BALLÍ FAMILY ORGANIZATION

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August 23 , 2009

The information below will provide details of the decisions reached on Cause 1261.

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August 19, 2009

Mr. Fred Ballí
Mr. Richard Ballí
Ms. Gloria Gibney
All Ballís of The Ballí Family Organization
c/o Fred & Richard Ballí
All Defendants Named in the Pleadings & Amended Pleadings

Cause No. 1261, The John G. & Marie Stella Kenedy Memorial Foundation vs.
Sylvia Menchaca Ballí Aguilera, et al.; 105th District Court of Kenedy County, Texas

Dear Folks:

Again, it was my privilege to meet with many of you in Edinburg, Texas on August 8th, 2009.

As I have stated, and as I again stated at the August 8th meeting, I am licensed to practice law in the State of Kansas, State of Missouri, and in the United States Supreme Court. I am not admitted to practice law in Texas. Therefore, I cannot advise or represent concerning Texas law.

There was considerable discussion at the August 8th meeting concerning Case No. 1261, in light of the denial of the petition for review to the Supreme Court of the State of Texas, issued on or about September 2nd, 2005. Ramon Garcia, a licensed Texas attorney with offices in Edinburg was with me and spoke to you. Much of the discussion concerned whether there was any basis for the filing of a Petition for a Bill of Review to the 105th District Court in Kenedy County. Hector Cárdenas wrote you all in March of 2006 informing you of the denial of the Petition for Review. Mr. Cárdenas indicated his opinion, "that the last chance for the heirs of José Manuel Ballí Villarreal to directly attack the judgment is to properly document and attach evidence of extrinsic fraud to a Petition for Bill of Review filed in 105th District Court on or before September 2nd, 2009."

Mr. Garcia and I indicated that there did not appear to be documentation of evidence of extrinsic fraud. Since August 8th, 2009 I have spoken with a number of Texas lawyers, an Arizona lawyer, and others. I have not located anyone as of the date of this letter that is willing to undertake representation for a Petition for Bill of Review in Cause No. 1261.

Since it has been almost 4 years since the denial of the petition for review and over 3 years since Mr. Cárdenas' letter to you, I think that we all have to accept that Cause No. 1261 is forever final.

However, in speaking with you all and with the others that I have spoken with, it appears that
there could be several other avenues that may be worth considering, to include:

(1) Ramon Garcia had a good idea. He indicated that The Kenedy Memorial Foundation brought a declaratory judgment action, as amended, against a large number of named Ballí defendants. If heirs of José Manuel Ballí Villarreal who were not specifically named in Cause No. 1261 could be located and those heirs bring a new action against The Kenedy Memorial Foundation, perhaps Cause No. 1261 would not be res judicata. Some of you have suggested names of Ballí heirs not named in Cause No. 1261. It is very important to make sure that they are in fact heirs. They would bring suit in behalf of all of the heirs to include those in Cause No. 1261.

(2) Another potential course of action would be to determine if a new suit could be filed
in the United States District Court claiming a federal cause of action. One potential possibility would be a lawsuit asking the federal court to determine issues between the Ballí heirs and Spain. The possible basis could be that since the Spanish Land Grant was in 1804 and from the King of Spain to Francisco Ballí, then a Spanish citizen, who then conveyed to his brother Manuel Ballí, also a Spanish citizen then the Courts of the United States should honor, give, credit to and respect the Spanish land grant and the conveyance to Manuel Ballí. In other words, it would be a federal question, not a State of Texas question.

I have asked several attorneys that I have had contact with as well as others to consider the two (2) above possibilities. I might add that all of those I have spoken with have, to the person, indicated that they are satisfied that the 1804 document from Francisco Ballí to Manuel Ballí of La Barreta is authentic and valid.

Respectfully submitted by:
Crow & Associates
Michael Crow
MC/rml

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Even though the news on 1261 is not good we still have many other options to pursue such as the ones mention by the Attorneys above. We also plan to move forward on Bill HB834. The whole idea is to create a company to get our foot in the door and have the rest of the family join in. The family member (stakeholder) would than have an interest in the enterprise. The intent is never to leave the family out. The only ones left out will be at their own choosing.

The name of the company will be Derechos Minerales Research & Development, based in Houston, Texas. When successful, it will have mineral acreage in several Spanish and Mexican land Grants and Porciones located in South Texas with thousands of acres of undeveloped minerals. We claim the mineral interest on all our ancestral land with “derechos de los herederos”, (our rights as heirs).

We are ready for the challenges. Are you?

Sincerely,
Fred B. Ballí