Bulletin: NY000472

Date:
March 14, 2011
To:
All New York State Office Counsel, Managers and Agents
RE:
Oil & Gas Lease / Mineral Rights Affirmative Coverage

The current increased interest in energy production in New York State has resulted in a corresponding increased utilization of oil and gas leases and grants of mineral rights and has given rise to increased inquiries regarding policy exceptions and affirmative insurance in connection with properties subject to these leases and grants.

Any affirmative insurance and/or the issuance of TIRSA Endorsement 9 in connection with Stewart Title policies insuring properties burdened with oil and gas leases or grants of mineral rights, requires a reading of each particular grant or lease (not simply a memorandum of lease). Stewart Title policies can provide affirmative insurance in connection with oil and/or gas leases or grants of mineral rights only to the extent that compensation for loss or damage from surface operations or set-back requirements for surface operations relative to existing or future improvements are addressed within the terms and conditions of the particular oil and gas lease or grant of mineral rights. If a lease or grant provides no recovery for loss or damage for surface operations or does not require a minimum set-back from existing or future improvements, a policy cannot provide affirmative insurance by endorsement or otherwise concerning these matters.

We are aware of both pending legislation and possible future NY DEC regulations in connection with oil and gas leases and mining operations but, until the picture becomes clearer, Stewart Title must continue to require a case by case review of the specific terms and conditions of each particular oil and gas lease or grant of mineral rights to determine the extent of any affirmative coverage in our policies relative to any lease or grant.

Terms of Affirmative Coverage for Oil & Gas Lease / Mineral Rights

(Click to view)

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None