Woodwind Lakes subdivision built on oil and gas field turns on neighbor who pointed out the contamination

"I can only speak with regards to ChevronTexaco," Jacobson said, "and I can tell you Chevron does not want to buy the house."

The discussion eventually shifted from health risks to property values. The number of homes for sale in Woodwind Lakes shot up in 2003 from 15 to 35, according to residents. Some homeowners, they said, did not want to know about the site's history so they could avoid the burden of having to provide disclosures to potential buyers.

Toward the end of the meeting, a homeowner unnamed in the transcript asked: "Do we have to disclose if Chevron finds nothing?"

Jacobson: "Am I a real estate attorney? No. So I don't know the answer...I would think that you would disclose that this was -- this was a gas plant and an oilfield and we had appended property, or my neighbor's property was tested and we have a report that shows that the area does not pose unacceptable risk. I would think if you don't disclose that, you might...end up having a deceptive trade practices act filed against you later."

The homeowner: "So everybody in this room that bought a house had something deceptive..."

Jacobson: "You know, I could be misspeaking completely. I'm a geologist, I'm not...just retract what I just said. Talk to your attorney."

The Phillipses followed the advice and immediately contacted Paul Waldner, from the law firm of Vickery & Waldner, LLP, who sent a letter dated June 6, 2003 threatening to sue the oil and gas companies, the homebuilders, the developer and the title company alleging gross negligence, breach of contract, civil conspiracy and fraud.

Waldner's letter also cited Julie Sample, a sales agent for Coldwell Banker United who has lived in Woodwind Lakes since 1994 and sold more than 100 homes in the subdivision -- many with no disclosures. Sample is currently a defendant in a separate lawsuit now pending in Harris County 113th District Court. The suit alleges that in June 2003, Sample sold a house in Woodwind Lakes that sits directly atop the old Delroc refinery without providing adequate disclosures. Sample declined to comment on the suit via her attorney.

The Phillipses and Sample were next-door neighbors and longtime friends. Sample claims she didn't know the area was a former oil and gas site until after the community meeting in 2003, but Robert Phillips and many other residents remain skeptical. "She did what she needed to do to turn over houses in that area," Robert Phillips says. "She's no longer somebody I value to have in my life."

The Phillipses offered to release all parties of liability in exchange for $3.5 million, according to Waldner's letter. But they were bluffing. The suit was never filed; no compensation was made.

The Phillipses drew up a short disclosure and moved to Pearland. Their house sold fast, for a modest profit.

For Paul and Cheryl Anderson, leaving Woodwind Lakes was no easy task. Eight realtors declined to even list their property due to liability issues.

John Oyen, the homeowners association president and the Andersons' next-door neighbor, briefly put his own house on the market during the same period in 2004. Oyen claims the Andersons interfered with his house sale by giving realtors stacks of information regarding the environmental investigations. Paul Anderson says he was surprised residents weren't already providing disclosures.

After several months, Paul Anderson sent an e-mail to many of his detractors in which he promised to leave Woodwind Lakes if they could produce somebody to buy his house at market value. Two weeks later -- whether by coincidence or design remains unknown -- a married couple materialized with an offer.

On July 29, 2005, the Andersons finally closed on the sale. They felt euphoric about the prospect of moving away from Woodwind Lakes.

But when the Andersons returned home, they received copies of a mass e-mail sent out that same morning by Marianne West. It read: "Some if [sic] you may already know this, but Paul Anderson's house has sold and they moved out yesterday. I don't have any other information. Of course, there is a lot of speculation as to whether there was a foreclosure or a marital split. Please feel free to spread this news around the neighborhood."

Enraged, Paul Anderson e-mailed Marianne West later that night: "we are still quite happily married, you are wrong on the foreclosure, and the only disclosure we forgot to give to our new buyers was what a wretched vile gossip you are Marianne. Mouth of the South. And Findley, you are a weak man."

A few days later, Findley West shot back with a venomous 2,000-word response:

First, Findley West defended his own manhood: "I am still fairly strong and can still bench-press over 200 lbs even with my long arms..."

Then he assailed Paul Anderson's: "Simply put, you are weak, you are a coward, you are a liar and you are gutless. Oh, I almost forgot........you are a loser."