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extract the property’s value we must sift through conflicting
expert witness testimony and many subsidiary issues.
Background
A. Sand and Gravel
This case arises from beneath the floodplain of the San
Jacinto River, the short river in southeastern Texas that flows
into Galveston Bay and on whose banks the Republic of Texas won
its independence in 1836. The river today meanders past what
became the City of Houston, and its floodplain is filled with
sand and gravel. These deposits are valuable when found near a
big city like Houston with a strong local construction industry.
But, though the market for sand and gravel in Houston is large,
neither production nor consumption is highly concentrated, and
prices are set on a wide variety of terms. Some is sold by the
cubic yard and some by the ton; some is sorted by degrees of
coarseness and sold at difference prices--prices that fluctuate
significantly over time and can vary by length of contract or
distance to a buyer’s worksite.
The value of a particular sand and gravel mine depends on
the particular type of deposits it holds. Gravel is generally
more expensive than sand in the Houston market because of its
relative scarcity, and when it’s sorted before sale, coarser
gravel usually commands a higher price. Sand is usually
classified descriptively as concrete sand, mortar sand, and bank
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Last modified: November 10, 2007