?66:19 dove - 54:1, 54:4 down [41] - 4:15, 6:2, 20:22, 20:25, 21:3. 22:21, 22:24, 23:6. 30:13, 31:9, 35:12, 35:23, 37:7, 38:1, 38:12, 39:8, 45:14. 46:10, 48:9, 50:1, 58:23, 58:24, 65:21, 66:18, 66:22, 81:14, 94:25, 95:3, 109:1, 110:17,124:11, 124:14,126:17, 129:22, 129:23. 133:14, 133:24, 134:10, 134:23, 139:1, 141:8 downsize - 99:6 downsizing - 98:20 downtown - 103:15, 114:7 drains - 84:11 drawings - 71:2 drinkable - 73:14, 73:20 Drive - 2:6 drive [15] - 59:13, 59:15, 63:17, 63:20, 64:5, 64:6, 64:7, 64:17, 65:2, 65:3, 65:5, 65:15, 65:16, 65:20, 66:1 driven - 58:2, 64:16, 64:20 driveway - 63:23, 89:25, 95:10 driveways - 59:14, 90:22 driving - 12:22, 56:18, 64:18, 64:19, 114:11 drop - 91:17 drought - 18:9, 18:16, 18:19, 30:20 due[3] - 124:8, 132:24 duly - 3:1, 141:7 duress - 80:13. 80:25, 81:16, 81:17 during - 4:3, 18:13, 22:24, 24:13 262?553-1058 553-1058 earlyI - 31:10. 61:24 ease - 52:25 easement - 6:18. 56:9, 62:8, 62:13. 62:20, 62:22. 63:1. 63:13. 63:14 easements - 6:17 easier - 4:17, 56:9,113:5,113:7 east - 50:9, 75:23, 76:3, 76:7, 103:20, 103:23, 104:6. 104:10, 128118 economics - 117:2 educational - 106:13 Edward - 3:7 effect - 65:7, 73:1 eight - 29:18. 41:15, 47:25, 121:24, 130:24 either [18] - 17:18, 18:15, 24:10, 35:15, 37:24, 39:11, 43:13, 46:4, 58:7, 63:9, 70:25, 71 76:20, 94:1, 102:25, 108:7, 110:22, 117:7 electric - 73:13 element - 126:14 elsewhere - 51 :6 eminentn] - 6:11 employee - 123:10,141:14 employees [21] - 20:21, 20:24, 23:2. 23:18, 24:20, 24:24, 26:5, 35:22, 46:9, 46:17, 46:25. 58:23, 62:3, 64:22, 74:25, 78:11, 78:17, 100:3, 100:6. 123:8, 136:18 Employees - 20:23 employment - 25:1, 108:9 end - 24:12, 46:3. 52:13, 65:17, 65:19, 133:15 endangered - 72:25 engineer - 136:9 engineering - 41:11, 71:4 Engineers 73:4 Page 146 of 157 engineers 71:8 enter 56:19, 56:21. 58:3. 58:5 entered - 48:4 entertained - 55:12 entire - 79:7, 79:8 entities - 27:6, 27:7, 27:20 entrance - 89:20. 89:21 Environment - 2:1 equipment [28] - 11:11,11:12,11:13, 15:13,15:14,15:21. 15:22, 16:14, 29:24, 30:1, 30:2, 30:4, 30:7, 57:15, 57:24, 57:25. 58:1. 58:2, 58:7, 58:24, 58:25, 59:3, 59:4, 59:22, 64:1. 64:23, 107:8 Erasmo - 137:1 especially - 1 15:1 estate - 7:16, 7:20, 7:23, 7:24, 8:9, 8:11, 101:18 estimate - 10:2 et[1] - 1:8 etc - 110:8 eventually - 33:4, 44:6 evidence - 133:8, 133:16 exactly - 9:16, 22:19,118:5,128:19 EXAMINATION - 2:11, 3:4, 123:21. 128:2, 133:23. 135:19,137:13 examined - 76:3 except - 88:6, 114:24 Excluding - 109:22 excused - 140:4 EXHIBIT - 2:17 Exhibit - 49:9, 49:10, 49:12, 56:2, 56:3, 56:22. 63:8. 129:6 Exhibits - 140:2 expanding - 122:6 expect - 69:17 expenses - 102:24, 103:7, 110:25 experts - 102:25 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 expires 11] - 141223 exploration - 102:2 explored - 73221 extent 32:7, 36:19 facilities - 119:7 facility - 105:9, 109:11. 109116. 109:19 fact - 4028, 110:4. 113113, 127:3. 138220 factorm - 126214 factors - 124:12, 126216 failure - 112:4, 112:5 fall - 25:4, 25:5. 25:11, 25:20, 38:8, 38:9, 98:25 familiar - 114:3, 114:4,137:10 families [11 4622 family [10] - 10:24, 12:7, 17:12, 39:4. 48:18, 49:25, 5024. 99225, 116219, 116:23 farm] - 35:17, 40:19. 59:22, 61:25, 64:13. 64:14, 73:12, 79:5. 83:23, 9226. 92211, 96:23, 97:20, 100:11,101:10, 104225, 114217, 129:9,129z17, 13021313128, 131218.134z15, 135:5, 136:1 Farm - 13:8. 16:1 farm [67] - 9:19. 12:21, 15:7, 15:9, 15:12, 15:24, 17:2, 17:5.17:6.20:11, 29:10, 30:2, 30:19. 30:21, 32:16, 32:18, 3321?. 4521,4522. 4524. 45:5, 47:5, 57:15, 59:22, 60:7, 60:13, 64:1, 64:23. 75:21, 81:3. 82:18, 83:1. 90:12, 91:10, 10722, 107:4, 107:8, 108:1. 108:2,116223, 122:21,12322. 124221, 124222. SUSAN K. 124:23. 125:12. 125:13.125:14. 125222. 12523. 126223. 1:29:24. 130:5, 130:6, 130:7, 13121213124. 137:20. 139:3 farmed - 15:14, - 32:20, 32:21. 33:15, 53:8, 83:6, 88:4, 108:3 Farmed - 33:16 farmer [121 - 20:13, 21:14, 23:24. 24:11, 35:23. 46:4, 46:21, 125:17,125:20, 126:22, 129:18 farmer's - 22:14, 22:15, 122224 farmers [22] - 15:9, 16:1, 20:5. 20:7. 20:8, 20:9, 21:3. 21:4, 21:19, 21:20, 31:8, 35:12, 48:4. 48:7. 48:8, 83:16. 86:1. 86:21. ?[29:23. 13227, 132:23 Farming 10827. 129210 farming [55] - 11:5, 15:25, 3021, 30222. 31 32:19. 32:23. 32:24, 45:11. 46:1. 47:21, 47:22. 49:4, 50:13, 50:15. 53:10. 53212, 53:13. 53:19. 53:20, 5821, 58:15, 83:2. 88:5. 88:6, 88:7, 92:4. 99:19. 99:20. 99222. 10021. 10128. 101210, 104:25, 107223, 108:6. 108:10, 109:4, 116:7. 116214.116219. 116224, 121223, 122224, 12524. 129:9,129:16,131:9 farms - 16:5, 32:15, 47:2. 4723, 12528, 126225, 129216 10214,11:17,13:6. 13:12.15216, 15:17. 15:20, 27:5. 29:10. 30:1, 79:10. 99:19. 100:3,107215, 118215.118217, 118119, 120223 TAYLOR fast - 4:5 father[2] - 12:20, 107:6 father's 10728 February - 1:17, 25215, 1122014123 Federal 1:16 fees 102216, 102224 feet 9:8. 60:20 fence [51] - 37:6, 39:11. 65:6. 71:23, 72:7, 72:11. 72:13, 72:19, 75:6. 75:15. 75:16, 88:20. 89:7, 89:15, 89:16. 89:18. 90:4. 90:8. 90:11, 90:12, 91:1, 91:12, 92:2. 92:3, 92:10, 93:2. 93:17, 93:18, 93:19. 93:23, 94:1, 95:4. 9526, 95:21, 96:19. 96:20, 96:23. 96:24. 97:3. 97:12, 97:14. 100212, 100216.101211. 104214, 109222. 132212.132216, 135:7.135:15 fertilizerm - 20:15 fertilizers - 35:8 few - 5922, 139212 fewer - 11628 field{9] - 21:6, 21:7, 21:15. 59:13, 65:12, 12422. 127:5. 128:9. 134:21 fields - 15:10. 15:11. 5129, 58:11 figurem - 27:18. 27:19. 88:25, 92:21. 93:2. 115120, 128:21 figured 57:13, 96217 filed - 38215, 38:18 finalized - 117:21 financed 108220 financial - 36:11, 99:13 financially - 141:15 financing - 6229, 108225. 119:20, 119221 finish 14] - 4:12. 4:13.41:5. 139216 fim1[1] - 77:7 first [29] 3:1, 8:14, 928, 18:3, 31:3. 3425. 262?553?1058 553?1058 FAX NO. 35:18. 35:21, 36:4, 3626, 49:23, 52:13, 53:8, 56:20, 63:3, 71:22. 72:10, 72:18, 8221, 82:5, 97:1, 9728, 10722, 107:9, 107214, 107222. 108:22. 109:2,125:18 Firstm - 95:10 Fish - 72:25 fit - 83:8 121:7 flip[2] - 44215, 138221 flipped - 43:20, 43:25 flipping [11 - 139:3 ?ood - 105223. 105225 Floral - 13:8 - 63:9 76:11 follows - 3:3 food - 11628 foot - 84:7 foregoing - 141:6,141210 foreseen] - 75:11 forever - 91:21 forget 107220 fork - 3028 form - 41:4, 88:21. 107213 Form [29] - 27:10, 40:5, 41:13. 60:6. 60:9. 60:16. 60:23, 62:10, 62:15, 64:12, 65:9. 66:7. 79:21. 87:3. 87:9. 89:13. 90:5, 91:14, 92:5, 92:13, 93:12. 95:19. 97:5. 97:16. 103225, 10624, 114221, 115210.12924 formed - 8:6. 3821. 120:14 forth - 141 :7 Foundation [11] - 60:17, 62:16, 65:10, 8725, 89214. 91:15. 93:13. 97:6. 