Cartoon Texas in SpongeBob?

Well, I was watching Sleepy Time yesterday and was watching the part with Sandy's Dream, and when I paused it at certain points, it looks alot like Texas and where the target was seemed like a crowd like the crowd from Rodeo Daze. Even when Sandy fell in the Clam Manure, I saw a cactus in the background. I don't know, I just never really thought of this until now.

It's likely that it was Texas in her dream, the skies in the image you posted make it obvious that it's definitely not underwater, although that does make me wonder about the "Clam Manure."