The incident happened about 2 p.m. June 9 off the shore from LBJ Yacht Club and Marina, 200 Wirtz Dam Road, where the recreational vessel initially launched.
“They were leaving that area and got away from the marina a little ways, and (the boat) caught fire,” Horseshoe Bay Fire Chief Joe Morris said. “Something that is great is bystanders picked up the occupants out of the water and returned them to the marina for first aid.”
A Horseshoe Bay fire crew used a police boat to move the watercraft to a spot where they could call on other crews to douse the blaze.
“It was out in the middle of the lake,” Morris said. “We took the police boat and went out there and towed it to the north side of the lake.”
Crews from the Marble Falls Volunteer Fire Department and Granite Shoals Fire Rescue doused the fire in an area known as Sunset Point in Granite Shoals.
“In order to extinguish it, we had to tow it to shore. It took on water. The hull started separating, and it sunk,” Morris said.
Officials made the effort to extinguish the fire to mitigate environmental issues.
“All the fuel and oil, we try not to contaminate the lake,” Morris said.
Participating agencies included the Lower Colorado River Authority and the Texas Parks and Wildlife Department.
The cause of the fire is under investigation.
“It’s not suspicious at all,” Morris added.