104:1, 10625, 114222 foundation - 60:24, 62:11, 87:10, 88:22, 90:6. 92:14. 115210 four[4] - 34:10, 114:12,116:20,121:7 frame 18:8. Page 147 of 157 18:14 Franklin [11 - 2:2 Franksville - 2:7, 42:20. 42:24. 43211 freeze - 130225, 13121 Fresnos - 51:4 front 11', - 9:8 frontage - 127:10,127:19. 127220, 12724. 128224, 134:5. 135:20, 138223 full 11] - 3:5 future - 45:5, 77:18, 99:4, 99:17, 99:18,126:7,131:12. 138211.138221 ga5111-10222 gate [17] - 60:4, 60:8, 60:13, 60:19, 60:21. 61:1, 62:1, 62:4. 90:18, 92:16, 94:5, 94:8, 95:16, 95:22, 96:4, 96:9, 96:25 gates [71 - 61 61:19, 61:22, 90:15, 91:10, 91:11, 9626 Gateway 106:16 general [41 - 14:22, 136:4 generated - 102:5 generates - 111:6 Georgia [37] - 14:18, 14:20, 15:4. 15:23, 25:2, 2523. 25:15, 25:19, 26:14, 27:3. 29:23, 29:24, 30:20, 30:21. 44:8. 44:9, 44:12. 44:17, 45:23, 46:7, 46:11. 46:12, 48:10, 67:9. 86:13, 86:19, 98:1. 9824. 115216, 115:17. 116:4,121:20,13025 gin[2] - 16:21, 16:23 given - 63:3 Goad - 69:5, 102:7, 11123, 12221 Golden - 136218 Gordon - 137:4 governed 40:4 government - 36:15, 37:25, 39:1, 62:3, 77:9, 90:15, 102220, 102222 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 governmental - 39:11, 61:18. 61:22. 6223 graduate [21 - 106214.11723 grain 67:24, 68:3 Grande - 48:11, 73:9,113214, 137:1 grandfather - 51:15 gravel - 43:7 Green - 26:17 green - 56:23, 59:24, 60:14 greens - 23:23, 23:25 Greg - 137:8 grewp] - 19:1, 51:3 group - 100:6 growna1-12216, 20:16, 26:11, 26214, 26:16, 51:9, 51:12, 51:14, 51216, 51:20, 51:23, 5226, 75218, 124:22 grower - 124221, 125211 growers - 19:9, 124:16, 124217 growing [16] - 19:3, 20:7, 20:8, 20:11, 51:5, 52:2, 52:4, 52:8, 52:11, 53:7, 54:5, 75:18,92:11, 108:1, 124219130215 grown - 46:1, 54:19 guess [25] - 9224, 9225, 28:8, 31 5426, 55:3, 55:23, 57:18, 65:23, 67:4, 78:19. 81:7, 89:22, 94:8, 97:13, 99:12, 105220, 105225. 106:22, 111:18,111:22, 114:7,125213, 134214, 134:24 Gulftz] - 131:3, 131:4 gumbog] - 84:7 guns - 90:21 guys - 23:16, 43:6, 48:14, 10825 . .H habitat - 116:9, 116:11 - 32:20, 32:21, 33:1, 33:16, 34:15, 36:2, 36:3, 36:4, 50:12, 50:13, 50:15, 84:7, 125:2 hand - 141218 handle - 15:2, 23:21 handles - 24:1 handling - 24:2 hands - 139214 handshake - 21:25 happy - 4:7, 97:11, 97:13 hard - 4:14, 50:7, 93:17, 93:18 hardly - 115:21 Harlingen - 70:11,124:25 Harmannm - 102:12 harvest [10] - 21:6, 24:10, 24:13, 26:6, 30:5, 34:11, 46:10, 52:22, 53:1, 57:16 harvested - 20:17, 35:24 Harvester[1]- 16:15 harvesting 21:12, 26:3, 26:7, 34:13. 52:25. 58:7, 78:18, 92:17, 110:17 hashed - 49:20, 50:21, 53:12 haul - 13:14, 13:16,13:17,13:18, 43:7 hauling - 65:12 head - 3:23, 43:10.139211 headquarters - 11:5, 11:10, 42:25. 50:6, 63:18, 63:22, 64:7 hear - 3:17 heard - 28:9, 72:10 hearing [11 - 39:8 Heavy - 9:12 Helding - 117211, 117:20,118:18 helping - 8213, 107225 Helps - 29:10 helps - 130:7 hereby - 141:5 hereunto - 141217 High - 106:14 SUSAN K. TAYLOR FAX NO. high 66:1 higher[1]~ 54:19 highly 115:7 Highway - 9:19, 70:10, 94:22, 107:5, 114218 highway 114211.114216 118:18 hire[2] - 13:13, 110:21 historical - 11:25, 12:9, 96:10, 96:12 history - 12:7, 91:24,106:18,107:24 home 27:24, 28:4 Home - 28:8 homemade - 59:20 homes - 131223 hope - 99:23 hopefully 100:1 hot - 26:11 hoursn] - 66:20 house [17] - 8:3, 11:23, 1223,1729, 17:10,17:12,17:14, 46:3, 46:24, 47:14, 78:7, 78:9, 78:13. 78:16, 102:9 houses - 31 :12, 4623,4626, 46:7,4629, 46:14, 12324, 123:6, 131:24 hung [11- 66:3 hunt - 66:22 hunters - 54:10, 54:12 hunting - 54:16. 54:20, 112216 hunts - 53:18 - 9:5, 29:16, 43:11,87:12, 114213, 114:18,114:25 IBWC [17] 39:15. 39:19, 40:4, 40:14, 40:21, 65:1, 65:5, 66:12, 70:21, 105:16. 105:23, 135:22, 136221, 136:24, 137:18, 138:2 idea [19] - 25:18, 31:6, 42:23, 53:22. 55:12, 62:19, 63:6. 262-553?1058 553?1058 64:16, 72:17, 79:5, 86:1, 87:7, 106213. 115213, 115216. 116:1,126:6,138:1, 138:11 ignorance [1 - 25:8 illegal - 74:2. 74:6. 91:4, 110:6 illegals - 90:20 Illinois [25] - 14:2, 14:3, 14:5,1428. 14:19, 14:25, 15:3, 15:6, 15:7, 25:24, 26:16, 27:4, 44:19. 45:21, 46:14, 67:10. 86:15, 86:19, 98:6, 9827, 121:22, 122:6, 130:6 important[4[ 83:24, 127212, 129:15,131:11 Impossible - 111:21 impression - 79:25 - improve - 76:16 improving - 76:20 in-house - 102:9 14:25, 15:4, 15:20, 16:6, 27:3, 27:4, 27:5, 29:25, 110212, 110:16,110:20,111:5 included [11? 126:14 including 36:16, 96:14, 126:2 income [10] - 12:21, 54:14, 54:15, 54:16, 69:9, 69:13, 69:15. 69:17, 10215, 110225 inconvenient - 130:17 incorporated - 10:14,13:3,107:15, 108:4,121:17 increase - 44:5, 138:20 increased - 98:10, 98:11, 98:13 increasing - 99:6 incremental 119:20 industrial [23] - 41:16, 41:17, 42:2. 42:8, 42:12, 43:13. 43:14, 43:17, 43:18, 44:15, 44:23, 70:3. 70:16. 70:17, 71:9, Page 148 of 157 71:10, 71:13, 73:24, 115:3, 115:7 Industrial - 2:6 information - 37:21, 80:15, 81:5. 81:20, 85:2. 111:2, 111:9,12422, 124:6 initial - 61 :25, 84:17 inputs 20:14 insect{1]- 112:7 installed - 113:9 instance 58:20, 77:24, 114:25,115:16 insurance - 30:18, 45:11, 45:14, 45:18, 48:1, 112:9, 112:13,112214 intended - 92:22, 94:10, 104:9 intent - 44:23 intention - 44:4, 94:13, 106:7 interest [13] - 10:24, 21:17, 22:3, 2729. 27:21, 101213, 101:19, 101222, 101224, 11727, 121:6, 121:11 interested - 61:16,85:9, 124218, 141:15 interests - 120221 lnteriorua] - 72:25, 82:16, 82:17, 83:8. 84:24, 85:8 International - 39:18 interrogatories - 110:8 Interrogatory - 110123, 111:4, 112218 interstate - 9:5, 87:24, 88:9, 115:1 invest - 7:24, 7:25 Investment - 117:8 investment - 43:17,126:14 involve - 118:6 involved [17] - 5:14, 6:2, 6:11, 6:23, 17:23, 24:16, 28:11, 28:23. 35:25, 37:6, 40:3, 58:6, 67:15, 67:17, 105:8,121:16, 134:2 involvement - 100:24 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 involving - 23:20, 71:4 irrigate - 132:4 irrigation - 20:16. 73:12,113:19, 131:20. 132:2, 132:6, 132:12 IrrigatiOn - 113:2, 124:24, 125:5 issue 109:22 - 92:2. 129:1 IWCB - 39:21 Jerry [14] - 68:25, 69:2, 102:7, 109:8, 109:9, 110:15. 111:3. 111:9,111217, 111:19.115:20. 116:2,122:1, 137:4 Joe 5:20, 27:9, 27:20. 40:18, 47:8. 100:11.107:7 John - 1:23, 3:9. 77:8,117:11, 117:20. 118:18 JOSEPH - 1:13, 3:1 Joseph - 3:7 Joumai - 18:15. 121:25 junk[3] - 70:7, 70:9, 70:12 JUSTICE - 1:23, 2:1 Justin - 2:2 keepm] - 11:10. 11:12, 49:13, 90:23. 100:7,125:14, 125:15 keeps [21- 102:5. 115:20 Kenosha - 10:6 keptm- 11:13 kind - 9:3, 9:7, 26:22. 28:22, 35:11. 40:22. 41:6. 45:17. 65:17, 71:5, 73:1, 86:1. 91:3, 98:25, 99:24, 100:23, 105:8. 