Acquiring Minerals Coverage for Lender

While TerraPro Solutions specializes in wind, solar, and energy storage, we also work on other forms of energy projects. We were engaged on a 829-megawatt gas-fired plant in Pennsylvania where the lender required minerals coverage as part of the financing — a specialized type of insurance that is distinct from typical energy project title insurance.

The challenge was significant: there was active coal production within the vicinity of the plant, creating a complex risk environment that standard title insurers were not prepared to simply accept. Securing coverage required a deep understanding of the local mining activity, subsurface rights, and the specific risk tolerances of the title company.

TerraPro Solutions led a strategic negotiation with the title company, working through all the parameters of the project and the nearby coal development activity. Risk title insurance is fundamentally about allocating risk between the project and its stakeholders — and this required detailed analysis of every piece of the picture.

We analyzed the coal development that was occurring, its proximity to the plant, the nature of the subsurface rights in question, and the specific coverage requirements of the lender. Through those negotiations, we built a case for why the title company could issue the coverage — and on what terms.

The minerals coverage was successfully negotiated and issued, satisfying the lender's requirements and enabling the project financing to close. For a project exceeding one billion dollars in value, this coverage was not optional — it was essential to the deal.