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          <RecipientUSAddress>
            <AddressLine1>1901 N AKARD ST</AddressLine1>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75201</ZIPCode>
          </RecipientUSAddress>
          <RecipientPhoneNumber>2145493175</RecipientPhoneNumber>
          <FormAndInfoAndMaterials>IT IS THE INTENT OF THE FOUNDATION BOARD (THE BOARD) TO RECEIVE APPLICATIONS FROM THOSE PERSONS DESIRING TO PURSUE A COURSE OF STUDY INVOLVING THE HISTORY OF THE STATE OF TEXAS, THE GREATER SOUTHWEST, AND RELATED MATTERS OF HISTORICAL VALUE. IT IS THE INTENT OF THE BOARD TO WORK CLOSELY WITH THE FACULTY WITHIN THE HISTORY DEPARTMENT OF SOUTHERN METHODIST UNIVERSITY, LOCATED IN DALLAS, TEXAS AND OTHER TEXAS UNIVERSITIES. THUS, APPLICANTS RECOMMENDED BY SUCH FACULTY WILL BE GIVEN PRIORITY BY THE BOARD. THE BOARD WOULD EXPECT FROM ANY APPLICANT CERTAIN INFORMATION, INCLUDING BUT NOT LIMITED TO: A DETAILED WRITTEN STATEMENT OUTLINING THE COURSE OF STUDY THE APPLICANT WISHES TO PURSUE; PRIOR PUBLICATIONS OF THE APPLICANT (IF ANY); GRADE REPORTS AND/OR APTITUDE SCORES; FINANCIAL NEED. AS OF DECEMBER 31, 2012, NO DESIGNATED GRANTS HAVE BEEN CONTEMPLATED OR APPROVED BY THE FOUNDATION BOARD. IN ADDITION, DURING 2012, THE FOUNDATION BOARD APPROVED NONSOLICITED CONTRIBUTIONS TO PUBLIC CHARITIES.</FormAndInfoAndMaterials>
          <SubmissionDeadlines>NONE</SubmissionDeadlines>
          <RestrictionsOnAwards>NONE</RestrictionsOnAwards>
        </AppicationSubmissionInfo>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>CARRY THE LOAD</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>8333 DOUGLAS AVE STE 342</AddressLine1>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75225</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>5000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>HIGHLAND PARK ISD EDUCATION FDN</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>4201 GRASSMERE LN</AddressLine1>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75205</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>100000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>SOUTHERN METHODIST UNIVERSITY</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 750235</AddressLine1>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75275</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>205000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>TEXAS CONSERVATIVE COALITION</BusinessNameLine1>
            <BusinessNameLine2>RESEARCH COUNCIL</BusinessNameLine2>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 2659</AddressLine1>
            <City>AUSTIN</City>
            <State>TX</State>
            <ZIPCode>78768</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>10000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WEST DALLAS COMMUNITY SCHOOL</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>2300 CANADA DRIVE</AddressLine1>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75212</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>10000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WOODALL RODGERS PARK FDN</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>1909 WOODALL RODGERS FWY</AddressLine1>
            <AddressLine2>STE 403</AddressLine2>
            <City>DALLAS</City>
            <State>TX</State>
            <ZIPCode>75201</ZIPCode>
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          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
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        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>FROM NUSTAR ENERGY LP K1</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 781609</AddressLine1>
            <City>SAN ANTONIO</City>
            <State>TX</State>
            <ZIPCode>78278</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>501(C)(3)</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>84</Amount>
        </GrantOrContriPaidDuringYear>
        <TotGrantOrContriPaidDuringYear>430084</TotGrantOrContriPaidDuringYear>
      </SupplementaryInformation>
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        <IntOnSavingsAndTempCashInvst>