117:22 Klink[1] - 5:11 Klinkema] - 11:23, 11:25, 27:17 knowledge - 5:7, 63:25, 78:24, 79:3, 79:4.87:1, 114:5, 137:17, 138:2 knows - 92:18 Kratochvil - 107:7 Kraut - 11:5, 43:3 Kristin - 29:6, 29:12, 116:22. 116:23,123:11, 123:12 lack 16:8 Lake 130:22 - 1:7 land [7'51 - 14:2, 14:5, 14:7,14:19, 15:8. 17:6, 20:13, 20:14, 31:9, 33:15, 38:1, 39:3, 44:4, 44:20, 44:25, 45:2, 45:4, 45:10. 45:18, 47:8, 47:13. 47:21, 47:22, 51:12. 51:23, 52:1, 59:16. 65:5, 69:18, 75:8, 75:20, 78:14, 81:11. 81:21. 81:25, 82:12, 82:17. 83:20, 84:25. 102:20. 102:23, 106:12. 112:2,113:5,113:6, 116:14,116:15, 117:12,119:25. 121:15,124:20, 125:11,126:11. 127:7, 127:21, 127:23, 129:22, 130:11,130:12, 130:14,130:17, 130:20, 130:21, 130:22, 131:24. 132:11,132:17, 135:5, 138:6, 138:18. 139:4 Land - 2:1 landowner - 69:22 landowners - 61:18, 65:2 large - 17:5. 131:6 larger - 87:13 largest - 67:13 Last - 4:25, 5:2, 6:15, 32:19 last [23] - 9:9, 17:17. 22:16, 22:17, 22:19, SUSAN K. TAYLOR FAX NO. 29:18, 32:16, 38:8. 38:10, 38:11, 48:3. 52:14, 53:9, 59:2. 61:3, 69:4, 69:8, 74:10, 81:12, 98:9. 98:12, 99:4, 100:9 late 25:25. 34:10.121:21 Late 26:1 LAW - 2:4 lawsuitm] - 3:10, 4:22. 4:24. 6:5. 16:7. 32:24. 37:22, 38:15, 38:18, 44:22, 88:15 lawsuits - 5:13. 6:8 lawyers 37:17, 37:22 Leading - 134118. 135:2, 138:15 leads - 125:5 learn - 71:22, 72:21 learned - 72:6, 72:9, 72:18 lease [11] 15:8. 15:24, 17:12. 33:8, 33:9, 33:12. 33:20, 33:21, 34:3, 34:9, 110:12 leased - 35:14. 123:9,123:10 leases - 20:9, 110:11 leasing - 33:6, 46:19, 48:8, 49:3, 112:16 least - 22:19, 23:7. 51:22, 68:11 leaving 116:8 left - 127222 Legacy [14] - 5:12. 117:14,117:20. 117:22, 118:3. 118:11,118:13, 118:14,118:16. 120:11 legal - 62:8. 62:13 less[14] - 1:7, 60:20, 84:20, 84:21, 87:2, 89:2, 89:3, 89:4. 89:8, 93:10. 100:10, 124:7, 133:9.133:19 letter - 70:22. 70:24 letters - 128:10 levee [39] - 40:9, 40:22, 41:1, 41:3, 41:6. 55:6. 59:15, 262*553?1058 553-1058 59:18. 63:6, 63:21, 64:5. 64:6, 64:11, 64:15, 64:17, 64:23, 65:2. 65:4. 65:6. 65:16, 65:17. 65:21, 66:1. 66:3, 66:4, 66:5, 66:11, 66:15, 66:18, 70:4. 70:12. 70:17, 70:18, 95:10, 10422, 105:24, 136:1, 137:15, 138:4 liability[1] - 45:17 license - 39:24, 70:24, 71:6, 138:4 lieu - 118:10 life[2] - 4:16. 73:1 light [11] - 41:17. 42:2, 42:7, 42:12. 43:13, 43:17, 70:3. 70:16, 71:9, 71:13. 73:24 likewise - 4:13, 31:24 limited - 36:17 limits - 74:15. 74:19 128:20, 132:21. 132:23, 133:18, 139:11,139:16 Line[1]- 2:22 lines -49:2 Lines - 2:23, 12:23 Lisa - 29:13. 29:14 list[5] - 8:3, 8:4, 36:10, 42:22, 43:15 listed 9:5 listing - 29:16 litigation - 102:15 live - 31:14, 47:2, 47:22 lives 47:21 2:4 Ln [21-219, 2:19 load 13:15. 13:17. 13:18, 21:7 loaded - 21 :6 Ioaderm - 30:8 loading - 94:10. 94:15, 94:20 loads - 23:25 loans - 81:4 local - 110:21 located [21 51 102:13 location - 11:13, 60:4, 60:14, 115:5. 126:24, 127:3 Page 149 of 157 locations - 30:5, 52:21, 60:22, 61:2, 62:1, 62:4. 79:4 locked - 92:16, 127:21 look - 9:20, 13:15, 43:23, 59:12, 90:9, 90:11, 92:2, 138:23, 139:7 looked - 73:21, 76:25, 83:17, 83:19. 139:2 Looking [31- 66:25, 69:8, 88:14 looking [1 1] - 13:5, 26:7, 48:14, 48:21, 53:17. 63:6, 79:1, 85:24, 92:3, 110:8, 121:25 looks [41 - 58:12, 67:1, 67:13, 68:10 Loop [24] - 49:4, 50:4, 50:12, 57:11. 61:17, 69:8, 74:8. 79:8. 79:10, 81:20. 81:23, 83:5, 85:11. 85:21, 89:24. 100:20. 100:23, 101:1,101:6, 105:15,108:17, 112:21, 132:22 loop - 75:23, 76:4, 76:7, 103:20, 103:23, 104:6. 104:10 Loops [30] - 18:24, 18:25, 19:12, 30:25, 32:19, 32:20, 32:22, 33:15, 34:17, 34:18, 35:2, 35:15. 35:25, 38:20, 38:23, 39:4, 48:5, 48:18, 48:21, 48:22, 49:25, 54:9, 54:23, 58:21, 79:12. 80:8, 81:24, 12324. 127:17, 129:2 Loops' - 37:15, 38:4, 49:15, 59:16. 63:2. 63:18, 63:21 Les - 51:4 lose - 92:17. 92:18 love - 99:1 low - 97:9, 97:10 Iowerm - 66:2 111-3 - 9:9. 9:10, 9:11 COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 150 of 157 main - 12:21, 13:16, 15:20, 26:12. 45:10, 63:23 management - 28:13, 28:16 manager - 69:3, 136215 manual - 35:9 manufacturing - 9:12 map[3]- 2:19, 2:19, 9424 maps - 32:9, 71:2 March - 25:15 mark - 49:5, 49:8. 56:23 marked - 49:10, 49:12, 56:2, 56:3, 129:7 11116139, 13:18. 26:21, 27:1, 29:3, 29:17, 82:8, 87:2, 109:18, 122:8, 122:10,122:13, 122:14,122:15, 122:16,122:17, 122219, 122223, 122225, 133:9, 133:19, 135214 marketing - 93:22, 129:24, 130:4, 132218 master's 107:24 matterm - 92:3 matters - 4:10, 4:11 maze - 67:24 McAllen - 83:22 mean [18] - 3:24, 18:10, 26:3, 27:7, 36:4, 43:19, 44:10. 45:4, 52:1, 70:7. 85:24, 88:25, 95:20, 105:11, 108213, 110:1,114:25,119:23 means - 5:20, 132:3 meant - 75:20, 106:23 meantime - 88:11 median] - 104213 Medina 136:18 meet - 17:25, 38:14 meeting - 37:14, 37:17, 37:18, 38:2, 38:4, 38:7 meetings - 37:6, 37:9, 37:23, 37:24, 37:25, 39:11 Meiri - 2:6 melons - 74:13 members - 10:24, 116:19,116:23 mention - 109: 1 0 mentioned - 11:23,27:17,101:6 Mercedes - 83:23 mew] - 3:9, 57:3, 71:8, 71:12, 74:24, 77:12, 96:2 Mexico - 131:4, 131:5 Michael 116:21 Michael's - 117:1 Michigan - 130:23 middle - 134:22 might [15] - 23:23, 38:8, 42:15, 42:21, 58:13, 73:13, 73:17, 80:21,100:10, 108:16, 108224, 117:25, 126:7, 126210,139:21 Mike - 29:8, 29:9, 67:19 million - 88:17, 90:3, 93:11. 125223 Milwaukee - 10:6. 121:25 mind[11] - 9:4, 10:10, 30:18, 42:14, 90:16, 91:9, 94:18. 103115, 1:28:20, 132225, 133:5 mine-[1] - 96:10 Mine - 58:11 mineral - 101:13, 101:18,101:22, 101:24 mining - 129:14 Minnesota - 117:6 Minor 77:6, 77:9 minority - 121:8, 121:10 Minors - 36:25 mix - 23:25 mixed 39:21 modern - 116:7 moment - 59:1 money 115:22, 115:25,124:17 SUSAN K. TAYLOR months - 22:20, 24:7, 29:18, 34:10 morning - 1:18, 8:22 most[11]- 5:23, 5:24, 15:12, 23:1, 23:3, 40:3, 44:3. 66:2, 6721, 125:16, 138:22 Mostly - 64:7 mouth - 72:22 MR [109]- 3:4, 3:8, 3:12, 3:15, 4:3, 4:10, 5:5, 5:19, 5:23, 8:19, 9:25, 11:20, 12:24, 17:22, 18:10, 27:10, 27:12, 27:14, 28:7, 32:2. 32:7. 33:23. 33:25, 36:5, 36:9, 36:14, 36:15, 36:19, 37:2, 37:5, 37:16, 39:18, 40:5, 41:4, 41:5, 41:13, 41:20, 42:13, 47:24, 48:13. 48:20, 49:5, 49:8, 49:11, 49:18, 50:7, 51:15, 51:18, 54:6, 56:6, 56:8, 56:13. 56:15, 60:6, 60:9, 60:16, 60:23, 61:4. 61:9, 62:10, 62:15. 6311263214, 64:12, 65:9, 66:7, 77:6, 77:8, 79:21, 85:6, 87:3. 87:5, 87:9, 88:21, 89:5, 89:13, 90:5. 91:14, 92:5, 92:13, 93:4, 93:7, 93:12, 95:19, 97:5, 97:16, 103:25, 106:4, 108:21, 108:22, 114:21,115:9, 123:17, 123119, 123:21, 127125, 128:2, 129:4, 133:21. 133:23, 134:18, 135:2, 135:17, 135219137211, 137:13, 138215, 1:19:24, 140:1 mumbling - 4:5 municipal - 131125, 132:1 namem - 3:5, 3:9, 10:9, 11:19, 29:5, 38:25, 69:4 named - 141:6 names 121:2, 262?55381058 553-1058 FAX NO . 