- October 30, 2009
- All Texas Issuing Offices
- Oil and Gas and Other Minerals Supplement
We have been receiving many questions on the oil and gas endorsements and rules that go into effect November 1, 2009. Accordingly, we have posted a set of questions received and our answers on stewarttexas.com.
One question which requires special attention concerns lands subject to leases for coal, lignite, uranium and similar materials. The question and our response are reproduced in this bulletin.
Do you consider coal and uranium leases to be in a different category than oil and gas leases? Are you really willing for those leases to be excepted to (or not excepted to) in conjunction with the P-5.1 general exception, resulting in a possible mandatory T-19.2 or T-19.3 insuring against destruction of a present or future house by open-pit mining? Yes such leases are different and we will not give the option of T-19.2 or T-19.3 in such cases. Especially if there actually are such leases outstanding (which should be in the last 30-40 years) and definitely would not give such coverage on acreage property, since the existence of such lease could lead to destruction of improvements. So unless there was some limit on surface use in the lease, or unless we had good evidence that the lease had terminated, we would decline to give T-19.2 or T-19.3 coverage. We would also decline to provide coverage in a T-19 or T-19.1 where there are such leases, since coal and lignite can be a mineral depending on the facts (whether near surface).
If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
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.
- Bulletins Replaced:
- Underwriting Manual:
- Exceptions Manual: