Acquiring Minerals Coverage
Acquiring Minerals Coverage for Lender
While we specialize in wind, solar, and energy storage projects, we do also work on other forms of energy projects and we did work on a gas fired plant in Pennsylvania, 829-megawatts. Where the challenge we had there was to be able to ensure that the lender was able to get the minerals coverage. And this coverage is apart from the typical energy project. And there’s quite a bit of a challenge because there was some active coal production within the vicinity of the plant for which we were seeking the insurance. So, it’s a very strategic negotiation and discussion with the title company in terms of understanding all the different parameters of the project.
Helping to negotiate the risk title insurance is all a matter of allocating risk between the project and the different stakeholders. And so, we had to undergo those negotiations, we had to understand the different pieces of the project, the actual coal development that was going on in order to be able to successfully negotiate that title insurance for the project. Which we were able to do. A project of this magnitude exceeds one billion dollars.
Minerals coverage is a specialized type of insurance that protects lenders against mineral rights being transferred with the property.