121:3 Natural [11- 2:1 nature [15] - 18:17, 28:10, 40:23, 46:21, 51:20, 71:15, 76:21, 77:19, 85:19, 86:2, 90:21,103:1,105:13, 109:19, 110:2 near[2] - 98:19, 138:23 nearest - 114214 necessarily - 72:11 need [11] - 3:25, 4:4, 24:20, 45:18, 49:14, 51:11, 68:24, 73:24, 76:15, 91:2, 122:3 needed - 45:11, 81:3, 81:7, 128222, 128:24 negotiate - 65:18, 83:15 negotiated - 80:6, 84:15 negotiating - 82:15, 85:11, 85:21 negotiation - 84:13 negotiations - 61:25 neighborhoods - 118:4 Never - 23:17, 71:2, 71:4 never [27] - 5:16, 5:17, 17:16, 30:16, 51:3, 51:16, 58:2, 61:25, 64:24, 70:21. 70:23, 76:18, 78:10, 80:19, 80:22, 83:17, 85:2, 10222, 104216, 109:12, 109115, 109:18,116:17, 119223, 119224, 120:3,121:16 new - 51:23. 52:1, 89:25 next[12] - 4:14, 34:6, 49:15, 55:19, 55:25, 57:23, 81:10, 90:12, 93:15, 93:18. 123:4, 127:6 nine - 47:25 1:6, 2:17 nobody 3:18 Nobody - 55:17, 60:10, 96:5 Noe - 136:18 non 24:16, 41:21, 67:21, 68:5 non-plant - 67:21, 68:5 non-specific - 41 :21 non-winterm - 24:16 none 6:23 112:14 normally - 54:21, 132224 north - 50:8, 55:3 northern - 55:4, 81:23 Notary - 1:19. 141:4 note - 108225, 109:4 nothing 3:3, 5:1, 34:6, 85:19, 118:2 Nothing - 6215, 10:6, 98:24 notice - 1:14, 12:24 noticed - 54:23 noticing - 54:14 Novelties - 122218 Novembern] - 38:11 Nueces - 2:5 number - 47:24, 88:25, 89:2, 128:20, 128223 Number131? 36:10. 39:14, 41:15 o'clock - 1:17 Oaks [12] - 117:8. 117:15,117:19, 119:9,119:12, 119125, 120:1, 120:2. 120:3,120:12. 120:14, 120:20 oath - 3:2 oats - 68:9, 68:12 Object - 41:20, 88:21 object - 134218 objection - 27:13, 36:12, 60:6, 89:5 Objection 11:20, 18:10, 27:10, 40:5, 41:4, 41:13, 60:9, 60:16, 60:23, 62:10, 62:15, 64:12. COURT REPORTER Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 65:9. 66:7, 79:21, 87:3. 87:9, 89:13, 90:5. 91:14, 92:5, 92:13, 93:12, 95:19, 97:5. 97:16, 10325, 106:4, 114:21,115:9, 129:4, 135:2, 138:15 observed - 137:14 obtained - 68:11 Obviously - 134:21 occasionally 130:24 occupation - 107210 October - 17:21, 17:25, 22:16, 39:9 1:7, 1:23, 2:1, 2:4 offer[3] - 71:15, 83:18, 98:23 offered - 97:10, 97:12, 102:20, 102:23 Office - 1:23 of?ce - 9:14, 23:21. 23:22, 69:3 2:4 often - 22:21, 23:5. 23:14 Oklahoma [17] - 16:10. 56:4, 56:23, 60:22, 63:9, 73:17, 76:11,114:19,115:5, 127:10, 134:5,134:8, 134:10, 135:20, 137:15, 137:24 Okun - 2:2 old - 12:4, 12:9, 97:22, 97:24, 106221. 107:3,107:16,107:18 Old 118:17.118:19, 120:23,121:18 Once - 72:6. 72:9. 106:23, 107:22 once[11] 22:22, 23:5, 23:7. 23:9. 23:10, 53:1, 72:10. 83:7, 96:17, 108:9. 125:3 once-a-year - 23:10 One [31- 1:24, 10:10, 37:10, 37:12, 77:6. 101:1,118:7,123:10 one [77] - 4:16, 5:15. 6:12, 8:6, 9:4, 11:8, 12:3,17:15,17:18. 22:9, 22:10. 27:15, 29:21, 34:8, 35:15, 36:6, 36:13, 37:12, 38:3, 38:25, 41:25, 42:14, 47:2. 47:3, 48:3, 48:4, 48:12, 48:14, 48:15. 48:21, 50:17, 52:10, 55:16. 56:6, 56:9. 56:10, 59:23, 59:24, 60:18, 61:24, 67:19, 68:18. 69:1, 69:22, 82:11, 85:8, 87:19. 87:20. 89:22, 98:3, 106:14, 106:16, 109:1. 110:23,112:6, 118:1, 118:14,118:15, 119:11,121:4,121:8, 121:18,123:10, 124:12,124:17. 128:7, 128:9, 128:15, 128:23, 129:1 ones - 42:21, 59:11,108:13, 117:17,120:25 ongoing 116:1 D. 119:14,122:15 onions - 22:9 open - 118:9, 122:13 operating - 124:7, 132:21. 132:23, 133:18 operation [12] 11:6, 13:5. 15:2, 21:8, 29:23, 53:17, 65:11. 67:15, 67:17, 107:14, 122:24, 125:24 operations - 109:4 operatoriz] - 69:21, 69:22 opinion - 88:19, 88:23, 89:6, 90:2, 93:21, 97:4 opinions - 32:5. 65:7, 90:1 opportunities - 99:8, 99:9, 99:10 opposite [11- 51:13 order[1] 125:20 ordinances - 36:16 organization - 129:13 original - 32:11, 120:10,120:14, 127:16, 128:5. 128:12, 139:13, 140:2 originally [15] - 53:19, SUSAN . TAYLOR 108:23.117:11, 12723, 128115, 139:22 Oshkosh - 106:14 outline - 49:20, 49:21 outside [12] - 3:9. 26:19, 26:22, 86:7, 102:8. 102:10, 102:11, 108:9, 108:12,108:13, 108:15,114:16 Overseeing - 28:21 own [34] - 5:6, 8:8, 11:18, 14:2, 14:5, 14:8, 15:21, 16:18, 26:19, 30:11, 31:12, 31:19, 31:21, 31:25, 42:11, 47:13, 55:4, 85:22, 87:14, 93:20, 96:25, 101:13,101:21, 108:15, 117:7, 117:19,119:11, 119:25, 123:4, 129:16,129:24 owned [26] - 9:18, 10:16,10:19,11:1, 15:15,15:16, 15:18. 16:11, 22:14, 29:20, 29:24, 35:12, 41:15, 45:23, 47:8, 47:21, 83:6, 88:1, 95:11, 117:20. 118:24, 119:12,120:1,120:2, 128:13, 129:2 owner - 7:11, 7:12 owners - 38:1. 39:3. 39:12, 65:5. 86:22, 101:19 ownership - 10:24 owning - 46:3, 129:22 owns - 7:10, 8:7, 10:10,14:6,14:19, 56:25, 120:1, 120:3 package - 111:8 packages 111:7 packing [24] - 16:24, 16:25, 17:4, 17:7, 19:16,19:18,19:20, 19:22. 20:4, 22:23, 22:24, 23:5, 23:19. 262?553-1058 553?1058 FAX NO. 24:1, 24:4, 35:4, 43:1, 44:16, 44:17, 45:21, 45:24, 59:5, 59:6. 130:19 pad - 94:10, 94:16 page - 18:7, 18:16, 50:1. 50:5. 50:9, 116:7 PAGE - 2211 Page - 2:22, 2:23 PAGEILINE - 2:17 paid [13] - 20:15, 34:4, 34:5, 34:9. 67:2, 79:19, 80:3, 88:16, 90:3, 93:11, 103:5. 103:8 paper - 96:24 parcel [1o] - 44:10. 63:3, 81:9, 81:10, 82:1, 82:2, 82:5 parcels - 6:15, 44:2, 44:12, 51:3, 79:9. 138222, 139:12, 139:13 Parks - 73:8 Parkside - 106:15,106:16 part [44] - 5:8, 5:23, 7:11, 7:12, 8:14, 9:17, 15:12, 44:3, 47:16, 49:19. 49:20, 49:23, 50:19, 50:20, 50:23. 53:7, 53:19. 65:11, 66:2, 67:15. 67:17, 69:21, 81:16, 87:13, 88:10, 94:11, 94:14. 95:11, 102:2, 104:4, 104:9, 104:21, 108:21, 108:22, 121:9,121:10. 124:16,125:16, 127:22,128:11. 138:22 Part - 19:13, 133113 particularm] - 38:2, 38:16.126:17.126:19 parties - 6:7, 6:8 partner - 117:13, 117:14,120:12 partners 20:7, 117:15, 120:9. 120:10, 120:13, 121:7 partnership - 14:22, 16:12, 27:8, 118:17, 119:3 partnerships - Page 151 of 157 6:1, 27:20, 117:16. 118:25,120:21, 121:1,121:2,121:17 parts[2] - 24:25, 49:4 Party [31- 4122. 119:4,141:14 pass - 135:17, 139:24 past[e] - 59:1, 68:6, 83:23, 98:19, 101:19, 114211 patrol [15] 37:19, 37:25, 38:3, 38:5. 38:13, 38:20, 60:19, 61:17, 64:18, 90:22, 95:15, 96:1, 96:2, 96:18. 109:23. 110:5 patrolling - 110:5 Paul 127:1? pause - 4:18 pay [15] - 34:10, 68:1. 81:4, 84:14, 84:25, 85:3, 86:9. 86:11, 86:19, 97:15. 97:17, 10224, 103:3, 126:13,126:15 paying - 86:5, 86:6, 86:20. 103:9 payment - 67:25, 68:8. 68:14. 69:23 people [13] - 7:23, 8:12.8:13.17:13, 19:5. 20:17, 20:20, 38:13, 38:21, 38:22. 39:1, 74:12. 96:4, 125:15,129:19, 137:14,137:19 People - 4:4, 125:16 peppersn] 26:17 per[1a]- 54:24, 68:20, 68:21, 79:19. 85:3, 85:12, 85:23, 86:9, 86:11, 87:7, 111:7,111:8,111:23. 