          <BusinessCode>211110</BusinessCode>
          <UnrelatedBusinessIncomeAmount>157</UnrelatedBusinessIncomeAmount>
          <ExclusionCode>14</ExclusionCode>
          <ExclusionAmount>42</ExclusionAmount>
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          <ExclusionCode>14</ExclusionCode>
          <ExclusionAmount>303779</ExclusionAmount>
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        <OtherInvestmentIncomePartVII>
          <BusinessCode>211110</BusinessCode>
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        <GainSalesAssetsOthThanInvntry>
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        <SubtotalsPartXVIA>
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      <TrnsfrTrRlnWithNoncharitableEO>
        <TrnsfrOfCashToNoncharitableEO>false</TrnsfrOfCashToNoncharitableEO>
        <TrnsfrOthAssetsNoncharitableEO>false</TrnsfrOthAssetsNoncharitableEO>
        <SalesOrExchangesOfAssets>false</SalesOrExchangesOfAssets>
        <PurchaseAssetsNoncharitableEO>false</PurchaseAssetsNoncharitableEO>
        <RentalOfFacilitiesEtc>false</RentalOfFacilitiesEtc>
        <ReimbursementArrangements>false</ReimbursementArrangements>
        <LoansOrLoanGuarantees>false</LoansOrLoanGuarantees>
        <PerformanceOfServicesEtc>false</PerformanceOfServicesEtc>
        <SharingOfFacilitiesEtc>false</SharingOfFacilitiesEtc>
        <RelationshipsNoncharitableEOs>false</RelationshipsNoncharitableEOs>
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    </IRS990PF>
    <IRS990ScheduleB documentId="RetDoc1">
      <Organization501c3ExemptPF>X</Organization501c3ExemptPF>
      <GeneralRule>X</GeneralRule>
      <ContributorInfo>
        <ContributorNumber>1</ContributorNumber>
        <ContributorNameIndividual>ESTATE OF WILLIAM P CLEMENTS JR</ContributorNameIndividual>
        <ContributorAddressUS>
          <AddressLine1>1901 N AKARD ST</AddressLine1>
          <City>DALLAS</City>
          <State>TX</State>
          <ZIPCode>75201</ZIPCode>
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        <AggregateContributions>2077509</AggregateContributions>
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        <Category>ACCOUNTING &amp; TAX FEES</Category>
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      <AccountingFees>
        <Category>1901 N AKARD ST</Category>
        <Amount>1500</Amount>
        <NetInvestmentIncome>1500</NetInvestmentIncome>
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    </AccountingFeesSchedule>
    <CompensationExplanation documentId="RetDoc5">
      <Compensation>
        <PersonName>PAULINE S NEUHOFF</PersonName>
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      <Compensation>
        <PersonName>NANCY CLEMENTS SEAY</PersonName>
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      <Compensation>
        <PersonName>MARGARET NAPIER</PersonName>
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      <Compensation>
        <PersonName>GEORGE E SEAY III</PersonName>
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    </CompensationExplanation>
    <GainLossSaleOtherAssetsSch documentId="RetDoc6">
      <GainLossSaleOtherAsset>
        <Name>APPLE INC OPTION</Name>
        <DateAcquired>2012-12</DateAcquired>
        <HowAcquired>PURCHASE</HowAcquired>
        <DateSold>2012-12</DateSold>
        <GrossSalesPrice>58390</GrossSalesPrice>
        <Basis>53896</Basis>
        <TotalNet>4494</TotalNet>
      </GainLossSaleOtherAsset>
      <GainLossSaleOtherAsset>
        <Name>PROSHARES SHORT S&amp;P500</Name>
        <DateAcquired>2012-08</DateAcquired>
        <HowAcquired>PURCHASE</HowAcquired>
        <DateSold>2012-12</DateSold>
        <GrossSalesPrice>981911</GrossSalesPrice>
        <Basis>1017616</Basis>
        <TotalNet>-35705</TotalNet>
      </GainLossSaleOtherAsset>
    </GainLossSaleOtherAssetsSch>
    <InvestmentsCorpStockSchedule documentId="RetDoc7">
      <InvestmentsCorpStock>
        <NameOfStock>CORPORATE STOCKS</NameOfStock>
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        <EOYFMV>8871378</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>MUTUAL FUNDS</NameOfStock>
        <EOYBookValue>8313014</EOYBookValue>
        <EOYFMV>8313014</EOYFMV>
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    </InvestmentsCorpStockSchedule>
    <LandEtcSchedule2 documentId="RetDoc8">
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        <CategoryOrItem>BUILDING - 1901 N AKARD ST</CategoryOrItem>
        <CostOrOtherBasis>1504505</CostOrOtherBasis>
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        <EOYFMV>2032050</EOYFMV>
      </LandEtc>
    </LandEtcSchedule2>
    <LegalFeesSchedule documentId="RetDoc9">
      <LegalFees>
        <Category>LEGAL FEES</Category>
        <Amount>20651</Amount>
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        <Description>BOOKS</Description>
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    </OtherAssetsSchedule>
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        <Amount>149639</Amount>
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      <OtherDecreases>
        <Description>RECORD UNSETTLED OPTION LIABILITY</Description>
        <Amount>250000</Amount>
      </OtherDecreases>
      <OtherDecreases>
        <Description>BOOK - TAX DIFF NUSTAR ENERGY LP</Description>
        <Amount>10853</Amount>
      </OtherDecreases>
    </OtherDecreasesSchedule>
    <OtherExpensesSchedule documentId="RetDoc12">
      <OtherExpenses>
        <Description>1901 N AKARD ST</Description>
      </OtherExpenses>
      <OtherExpenses>
        <Description>CONTRACT LABOR</Description>
        <RevenueAndExpensesPerBooks>2236</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>2236</NetInvestmentIncome>
      </OtherExpenses>
      <OtherExpenses>
        <Description>MISC EXPENSE</Description>
        <RevenueAndExpensesPerBooks>7654</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>7654</NetInvestmentIncome>
      </OtherExpenses>
      <OtherExpenses>
        <Description>OFFICE EXPENSE</Description>
        <RevenueAndExpensesPerBooks>9924</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>9924</NetInvestmentIncome>
      </OtherExpenses>
      <OtherExpenses>
        <Description>BUILDING MGMT</Description>
        <RevenueAndExpensesPerBooks>17431</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>17431</NetInvestmentIncome>
      </OtherExpenses>
      <OtherExpenses>
        <Description>EXPENSES</Description>
      </OtherExpenses>
      <OtherExpenses>
        <Description>CONTRACT LABOR</Description>
        <RevenueAndExpensesPerBooks>220</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>220</NetInvestmentIncome>
      </OtherExpenses>
      <OtherExpenses>
        <Description>MISC EXPENSE</Description>
        <RevenueAndExpensesPerBooks>59863</RevenueAndExpensesPerBooks>
        <NetInvestmentIncome>59863</NetInvestmentIncome>
      </OtherExpenses>
    </OtherExpensesSchedule>
    <OtherIncomeSchedule2 documentId="RetDoc13">
      <OtherIncome>
        <Description>FROM NUSTAR ENERGY (PTP)</Description>
        <RevenueAndExpensesPerBooks>33</RevenueAndExpensesPerBooks>
      </OtherIncome>
    </OtherIncomeSchedule2>
    <OtherLiabilitiesSchedule documentId="RetDoc14">
      <OtherLiabilities>
        <Description>UNREALIZED LOSS ON OPTION CONTRACTS</Description>
        <EOYBookValue>250000</EOYBookValue>
      </OtherLiabilities>
    </OtherLiabilitiesSchedule>
    <OtherNotesLoansRcvblShortSch2 documentId="RetDoc15">
      <OtherNotesLoansRcvblShort>
        <NameOf501c3Organization>
          <BusinessNameLine1>SMU UNIVERSITY (BLDG)</BusinessNameLine1>
        </NameOf501c3Organization>
      </OtherNotesLoansRcvblShort>
    </OtherNotesLoansRcvblShortSch2>
    <OtherProfessionalFeesSchedule documentId="RetDoc16">
      <OtherProfessionalFees>
        <Category>INVESTMENT ADVISORY</Category>
        <Amount>58971</Amount>
        <NetInvestmentIncome>58971</NetInvestmentIncome>
      </OtherProfessionalFees>
    </OtherProfessionalFeesSchedule>
    <TaxesSchedule documentId="RetDoc17">
      <Taxes>
        <Category>FOREIGN TAXES WITHHELD</Category>
        <Amount>600</Amount>
        <NetInvestmentIncome>600</NetInvestmentIncome>
      </Taxes>
    </TaxesSchedule>
  </ReturnData>
</Return>