112123.115214, 115:17,115:20 Per[1] - 85:14 perceive 99:9 perceived - 125:24, 129:18 perceivesn] 135:14 percent - 102:21 percentage - 21:19, 21:21, 22:1, 54:20 Perez - 57:2, 57:3, 57:5, 59:9, COURT REPORTER 10 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 59:25, 60:2, 60:14, 89:20, 94:5 Perez' - 57:8 period - 52:5 permission - 137:21, 138:3 permit - 71:6, 95:13, 119:17, 138:3 permits - 39:24, 70:22, 70:24, 94:17, 95:11, 137:25 permitsllicense - 39:14 person - 39:1 personal - 31 :15, 47:2, 64:3, 78:24, 93:20, 93:21 Personal - 64:4, 92:6 personally - 6:3, 58:2, 71:22, 80:22, 81:9, 89:8, 100:11 personnel - 100:2 Pg - 2:19, 2:19 phoneticm - 16:21, 36:25, 87:23, 117:14, 136:17,136:21. 136:23 Photographs - 32:9 physical - 119:24 41:8 piece - 43:22, 58:2, 82:12, 105:3, 128:5, 138:17, 139:8 pieces - 17:3 pipe - 43:7. 105:9, 105:12, 109:11,109:15, 109:19 pipes - 113:8 place - 30:18, 57:19, 59:12, 59:14, 124:21, 124:22, 125:10, 141:7 placed - 8:25 places - 59:17, 122:4 plain121- 105:23, 105:25 Plaintiffm - 1:5 plaintiffp] - 1:25, 2:3 plan [25] - 12:11, 75:6, 83:9, 89:17, 94:17, 95:3. 99:4. 99:6, 99:7, 99:21, 100:19, 103:20, 103:23, 104:5, 104:6, 104:11,116:10, 122:3, 124:12, 124:15,124:16, 125:13,125:14 planned - 77:21 planners - 74:25 planning - 36:17, 106:8 plans [13] - 41:11, 71:4, 75:14, 75:16, 76:6, 94:15. 97:19. 97:21, 98:20, 99:17, 99:18,109:15 plant [22] - 15:10, 19:10, 21:16, 42:20. 42:24, 51:18, 51:24, 52:12, 52:22, 52:23, 53:3, 57:16. 58:21, 58:23, 58:25, 67:21, 67:24, 68:3, 68:5, 68:7, 68:12, 73:1 planted - 35:24, 58:13, 59:1, 59:2, 69:18,101:1,101:3, 112:20 planters - 16:15 Planting - 58:17 planting [12] - 16:3, 24:18, 52:14, 52:15, 58:7, 58:16, 58:24, 58:25, 68:1, 68:7, 110:17,112:21 plantings - 52:16, 52:18, 52:19 plats - 32:9 Plaza - 1:24 ploy 129:24 plus - 100:4, 132:18 PO - 2:2 point [25] - 3:21, 9:19, 19:6, 41:2, 41:6, 45:1, 56:11, 57:10, 57:17, 58:4, 59:8. 61:24, 63:11, 63:12, 64:20, 65:24, 67:19, 74:6, 95:23, 96:22. 97:14, 97:20, 99:4, 99:24, 117:20, 130:16,130:21, 139:15 points - 96:11, 96:12, 96:13 pole - 73:13, 94:19, 94:21 policies - 36:16 policy - 48:1 Port - 114:9, 134:24 SUSAN K. TAYLOR position - 80:24 possibilities 73:22 possibility - 58:14 possible - 61:19, 74:25,101:18 possibly - 44:2, 44:6, 45:1, 55:17, 97:10, 119:7 potential - 43:24, 44:24, 44:25 potentially - 134:7 pound - 27:15 practice - 138:19 preferable - 132:2 preferential - 130:8 preparation - 36:22 pretty - 45:2, 108:3 Pretty - 23:4, 100:23 previously - 47:25 price [10] - 79:23, 84:13, 84:14, 84:16, 84:17, 84:18, 84:22, 126:13,138:16, 138:20 primary - 44:14 prime 114:20, 115:2 principally - 126:3, 138:7 privilege - 61:15 privileged - 37:21, 61:14 problem - 18:8, 19:8, 19:12, 82:19, 90:20, 90:24, 91 91:5, 93:1 problems [13] - 18:16, 30:15, 57:7, 74:2, 74:12, 74:13, 74:14, 91:11, 95:17, 106:2, 109:23, 110:1, 110:4 Procedure - 1:16 proceeding - 6:11 proceedings - 141:8,141:11 process - 47: 17, 119:17,119:18 Produce 129:24 produce - 13:24, 262*553-1058 FAX NO. 553?1058 13:25, 20:5, 23:21, 125:17, 125:25, 129:17,131:13 produced - 32:6. 36:18, 36:20, 47:25, 48:2 producing [11 - 116:8 product [11] 13:14, 13:16, 24:11, 24:14, 26:10, 26:12, 26:21, 26:22, 26:25, 31:4. 65:12 production 48:2 products 13:21 13:23, 23:20. 24:2, 24:16, 24:18, 31:7, 75:12, 122:20 profit - 126:1, 126:8, 138:14, 138:21, 139:19 Program 137:2 program - 47:6, 67:21, 67:22 project - 75:23, 76:4, 76:7. 103:12. 119:16,119:23, 119:24,121:12 projects - 73:9, 117:12,118:3,119:14 Properties [31] - 5:21, 6:1, 7:7, 8:17, 8:25, 10:9. 10:20, 11:2, 14:6,14:19, 15:18, 16:11, 23:2, 27:5, 40:12, 40:21, 41:16, 43:16, 47:9, 47:22, 99:5, 100:15. 103:5, 108:7, 110:20, 116:10,117:19, 120:18,121:16. 131:11,138:7 PROPERTIES - 1:8 properties [24] - 6:21, 17:18, 25:18. 25:19, 31:17, 41:15, 42:22, 43:25, 45:23, 50:17, 76:25, 78:25, 82:25, 83:19, 93:22, 97:19, 97:20, 98:2, 99:14, 99:15, 100:17, 110:5,115:14,128:18 Property [11] - 11:17, 31:21, 42:11, 47:13, 55:9, 70:23, 88:1, 110:11,122:11, 122:12,122:13 property [334] 6:2, 8:7. 8:8, 8:9. 8:12, Page 152 of 157 8:15, 8:25, 9:3. 9:7, 9:17, 9:22, 10:8. 11:4, 11:18,14:13,14:15, 15:6, 15:23, 16:7, 16:10,16:19,17:1, 17:2, 17:4, 17:8, 18:22, 18:23, 19:4, 19:5,19:11,19:21. 20:1, 22:11, 22:13. 22:14, 22:15, 22:18, 25:20, 25:24, 26:2. 26:4, 26:19, 29:16, 29:20, 30:17, 31:1, 31:12, 31:25, 32:9, 35:12, 35:14, 35:18, 35:19, 36:1, 36:2, 39:12, 40:3, 40:4, 40:8, 40:9, 40:14, 42:1, 42:2, 42:7. 42:11, 42:18, 42:19, 42:23, 43:3, 43:11, 43:16, 43:22, 44:21, 44:22, 44:23, 45:7, 45:8, 45:14, 45:15, 45:19, 46:4, 46:6, 46:7, 46:15, 46:23, 46:24, 48:9, 49:19, 50:13, 50:15, 51:5, 51:8, 52:17, 53:12, 53:13, 53:18, 54:10, 54:12, 54:25, 55:2, 55:3, 55:4, 55:10, 55:13, 55:20, 56:12, 56:13, 56:16, 56:17, 56:18, 56:25, 57:8, 57:10, 57:25, 58:8, 59:9, 59:25, 60:14, 62:7, 62:14, 63:17, 63:20, 64:8, 65:3. 65:15, 66:23, 68:13, 68:15, 68:20, 69:8, 69:11, 70:2, 70:25, 71:9, 71:13, 71:17, 72:2, 72:3, 72:4, 72:8, 72:12, 73:2, 73:6, 73:11, 73:20, 74:3, 74:5, 74:16, 74:18, 74:22, 75:1, 75:4, 75:7, 76:7, 76:9, 76:10, 76:12, 76:15. 76:22, 77:19, 77:21, 77:25, 78:2, 78:4, 78:5, 78:6, 79:5, 79:7, 79:8, 79:14, 79:17, 79:19, 79:22, 80:12, 80:24, 82:24. 82:25, 83:4. 83:13, 83:16, 83:17, 83:25, 84:2. 85:13, 85:18. 85:23, 86:2, 86:10, 86:22, 87:1, 87:8. 87:12. COURT REPORTER ll Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 88:14, 88:15, 88:17, 88:19, 89:8, 89:20, 90:2, 90:8, 90:16, 90:18, 90:20. 90:23. 91:13, 91:17, 91:25, 92:12. 92:22. 92:23. 93:3, 93:6, 93:9, 93:14. 93:16. 93:25. 94:5, 94:7. 95:5. 95:7, 95:8, 95:17, 95:18. 96:20. 97:1. 97:2. 97:11. 98:6. 98:7, 98:10. 98:20, 98:22, 99:1, 99:2. 100:20. 100221, 100:24, 101:3,101210, 101:14,101:25, 102:3. 102:6, 103:14, 103:17.103:18. 103:21, 104:5, 104:10,104:21. 104:22, 104:24. 105:15, 105:22. 106:1. 106:3, 106:8, 108:17,108:18. 109:11,109:15. 109:18, 109:23, 110:9,110:10. 110:11,110:24. 111:6,111:12. 111:13,112:16. 114:25. 115:3. 115:18,115:24, 115:25. 116:4, 116:11.118:6. 118:11.118:19. 118:24. 119:3, 120:4. 120:15,120:17. 122114, 123:2, 124:11,124:14, 126:2. 126:3, 126:6, 126:13,126:14, 126:15,126:17, 126:19,126:24, 127:2, 127:15, 128:25, 129:2. 129:5. 129:7, 131:16,132:6. 133:24, 134:2, 134:8, 135:10,135:15. 135:22. 138:6. 138:10.138:17. 138120. 139:1. 139:2. 139:7. 139:8. 139:9 proposed - 60:8, 103:15 provide - 33:23. 34:1. 48:23 provided - 20:13. 20:14, 32:5, 35:7, 71:2, 71:5, 119:21 providing - 73:19 proximity - 134:24 Publicrz] - 1:19, 141:4 pump 113:15. 113:16 purchase [14] - 18:3, 18:11,109:2,109:3, 123:23. 128:5. 128:12, 138:10, 138:13,138:17, 138:18,138:19, 139:10 purchased [25] - 18:2, 86:10. 103:21. 113:12,121:14, 121:15,122:14, 122:19,122:21, 124:10,124:14, 126:19, 127:1, 127:7, 127:9, 127:15. 127:24. 1:33:24. 138:6,138z8, 138:14, 138:22. 138:25, 139:22 purchases 18:3 purchasing - 19:2, 30:14, 30:17, 31:1, 62:7, 71:12 purpose [15} - 13:16, 20:4, 23:10. 38:7, 43:21, 44:14, 45:10, 76:12. 76:13, 78:16, 120:7.132:15.139:18 purposes [15] - 30:5, 41:17, 44:1, 84:5. 84:11. 89:12. 89:17, 91:19. 91:21, 92:23. 99:24. 112:16. 126:4. 128:9,132z17 pursuant - 1:14, 1:16 pursuen] 106:6 put[s] - 5:18, 6:10, 89:25, 96:5. 119:22, 127:8, 135:7, 137:19 questions [12] - 5:25. 61:10, 91:9. 92:25, 110:23. 123:20. 123:22, 124:10,128:1,135:4, 135:18 SUSAN K. TAYLOR Racine [121 - 1:14. 1:15, 10:5.10:6, 12:14, 67:2. 67:6, 67:7,102:14,114:15. 114:16,114:17 raise [11- 81:4 raised - 12:16 ramp[3] ?41:7, 41:11. 63:21. 66:9. 66:12, 66:14, 95:16, 138:4 ramps - 40:22. 41:1, 59:18, 59:19. 59:20, 137214, 137118. 137:23 ran 62:20. 113:14 ranch [11 - 98:25 Ranch - 54:10, 78:1 ranchers - 83:15 ranching - 46:2 Randy 136:4 ratherm - 127:7 Ray [53] - 18:24, 18:25. 19:1, 19:2, 32:19. 32:20. 32:22, 34:17, 34:18. 34:23. 35:2, 35:24, 35:25, 37:15. 38:4. 38:12. 38:20, 38:23, 48:18. 48:22, 49:25, 50:12, 50:15, 51:3. 51:5. 53:12, 53:13, 54:9. 55:23, 57:11, 58:20. 58:21, 74:8. 79:17. 81:23, 82:2. 82:3. 82:11, 82:14, 82:15, 82:16, 82:20, 82:22. 83:2, 89:22, 100:20. 100:23. 101:6, 112:21.113:4, 129:11, 137:7 Ray?s - 53:17. 83:1 read - 42:9, 62:17, 80:3, 97:7, 97:8 reading - 96:23 real - 7116.7:20, 7:23, 7:24. 8:8. 8:11. 66:1 realize - 82:3, 101:16 really [12} - 53:25. 60:10, 67:16. 67:23, 84:11.8717, 92:3. 262?553?1058 114:8, 122:2. 127:3, 129:15, 130119 realtor[1[ - 82:6 Realty [51 - 7:8, 7:10, 9:6. 28:17, 28:20 realty - 7:17, 7:22, 8:6 reason - 19:11. 19:13. 26:5, 26:9, 30:14. 30:20. 38:2, 41:24. 45:5. 46:1, 47:11, 52:4.5218. 60:12, 65:20. 89:6, 101:24, 112:5. 112:6. 130:11,130:16, 131:20, 132:22. 133:5. 133:9, 133:11, 133:17 reasons - 30:16. 30:17, 52:10 receive - 69:17 received - 69:13, 69:15 recently - 121222 record - 3:6. 3:25, 13:1, 19:14. 36:8, 48:25, 50:20, 123:16 recover - 112:2 red - 49:20. 50:23, 53:13 reference - 116:13.116:16 referring - 39:16, 49:16 reflects - 3:25 refused - 128:23 regard - 39:25, 54:18. 74:21, 81:16. 91:12.102z17. 110:24,116:10 regarding [22] - 32:3. 33:12. 33:19. 39:11, 69:11. 70:24, 72:25, 73:1, 73:5, 73:9, 74:25, 78:24. 87:1, 93:25, 94:15, 95:18. 102:15, 106:2, 109:23,111:1,114:5. 135:20 regularly - 134:11 regulations - 36:16 related 7:5, 141:13 relative - 135:14 remainl11-132:10 remainder - 128:1,135:18 remember [141 - 5:6, Page 153 of 157 31:11. 34:3, 35:17. 38:10, 73:3, 79:7, 80:4. 82:14. 84:15. 10916 renovation - 12:6. 12:12 rent - 20:13 rented 107:2 renting 107:4 repeat 4:7 rephrase - 4:7 replanting - 52:20 report - 76:24, 77:23, 78:22, 80:12. 109:10 Reportena] - 1:18. 141:4,141:22 reporters - 104:16 reports - 32:5. 110:1 represent - 3:10 representations - 101:7 representatives - 38:5 representing - 42:5 request - 48:1, 95:24 REQU ESTS - 2:21 requests - 75:3, 76:18, 96:18 requirement - 62:8 requires - 135:22 resaca - 128:16, 128:17 resale - 89:7, 93:14 reserve 127:25. 135:13 residence - 12:2, 31:15, 31:19. 31:21, 47:3 residential - 47:4. 117:23, 118122. 119:5,120:8,120:15 Residential 117:24 resolved - 95:4 Resources - 2:1 respect - 74: 15. 76:6 response - 22:12, 48:1, 123:22, 135:4 responsibilities 28:13 COURT REPORTER FAX NO. 553-1058 12 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 responsibility - 28:16 responsible - 103:9 rest - 21:14, 11922 restoration - 11:25 retail 26:20, 26:22, 25:25 retained 140:2 retire - 93:15, 99:25 retirement - 97:18, 97:21, 99:24 retiring - 97:19 return 115214, 115:17,115:20 returned - 104:15 reviewed - 36:21 revolution - 139213 RGC-FTB-1026 - 128210 RGV-FTB-1026 1:6 Riggin5[1] - 136:9 right-of-wayI - 105:5 rights - 113:2, 113:10.113:11, 113:18,124:23, 131215132212, 132:18, 134:1 Rio - 48:11, 137:1 Ripm - 87:23 river [16] - 19:16, 45:16, 55:7. 70:2. 70:4, 70:13, 70:17, 70:19. 72:3, 73:1. 113:15,113:16, 125:9,130213,13123, 131:25 riverwalk - 103:11,103:15 road [21] - 6:15, 6:18, 9221, 40:9, 56:25, 64:5, 64:6, 64:10, 64:14, 64:23, 127219, 127220, 127224, 128224, 134222, 136:1, 138:4, 138123 roads - 63:10, 65:2, 65:6, 76:10, 119:22, 134221, 137:14,137:18, 137:23 roadside - 122:23, 122225 roadway - 76:1, 105:5. 128:10 roadways [31 - 76:16, 76:20. 76:21 Robinson [12] - 32:11, 36:25, 42:1, 42:4, 77:1, 77:9, 77:12, 77:18, 79:2, 97:1, 109:12 Robinson's - 76:24, 109:10 Robinsonsm - 77:3 rooming [21 - 12:3 rotate - 15:11 round - 25:1, 30:2, 100:6, 125:13, 125214 rowm - 51:21, 51:24 Roy - 2:4, 17:25, 32:2, 36:12, 49:12, 102217 rude - 3:24 Rudym - 32:11 rule 98:25 Rules - 1:16 Runm - 85:20 run[2] 17:13, 125225 running - 22:23, 2315282228219, 28:25 runs - 29:2, 62:23 sacred - 98:24 Sal - 136:23 sale [13] - 7:24, 7:25, 9:1, 21:21, 42:19, 77:24. 78:2, 80:6, 87:13, 88:10, 98:24, 114:13,138:16 sales 77:23, 78:25, 93:25 salespeople - 125:15, 125216 San 16:18, 16:25, 45:15, 46:23, 46:24, 59:6, 78:5, 78:15, 12726, 130218, 136210 sand - 54:23. 54:25, 55:2, 55:9, 55:12, 8428, 129210, 129212 saw - 5:10, 13:2, 18:14, 81:14 school - 106114 sealed 141218 season 17:13. 24:12, 24:13, 25:14, 26:11, 52:15, 52:23, 54:1, 5424 seasons - 18:18 second [11] - 34:8, 81:9, 82:1, 94:11, 94:14. 123123, 12521312719, 12821213425 section - 47:13, 129:6 Sectionm - 221 see [13] - 9:20. 23:11, 42:22, 49:2, 55:6, 56:18, 58:11, 59:13, 65:18, 80:13, 95:12, 95:22, 129:19 seed - 20:15, 35:8, 58:12, 58:13 seeking - 61:15 seem - 97:9 sell [34] - 7:16, 8:4, 8:16,8:17,13224, 54:23, 54:24, 55:18, 71:17, 81:21, 81:24, 82:12, 82:16, 83:7, 89:9, 93:14, 93:16, 93:17, 93:18, 98:1, 98:7, 98:22. 99:14, 125223, 126:1, 126:7, 127117, 127219, 128:21, 130:7, 133:17,138:13, 139217, 139219 selling[1s]? 7:23, 8:1, 55:2, 55:12, 82:3, 86:2, 86:22, 97:19, 97:20, 98:20, 125221, 129:12, 129217, 129:19, 132222, 13325 Selling - 7:25, 8:1 sells - 20:19, 23:22, 11128 semestens] - 106:14,106:15, 106216 semi - 12:22, 16:16, 65:12, 65:15, 65:16, 55:20. 66:2, 134223 semis - 94:11 sense - 7:22 separate - 18:2, 23:16, 31:17, 47:16, 118:16 September - 52:13, 52:14. 53:4, 53:24, 54:2 Sergeant - 136:21 serve - 132217 service - 76:10 servicing - 113213 set[4]- 15:2, 131:22, 141:7,141:17 settled - 6:17 settlementm - 102222 seven - 39:14, 121223, 121224 Several 52:18 several - 36:7, 52:19, 59:13, 59:19. 117:17, 121:4 sewage - 73:16, 73:20, 73:25 sewerm - 119:22 shake - 3:22 shed [41] - 16:24, 16:25. 17:4, 17:7. 17:13,19:15,19218, 19:20, 19:22, 20:4, 21:2, 21:8, 22:23, 22:24, 23:5, 23:19, 23:24, 24:1, 24:4, 24:7, 35:4, 37:15, 38:4, 43:1, 44:16, 44:17, 45:21, 45:24, 59:5, 59:6, 68:18, 68:20, 94:18, 121 :24, 125:1,125222,126:1, 127:4,127:6,130219, 134:14 sheds - 105212 shipper[1[- 125219 Shoreline - 1:24 short - 25:14, 39:20 shortcut - 106122 Shorthand - 141:3 shorthand 141:8 shortly - 117:21 show - 25:8, 49:1, 49:11, 5623, 128:3 showed - 38:21, 94:4 showing - 41:15, 67:5, 67:9 side - 11:8, 77:9, 93:17, 93:19, 94:1, 105:24, 128218, 132:18 Page 154 of 157 signm - 9:21 single - 27:15 sit 8:22, 135:9 site 12:25, 13:2, 116:17 sits 17:2, 17:5, 122:10.129:1 sittin'm - 94:18 situated - 1:7 situation - 4:20, 20:24, 35:7, 35:11, 47:19, 99:12, 99:13, 12413, 124:6 Six - 38:22, 98:16 sine] - 29:18, 96:3, 98:9, 98:12, 99:4. 111:12,118:5,125:5, 130:24 Small[1[ - 44:2 small110]-10210, 12:21, 21:5, 21:8, 65:24, 10523, 117:25, 118:1,122216 smaller - 16:1, 68:18 SMITH [40] - 3:4. 3:8. 3:12, 3:15, 4:3, 4:10, 5:5, 5:23, 12:24, 17:22, 27:12, 32:2. 33:23, 36:9, 36:15. 37:2, 39:18, 41:5, 48:13. 48:20, 49:8, 49:11, 51:15, 51:18, 56:8, 56:15, 61:9, 63:14, 77:8, 93:7. 108:22, 123:17, 128:2, 133221, 134218, 135:2, 135:19,137:11, 138:15, 140:1 Smith 1:24. 2:12, 2:13, 2:14. 3:9, 123:22, 135:5, 140:2 soft [11 - 3:16 soil [11] - 83:24, 83:25, 84:4, 126220, 127:6,131:15, 135:4, 135:5, 139:8, 139:9 so d[15] - 20:18, 29:20, 44:6, 55:9. 77:25, 79:14, 80:1, 87:2, 87:23, 98:24, 118225, 124:9, 133:8, 133:11, 133218 sole - 2226 solely - 10:16, 13:11 someday - 44:5 someone - 138:3, 138:12, 139:6,139217 SUSAN K. TAYLOR 262?553-1058 COURT REPORTER FAX NO. 553-1058 13 Case 1108-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Someplace - 139116 someplace - 18:6. 31:25, 78:17, 107120, 130:12, 139111 Somers - 94:22, 94:23, 94:24 sometime - 31:5, 4515. 126:6 sometimes - 8:6. 46:2, 138118, 138:19 somewhere - 125111, 127:21 son - 7:14, 67:19 sons - 83:5 soon - 34:1 sorry - 106123 sort - 27:14, 138114 sound 67:10 sounds - 26:8 south - 50:8. 113114 South [45] - 6:2. 30:13, 36:1, 55:20, 58:8. 58:16, 68:13. 68:14, 69:25, 70:2, 72:19, 74:3, 74:21, 78:5. 83:13, 83:16, 84:1. 86:22, 87:4, 87:8. 88:14, 94:25, 100119101117. 102:5, 103114. 104121, 109124, 110124.11116, 111112.111120. 11515, 115124, 124:11, 124114. 12613, 126:18, 130113.13114, 131112.131117, 13217, 133125, 139:1 SOUTHERN - 1:1 southern 24:25 soybean - 51:19, 68:9 Soybeans - 33:2 soybeans - 33:3. 33:18, 34:11, 53:9, 67:24 space - 116:9 spare{11-10811 sparse - 53:5 sparsed - 52121 speaking - 40:17, 44:6, 57:21 species - 72:25 specificm - 41:21, 75:3 speci?cally - 20:21, 43:17, 44:13. speculation - 93:20 spoken - 3:16, 40:21, 80:22. 136123, 137:1,137:4, 137:7. 137:8 spot - 66:8 spots - 66:1, 66:2. 66:8 spread - 10:5, 26:6, 52:24 spring [14] - 25:4, 25:11, 25:12, 25:13, 25:14, 25:15, 25:20. 25:25, 26:1, 37:12, 37:14, 38:4, 38:9, 65:13 Spring - 25:5, 25:14,118:15. 118117.118119, 120123 Springs - 121118 staffed - 24:7, 24:10 stake - 121110 stakes 121:9 stand - 5:17 standpoint - 130:4 start 4:12, 4:14, 8:8, 22:22, 25:13, 31:3. 75:18, 106124 Startm - 52:13 started [10] - 31 108110.117111, 117:12,119:23, 119124, 139214 starting - 32122, 72:14 State - 1:19, 7:4. 106114, 141:4 state - 3:5, 7:2, 26:9 statesm - 116:7 States - 1:23, 1:23. 3:10, 37:3, 139112 STATES - 111, 1:4 Station - 2:2 stay - 17:14, 30:2, 59:4, 78:17, 101119 stealing - 74:10, 74:12 Steel - 87:23 Stefanie - 2:6 Ste?e - 5:3 SUSAN K. TAYLOR Stephanie - 7:5, 28:3. 28:19, 28:25 Steve 7:12, 7:13. 7:14, 28:19. 28:23,28:25,29112 still [16] - 20:24, 88:6, 88:11, 89:11, 95:20, 98:4, 99:25, 119:25. 123:2, 129:2, 129:9,132110. 132:15.132:16. 135:21,139:12 Still - 8815,91118 stop - 91:4 storage - 94:20, 105:9,105111. 109:11.109:16, 109:19, 117:25, 119:7 store[1]- 114:24 Street - 2:5 street - 11:8 Strictly 78:11 strictly - 21 33:6, 35:16, 44:20, 46:9, 46:17, 47:3. 64:3, 81:17 stripp] - 28:9 structure - 94:19 study - 121:8 Stu rteva nt - 12:15.12116, 107:5 styled - 41 :24 subdivided - 88:13 subdivisions - 121:3 subject - 16:7, 32:23. 44:22 submitm 41:11 subpoena - 1:14, 32:4 subsidies - 66:25, 67:2, 68:10 subsidy [1n] - 67:13, 67:21, 68:3. 68:5. 68:6, 68:14, 68:22. 69:9, 69:10, 69:15 successive - 51:24 sudden - 124118 sued - 5:15, 6:4 suggested - 113:4 suitable - 76:11, 130114. 130:15 Suite - 1:24 summer - 25:9, 25:24, 112119 summertimem - 24:21 262?553-1058 553?1058 FAX NO. supervision - 58:11 supplies - 73:25 supply - 26:10, 73:14 suppose - 7:4, 8:23, 52:10, 74:9 supposed - 65:3, 66:11 supposedly - 126:1 surface - 101 :18 surprisingly - 97:9 surrounding 115:6, 123123 Susan 3:17. 4:11 SUSAN - 1:18, 141:3,141122 Sweetm - 26:15 sworn - 3:2, 141:7 system - 73:16, 126:22 Tax - 119120 TAYLOR - 1 :18, 141:3,141122 teacher - 107125 technical - 79111 Technical - 106117 technically - 31 :7 - techniques - 11617 telephone - 77:14 temperatures - 131:5, 131:6 temporary - 94:20 ten - 122:9, 130124 Tenant - 48:8 tenant - 46:4, 46:21, 48:4, 48:7 tender - 49:14 Tennessee - 38:24 tenths - 114:2 term - 1618 terms - 33:8, 34:3. 41:21 testified - 3:3, 124111,126:2,134:1. 135:10,14117 Texas 6:2, Page 155 of 157 16:6,16:14,17:13, 17:19,17:20, 17:25. 20:1, 20:21, 21:9. 21:11, 22:4, 22:18, 22:21, 23:6, 25:20, 25:23, 27:4, 30:13. 30:23, 31:4, 36:1, 37:7, 44:21, 45:10, 45:14, 48:11, 55:20. 58:8, 58:16, 68:13, 68:14, 69:25, 70:3, 72:19, 73:8, 74:3, 74:22, 78:5, 83:13, 831168411, 86:7, 86:22, 87:4, 87:8, 88:14, 95:1, 100120. 101:17, 10216, 103114, 104121, 109:1, 109124. 110111, 110116. 110120, 110124, 111:5,111:6,111112, 11112011515, 115:24, 122:6, 124111,124114, 125121.12613, 126118, 129121, 129122, 129:25. 130:7, 130:8, 130113, 130125, 13114, 131:13,131:17, 13217, 132119, 133125, 137:8, 139:1 - 3111,3114, 4:2, 419, 4:21, 5:3, 7:9, 37:18. 39:23. 48:16, 48:24, 51:17, 77:11, 14013 thereabouts - 88:15 thin [11 - 26:6 thinking - 42:17, 44:13,118:15,13912 third[4] - 51:22, thoroughfare - 134111 thousand - 34:6 three - 31:2, 59:3,92116, 12117 throughout - 52:23 119118 tightrope 65:23 tillablem - 17:6 tilling - 16:3 Tim [26] - 32:20, 32:21, 48:5, 48:21, COURT REPORTER 14 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 156 of 157 5014. 50:11, 50:12, 53:7. 63:17, 63:21, 79:8. 79:13, 79:14, 81:9, 81:20. 82:5. 85:11, 85:21, 89:22, 89:24, 94:12, 108117, 127117.12918, 129111 title - 110:9 today - 20:24, 36:21, 90:8, 135:9 together - 23:16, 23:17, 107113, 10816 tookm - 7:16, 20:16.6612, 84:21, 91:5, 120:9, 141:8 top - 4:16, 43:10, 5011, 59:14.64110, 84:14, 66:3, 66:4 total - 88:16 touch - 23:11 touched - 27:16 toward - 50:4, 83:20,83:21,121:12 town - 114:14, 115:2 Town - 119120, 119121 tract - 36:7, 79:23, 87:13, 123123. 12719, 127:18, 133112, 134:5 Tract - 116, 8517, 85:8 tractor - 16:16. 16:17, 65:12 Tractors - 30:8 tractorsm - 16:15 tracts - 11:14, 11:15,79122,126:18 trade - 15:9. 15:10 traded 113118 Tradeweil [19] 7:8, 7:10, 7:15. 7:23. 8:16. 8:25, 9:5, 27:6, 27:23. 28:10. 28:14, 28:17, 28:19, 28:23.29116. 29:20. 42:18, 43:12, 87:13 trailer - 66:4 transcribed - 141:9 transcript - 141111 transferred [1 - 113:1 transport - 30:4 transportation - 134114 traveled - 134:11 trees -47:6 tricky - 79:11 tried - 62:2 tripm 23:14 trips - 23:10, 23:12 trouble - 74:9 truck - 12:22, 41:8, 5811,6613, 94:18,127:5,130118 Truck 12122 Trucking - 13:7, 13:11, 30:10 trucking -13:11, 43:6 trucks [11] - 13:13, 16:16, 21:7, 30:9, 30:11, 42:25, 66:5, 66:14, 66:17,94120, 125115 true -45:2, 80:2, 100:9,141110 truth - 3:2. 313 try -4:13 tryingnz] - 8:24, 25:17, 27:18, 27:19, 33:25,37120,53:1, 79111. 79:12, 92:21, 93:2 turn - 65:22, 113110 turned - 43:20 Twelve [12] - 117:8. 117:15, 117119, 119:9,119112, 119:25,12011,120:2, 12013, 120112, 120114, 120120 twice - 23:7, 34:4 Two 31:2, 123:7 two [23] - 4:15, 8:6. 17:3. 17:23, 18:2, 39:10. 51:21. 52:16. 53:8. 5913,72120. 79:22, 81:14, 93:15, 97:7.106115. 114:2, 124117.126118, 133114 two-tenths - 114:2 TX - 1:24, 2:5 type[12]- 4:24, 26:21. 3017,4316, 75:15, 83:24, 83:25. 11513, 126120, 12716, 139:8, 139:21 typed - 3:24 types 21:3. 37:23, 75:11 SUSAN K. TAYLOR typewriting - 141:9 typically - 125:1 2:1 ugh[2] - 3:22 ugh-ugh 3:22 unanswered - 91:9 uncertainties - 135:14 uncertainty - 90:14 undone] - 10:8, 11:18, 12:6. 50:23. 79:25, 80:13. 80:24, 81:17 underground - 113:8 underneath 84:8 understood - 9115. 129120 UNITED - 1:1, 1:4 United - 1:23, 1:23. 3:10, 3713, 139112 University - 106115, 107121, 117:6 unless 66:9, 66:11, 92:15, 127118, 128124 up[51]- 3117,3124. 12:16. 15:2,1818, 18:17,20:6,22123. 23:5, 24:20, 24:23, 35:8, 38:21. 39:21. 42:18, 45:11, 46:1. 46:3, 59:14, 59:18. 60:3,6415,64:18. 64:19, 66:3, 66:17. 83:9, 85:17, 85:22. 90:19, 94:13, 96:21, 96:22, 97:2, 97:13. 100112116113, 117:16.120125. 121:5, 128:22, 130118.130121, 131222. 13517, 135115.137115, 137:19. 137123. 138:4 upper [11 - 83:21 - 72:24, 73:4. USDA - 66:25. 6814,6919, 69:15 uses - 57:11, 74:25, 77:21, 89124, 262-553-1058 FAX NO. 553?10 110:9 utilities - 73:11. 119:23 utilize - 17:10. 24:5. 30:10.35119, 92:22. 92:23. 93:6, 95:1 utilized - 25:19, 25:20, 25:21, 26:2, 34:16, 46:9, 50:23, 59:24. 64:22. 73:23, 7415, 104:23, 123:8 utilize5[2] -17:12, 89:21 utilizing - 66:14. 101:2 vague - 41:21 Valley - 48:11 valley - 19:9, 20:5, 83:21, 84:4, Valuation - 137:5 valuation - 97:2, 103:17, 103:21, 104:5 value [18] -44:5, 85:13, 87:2, 88:19, 89:8, 90:2. 91:12. 91:16, 92:6, 92:8. 93:5, 93:8, 93:9, 93:14. 100:13. valuing 95118 variations 131 :6 varies - 100:4. 111:14 variety - 112:7 various - 30:5 vegetable - 15:10,122:17 vegetables - 68:7, 122:18 versus - 114:6 Versus - 68:4 veterinarian - 29:15 videotapes - 32:9 vs - 1:6 wait - 4:11, 4:13 Wait - 118:13 waiting - 94:19 walko] - 58:11. 65:23 wants - 88:11, 58 138112 war[1]- 139113 warehousing - 105:13 WAS - 140:3 Washington - 2:2, 11:1,2711 Wastem - 137:1 watching - 110:5 Water - 39:19 water [46] - 19:8. 30:15, 73:12. 73:14, 73:17, 73:20, 73:25, 74:12.11312, 113:5, 113:6,113:10. . 113:12. 113115, 113116.113118, 113119, 113:21. 124:23. 124124. 12513, 125:5, 125:6, 125:7.125:8.125:10. 126:20, 130122, 131:2,131115, 131:19,131:21. 131122131123, 131124, 131125. 132:1,132:2,132118. 134:1, 134:2, 139:9 Waterford - 121:4 watering - 113:5, 125:2 watermelons - 22:9,26:17,74110 ways - 8:7 weather[2] - 26:11. 130123 13:2, 18:7, 18:16. 116:6, 116117 week[1] -49:15 weeks - 17:24, 81:14,133114 wells - 125:8. 131125 west - 50:10 wheat [11 - 68:9 wheels 66:4 - 141117 WHEREUPON - 140:3 Whicheverm - 56:9 whichever - 24:14.114111 white - 49:19, 49:23, 50:21, 50:22, 53112 White - 53:18. 54:9, 78:1 COURT REPORTER 15 Case 1:08-cv-00169 Document 100-1 Filed in TXSD on 07/28/09 Page 157 of 157 whole [12] - 3:2, 36:2, 47:8, 53:4, 53:15, 56:14, 79:25, 100:7, 122:21, 127:4 Wi -2:7 wide - 60:7, 91:10 widening [11 - 76:20 wider - 89:10 wildlife - 116:9, 116:11 Wildlife - 72:25, 73:8 willing - 82:11, 83:7, 84:25, 97:15, 97:17 Wing - 53:18, 54:10, 78:1 winter [24] - 18:19, 19:2, 21:9, 21:20, 24:16, 24:18, 25:3, 25:6, 25:21, 25:23, 30:22, 32:16, 32:18. 32:19, 32:22, 33:14, 34:20, 35:15, 35:18, 35:19, 52:9, 52:11, 69:24 Winteri2] - 25:22, 25:23 winter-planting - 24:18 wintertime - 24:23, 32:15 Wisconsin [39] - 1:15, 1:19, 6:20. 6:22, 7:18, 7:20, 9:23, 10:8, 11:18, 18:20, 20:22, 20:23, 20:25, 25:8. 25:9, 25:14, 25:22, 25:23, 26:20, 26:23, 30:5, 42:16, 43:23, 44:7, 48:10, 67:2, 86:9, 86:19, 94:23, 94:24, 98:9, 98:23, 101:16,106:16, 107:21, 138:24, 141:5 witness - 5:16, 5:17, 6:5, 135218, 1:59:25 WITNESS [14] - 3:11, 3:14, 4:2, 4:9, 4:21, 5:3. 7:9, 37:18, 39:23, 48:16, 48:24, 51:17, 77:11,141:17 Witness - 140:4 woman 65:13 wooden - 94:19 Word - 72:22 words [41 35:25, 121:10,128:16, 135:25 workers [31 - 91 96:14,110:21 Works 29:10 works 7:8 worst - 111:20, 111:24 worth - 85:18, 85:23, 87:8, 97:3 writing 133:7 written 111} - 21:23, 33:9, 33:12, 33:20, 33:21, 34:3, 34:9. 34:25, 48:17, 83:18, 110:12 yard - 63:2, 64:7, 70:9, 70:12, 105:9, 127:8 yards - 70:7, 105:12 Yarrito [11 - 137:1 Year - 25:1 year [53] - 4:25, 5:2, 6:15,15:11,18:3. 21:14, 22:17, 23:7, 23:9, 23:10, 24:8. 30:2, 34:22. 35:21. 51:9, 51:10, 51:12, 51:14, 51:22, 53:8, 53:9, 53:10. 53:14, 53:15, 53:23, 54:24. 55:19, 59:2, 68:20, 68:21, 69:8, 74:11, 96:3, 100:6, 100222. 100:23,111:14, 111:15,111:22, 111:24,115:17, 115:19,115:21, 119:13,122:2,124:8, 125:1,125213, 125:14,131:18 year-by-year - 100122 Year-round - 25:1 year-round [41 30:2, 100:6, 125:13, 125:14 years [37] - 31:2, 36:7, 44:3, 47:6, 48:17, 48:23, 51:2. 51:21, 51:24, 51:25, 53:8, 59:2, 59:3, 69:7, 72:1, 72:20, 74:9, 81:3, 83:17, 83:20, 93:16. 98:9, 98:12, 98:16, 99:4, 106:21. 107:2,111:12, 111:20,112:6. SUSAN K. TAYLOR 115:25, 121:23, 121:24, 122:8. 124:18, 130:24, 138:7 yesterday - 62:17. 62:24 yield - 35:2. 111:11 yielded - 34:7 yourself - 66:22, 115:7 Yulem - 12:22 22 Zero - 111:25 zerom- 112:1 zoned [11] - 9:8. 9:9, 42:12, 42:20, 42:23, 43:13, 44:17, 44:18, 87:16 zoning - 36:17, 42:15, 44:13, 74:21, 75:3 252?553?1058 FAX NO. 553?1058 COURT REPORTER l6